- 32 -
The final factor considers the arm's-length nature of the
negotiations between the Mecom group and the State with respect
to the Second Lease Amendment. Again, respondent attempts to
obscure matters by arguing that this factor favors his argument
because the negotiations giving rise to the Second Lease
Amendment stem from a breach of contract dispute rather than a
genuine concern on behalf of the State. We are unpersuaded by
respondent's argument and find that the negotiations giving rise
to the Second Lease Amendment were conducted at arm's-length.
Conclusion
Having analyzed the record in the instant case, and after
examining the facts in extensive detail, we are of the opinion
that the fair rental value of the Superdome exceeded the value of
rent established by the 1975 Lease, as amended by the Second
Lease Amendment. 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). We note that while petitioner has failed to establish
the precise amount by which the fair rental value of the
Superdome exceeded the value of the rent required by the amended
lease, we are convinced that petitioner has sufficiently
established that the former does in fact exceed the latter. This
is significant because the parties have stipulated that if any
portion of the purchase price is allocable to the Superdome
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011