The Mall of America continues to draw millions of visitors per year, with its incredible variety of shops and entertainment, but a large section of the mall remains empty due to a deal made before it was open.
The Mall of America opened its doors to the public on August 11th, 1992, but a deal made a year earlier is still haunting the mall and has resulted in an epic legal battle.
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$10 A Year Lease for 100 Years – Mall of America is Now Regretting That Deal
Back in 1991, Sears struck a sweet deal: they’d pay next-to-nothing annually for their lease ($10 a year for 100 years) in exchange for being a key anchor store to draw people to what would become the largest mall in the U.S.
They even paid 30 years of rent upfront and agreed to cover property taxes, a setup that’s a bit unusual for a standard tenant.
Mall of America and Sears in Epic Legal Battle
Fast-forward to today. Sears has gone bankrupt, and the Mall of America has been trying for years to snatch back the lease, hoping to open up that prime space for something new. But the U.S. Court of Appeals for the Second Circuit said no dice.
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According to the court, letting the mall reclaim the lease would be “grossly inequitable,” especially considering that Sears, and later its trustee, held up their end of the bargain from back in the ‘91 deal.
Judge Calls it A “Unicorn” Deal
So, for now, the Mall of America is stuck with this “unicorn” of a lease, a one-of-a-kind agreement that’s been through the legal wringer. And with more than 60 years left on the lease, it looks like Sears (or whoever holds the lease) isn’t going anywhere anytime soon.
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So What’s Next?
The large, 3 story space could be subleased to someone new, that was part of the original agreement, that after 15-years Sears could sublease or assign the whole lease without the mall’s permission. The Mall of America is running out of legal options, so they may just have to live with this deal for another 60+ years!!
LOOK: 50 Famous brands that no longer exist Stacker compiled a list of more than four dozen famous consumer brands that no longer exist, consulting sites such as TheStreet, Good Housekeeping, and Eat This, Not That!, along with numerous throwback sites dedicated to consumer brands. Gallery Credit: Liz Barrett Foster