David Brauer:

HTT would own the theaters once HST/Clear Channel have paid off the 
theater debt. HTT head Tom Hoch says flatly that Clear Channel will 
"never" own HTT, and the city will insist on a provision preventing HTT 
from assigning ownership interest to anyone during the 30-year term of 
the deal.

Me:

The city noted in the RFP package that its deed for the State Theater (with
2,150 seats) restricts the City from transferring it to anything but a
governmental entity or a nonprofit whose purpose is to preserve the theater
as a cultural facility for the general public.  If the city wants to
transfer it to a for profit entity, it must give the original
developer/project owner of LaSalle Plaza--where the State is located--a 60
day period to negotiate purchase of the theater.

This and political reasons may ultimately be driving the structure of the
deal with HTG/Clear Channel, with the nonprofit HTT 'envisioned' as the
ultimate owner of the theaters.  But, David is right, I don't believe it
would restrict HTT from turning around after 30 years and selling the State,
Orpheum or Pantages to anyone it chooses, unless the restriction just
mentioned for the State is one that runs with the land.

So, yet another complication in a complicated transaction.

Gregory Luce
St. Paul

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