The Agreement was entered into as part of a lawsuit filed by the city of Panama City against the developer of Panama's new stadium. By a motion filed in October 2015, Panama City argued that the Panama Canaries Stadium was being developed with the intent of increasing the property's value by a deceptive process that included the construction of a hotel. As part of the Agreement, which was approved by the Court of Common Pleas in late January 2016, the stadium would be remodeled and leased out for the next 30 years. The City of Panama City would receive an annual rental of 21.2 million, according to the agreement. The Court concluded that the “purpose of a lease is to give the lessee the option to terminate the agreement at any time for any reason, with no penalty for doing so” and that the “lease agreement in this case is not enforceable because the developer has agreed to make the renovations to the Stadium as contemplated by the lease, but has not done so.
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