LN Settles Shoreline Suit

Live Nation will pay the city of Mountain View, Calif., a $10 million lump sum and enter into a renegotiated lease at Shoreline Amphitheatre as part of a settlement agreement that ends three years of bitter legal maneuvering between the two parties.

Mountain View’s city council approved an amended lease agreement with Live Nation at its meeting May 9th, replacing the previous revenue-sharing plan with one that provides a flat $1.8 million annual rental rate for up to 40 shows at the venue.

The city also retains naming rights. Other complaints between the two parties – primarily over parking – are dismissed.

The amended lease is for 15 years, with a five-year option. Another five-year option can be exercised by the city only, should it choose to continue using the facility for live entertainment. Mountain View also regains control of its land on which Shoreline sits 10 years earlier than it would have under the old agreement, signed by Bill Graham 20 years ago.

The city had been receiving an average of $733,000 annually for the last 10 years under the old formula, which depended on concert revenue and other income, according to a Mountain View City Council report.

The $10 million payment covers legal fees, court costs and back rent, according to City Attorney Michael Martello.

An updated audit by Alix Partners of Los Angeles in September found the city was owed $15.6 million in back rent, and $58 million in penalties on unreported income going back to 1998.

Despite the bitterness on display during three years of court filings – including Mountain View’s attempt to charge the former Clear Channel Entertainment under racketeering statutes – Live Nation and Mountain View appear to have buried the hatchet.

Live Nation execs first sat down with Mountain View officials in early April to consider a settlement. Prior to that, Martello had told Pollstar that the chance to settle was slim, accusing the company of withholding financial information and being unwilling to seriously come to the table.

Considering some of those remarks came as recently as March, all seems to have been forgiven with the settlement agreement.

“There’s a new team in place over there now, and that’s made a tremendous difference,” Martello told Pollstar after the city council approved the amended lease agreement.

“We’re happy to have these lawsuits, which we inherited, behind us so we can get back to doing what we do best, which is bringing great concerts to Shoreline Amphitheatre,” LN global venues president Bruce Eskowitz told Pollstar.

In addition to the renegotiated lease and rental agreements, other deal points require Shoreline to implement new safety and security improvements, and upgrade the Resident Priority Ticket Program that allows ticket presales to Mountain View residents for many events.

Under that plan, 300 tickets are set aside for purchase at face value by Mountain View residents, including 200 in the reserved section with 100 of those located in the first 30 rows.

“The City of Mountain View is pleased to be able to come to agreement with Live Nation regarding the future of Shoreline Amphitheatre,” Mayor Nick Galiott said. “The new lease and operating agreement paves the way for an improved and mutually beneficial relationship between the City and its Live Nation partners.”

– Deborah Speer