Hey guys, I don’t know if this is the right place for this but, the plaza where my dad’s store is located is being demolished for some sort of subway. The city is willing to compensate my father and cover the moving costs, lease for a few years etc.

My dad is getting older (it’s an installation business) but currently he’s fine. The majority of his customers are from the same community/ethnic background.

I don’t know much about leases and such but my dad is unsure of what to do. The city is voluntarily showing him new relocation sites and I just wanted to ask what u guys think. Should he continue to run the business until I and my brother are able to take the reigns, or should he settle for a lump sum? Some store owners in the plaza have chosen this option and believe they could have received more. Would this be because tax takes away a significant amount of the total lump sum?

Also, I wanted to know if it’s possible for him to run the business for a few years and:

- If it is profitable, continue to run it (I hope to help once I am done studying)

- If it is unprofitable sell it prior to the lease expiration (is this possible?)

I would appreciate any other advice you guys can offer My dad is a little stressed and I wanted to just help him explore some other options before making the big decision

Some other info:

- The store is in Toronto, Ontario

- It is a retail installation business

- I am a second-year finance student (go easy on me plz)

- If u need any other info plz let me know. Thanks

  • SBN03OPBEnglish
    1·
    1 year ago

    Hey u/asandysandstorm, thanks for your prompt response, I really appreciate your help. Yes, he does have a lawyer (u could consider him a friend of a friend) and while I don’t know what type of law he specializes in, I do believe he has some experience in real estate, leases etc. He is in talks with the city and was able to guarantee in writing that the city will cover the following costs if we are to relocate:

    • Loss of Sales
    • Abatement costs
    • Professional fees
    • legal fees
    • etc.

    Apart from this, I wanted to ask, is it possible to receive a settlement periodically, say monthly? I think that receiving compensation as a lump sum is not optimal because it’s hard to create budgets with and I think that you lose more in taxes right? But if we were to go for the settlement, in your opinion, what is the best way we can be compensated? Once again, I really appreciate all your help. Thank you.