The San Francisco 49ers said Thursday they will pay the $2.7 million September rent for Levi’s Stadium after the Santa Clara Stadium Authority Board voted on Tuesday to authorize a claim for arbitration against the football team for “unpaid facility rent.”
Stadium Authority officials said Thursday that the Authority Board — comprised of seven elected members of Santa Clara City Council — voted in closed session Tuesday to take actions to recover the “the non-payment of rent” after the 49ers refused “to pay the full monthly amount due following NFL’s cancellation of two preseason games.”
Rahul Chandhok, spokesman for the 49ers, told The Chronicle on Thursday that, “The September rent payment will be paid in full.” He did not provide an expected date for payment, or say why the rent had not been paid.
Stadium Authority officials said that as of Thursday, the 49ers had not paid the September facility rent of $2,751,000.
On Sept. 2, Stadium Authority officials said a default notice was sent to the 49ers “in accordance with the provisions of the lease.” City officials also said that in a recent statement, an unnamed 49ers representative “continues to make untrue personal attacks against Santa Clara’s Mayor, City Manager, and City Attorney, while mischaracterizing the City’s actions.”
Mayor Lisa Gillmor serves as chair of the Stadium Authority and City Attorney Brian Doyle serves as the Stadium Authority’s general counsel.
Chandhok echoed similar sentiments about alleged misrepresentation from Santa Clara city officials, accusing the city attorney of “misrepresenting the facts in service of the City’s ongoing political agenda.”
Doyle told The Chronicle that the decision to try to recover the rent has “nothing to do with politics.” He said the facility rent is a “key part” of repaying the public debt that was incurred by the Stadium Authority for the construction of the stadium for the 49ers.
“That was the reasoning behind making sure that we got the rent. That’s what it’s all about. It’s not about anything else,” Doyle said. “It’s a simple business decision that the city could not afford to not receive the rent, especially when there was no legal grounds to not pay it. They missed the payment that they were supposed to make, and so we sent a demand.”
Stadium Authority officials said Tuesday’s move to recover unpaid rent came a couple months after they said the 49ers in July notified the city that they would “reduce the facility rent by 20% based on a faulty interpretation of lease provisions regarding ‘Untenantable Conditions.’”
Stadium Authority officials said they informed the team that the “lease provisions do not allow for a rent reduction because the cancellations were based on the NFL’s decision to cancel the pre-season, and not based on any condition of the Stadium.”
“The Stadium Authority hopes that the 49ers will put their time and effort to paying the rent due, rather than claiming political games in the media,” officials said.
Stadium Authority officials said the lease requires both parties meet to try to resolve the issue before starting “formal confidential arbitration proceedings.”
Lauren Hernández is a San Francisco Chronicle staff writer. Email: lauren.hernandez@sfchronicle.com Twitter: @ByLHernandez
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49ers say they’ll pay Levi’s Stadium rent after Santa Clara threatens action for non-payment - San Francisco Chronicle
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