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49ers File For Arbitration In Dispute With Santa Clara Over Rent Reset At Levi's Stadium

The 49ers yesterday filed for arbitration in their "ongoing dispute with the city of Santa Clara over rent payments" at Levi's Stadium, according to Peter Fimrite of the S.F. CHRONICLE. The move "intensifies the battle over what the team should pay the city this year for use of the land under Levi’s Stadium." Team officials said that the venue cost Santa Clara $136M "less to build and brought in 'substantially greater' revenue than anticipated." Team officials also said that the higher revenue "requires a rent adjustment under the lease," so they have offered $20.5M in '16. That is $4M "less than the annual rent over the past two years." Santa Clara officials "have not made a counteroffer, apparently preferring no change" to the $24.5M rent they have been getting. 49ers President Al Guido said that the 40-year lease "includes a 'rent reset,' which means the terms can be changed based on operating costs, revenue and outstanding debt." He added that $19M "would have been a fair rent based on the team’s calculations," but that the team agreed to $20.25M "in an attempt to accommodate city leaders" (S.F. CHRONICLE, 5/4). In San Jose, Ramona Giwargis notes political observers "question how the dispute will impact the team's relationship" with Santa Clara Mayor Lisa Gillmor, which has "been on shaky ground since Gillmor often questioned the team's contract as a council member." Guido: "It's not the 49ers versus the mayor. It's something we need to work out and settle, but this isn't going to affect our professional stance" (SAN JOSE MERCURY NEWS, 5/4).

PLAYING SAFETY: In San Jose, Jody Meacham noted Santa Clara "has hired police officers from other cities" for the first two seasons at Levi's Stadium to "fill its own thin ranks of officers covering 49ers’ games and has overspent its original budget for security." Santa Clara Finance Dir & Assistant City Manager Gary Ameling said that the cost of extra security "averaged $70,000 per game above payments by StadCo, the stadium operating company created by the 49ers, which the city has covered with revenues generated primarily from game-day parking fees to avoid dipping into its general fund." StadCo "pays up to $170,000 per NFL game for security" (BIZJOURNALS.com, 5/3).

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