Student-favorite bar Hungry Chuck’s has filed a lawsuit in Onondaga County Supreme Court seeking to prevent the bar from being forced out of its current space.

Landlord and developer Syracuse 727 LLC served Chuck’s with a termination notice last month. Developers need Chuck’s to vacate its property to move forward with a project that would see the demolition of the structures at 727 S. Crouse Ave. — where Chuck’s is located — and the construction of an eight-story building.

Chuck’s is challenging the lease termination because it does not believe that Syracuse 727 LLC has the necessary permits to begin construction, may not have the necessary financing to support the project and may not yet hold a title to one of the properties where the project will be built, according to the lawsuit.

Jared Hutter, co-owner of Syracuse 727 LLC, said those claims were “absolutely false” and that he would let the courts “handle that.”

Hungry Chuck’s owner Steve Theobald was unable to comment on the section of the lawsuit pertaining to the termination notice. If the Onondaga County Supreme Court grants Chuck’s request to have the notice ruled invalid, the construction of the project could be further delayed.

Syracuse 727 LLC developers are planning an 18-month construction project that will see the construction of apartments and new retail businesses.

The new landowner can serve a lease termination “in the event of a major renovation or expansion,” and if the client is given a six-month notice, according to the lawsuit. Chuck’s is claiming that developers can’t currently serve the termination because they aren’t yet able to move forward with the project.

Syracuse 727 LLC, the bar’s new landlord, served the termination notice on Feb. 28, giving Chuck’s six months, until August, to evacuate the premises.

The two parties are set to appear in Onondaga Supreme Court on Tuesday to present oral arguments regarding Theobald’s temporary restraining order regarding a pending asbestos abatement.

The hearing will determine if Syracuse 727 LLC has legal grounds to begin the asbestos abatement, which would temporarily close the bar, without Chuck’s permission. Theobald said it was unclear if the lease termination notice would be discussed on Tuesday, and that he would need further clarification from his lawyers.

Syracuse 727 LLC absorbed a multi-year lease with Chuck’s and by law must offer the bar a spot in the space that will exist after construction. But in recent weeks, negotiations over a buyout have soured, creating tension between Theobald and the developers.

Hutter told The Daily Orange on Friday he has cut buyout negotiations with Chuck’s. A buyout would have closed Chuck’s before its lease ends in August and allowed developers to begin construction. Instead of Chuck’s reopening in August 2018, as previously projected, the bar will now not be able to reopen until 2019-20, given the delayed construction, Hutter said.

Theobald said these were only threats, and that he and Hutter have had further negotiations regarding the buyout. Theobald said the threat of raising the price of rent is another “strong-arm tactic” used by the developers to force him out before the end of the semester.

Theobald said the developers must offer a “reasonable price” for rent, and that a judge would be able to decide if the rent hike was too high or “unreasonable.” He added that rent negotiations and buyout negotiations are separate, but that developers often try to lump them together.

The bar owner claims that the landlord has ignored requests to plow the alley, pick up rotting garbage outside Chuck’s door and to fix leaks inside the bar. Theobald views these as attempts to get him to agree to buyout negotiations.

Hutter denies these claims, and said that Theobald’s negotiations have been “ridiculous.”

“I heard rumors that he was telling people that he never intended to leave, and that just shows that he never took the buyout negotiations seriously,” Hutter said.

For Hutter, the next couple of months are vital to the demolition and construction of his project. For Theobald, the end of the semester is the busiest time of year. Both have said they are trying to do what’s best for students. But they can’t agree on what that looks like.

Chuck’s graduation party is a cornerstone in the senior experience, and Theobald wants to keep that thread going by remaining open.

Hutter sees the mixed-use complex as a chance to give the Marshall Street area a “major facelift,” and to make the South Crouse Avenue alley a bustling hub of student life.

Their timelines and negotiations haven’t lined up and, as Theobald describes, a “gulf” exists between them. That gulf jeopardizes the future of Chuck’s.

Hutter said that there’s nowhere else Chuck’s can go on the Hill – there’s no space – and that continued strained relations could affect the student experience. An increase in rent could mean an increase in drink costs, or could push the bar out of the building altogether, Hutter said.

“We don’t know if he will come back or not. We will offer him a lease later on. We are legally obligated to, but Chuck’s won’t be the same,” Hutter said.  “It can’t be.”

Published on March 26, 2017 at 9:46 pm

Contact Jacob: jagedets@syr.edu