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negotiations, Midler Court Realty, Inc. v. Commissioner, 521 F.2d
767, 769 (3d Cir. 1975), affg. 61 T.C. 590 (1974); see Metro Auto
Auction of Kansas City, Inc. v. Commissioner, T.C. Memo. 1984-
440. While respondent maintains that we should consider each of
these five factors, he addresses only the first factor in
meaningful detail. His discussion of the remaining four factors
is incomplete.
There is no question that a leasehold may have a value in
the hands of the lessee when the fair rental value exceeds the
rent established by the lease. See KFOX, Inc. v. United States,
510 F.2d at 1373-1374; A.H. Woods Theater Co. v. Commissioner, 12
B.T.A. 827 (1928). With respect to the first factor cited above,
we find that the record contains ample evidence that the rent
required by the 1975 Lease was considerably lower than the fair
rental value of the Superdome. In July 1984, the Mecom Group and
LSED executed the Second Lease Amendment in response to the
alleged contractual breach that occurred when LSED executed a
Superdome lease with the Breakers. The rent required under the
1975 Lease after the execution of the Second Lease Amendment was
50 percent less than the rent required under the lease
immediately prior to that amendment. The Second Lease Amendment
also eliminated the team's obligation to pay day-of-game
expenses. Petitioner's calculations determine the total annual
savings attributable to the Second Lease Amendment to be
approximately $730,000. Evidence in the record also indicates
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