Legal Snafu For AEG Loew's Deal

JERSEY CITY (CelebrityAccess) — A surprise court victory for the nonprofit that manages Landmark Loew's Jersey Theatre may spell trouble for AEG's bid to take over the venue.

According to the Jersey Journal, the nonprofit, the Friends of the Loew's (FOL), convinced a Hudson County Superior Court that the organization may have a valid lease with Jersey City, preventing AEG from taking over management of the venue.

Previously, the judge had ruled that the lease was not valid, allowing Jersey City mayor Steve Fulop to solicit management bids for the venue. As a part of a proposal approved by the city council last month, AEG would pay $350,000 a year for a 30 year term to operate the venue.

The city granted a 5-year lease to FOL in 2004, with options for two five-year extensions, the Jersey Journal reported. However, the city claims that the extension was never ratified by the city council, rendering the lease void.

The court case is expected to continue and in a statement, a city official told the Jersey Journal that:

"This is nothing more than a procedural step and will unfortunately add time until we can open a renovated theater for Jersey City resident. In the long term, it doesn't change one thing about the direction we are going other than this being an attempt to use the courts to try and run out the clock." – Staff Writers

Related Post