Saratoga News

Judge gives drugstore owner reason to hope

Another hearing still lies ahead

By Sarah Lombardo

A Santa Clara County Superior Court judge ruled last week that the lease agreement Saratoga Drug Store owner Ray Rossi has with his landlord was not invalid. Earlier, Superior Court Judge Mary Jo Levinger had nullified the agreement Rossi had to extend his lease 10 years. Rossi has operated the drugstore at the same site, 14413 Big Basin Way, in the Saratoga Village for almost 20 years. The drugstore itself has had a presence in the Village since 1904. The judge has yet to rule on whether Rossi's option renews his lease for another 10 years.

A court hearing will still take place to determine the validity of the agreement.

At issue was whether Rossi's lease was a long- or short-term lease. Under California law, an option on a long-term lease is only deemed valid if a rental amount is written in the lease. Without a written amount, the lease extension is subject to whatever the landlord decides to charge for rent. Rossi's attorney contended that a short-term lease needs only an oral agreement on rent for an option to renew to be valid. Rossi's lease was a five-year lease, but did not state a rental amount on the option. But, Rossi argued, there might be some room for interpretation.

The appeal was the latest event in a battle between Rossi and the building's landlord, Marcelle Bloxham. The dispute began in April when Rossi filed a breach of contract suit against Bloxham. Rossi had informed Bloxham he wanted to exercise his option and extend his lease last year. Earlier this year, Rossi was notified his rent was being raised, from his current $3,000 a month for the 2,200-square-foot space to $6,000, an amount Rossi said he just can't afford.

Muddying the waters is a charge by the Bloxhams that Rossi has refused to pay his rent for the past two months. Rossi denies the charge. "That is just not true," he said. "I paid them, and they sent my checks back."

With the future of his store still undecided, Rossi said he has been busy trying to prepare for a possible closure and help his nearly 400 customers--many elderly--find new pharmacies. If Levinger had ruled for Bloxham, Rossi would have had to vacate his store within three days.

No plans on new tenants for the space have been released by Bloxham, but many Village merchants have said they fear Starbucks Coffee Company, which tried to buy out Rossi for the space two years ago, might be a contender for the spot. Just last week, Starbucks was granted a use permit to open a shop in the Argonaut Shopping Center, but a lease there has not been signed.

Elise Wellford, a spokeswoman for the Seattle-based company, said she had no information regarding Starbucks' interest in the site.

"Certainly, we are always looking at different locations, but I'm not aware that that site is one of them," she said.

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