Building owner denies raising rent
Chicago, IL -
Circuit Nightclub, 3641 N. Halsted St., is closed until further notice according to a statement from owner Mike Macharello.
"Hello, this is Mike, I'm the owner of Circuit. The club is temporarily closed so I can bring you a new and improved Circuit 5.0! At this time I must renegotiate the lease with my landlord for the rental space Circuit is currently located at," wrote Macharello on the club's website (circuitclub.com).
"As you know, the economy has not been too good over the last few years, however business at Circuit has been good. My landlord continues to raise the rent on us by thousands of dollars and all the money you spend at Circuit, the majority goes to him! I do not want that for myself, for you or the future of Circuit.
"So right now I am trying to work a deal out with him so that I, along with the club has a better future, where the money that you spend at Circuit will go directly back into Circuit to make it a better club experience for you and all to enjoy!
"Hopefully this process won't take me very long to work out... so please check back, I will keep you posted!"
Circuit Nightclub began 16 years ago as Halsted Street Café and had grown to become one of the largest dance clubs in Boystown. Circuit closed for renovations in 2004 and reopened in March 2005 after enduring battles over noise levels, a threat of a dry precinct vote and six months of renovations.
An email sent by Clubhouse Productions says that Urbano, which has been a regular Friday night event at Circuit, has been moved to Evergreen night club.
UPDATE (12:20AM 11/3/12): In response to an inquiry by ChicagoPride.com, Franklin L. Friedman, registered agent for the building owner, Halsted Sterling Venture, LLC, called Macharello's implication that Circuit closed because rent had been increased by thousands of dollars "absolutely and completely false." He further indicated rent had not been raised on the current lease for the property located at 3641 N. Halsted.
Friedman told ChicagoPride.com that Patrick Harms, not Macharello is the tenant of the building. He said the building ownership enjoys a "close and harmonious" business relationship with Harms, who is listed as co-owner of Circuit on the club's website.
Friedman said the building ownership "looks forward to this relationship continuing for many years in the future."
According to Cook County Assessor and Recorder documents, the 11,925 sq. ft. property is tax valued at $288,422.00.
ChicagoPride.com contacted Macharello and Harms for comment but as of publication have received no response.
UPDATE (3:57PM 11/4/12): In a statement to ChicagoPride.com, Circuit co-owner Patrick Harms refuted claims raised by Macharello. Harms said the closing stems from a "serious disagreement over administrative and operational concerns."
(Read updated story)
Editor's Note: (2/7/2013)
Mike Macharello contacted ChicagoPride.com to retract and clarify a previous statement made about his landlord.
"It was erroneous on my part to either state of infer that Frank Friedman and Sterling properties raised the rent any more than was commensurable with current area market and times. It was further erroneous to either state or infer that this was the cause of the closing but rather that the closing was caused by many factors, many of which included a depressed economy. While most consumers these days are looking for bargains and cheaper prices, the fact is that supplies, inventory, utilities, taxes, licenses, payroll and other costs associated with doing business, all continue to rise. For most businesses it's a challenge to bridge the gap between rising costs and offering competitive prices to their customers. Circuit was no exception. However, throughout my 15 year relationship with Sterling, Frank has always done his utmost to work with me and my colleagues in order to perpetuate Circuit nightclub. I would like to take this opportunity to apologize If I have said or inferred anything which was looked on as detrimental to Frank Friedman and/or Sterling Properties," wrote Macharello.
"Hello, this is Mike, I'm the owner of Circuit. The club is temporarily closed so I can bring you a new and improved Circuit 5.0! At this time I must renegotiate the lease with my landlord for the rental space Circuit is currently located at," wrote Macharello on the club's website (circuitclub.com).
"As you know, the economy has not been too good over the last few years, however business at Circuit has been good. My landlord continues to raise the rent on us by thousands of dollars and all the money you spend at Circuit, the majority goes to him! I do not want that for myself, for you or the future of Circuit.
"So right now I am trying to work a deal out with him so that I, along with the club has a better future, where the money that you spend at Circuit will go directly back into Circuit to make it a better club experience for you and all to enjoy!
"Hopefully this process won't take me very long to work out... so please check back, I will keep you posted!"
Circuit Nightclub began 16 years ago as Halsted Street Café and had grown to become one of the largest dance clubs in Boystown. Circuit closed for renovations in 2004 and reopened in March 2005 after enduring battles over noise levels, a threat of a dry precinct vote and six months of renovations.
An email sent by Clubhouse Productions says that Urbano, which has been a regular Friday night event at Circuit, has been moved to Evergreen night club.
UPDATE (12:20AM 11/3/12): In response to an inquiry by ChicagoPride.com, Franklin L. Friedman, registered agent for the building owner, Halsted Sterling Venture, LLC, called Macharello's implication that Circuit closed because rent had been increased by thousands of dollars "absolutely and completely false." He further indicated rent had not been raised on the current lease for the property located at 3641 N. Halsted.
Friedman told ChicagoPride.com that Patrick Harms, not Macharello is the tenant of the building. He said the building ownership enjoys a "close and harmonious" business relationship with Harms, who is listed as co-owner of Circuit on the club's website.
Friedman said the building ownership "looks forward to this relationship continuing for many years in the future."
According to Cook County Assessor and Recorder documents, the 11,925 sq. ft. property is tax valued at $288,422.00.
ChicagoPride.com contacted Macharello and Harms for comment but as of publication have received no response.
UPDATE (3:57PM 11/4/12): In a statement to ChicagoPride.com, Circuit co-owner Patrick Harms refuted claims raised by Macharello. Harms said the closing stems from a "serious disagreement over administrative and operational concerns."
(Read updated story)
Editor's Note: (2/7/2013)
Mike Macharello contacted ChicagoPride.com to retract and clarify a previous statement made about his landlord.
"It was erroneous on my part to either state of infer that Frank Friedman and Sterling properties raised the rent any more than was commensurable with current area market and times. It was further erroneous to either state or infer that this was the cause of the closing but rather that the closing was caused by many factors, many of which included a depressed economy. While most consumers these days are looking for bargains and cheaper prices, the fact is that supplies, inventory, utilities, taxes, licenses, payroll and other costs associated with doing business, all continue to rise. For most businesses it's a challenge to bridge the gap between rising costs and offering competitive prices to their customers. Circuit was no exception. However, throughout my 15 year relationship with Sterling, Frank has always done his utmost to work with me and my colleagues in order to perpetuate Circuit nightclub. I would like to take this opportunity to apologize If I have said or inferred anything which was looked on as detrimental to Frank Friedman and/or Sterling Properties," wrote Macharello.
