Gold River businesses lose leases during the holidays

Normally during the holiday, Sacramento-area businesses decorate their offices, compile year-end financial numbers and perhaps plan an office party.

Not so at 2377 Gold Meadow Way, Suite 100, in Gold River, home to nearly 50 business offices.

They've been told to move out by Dec. 14.

Businesses at the Gold River office building received formal, written notice that the center would be closing in a Nov. 2 letter from Regus Management Ltd.

Regus is a multinational corporation that provides office accommodations in business centers worldwide.

Businesses in Gold River make lease payments to Regus, which in turn made lease payments to Roseville's Pacific Capital Management, which manages the property.

The Nov. 2 letter said "Regus will not be renewing its lease agreement" and would meet with affected businesses about moving to a nearby Regus location in Folsom.

Regus lists seven business centers for the Sacramento region on its website, including one at 1024 Iron Point Road in Folsom. The Regus letter also offered to assist Gold River businesses with packing and moving.

However, some Gold River business operators have objected to what they call short notice and the prospect of moving at year's end. The businesses, which are not obligated to stay with Regus, also said changing phone numbers and addresses would likely create confusion among clients and customers.

"The effect is devastating," said Stacey Castle of Castle Communications Inc. "We were given only six weeks to find new lodgings at the end of the year, when most of us are busy trying to wrap things up.

"It is true that (Regus) offered to help (businesses) move, but this is very stressful. The transition has not been handled well … . People are just in a panic. If we had been given more time, that would have been helpful."

Castle said "the fine print" in lease documents signed with Regus allows the current action if the master lease is terminated. "But," she added, "that's not much help for (business owners) trying to figure out what to do in such a short amount of time."

Grant Greenberg, North American spokesman for Regus, said Regus' decision not to renew its lease agreement in Gold River was simply a business call: "We have a couple other newer and better locations in that market. There are better options … . And we're happy to help relocate (the businesses)."

Gold River businesses have reached out to Business Central, which developed and previously occupied the building and currently leases office space at other sites in Sacramento and Folsom.

Tom Tenge, co-owner and executive vice president of the locally based office developer, said Business Central is trying to help the affected businesses by hopefully taking over the leasing arrangements as of Jan. 1. He said those efforts and discussions are ongoing.

However, the Gold River businesses are stuck in limbo as to what to do from Dec. 14 to Dec. 31. Business operators say they are attempting to work out a solution for that period with Regus.

"We're hoping things will work out," Tenge said. "Our intention is to help, and we are 100 percent ready to do that. It just makes so much sense for us to go back in and run it. They all are nice people who want to stay."

Thomas Cologna, a principal with Gold River property manager Pacific Capital Management, said "we want to help those tenants who want to stay," but "we understand that some tenants might want to seek other options with Regus."

Cologna, who noted that Regus' lease termination has followed the letter of the lease terms, said he's willing to work with both Regus and Business Central to help "those tenants who wish to stay" in the Gold River building.

"There were negotiations, and I had hoped that we could keep Regus in the building," Cologna said. "They are doing what they are entitled to do, but if you're one of Regus' subtenants, you might not be too happy."

• Read more articles by Mark Glover

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