CONTRACTS CORNER: Beyond Basics in Convention Center Leases

Source: Robin Roth, Senior Contracts Editor
E-Specs: March 1, 2005

Dates, rates, space: these are the basic terms needing review in a convention center lease. But for a complete review, read the document twice. Check everything in the lease and then check it again - for what's missing. Boilerplate lease language can be skewed in a one-sided perspective and can lack important protections for the group. Here are some additional negotiable terms you should consider pursuing:

  • Catering - If catering is operated by the center, specify wait-staff ratios, terms for service of alcohol, menu pricing, and policies for function guarantees and overset.
  • Food and Other Concessions - Ensure that they do not conflict with the objectives of the event.
  • Complimentary Amenities - Request staging, one mic per meeting room, tables, chairs and water service in meeting rooms.
  • Disruptive Environment - Center should prevent interference from other groups and bar conflicting advertising.
  • General Maintenance - Determine whether center will maintain public space at no charge and vacuum aisle carpeting at a defined price.
  • Chargeable Net Square Footage - Public space should not be included.
  • Supplier of Group's Choice - Negotiate areas of service and rentals that are exclusive to the center versus those that the group may contract for independently.
  • Billing Terms - Arrange payment for undisputed amounts due in a specific time frame.
  • Security - Specify areas of responsibility for each party.
  • Future Operating Terms - Require notification to the group of changes that will affect the lease. Require pricing guarantees.
  • ADA - Spell out obligations of both parties and include reciprocal indemnification.
  • Inspections - Require inspections prior/post in order for any repairs to be enforced. Warranty - Condition of the center should be guaranteed.
  • Ancillary Terms - In the event of a conflict, the lease and Addendum should prevail over Rules & Regs, BEOs, etc.
  • Conflicting Booking - Prevent center from booking conflicting groups.
  • Force Majeure - Ensure that the clause is mutual and comprehensive.
  • Breach by Group - Give a time frame to cure a breach and ensure credit for re-licensed space.
  • Construction - Ensure the right to terminate if construction interferes.
  • Unavailability of Contracted Hotels - List primary hotels whose availability is a material term of the lease.

Negotiating terms such as these into your final lease agreement will ensure that your group's needs are properly balanced with the requirements of the center. Consult your Conferon sales representative for a detailed list of these and other additional terms. Conferon also provides unique assistance in convention center planning by means of negotiated template agreements with SMG, manager of 49 convention centers nationwide, and several individual convention centers.

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)

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