Food Hall and Entertainment Use Leasing: Practical Considerations, Key Provisions for Landlords and Tenants

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Transactions
- event Date
Tuesday, March 26, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will explore the unique issues facing landlords and tenants negotiating leases for food halls and entertainment uses--from motion picture theaters to concert venues to sports arenas. Our panel will advise on how best to draft basic lease provisions, construction issues, percentage rent, co-tenancy, maintenance, and other vital issues, as well as provide guidance on addressing the risks associated with such arrangements.
Faculty

Mr. Dennison is the President and Chief Operating Officer of Elevated Property Company, LLC, a mixed-use developer based out of Los Angeles, California, and Boise, Idaho, with assets located primarily in the Intermountain states of Idaho and Utah. In this role, he handles the daily business and legal functions of the organization and, along with his two other founding partners, the executive functions related to the projects of the organization. Immediately prior to founding Elevated, Sean was at CenterCal Properties, LLC in for almost a decade as its Senior Vice President and General Counsel and was responsible for oversight of the company’s legal matters, ranging the negotiation and documentation of transactions to dispute resolution. Before joining CenterCal Properties, LLC, Mr. Dennison served for over five years as Senior Counsel for the Western Region of Federal Realty Investment Trust. Prior to that, Mr. Dennison held senior roles at Stanbery Development, The Gap, Inc. and The Lerner Corporation. Immediately upon graduation from law school, he was an associate in the real estate group at ShawPittman LLP (now Pillsbury Winthrop ShawPittman).

Ms. Bouskila is the founder of a New York City-based boutique law firm focusing on servicing the hospitality and leisure industry. With more than a decade of experience, she has cultivated a reputation as a solution-oriented, deep strategic thinker, all while being seen as an extension of her clients’ team. Ms. Bouskila has a broad-based transactional practice where she focuses on all aspects of the development, management, acquisition, disposition, corporate structuring and financing of hospitality and leisure deals. Prior to working in the United States, she practiced law in Sydney, Australia at leading international law firms, where she managed and executed complex real estate capital transactions including acquisitions and disposals of commercial office buildings, industrial estates, retail centers and hotels, infrastructure projects and corporate deals, primarily for national and international listed property trusts, real estate funds, private equity groups, investment banks, international investors and major property developers. Ms. Bouskila received her LLB from University of Technology, Sydney and has a Masters in Commerce (Finance and Business Law) from University of Sydney. As a native of Australia with roots in the Middle East, she has always been inspired by the power hospitality has in bringing people together across the globe. Ms. Bouskila displays a modern, refined and practical approach to client service, underpinned by her unfettered accessibility, empathy and genuine care for her clients and the communities she serves.

Ms. Patel is the Associate General Counsel of CenterCal Properties, LLC, a mixed-use developer based in El Segundo, California, known for creating projects that are built or reimaged to bring a lasting benefit to the communities in which they are located. The CenterCal goal is to design and create gathering places that will strengthen the social fabric of each neighborhood the center serves, creating prosperity, happiness and a stronger sense of community. CenterCal has properties in California, Oregon, Washington, Utah and Idaho. In her role as Associate General Counsel, Nayan focuses on leasing matters using her experience gained from the Irvine Co. and Donahue Schriber (acquired by First Washington Realty in 2022) to draft, negotiate and ensure accurate processing of legal documentation.
Description
One of the hottest trends in the hospitality industry is the food hall. The number of food halls in the United States has increased exponentially in recent years and the trend is likely to continue. Unlike the traditional shopping center food court, the food hall is typically an entertainment complex combining fine dining, bar atmospheres, and live entertainment forums in one location.
Food halls bring unique legal challenges, including artful drafting of leases, supporting documents, and operational rules that differ for each food hall facility.
Similarly, entertainment uses present additional and varied legal considerations relative to typical retail tenants. Theaters today are often accompanied by the sale of prepared food and alcohol. Other entertainment uses have entered the scene, including indoor skydiving, golfing, escape experiences, and even axe-throwing.
Entertainment uses present unique challenges to the landlord and the tenant to achieve the balance between allowing the tenant to operate its business while offering protection to the landlord to ensure the entertainment use does not interfere with the project's operations. Parking, exclusive uses, prohibited uses, signage, visibility, access, noise, and security are just some of many items that play a role in lease negotiations between a landlord and prospective entertainment tenant.
Listen as our panel of experts in real property transactions provides practical guidance on how to best address the issues and balance the interests of each party involved.
Outline
- Introduction
- Food halls
- Structuring the deal
- Design, layout, and construction
- Permitting considerations (i.e., alcohol permitting)
- Use and exclusive use clauses in a food hall environment
- Miscellaneous
- Replacing underperforming or poorly operated food stalls
- Structuring of tenant reimbursements
- Management of food hall tenants and patrons
- Entertainment uses
- Access and visibility
- Parking
- Construction and noise
- Percentage rent
- Co-tenancy
- Permitted uses
- Continuous operation
- Protected uses
- Prohibited uses
- Security
- Signage
- Practical considerations and best practices
Benefits
The panel will review these and other critical issues:
- What are the practical considerations of entering into food hall or entertainment use leases?
- What are the risks associated with such unique arrangements?
- What are solutions to conflicts with REAs, covenants, and existing leases?
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