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University seeks changes to lease agreement with Co-ops

The Master Space Agreement, the contractual document that leases the university co-op spaces to Associated Students and the Graduate Student Association, will most likely not be renewed in its current form before the April 29 expiration deadline, according to representatives from the co-op oversight committee and University Centers. University Centers has stated that it will not sign the renewal until certain proposed changes have been considered and amended in the document.

While the Master Space Agreement governs the lease relationship between University Centers, Associated Students and the Graduate Student Association, a Memorandum of Understanding in turn subleases spaces to the four co-ops on campus — the Food Co-op, Groundwork Books, the General Store Co-op and the Ché Café. Originally drafted nine years ago with a five-year term, the Master Space Agreement has been renewed twice for two-year terms.

Gary Ratcliff, director of University Centers, presented substantive changes in the text of the Master Space Agreement in bullet-point format at the April 9 co-op oversight committee meeting. At the April 23 committee meeting, Ratcliff distributed a preliminary draft of the amendments, stating that University Centers will not renew the Master Space Agreement without the amendments.

The proposed amendments to the Master Space Agreement are mostly procedural changes. One such change proposes to extend renewal periods from two to three years. Other changes clarify language relating to alterations and repairs, payments and trade fixtures.

“The approach we’re using [for the changes] is surgical,” Ratcliff said. “We’re not tearing the document apart, but repairing the parts that need work.”

“It is my opinion that all parties to the MSA should renew the document for one or two years, and then enter into negotiations about amendments to the Master Space Agreement,” Carol Freire, former co-op oversight committee chair, said. “The University Centers, however, is afraid that if this is done, the parties will not pay attention to any proposed changes. This is a move on their part to bring others to the bargaining table.”

At an April 21 council meeting, the A.S. Council approved the renewal of the current Master Space Agreement.

“I think the method A.S. used to pass the proposal was a bit awkward,” Ratcliff said. “There are three parties to the [Master Space Agreement] — A.S., the GSA and University Centers, and so A.S. cannot unilaterally pass an agreement.”

According to the current Master Space Agreement, without a renewal upon expiration, the co-ops will be leased on a month-to-month basis. Several members of the oversight committee have expressed concern over a month-to-month lease.

“We’re dealing with businesses here — we often forget that,” said Kate Pillon, the newly elected co-op oversight committee chair. “I feel like it’s unfair and not very good business practice for a business to be running on a month-to-month lease.”

Generally, members of the oversight committee are in favor of the proposed changes.

“I think that overall the changes are really good and really helpful,” Pillon said. “I think that what all of us want is for the co-ops to exist. I think that we all agree that they serve a hugely valuable purpose on this campus, but what we want is that they run safe and sound businesses, and that’s something these changes are hoping to ensure.”

However, members of the committee also criticized University Centers for proposing the amendments at such a late date, leaving them little time to consider the changes before the expiration of the current Master Space Agreement.

“I feel like the changes did come very late, and I think that this all could’ve been avoided had they come earlier,” Pillon said. “I think that the main thing that people have a problem with is not the changes themselves … but that they came to us last-minute.”

Dana Dahlstrom, GSA-appointed voting member on the co-op oversight committee, feels that University Centers should not refuse to renew the Master Space Agreement at this time.

“We could amend [the Master Space Agreement] consensually at any time,” Dahlstrom said. “I think it’d be a good show of faith for University Centers to renew the document until we have a concrete agreement on the changes.”

The oversight committee and University Centers will continue negotiations over the amendments and will try to reach an agreement by an informal May 29 deadline, Ratcliff said. If an agreement is not reached by that date, the existing Master Space Agreement will continue to operate on a month-to-month basis. Ratcliff also stated that he would sign an agreement ensuring that the Master Space Agreement will stay in place through the summer without any changes and allow negotiations to resume in the fall.

“The most important thing here is really open communication between all the parties,” Pillon said. “That’s something that is historically lacking, and I think that if we can have open communication … we can really get this done and have it be a better document for all the parties involved.”

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