Popular Canal District bar Cafe Neo sues landlord over lease renewal
Cafe Neo has sued its landlord, I.T.C. Realty Corp., in Superior Court, seeking to renew the lease at its Millbury Street location and stay in business.
The popular Canal District bar, which is also known for its free Thanksgiving Day meals, will come before the License Commission Thursday morning to discuss the lease, and owner Panagiotis “Peter” Tsigas, is asking the community to show up in support.
“I have owned Cafe Neo for over 25 years. A lot of people tell me that Cafe Neo is a special place,” Tsigas wrote in a Facebook post. “You made it a special place. I couldn't have done it without you. I appreciate your support for all these years. My attorney says that public support is helpful. I will appreciate it if you could attend the hearing and show your support.”
The lawsuit details several years of a relationship between Tsigas and I.T.C principal Ignatius Chang, which included the 2008 sale from Tsigas to Chang of the Cafe Neo building, and alleged subsequent discussions over the years for Tsigas to buy back the building, as well as at least one subsequent business partnership that never came to fruition.
The suit also involves disputes about the extent of damages caused by leaks in the building and disputes over access to the building. Cafe Neo also alleges that Chang harmed the business by not relaying information about the impacts of construction at Polar Park and that Chang intends to open a competing establishment and “divert” Cafe Neo’s customers.
But the immediate issue involves Cafe Neo’s lease, which expires Jan. 31.
According to the lawsuit, Tsigas had a verbal agreement with Chang in the spring to extend the bar’s lease at the Millbury Street location.
“Mr. Chang stated that I.T.C. would renew the lease, although the rent would increase by some amount,” Tsigas’s attorney wrote in the lawsuit. “However, Mr. Chang stated that it was ‘too early’ to discuss the renewal and that the lease renewal terms would be discussed at a later date.”
In anticipation of the alleged agreement, Tsigas said he abandoned plans to move the business to 202 Millbury St., despite having plans drawn up for renovations and receiving licenses to operate from the Licensing Commission in Jan. 2021.
However, I.T.C backed out of the allegedly agreed-upon lease renewal in September, according to the complaint, advising Cafe Neo not to renew its liquor license because the lease was not being renewed.
In court documents, I.T.C. Realty Corp. “denies that Mr. Chang ever promised to renew the lease.” It also denies that it intended to divert customers from Cafe Neo and that it did not relay information concerning Polar Park.
Attorneys representing both parties could not be immediately reached for comment Wednesday morning.
This article originally appeared on Telegram & Gazette: Popular Canal District bar Cafe Neo sues landlord over lease renewal
