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Sportservice Adds Qualcomm Stadium, With Chargers' Uncertainty Factored Into Deal

The San Diego City Council yesterday "approved a new five-year concession agreement" with Delaware North Sportservice for Qualcomm Stadium, according to David Garrick of the SAN DIEGO UNION-TRIBUNE. Sportservice, which also handles concessions at Petco Park, will "replace longtime Qualcomm concessionaire Centerplate." Sportservice "was chosen over Centerplate and two other potential vendors" after Centerplate "severed its agreement with the city, leaving Qualcomm with no concessionaire since April 15." City Council member Mark Kersey said that San Diego "needed to make a deal because the Chargers aren’t Qualcomm’s only tenant," and noted that the city’s contract with San Diego State Univ. runs through '18. However, some council members "raised questions about the contract requiring the city to partially reimburse the vendor for any upgrades they make if the Chargers leave before the end of the five-year deal." San Diego Real Estate Assets Dir Cybele Thompson said that the $1M in upgrades "must be done immediately to keep the concessions in operating condition." Garrick reported if the Chargers leave after the '15 season, the city "would owe Delaware North an $800,000 reimbursement" -- 80% of "how much the company will have spent." In addition, Sportservice "would be entitled to renegotiate the deal because the stadium’s largest tenant would be gone" (SAN DIEGO UNION-TRIBUNE, 4/28).

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