Bodies in Balance signs lease extension

Talk about it

Amy Poe, owner of the health club and physical therapy business called Bodies in Balance, has signed a lease extension with the North Shore Business Enterprise Center that negates eviction proceedings that had been begun late last week.

On Wednesday, Steve Wattnem, chairman of the enterprise center board, said the lease, at her request, extends the occupancy to the end of August, instead of the end of June, as originally requested.

“That’s a drop-dead deadline,” Wattnem said. By that time, Poe will have to vacate whether or not she has her new building completed.

At the heart of the dispute between the North Shore Business Enterprise Center and Bodies in Balance appears to be "a personal issue, and not business," said Greg Hull, a member of the enterprise center board.

Late last week, the business enterprise center began eviction proceedings against Poe. She was given until 4:30 p.m. Tuesday to sign the lease, or the matter could have headed to court, said Wattnem. On Wednesday, he said the lease was finally signed at 9 p.m. Tuesday, and Poe had made payments required by the agreement.

Bad feelings, apparently prompted by a land-sale agreement that fell through, recently prompted the Two Harbors City Council to intervene in the dispute.

In late February, the council directed the Two Harbors Development Commission, a volunteer board that controls a revolving business loan fund used to stimulate local development, to temporarily step aside.

Members of the city council then appointed themselves as the development commission to see Poe's deal through. The move was necessary because of growing "animosity" between the previously seated development commission, Poe, and the banker Poe is working with, said city councilman Jason Kuettel.

This week Kuettel tried to move the process forward. He reviewed the most recent lease proposal offered by the enterprise center board, which called for Poe to vacate a portion of her space, pay attorney's fees and increase her liability insurance, among other stipulations.

"This seems like a very fair offer, but it's not up to me to make the decision," Kuettel said.

Poe asked the city council for help in December after the enterprise center board said it wanted her out when her lease expired at the end of 2008. Poe said it would be too expensive to move her business and all its exercise equipment to a temporary location.

The enterprise center board, which shares a manager with the Two Harbors Development Commission, said that White Bear Technologies, a New Brighton-based company that manufactures dog collars fitted with GPS units, wants the extra space.

But Hull said that as far as he knows, no other tenant has signed anything indicating they want the extra space.

Poe is working toward buying a parcel of city-owned land on Hwy. 2. She hopes to use a $200,000 loan from the Two Harbors Development Commission and a $100,000 infrastructure grant from Iron Range Resources, as well as her own financing, to make that happen.

Tags: bodiesinbalance, thdc, northshorebusinessenterpisecenter