Gateway Health Club, which operates as International Fitness at The Shoppes at Gateway in Springfield, Ore., is being sued for $2.6 million in unpaid rent.
According to a report from The Register-Guard, the $2.6 million includes more than $122,000 in back rent, interest and late charges for August through November of 2017, as well as all of the rent due through 2023.
International Fitness President Troy Finfrock said he is negotiating with the landlord and hopes to resolve the dispute and keep the club open.
According to the lease, Gateway Health Club is required to pay $319,000 in 2018 for its space at the mall, with annual amount increasing each year.
Finfrock contends the club got in over its head when a cost associated with a remodel of the gym spiraled out of control, costing a total of $400,000.
International Fitness occupies 18,232 square feet of space at The Shoppes at Gateway. According to the lawsuit, International Fitness’ troubles started in March of 2016.
“In March 2016, (the) tenant began to delay making base rent payments due under the lease. As a result, (the) tenant began to fall behind in its base rent and other payment obligations under the lease. (The) tenant ultimately failed to pay rent and other expenses under the lease for the months of August, September, October and November 2017,” the lawsuit states.
The Shoppes at Gateway has 54 tenants and more than 820,000 square feet of retail and restaurant space, according to its website.