Two months ago, hairstylist Lenore Ronci would have never guessed she would be forced to leave the Thayer Waterman LLC Building - a space she's called home for 25 years. But an abrupt eviction has left Ronci, owner of Chez Lenore hair salon, looking for new space to rent on College Hill.
Ronci said Kenneth Dulgarian, the building's owner, did not have written leases with tenants on the second floor. She told The Herald in November that Dulgarian previously said he "doesn't really believe in leases," leaving her without one for the past 20 years.
While Ronci and other tenants thought their rental space was secure, Dulgarian informed them on Oct. 31 that they would be forced to leave by the end of the year, Ronci said. Dulgarian declined to comment for this article.
Although this scenario is not typical, local commercial real estate attorneys said Dulgarian's actions do not violate the Rhode Island Landlord-Tenant Handbook, which governs real estate agreements.
Scott Summer, a business attorney with the Providence-based firm Montaquila and Summer, P.C., said the rental agreement Ronci described is technically legal. If Ronci did not sign a lease and has no other way to prove she entered into a long-term deal with Dulgarian, then her agreement is "subject to termination by any party on 30 days notice," Summer said.
"Quite frankly, shame on her for not having a lease," he said.
When Ronci asked to renew her lease after her first five years in the building, Dulgarian assured her a written contract was unnecessary, she said.
"He said, 'We have a handshake. Don't worry, you'll be here a long, long time,'" Ronci said.
Barry Kusinitz '71, another Providence-based attorney familiar with commercial real estate issues, said he was surprised such a long-term agreement lacked an official written contract.
"I would think the tenant should have tried to protect (herself) more," he said.
A renter without a lease is called an "at-will tenant," he said, and is assumed to rent the space on a month-to-month basis. Such agreements are subject to termination at any time as long as the landlord provides proper notification, he said.
Summers said that given Dulgarian's business reputation, he believes the eviction was probably executed legally.
"He's a well-known landlord on Thayer Street and he's a smart businessman," he said. "I'm sure he did it right."
The affected businesses occupying space on the second floor include the Brown Entrepreneurship Program, a law office, a communications firm, a marine conservation collaborative and a Starbucks Coffee Company training site. Starbucks and Allegra Print & Imaging currently occupy the first floor of the building, which is located at 212 Thayer St.
Although Dulgarian declined to comment on his future plans for the building, Ronci said she believes the entire second floor will be "broken down" so that Allegra can move upstairs. This process will entail several changes that will alter the character of the building, including demolition of a main staircase so that an elevator can be installed, Ronci said. Allegra's owners declined to comment.
"I can't believe he's going to let go of that beautiful staircase," she said. "At one time, he referred to this as his pet building."
Prior to her eviction, Ronci said her relationship with Dulgarian was positive and largely without conflict.
"I always had a lot of nice things to say about him," she said.
But as his business expanded, Ronci said she believes Dulgarian adopted a more profit-oriented approach in dealing with his clients - one that favored big businesses over smaller tenants.
"His relationship with all of us changed," Ronci said, referring to the smaller second-story tenants.
About five years ago, Dulgarian began adjusting the terms of his rental agreements with these tenants, a process that involved raising rents and refusing to pay for some services he previously covered, such as heating expenses, Ronci said.
Sundari Meacham, a shift manager at Starbucks, provided a kinder description of Dulgarian and his renting practices.
"If anything, he's great," she said. "He goes out of his way for us. If I call him with any problems, someone comes to take care of it the next day. He'll even stop in out of his way if he sees something himself."
Meacham said Starbucks' owners are aware they will have to relocate their second-story training space, although she was not sure when Dulgarian officially notified them.
"I don't know if we had a lease that's ending in January and we're not given the option to renew" or if Starbucks rented the space on a month-to-month basis, she said.
The branch's owners and a spokesperson from the company's corporate headquarters, located in Seattle, declined to comment for this article.
While Meacham said she heard the space may be used for University offices, Mark Nickel, Director of the Brown News Service, said this was never considered.
"There is no plan. There's not even any discussion about the University using that space," Nickel said.
Ronci said she believes Dulgarian could have provided his tenants more time to leave the building.
"He was very crude and rude," she said. "He sprung it on us. He just took the ground beneath me."
Ronci added she would no longer do business with Dulgarian, even if he changed his mind and offered to let her keep the space.
"This is not the man I met 25 years ago. ... Money changes people," she said.
