Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 200

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 7A
Chunk 200
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 had 30 employees as of June 30, 2025 and the Hotel operations had 187 employees
as of June 30, 2025. On February 3, 2017, Aimbridge assumed all labor union agreements as agent for the Hotel under the management agreement;
Operating provides all funding for all payroll and related costs. As of June 30, 2025, approximately 90% of Hotel employees were represented
by one of three labor unions, and their terms of employment were determined under various collective bargaining agreements (“CBAs”)
to which Aimbridge is a party as agent for the Hotel. CBA for Local 2 (Hotel and Restaurant Employees) expires August 13, 2028. CBA for
Local 856 (International Brotherhood of Teamsters) expires December 31, 2028. CBA for Local 39 (Stationary Engineers) expires July 2030.

Negotiation
of collective bargaining agreements, which includes not just terms and conditions of employment, but scope and coverage of employees,
is a regular and expected course of business operations for Portsmouth and Aimbridge. Portsmouth anticipates that CBA terms will affect
wage and benefits, operating expenses, and certain Hotel operations over the life of each CBA and reflects there factors in operating
and budgeting processes.

Legal
Matters

Portsmouth,
through Operating, owns the real property located at 750 Kearny Street, San Francisco, which is improved with the Hotel and five-level
parking garage.. The Property was purchased and improved pursuant to the terms of a series of agreements with the City and County of
San Francisco (the “City”) in the early 1970’s. The terms of the agreements and subsequent approvals and permits included
a condition by which the owner was required to construct an ornamental overhead pedestrian bridge across Kearny Street, connecting the
Property to a nearby City park and underground parking garage known as Portsmouth Square (the “Bridge”). Included in the
approval process was the City’s issuance of a Major Encroachment Permit (“Permit”) allowing the Bridge to span over
Kearny Street. As of May 24, 2022, the City purported to revoke the Permit and on June 13, 2022, directed Operating to submit a general
bridge removal and restoration plan (the “Plan”) at owner’s expense. Portsmouth and Operating dispute the legality
of the purported revocation of the Permit. They further dispute the existence of any legal or contractual obligation to