By Kate Day
 Joe Hu/Town Crier |
Shoreline Amphitheatre Partners (SAP) will pay the city of Mountain View $10 million as well as increased rent under a settlement announced at the city council’s May 9 meeting. The agreement ends a three-year legal battle regarding parking and rent payments and came just before the trial, scheduled May 15.
The opponents were finally singing from the same song sheet in a new spirit of cooperation.
“The new lease and operating agreement paves the way for an improved and mutually beneficial relationship between the city and its Live Nation partners,” said Mayor Nick Galiotto.
The outdoor venue - which can host up to 25,000 people - is built on city land, but the structure is owned by the operating company, Shoreline Amphitheatre Partners, a subsidiary of Live Nation Inc.
The new lease payment will be fixed at $1.8 million annually, more than double the average payment under the previous lease, calculated on a sliding scale up to 6.75 percent of “gross receipts.” If the company holds more than 40 events per year, the city will receive an additional $60,000 per event. The city also retains the venue’s valuable naming rights.
“The new rent payment
structure and lease provisions will benefit both the city and Mountain View residents through a more predictable and higher revenue stream from the venue,” said City Manager Kevin Duggan. The extra lease money will go into the city’s general fund, he said.
The $10 million lump sum will assist in covering the city’s costs, according to city attorney Michael Martello. Legal fees have reached at least $4 million, he said, and an audit earlier this year claimed the city was owed $15.6 million in back rent.
The city will also receive $1.3 million from AIG insurance as a result of SAP’s health and safety claims against the city in relation to the original parking dispute. The company has agreed to drop its claim to nearby city land that had been used for amphitheatre parking in the past.
Under the new lease Mountain View residents can purchase 300 reserved tickets from two days before and up to a week after tickets go on general sale for each event.
Duggan said the council is considering a combination of office and hotel development on the old, 18-acre parking lot.
No one from Live Nation Inc. was available for comment when the Town Crier went to press.
