Rapids Associates v. Shopko Store, Inc.

Rapids Associates and Shopko Stores, Inc., entered into a lease in March, 1969. Pursuant to the lease, Rapids built a store according to Shopko’s plans and specifications, under Shopko’s supervision. Shopko leased the premises for the purpose of conducting a retail, discount department store business. The twenty-year lease provided for an annual base rent of $61,500 plus additional rent of one percent of gross sales in excess of $2,000,000.

Shopko operated a retail, discount department store on the premises for about ten years, but then constructed a new facility. Shopko proposed to sublease…