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South Crouse Development Project

Chuck’s to stay open rest of semester, but long-term future in jeopardy as landlord says it has cut off negotiations

Ally Moreo | Photo Editor

Chuck's is located at 727 S. Crouse Ave., where a construction project has been approved that will require the demolition of the bar.

UPDATED: March 24, 2017 at 8:40 p.m.

Hungry Chuck’s new landlord says it has cut off negotiations with the student-favorite bar, allowing the bar to remain open in its current space for the rest of the semester, but jeopardizing its long-term future on the Hill.

Chuck’s owner Steve Theobald, though, claimed the landlord, Syracuse 727 LLC, has so far only threatened to cut off negotiations.

Jared Hutter, co-owner of Syracuse 727 LLC, said that as a result of negotiations being cut off, the entire South Crouse Avenue construction project — which would see the demolition of the building where Chuck’s is located — has been delayed.

After months of negotiations, the two parties were unable to reach a buyout agreement that would have closed Chuck’s before its lease ends in August and allowed developers to begin construction for an eight-story mixed-use building. Hutter said that instead of Chuck’s opening in August 2018, as previously projected, the bar will now not be able to open until 2019-20, given the delayed construction.



“They are trading a month for a year which is truly stupid, and ultimately hurts the students,” Hutter said.

Syracuse 727 developers are planning an 18-month construction project that will see the demolition of the structures at 727 S. Crouse Ave. and the construction of apartments and new retail businesses. Chuck’s is the only tenant that has not evacuated the premises at 727 S. Crouse Ave. in advance of the construction project.

Hutter said his team originally offered Chuck’s rent that was “well below” market value, but now if Chuck’s plans to move into the mixed-use building following construction, the rent will be increased by 30 to 40 percent. He said that he respects Theobald’s vision for the bar, but that his negotiations were “ridiculous.”

RELATED: To keep Chuck’s open until May, owner files a temporary restraining order against landlord

Theobald said that this at least the third time that Syracuse 727 LLC has threatened to quit negotiations and walk away.

“That is an effing strong arm tactic and that is indicative of the sh*t that they have been pulling off for f*cking weeks,” said Theobald, speaking on the potential rent increase. “I feel like I’m about to cry.”

Theobald said almost all the negotiations, including the rent, were settled weeks ago, but that “a gulf remains” in the money for a buyout offer. He values his bar’s brand, and fears it could suffer if the bar were to close before graduation.

He repeatedly said that he wanted to do what was best for the students, and that throughout this process he has felt “swindled and pimped.”

Syracuse 727 LLC absorbed a multi-year lease with Chuck’s, and by law must offer the bar a spot in the new space.

This decision comes on the heels of a temporary restraining order over an asbestos abatement that Theobald filed against Syracuse 727 LLC, which is principally owned by BLVD Equities, earlier this month.

RELATED: Project that would demolish Chuck’s moves forward as city agency approves tax breaks

Syracuse 727 LLC requested in late February to do an asbestos abatement for the property and planned to move forward with it on March 10. But Theobald refused to comply with the abatement due to the concerns over when the bar might reopen, and the potential damage it could cause the Chuck’s brand during what Theobald said is the bar’s busiest time of the year. He filed the restraining order days before the scheduled abatement, temporarily putting it on hold.

The project developers are required to conduct an asbestos abatement in the building before moving forward with the construction project.

The two parties are set to appear in Onondaga Supreme Court on Tuesday to present oral arguments at a hearing to determine when the abatement should take place. But Hutter said the outcome of the hearing is irrelevant to him, as his company will now wait until Chuck’s lease is terminated in August to do the abatement.

Hutter added that Theobald was telling a “flat-out lie” by claiming that he hasn’t been given any details about the abatement process. Hutter said that one of his contractors did a tour of the bar and explained exactly what needed to be done for the abatement. Theobald said the walkthrough for abatement didn’t happen until after he filed the lawsuit.

Theobald has also said the abatement would require the bar to at least temporarily close down, but Hutter said the abatement was going to happen during spring break and that Chuck’s could have opened asbestos-free for students.

RELATED: #SaveChucks trends among SU students and alumni amid possible demolition of Chuck’s Cafe

Hutter said he knows he will be painted as a “villain” as the developer, but that his team has been nothing but “gentlemen” throughout this process. He constantly reiterated that Syracuse 727 LLC offered Chuck’s a fair buyout and rent below market value.

“I will sleep well at night knowing that I did everything I could to get this deal done,” Hutter said.

Hutter said that at some point he realized that a deal would not be reached, and that the company is no longer willing to speak with Theobald about a buyout.

On Thursday night, Theobald led students at the bar in an impassioned chant of “Hell no, we won’t go!”

CORRECTION: In a previous version of this post, the year Jared Hutter, co-owner of Syracuse 727 LLC, said was initially projected for the South Crouse Avenue development project was misstated. Hutter said that instead of Chuck’s opening in August 2018, the bar will now not be able to open until 2019-20, given the delayed construction. The Daily Orange regrets this error.





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