PIZZA CORNER LOSING KING OF DONAIRS ANCHOR IN MAY

9/28/12
Pizza Corner losing King of Donairs anchor in May | OpenFile
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PIZZA CORNER LOSING KING
OF DONAIRS ANCHOR IN
MAY
REPORTED BY
JACOB BOON
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The King of Donairs franchise's lease at 1560 Grafton Street ends May 31, and won't be renewed, courts heard
yesterday. (Photo by Aaron McKenzie Fraser)
REPORTED ON
January 18, 2012
Documents from the King of Donair court case
Thursday, January 19, 2012
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Pizza Corner losing King of Donairs anchor in May | OpenFile
After anchoring the intersection of Grafton
and Blowers for more than 20 years, King
of Donair will not have their lease
renewed* on Pizza Corner at the end of
May.
That news came late last night during an
extended session of small claims court
between King of Donair owner Bassam
Nahas, and landlord John Manolopoulos.
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The hearing, which started at 9:00 p.m.
Friday, December 30, 2011
and went past 11:00 p.m., included
comments from both men that their
business relationship, which has existed in one form or another since 1992, will be ending
before the summer. (Here's a selection of court documents and testimony.)
“Mr. Nahas' lease is up at the end of May 31, and I gave him notice to leave,” Manolopoulos told
the court. “I've had problems. I don't want to do any more business (with Nahas).”
“I did give him six months notice,” Manolopoulos noted to adjudicator Michael O'Hara. “I figure I
was considerate.”
It wasn't a sentiment shared by the claimant, who was seeking the maximum allowable amount
of $25,000 from Manolopoulos.
“We spent, and renovated the shop, and spent almost $40,000 to put in new floor, new
plumbing, new electrical, and so on,” Nahas said. “Now, Mr. Manolopoulos served us notice that
he wants his building, the shop, back at the end of May.”
Nahas stated that he currently pays a yearly rent of $46,800 to Manolopoulos for the 1560
Grafton Street location.
Reading plainly from his prepared statements, Nahas claimed that in March 2010 it was
discovered the building that houses King of Donair needed what turned out to be $7,200 in
repairs and renovations. The restaurant also closed down for five months, leading to a loss of
rent and franchise fee for Nahas' King of Donair Investments equal to $25,500.
The repairs were needed after a
March 1, 2010 visit from the
Department of Agriculture's Food
Protection and Enforcement
Division, which found inadequate
washroom facilities and floor
conditions.
King of Donair was ordered to
close and fix the problems, but
once the floors were taken off, it
was discovered the building had
corroded pipes, rotting floor
joists, and a basement halfflooded with both water and what
Nahas claimed was human
waste.
While not debating the existence
of the structural damage,
Manolopoulos argued the
1580 Grafton Street's food safety inspection report
deteriorating condition of the
building was caused from
improper care of the pizza restaurant's grease trap. Nahas disagreed.
“There's some grease traps, they go for years, two years, you never have to open them up,” he
told the court. “I've operated several shops. Some of them, you could tell when the water
doesn't go through, you have to open them up. That's places that have fried food, fryers, and
grease and so on. (King of Donair) doesn't have that.”
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The minutiae of grease trap operations was just one of many, lengthy segues the two-hour plus
hearing took in between often tense back and forth between claimant and defendant.
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At numerous points, Nahas stressed a major problem with the building was its rodent
population, which, despite his best efforts to eradicate the critters, he claimed continue to plague
his establishment “today, as we speak.”
Adjudicator O'Hara, who had the difficult task of sorting through the volumes of statements and
photos submitted by both parties, noted there seemed to be some negligence on both sides, but
reserved his decision to allow time to go over the evidence and notes more thoroughly.
“I'm sorry I bored you and aggravated you,” Nahas said to O'Hara near the end of the hearing.
“You didn't bore me,” O'Hara replied.
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In a separate case, filed at Supreme Court in October, Nahas sued
Grafton Street KOD franchisee Paul Keefe, claiming unpaid rent to a
sum of $20,000. Nahas also alleged Keefe failed to “maintain the quality
and uniformity of King of Donair outlets and to adhere to the stated
standards associated with the goodwill and name of King of Donair.”
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Edmontonian Keefe quickly counter-sued, but according to a Jan. 5
letter by attorney Rebecca Hiltz LeBlanc, both parties have since
reached a resolution outside of court.
Manolopoulos' family has owned the three story, multi-use building on Grafton Street since his
father, Constantine Manolopoulos, opened the Hillcrest Grill at the spot in 1959. The Grill closed
in 1980, and was home to several short-lived food ventures before King of Donair moved in later
that decade.
Both Nahas and Manolopoulos will be back in small claims court Jan. 31 to face off against
each other again regarding another, separate claim.
* CORRECTION Jan. 19, 2012: This sentence has been changed. An earlier version
incorrectly called the pending departure of the King of Donair franchise at 1560 Grafton Street
an "eviction." Technically, KOD is departing because their lease is not being renewed by the
owner. OpenFile regrets any confusion this may have caused.
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Bassam Nahas purchased the King of Donair company in 1990 from
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