Companies who are engaged in the business planning process are likely aware of how important lease agreements can be both during business formation and throughout the life of a company. Recently, a California group voted to approve a new lease agreement that would grant USC the authority to supervise ongoing operations for the LA Memorial Coliseum. The master lease must still be approved by multiple state agencies, however. Some lease agreements can take longer to negotiate than originally estimated.
The lease agreement would grant USC the right to manage day-to-day operations of the facility; however, the Coliseum Commission would still act as landlord. Apparently, some groups are not completely in favor of the proposed master lease as it stands. The LA Times and a first amendment group called Californians Aware previously filed suit in court requesting that a new vote be held. According to them, the Coliseum Commission failed to meet state law requirements for holding meetings that were open to the public.
USC’s vice president of real estate development and asset management indicated that it could possibly take around six weeks for negotiations surrounding the lease agreement to be fully worked out. An official for the State and Consumer Services Agency, one of the groups looking over the lease, affirmed that negotiations are still taking place and that there is no set deadline for approving-or not approving-the master lease. She said that her agency is still trying to determine whether or not this deal would be in the best interest of the state.
California businesses who are negotiating lease agreements of their own may want to take note of how this particular deal plays out. Companies should always strive to meet whatever state regulations or requirements are in place. Lease negotiations can become complicated in certain situations, so it is crucial for businesses to make sure they have a clear understanding of how the law may apply to them and their operations.
Source: Daily Trojan, “Master lease for stadium faces pending state approval, lawsuit,” Daniel Rothberg, Aug. 18, 2012