The Palladium might be around for just long enough to host crowds of people cheering on the Class of 2004 as it storms down Locust Walk on Hey Day next year.
The restaurant, which was set to close its doors at the termination of its lease at the end of December, has been working with the University to negotiate an extended stay at its current location on the corner of 36th Street and Locust Walk.
"We have an agreement which will give us the option to stay until May of next year, which means that we can stay for the academic year," said Roger Harmon, one of the three owners of the Palladium. "This is what we asked for, and we're happy about that."
In spite of the state of the University's current negotiations with the Palladium, however, thei relationship has been somewhat tense over the past few years.
The Palladium, which opened on campus over 20 years ago, was a former tenant of the Christian Association.
During the summer of 1999, however, the University bought the building that houses the restaurant from the Christian Association and gave some of the space to other University groups including the Center for Undergraduate Research and Fellowships. This buyout gave the University control over the Palladium's lease agreement as well as that of the Gold Standard Cafeteria, located in the basement of the building. The Gold Standard's lease will expire at the end of the year.
Now, the future of both eating establishments is up in the air.
According to Vice President of Facilities Services and Real Estate Services Omar Blaik, the University had two options at the time that it purchased the Arch Building from the Christian Association.
"When you take over the lease of a building, you can either buy out the leasee at the time of purchase, vacate the space and pay him off or honor the leasee and take over the space when the lease expires," Blaik said.
Blaik said that the University chose the latter of these two options, giving the Palladium until December 2002 -- the time that its lease with the Christian Association would have ended -- to occupy its current location.
Nevertheless, Harmon expressed discontent with the terms of the lease transfer, saying that the University has not been straightforward in its interactions.
"I started talking to people at the University, asking 'do you want us to stay here or not?'" Harmon said. "Every time we asked a question, it would take a very long time to get a response."
Additionally, Harmon said that the financial negotiations surrounding the Palladium's tenancy have remained ambiguous. In recent years, Harmon said that the Palladium has incurred additional expenses as the University has been bringing the building up to the standards of Americans with Disabilities Act.
"We have invested a half-million dollars in the building, put in bathrooms, air conditioning and a whole new kitchen," Harmon said. "And we're spending a lot of money because of all the construction that is going on."
Nevertheless, Associate General Counsel Roman Petyk said that the University's involvement with the Palladium's renovations has been in accordance with the lease.
"It's not a secret that the building needed a fair amount of attention after it was acquired," Petyk said. "The University has spent a substantial amount of money on the building, and the Palladium Restaurant has benefitted from that."
The most recent negotiations however, have settled these differences for the time being.
And Harmon said the Palladium may still move elsewhere in West Philadelphia.
Regardless of when the Palladium chooses to terminate its lease, the University's plans for the building's use have yet to be determined.
"What will be done in the space that the current Palladium is in is still under discussion," Blaik said.
