The LA Memorial Coliseum Commission and USC have released the proposed terms of a potential lease that would give USC control over the Coliseum and the Sports Arena. USC, whose Trojans play football at the stadium, has been angling for the takeover for a while and the Commission announced it was working on a deal a few weeks ago. The term sheet (pdf) that's been released is non-binding and "only an outline of major provisions to be included in an Amended Lease." Here's some of what's in the deal (as far as our non-lawyer brains can hash it out):
-- USC will have the lease for "all of the Commission’s real property interests in or adjacent to Exposition Park," which includes the Coliseum, the Sports Arena, the 110 Freeway sign, the Commission's parcels in Parking Lot 1, and its parcel in Parking Lot 3.
-- The length of the lease would be 20 years, with four five-year renewal options and one two-year renewal option, "such that the term of the lease is coterminous with the December 31, 2054 expiration date of the existing [Sixth Agricultural District] Leases" (the Commission leases some property from the district).
-- USC can seek the right of first refusal to buy the property if it's put up for sale.
-- USC will have to pay a base rent, a portion of net revenues, and a set amount to fund certain Commission operations (like health premiums for employees)
-- USC will take on financing payments for the Coliseum's west video board
-- USC will have to make a series of capital improvements to the Coliseum before the stadium's one hundredth birthday in December 2021 (they'll have to start no later than April 1, 2014).
-- USC will hold exclusive naming rights "to the Coliseum building and components, as well as plazas and other pedestrian areas and the Sports Arena." If anyone buys naming rights for the Coliseum, it'll still have to have "Memorial Coliseum" in the name.
-- USC will have to let "not more than one NFL team" sublease the Coliseum for up to four years if requested by the city, county, or state.
-- The Coliseum Commission will get 90 free tickets to USC games (half what they get currently)
-- The Commission will get "access for USC games to a hospitality area to be designated by USC."
-- "USC and the Commission will collaborate on the development and maintenance of an appropriate area and/or web-site for the display of photographs, memorabilia and other items depicting past Coliseum events."
-- USC can't demolish or change the 110 Freeway sign without approval from the Commission.
-- USC can demolish the Sports Arena and, subject to Commission approval, pick a redevelopment plan for the site. The sheet notes that use of the Sports Arena site for a soccer stadium, sports training facilities and/or playing fields, museum, or amphitheater or other similar event space are pre-approved uses of the Sports Arena site." There's already an environmental impact report completed for a Sports Arena redevelopment.
-- USC can basically abandon all operations at the Sports Arena after April 1, 2014 if they find it's not cost effective to keep running it (they'll have to keep up the exterior). If they do this, they'll have to "use commercially reasonable efforts to make the Galen Center available for community public benefit events." It sounds like the Commission can also terminate the Sports Arena part of the lease if USC stops running it.
According to the LA Times, USC would end up spending more than $50 million on improvements under the deal. The Coliseum's website says that work on the full lease is underway now "and is expected to continue for several weeks. The final lease will be released for public comment and there will be "Opportunities for members of the public to provide input about the proposed agreement." Base image via Wikipedia
· TERM SHEET FOR AMENDED AND RESTATED SUBLEASE BETWEEN LOS ANGELES MEMORIAL COLISEUM COMMISSION AND UNIVERSITY OF SOUTHERN CALIFORNIA [LA Coliseum, pdf]
· USC Close to Coliseum Control, But Should It Go Out For Bid? [Curbed LA]
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