City merchants fight for lower commercial rent levels

<BR>The St. Petersburg Merchants' Club, a special interest group representing retail businesses citywide, recently sent a list of proposed amendments concerning a new local law to the city's Legislative Assembly and KUGI, the municipal committee responsible for government property issues. According to the Merchants' Club, if this new city ordinance, which sets the guidelines on determining rent levels for state-owned, municipal commercial real estate, remains unchanged, retail business owners will be forced to pay more rent and, consequently, have to raise prices on all their goods by no less than 200 per cent.<BR>Thus, the law will effect the consumer who will ultimately be forced to pay higher prices for the retail sector's higher rents. Moreover, some businesses will be forced to close their doors, while others will continue to operate under more questionable terms. The Merchants' Club has received full support in their endeavor from the Petersburg and Lenoblast League of Commercial Entrepreneurs, as well as from the Taxpayers' Association.<BR>Members of the special interest group believe that grocery stores whose food stuffs inventory (excluding alcoholic beverages) totals 70 percent and, likewise, bakeries, dairy, meat and vegetable stores whose inventory amounts to 50 percent of all products offered, should receive a rent allowance of 30 percent.<BR>The organization has also asked that a number of factors be taken into account, which were not included in the present ordinance, to determine commercial rent levels. In particular, proposed was to create several different rent rates depending on whether the real estate in question is commercial or storage space. Likewise, members of the Merchants' Club support rent reductions for businesses during periods of renovation or restoration of their commercial sites. In addition to these proposed changes, the organization feels that, due to the current state of economic instability, such an ordinance should not be introduced until the year 2002.<BR>According to Deputy Konstantin Serov, representatives from the small business, food processing and federal postal service sectors have also addressed the Legislative Assembly about this issue. Furthermore, Serov explained that during the first quarter of the year the city's assembly will determine what categories of business will be granted rent allowances. At present, only businesses selling baby products or books are considered worthy of receiving these allowances.