Dockland tenants look for leeway

THE DUBLIN Docklands Development Authority has initiated six sets of High Court proceedings against tenants since November 2008.

Five of the legal actions have been against tenants in the CHQ Building, where retailers and other tenants have been badly hit by the recession.

Tenants of the authority who spoke with The Irish Timescomplained about its attitude which, they said, is provoking an undue number of disputes.

While most did not want to be named, Dieter Bergmann, operator of the Riva Restaurant on Hanover Quay, which has now closed, claimed the authority had become more “bureaurcratic” since there were sweeping changes at executive and board level in 2009.

He settled a legal action with the authority late last year when he agreed to hand back his premises in a dispute over unpaid rent. He said he was asked by the authority to sign a confidentiality agreement but refused to do so.

Mr Dieter said his restuarant could be profitably run now that the Grand Canal Theatre was open, but he wanted his rent to be reduced to about €50,000 per year from more than €80,000 he agreed back in 2006. “I think they need to give the traders more leeway.”

He agreed his relationship with the authority was fraught and that he only made one rent payment since he opened in May 2008, but nevertheless thought the two sides could cut a deal.

Another tenant who did not want to be named said numerous businesses on both sides of the Liffey were fighting with the authority. He said a lot of businesses had agreements with the former authority which were not properly documented, and the new authority was insisting on the terms that were documented.

He said traders believed that a number of parties had settled actions with the authority and had signed confidentiality agreements while doing so. The disputes between the authority and tenants was not restricted to retail outlets and included financial services firms, he said.

Another source with a service business in the docklands said other outlets would close if the authority did not adopt a more accommodating attitude. He said the State body needed to take commercial decisions that allowed stressed businesses to survive.

A spokeswoman for the authority said there were “a number of debts outstanding to the authority which it is vigorously perusing and it would be inappropriate to comment further”.

She had no response to the views expressed by Mr Bergmann or to a query as to why the authority might be seeking confidentiality agreements.

Courts Service records show the authority initiated proceedings against Meadows Byrne Ltd in November 2008.

In 2009 it initiated proceedings against Jermyn Street, Riva Restaurant Ltd and Nue Blue Erin Franchising International Ltd.

In January 2011 it initiated proceedings against AMB Trading House Ltd, operators of the Ely Bar Brasserie chain, and Carphone Warehouse Ltd. Both these businesses have outlets in the CHQ building.

In October 2010 a judgment for €75,000 was registered against Jermyn Street on behalf of the authority, which was owed rent.

Restaurateur's Heartache: 'I've lost everything'

GERMAN RESTAURATEUR Dieter Bergmann fought back tears when telling of the closure of his Riva Restaurant on Hanover Quay, in the Dublin docklands.

“I’ve felt suicidal at times. I’ve lost everything.”

Ruefully he notes that a roadway onto the quay is called Misery Hill. “This used to be an island. A leper colony.”

Bergmann came to Ireland from Germany 30 years ago and thinks he will now return there. “It’s booming in Germany, luckily enough. Though it’s not easy to start again when you’re 60.”

While sitting outside telling the story of his restaurant, a number of men were stripping it and loading its contents into vans.

“I put it on the internet. Said they can have it all for nothing. Just to take it away.”

During the boom years Bergmann ran the Il Primo restaurant on Montague Street, close to St Stephen’s Green. “Everyone came there. Johnny Ronan. Bertie Ahern.”

He says he got more than €1 million when he sold it in 2006.

The former director of the docklands authority, Angela Cavendish, suggested to him that he open a restaurant in the Grand Canal Docks development and in September 2007 Bergmann signed a lease for a south-facing premises on Hanover Quay.

Snags stopped the restaurant opening in time for Christmas, then the kitchens suffered water damage, then there were delays to the completion of the nearby theatre, hotel and apartment development.

Throughout 2009 he struggled, operating a restaurant in an area that was still under construction. In late 2009 the authority initiated proceedings against him for unpaid rent.

In March 2010 the Grand Canal Theatre at last opened, and turnover improved. Bergmann was now able to keep his business afloat, but wanted the authority to cut a deal to take into account the delay in the late opening of the theatre, the water damage, and the disruption from building.

No deal was reached and last month he agreed to vacate the premises. A liquidator will be appointed to Riva Restaurant Ltd, which he owns along with businessman James Bowen. Fifteen staff have been left go.

“The Revenue, myself and the docklands will be the biggest losers.”