Appeal from the Circuit Court of Kane County. No. 11-L-720 Honorable Edward C. Schreiber, Judge, Presiding.
JUSTICE BIRKETT delivered the judgment of the court, with opinion. Justices McLaren and Zenoff concurred in the judgment and opinion.
¶ 1 Plaintiff, Campana Redevelopment, LLC, filed a complaint in forcible entry and detainer against defendant, Ashland Group, LLC. The trial court granted possession to plaintiff and entered judgment for plaintiff in the amount of $267, 600.21, plus $470.84 in costs and $2, 044 in attorney fees. Following the denial of its motion for reconsideration, defendant timely appealed. On appeal, defendant argues that the court erred in awarding plaintiff $119, 495.74 in unamortized improvement costs, which plaintiff had provided to defendant and which defendant was to repay in installments included in future rent payments. For the reasons that follow, we vacate the court's award of $119, 495.74 but otherwise affirm.
¶ 2 I. BACKGROUND
¶ 3 On December 17, 2008, plaintiff and defendant entered into an industrial-space lease (the lease) for premises located at 301 W. Fabyan Parkway in Batavia. Pursuant to Exhibit C of the lease, plaintiff provided defendant with an improvement allowance of $153, 700. Exhibit D of the lease provided that "[plaintiff's] contribution to [defendant's] build-out costs has been amortized over a ten (10) year period and included in [defendant's] rent accordingly."
¶ 4 The lease had an initial three-year term of April 1, 2009, through March 31, 2012, with the following monthly rent schedule:
April 1, 2009, through March 31, 2010:
April 1, 2010, through March 31, 2011:
April 1, 2011, through March 31, 2012:
The lease also contained four three-year option periods, which, if exercised, would have extended the term through March 31, 2024. With respect to the first three-year option period (April 1, 2012, through March 31, 2015), the lease provided as follows:
"If [defendant] does not exercise its option to extend the term, in addition to any other amounts it may owe hereunder, it will pay to [plaintiff] no later than March 31, 2012[, ] a non-renewal fee equal to One Hundred Twenty-Two Thousand Three Hundred Fifty and 00/100 dollars ($122, 350.00) representing the unamortized cost of its Improvements at the end of the initial Lease term*** ."
The lease further provided that:
"If the Lease is terminated because [defendant] is in default or early by [defendant] for any reasons, whether or not the term has been renewed, [defendant] will pay to [plaintiff] a termination fee equal to the unamortized cost of its Improvements***."
¶ 5 On November 10, 2011, plaintiff sent defendant a five-day notice to pay rent. According to the notice, $58, 064.71 in rent was due for a portion of June 2011 and for July through November 2011. A second notice was sent on November 23, 2011. A third notice was sent on December 9, 2011. The third notice sought $69, 424.88 in rent and, in addition, advised defendant that, if the lease were terminated, the ...