The ASUC Store Operations Board rejected a second lease agreement with restaurant chain Panda Express and discussed lease negotiations with three vendors in the Bear's Lair Food Court in its last meeting of the fiscal year Tuesday night.

The 6-3 vote on the Panda Express contract followed a similar decision last month, when the board voted down an earlier agreement but opted to continue negotiations with the chain.

The board also voted last night to pursue a bid process starting June 30 for a vacant spot formerly occupied by STA Travel, as well as any spaces that may open in coming months. STA Travel was one of two spaces previously slated to be occupied by Panda Express.

More than 30 students came to the meeting to voice their opinions about why the chain should not be allowed onto the UC Berkeley campus. While acknowledging financial difficulties the ASUC is facing, many students said the deal with Panda Express would not be sustainable.

"I'm so excited they made the right decision," said senior Jessie Booth. "In times of economic hardship, we have to buckle down. (But) putting a band-aid like Panda Express is not a financially sustainable way of addressing our problems."

However, some ASUC officials disagreed with the board's decision, saying it leaves the student government in a situation of financial uncertainty similar to when it faced bankruptcy in 1998.

"The test is going to be whether the ASUC fails as an organization," said Student Action Senator Tara Raffi. "If we had financially sustainable businesses, we would be able to give (student groups) money."

Many students who spoke at the meeting said a proposed student-run cooperative restaurant would be an ideal alternative to a chain restaurant. Supporters of the food co-op pointed to their recent success in starting the project, including donations of more than $100,000 from campus and private sources.

"We are getting support left and right," said Berkeley Student Food Cooperative leader Alli Reed.

Board members said the vote on a contract with Panda Express was intended to be a final decision, but some future board members said there could still be a possibility of exploring a deal with the business next year.

"I'd be open to it," said Tu Tran, a current Student Action senator and ASUC Executive Vice President-elect. "(But) everybody is anticipating a change in political ideology and I don't know if that's what they are going to see."

Three Bear's Lair Food Court vendors, meanwhile, will have to wait longer for an opportunity to examine and accept new lease agreements for their spaces. If any of the vendors reject the terms, their space will go up for a public bidding process.

The businesses, which have been operating on month-to-month leases for years, were set to go straight into a bidding process for their spaces earlier this year.

Graduate Assembly President Miguel Daal, who sat in on the board for discussions, said the delay in presenting potential lease extensions to the three vendors was because the board needed more background information on the correct rental rates for the spaces.

"We are still talking about the terms of their contract," Daal said. "We have to figure out what we want first ... the information we are getting is conflicting."

But while the board was in closed session discussing new lease terms for the vendors, supporters of the vendors said double standards were being applied to the small businesses.

Because Panda Express Real Estate Manager Arthur Chang was granted access to a closed session of the board, owners of The Coffee Spot, Heavenly Healthy Foods and Taqueria El Tacontento said they should be given the same opportunity to make their case.

"There should be more transparency," said Taqueria El Tacontento owner Arnoldo Marquez. "What's the issue?"

Tags: PANDA EXPRESS, STORE OPERATIONS BOARD, ASUC