-8--8-
maximize their use and obtain the reasonable rental
value thereof. The plans and specification for the
Press Box Improvements and Suites and the timing and
manner of all construction at the Stadium must be
approved by Lessor, which approval will not be
unreasonably withheld or delayed. * * * [Emphasis
added.]
The 1980 MOA, the 1982 MOA, and the 1984 lease were the
result of arm’s-length bargaining between the Raiders and the
LAMCC.
The $6.7-million loan was represented by a promissory note
dated November 30, 1984, the terms of which were as provided in
the 1982 MOA and the 1984 lease. The Raiders were to commence
repayment of the $6.7-million loan 3 years after the completion
of construction of the suites. The loan was nonrecourse against
the Raiders, secured solely by the improvements to be made. The
$6.7-million loan was funded with a $4-million advance in 1984
and by the following credits against the rent due from the
Raiders:
Year Amount
1982 $ 442,401
1983 665,690
1984 675,000
1985 675,000
1986 241,909
Total $2,700,000
During these years, the Raiders took corresponding deductions for
their rent expense.
Due to the concern of the Los Angeles Olympic Committee over
the timing of construction, plans to construct the suites prior
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