Clear Channel gets ultimatum from city Clear Channel gets ultimatum from city (September 09, 2005)

The city of Mountain View has given Clear Channel 15 days to meet the conditions of the company's lease agreement with the city, high-ranking city officials said Wednesday.

The city sent a "notice of default" to the media giant last Friday after auditors hired by the city determined that the company and its subsidiaries hid more than $20 million in revenue it earned at city-owned Shoreline Amphitheater. The letter, obtained by the Voice , accuses the company of being in breach of the lease and gives it 15 days to comply or face losing the right to operate the amphitheater.

"We have an obligation to monitor our leases and our lessees," said Mayor Matt Neely.

The Shoreline lease agreement calls for the company to pay 6.5 percent of its gross revenue to the city, among other provisions. According to the results of the audit, conducted by Alix Partners, the company owes more than $3.6 million in back rent and penalties. The auditors said that number may be too low, because Clear Channel did not allow them to complete their work or question company representatives.

City council members, most of them facing or already having endured lengthy depositions by the company's outside lawyers, said little about the audit when it was released last week. Afterwards, they met for more than 30 minutes in closed session, where they discussed potential responses to the revelations, including terminating the lease. -- Jon Wiener

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