University Jewelers at odds with U. over lease

The lease offer for space in the 3401 Walnut complex would allow Penn to force the store to move again. It may not be all-out war yet, but the increasingly acrimonious lease discussions between University Jewelers and Penn are not exactly generating any warm feelings. And with the University-imposed Friday deadline rapidly approaching, it seems unlikely that University Jewelers will remain in business after 62 years on campus. The store must accept the University's current lease proposal by that date or lose the chance to relocate to the 3401 Walnut Street complex. University Jewelers is currently located in The Book Store building on the 3700 block of Walnut Street. But the complex will close in June to make way for a new Wharton School building. University Jewelers and University City Associates, Penn's for-profit real estate arm, have been negotiating a lease for the store in the former location of Metro Hair, which recently closed after Penn decided not to renew its lease. According to Fred Green, who owns University Jewelers with his wife, all key financial issues have already been settled. Indeed, only one point of contention remains between the two sides: a clause that gives the University the right to relocate the store after it moves into 3401 Walnut. "There is no way I'll agree to [such a clause]," Green said. "It looks like we're going to have to ride off into the sunset." But given the Greens' desire to remain in University City, a compromise before the Friday deadline is possible. UCA General Manager John Greenwood has previously said that Penn considered University Jewelers an important part of the campus retail mix. While Greenwood refused to comment on the relocation clause, he blasted the Greens for overstepping the bounds of propriety by speaking with The Daily Pennsylvanian on specifics of the negotiations. "We agreed that these discussions would remain confidential, and they have breached that," Greenwood said. He added that any discussions about unsigned leases should take place between the interested parties and not be fought out in public. However, the Greens said they feel the University has been unresponsive to their concerns about a clause they characterized as highly unusual. "Why have such a clause anyhow?" Green asked. Several owners and managers in the 3401 Walnut Street complex confirmed that their leases included no such provisions. Furthermore, they indicated that such a clause would be of real concern to a retailer. "They can't just move you, because your location is very important," said Christopher Anastasiou, owner of Eyeglass Encounters.