The 49ers just released this statement saying they are suing the Santa Clara County Oversight Board for $30 million.
(SANTA CLARA, Calif.) – The San Francisco 49ers filed a lawsuit yesterday to prevent a Santa Clara County Oversight Board from reneging on the commitment to fund $30 million for the new NFL stadium under construction in Santa Clara. The investment of RDA funds for the project was approved by the Santa Clara voters in June 2010, and formalized in written agreements in February 2011. The 49ers advanced funds into the Stadium project in reliance on the RDA’s commitment to the project. After the County declined to discuss a resolution to this issue, the 49ers have begun the process to have the matter decided in court.
The first step in the litigation was a request for a temporary restraining order, filed yesterday by the 49ers, to prevent the County from disbursing disputed funds for any other purpose until the court can more fully review last week’s surprise action by the Oversight Board, in which it voted to reject the stadium funding commitment.
Sacramento Superior Court Judge Lloyd G. Connelly issued an order today requiring the County to hold the disputed funds until a July 3 hearing on the TRO.
“The Judge’s order is a positive first step,” said Larry MacNeil, CFO of the 49ers. “We look forward to discussing with the County how we can resolve this matter.”
Because the 49ers advanced the funds to the project, construction of the stadium will continue on schedule, with no change to the July 2014 anticipated completion date.
“The stadium is a public-private partnership success story,” said MacNeil. “The cash advanced by the 49ers, backed by the RDA commitment, leveraged hundreds of millions in new funding to create one of the largest construction projects in the state. After just a few months it has created several hundred jobs, provided a positive regional economic impact and funding for the Santa Clara School district. By this fall, there will be 1,000 workers on this job.”
The stadium in Santa Clara will be the new home to the San Francisco 49ers. It was designed by HNTB and is being built by Turner/Devcon; the stadium is expected to be one of the world’s best outdoor sports and entertainment centers, setting the standard for the next generation of sports venues. The $1.2 billion venue will have 1.85 million square feet, seat approximately 68,500 and will feature an expected 165 luxury suites and 9,000 club seats. It was designed to be a multi-purpose facility with the flexibility to host a wide range of events including, domestic and international soccer, college football, motocross, concerts and various civic events, and will be expandable for major events such as the Super Bowl. For more information, go to www.newsantaclarastadium.com.
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Although it is messed up what happend, I think it is hardly the County’s fault for a shortage of funds. If anything they should be joining forces with the county to sue the state of California for trying to take away the redevelopment funds that were promised. This is happening to many cities and counties.
The 49ers need more skin in the game. Yes they put up an advance of $30 million to start the construction and secure huge loans. However, they’re expecting to get that $30 million back from the County. So, where is their financial exposure? Shouldn’t they be making a larger down payment? This seems to me like getting a mortgage with zero down.
The $30M is just 3% of the project; the Niners have a lot more in it already. This is about the County entering into a commitment and then trying to renege. The 49ers loaned them the 30 to cover their share of the commitment to the project. If I take a loan, I expect to pay it back. I can’t just say that the situation has changed and now I don’t want to. The voters specifically approved the use of the funds, unelected bureaucrats can’t change the deal after the fact.
+1 and lots of banks
@NickRow:
I don’t know how much cash the 49ers are putting in up front, but I am pretty sure the team is on the hook for the NFL’s loan of $200,000,000.
Jed wants his cookies and milk back.
And you need a nap!
Never ever depend on the gov at any level. The Niners should of known better, I do. Probably going to be 30 million in legal fees and court cost. In case you all dont know it, tax payers and ticket holders are going to pick up the cost.
The only ones that will amke out on this deal are the attorneys with huge billable hours.
The Bottom Line is the County commited to the 30 Mil regardless if there’s no more Redevelopment Agencies. These people from the County Board are just using this for their own Political Gain so they shine to get re-elected to their respective seats.. It’s pathetic!
Great post from MJ on Lowell’s blog helping you all understand this is a Santa Clara City vs. Santa Clara County issue/fight. The City of Santa Clara, that voted for and approved these funds, is now getting trumped by the County. The City of Santa Clara is on the 49ers side in this fight:
“Why is it that no one can seem to accept that this money, as approved by residents of Santa Clara CITY, was designated for use for construction of the stadium, in the CITY of Santa Clara. Has nothing to do with the County (this is a broad statement, not to be applied to Lowells post, saw that you put the proper designations of city/county).
The County isn’t the CITY. The 30 million came from the City, why should the rest of Santa Clara county now get access to it? People in Gilroy, Morgan Hill, San Jose, etc shouldn’t be rewarded for what the city of Santa Clara did.
This was always a City of Santa Clara deal and 49ers deal. Not a County of Santa Clara deal. I wonder of those reps who voted to take the money from the stadium, who all live in the city of Santa Clara…or do they live in Los Gatos or Morgan Hill or Willow Glen.
Good that the Niners got a judge to put a halt to this. The agreement came before the County had control, they shouldn’t have the right to change these agreements. Very undiplomatic.”
The fact of the matter is that the 49ers/Yorks Knew that the Redevelopment Money was D.O.A way back in Jan. of 2011. But went ahead and spotted the City of Santa Clara the RDA money to get the construction started…
In my book thats the 49ers “Bad,” they knew that the RDA was no longer available to “all” of the Counties located in the State of California. What makes the City of Santa Clara so special that they can lay claim to the money….an NFL Stadium????
The Niners know that the City is good for the money,since in the end the City will own the stadium and the City will have new revenue from all the new hotels and business in the area. The City now owes the team $30 million and if the City can’t get it from the County or the State,then they will just have to pay it back from other sources(taxes),that they WILL have now because of the stadium.
So,no real problem either way. The stadium IS being built and the City and the team are going to court to get the promised $ .
The team may be playing in the stadium before this is all resolved but one way or the other the team will get it’s money back that they LOANED to the City.
Yeah….let Mayor Fat Jamie Matthews pay the 49ers the money back. Cuz thats the only way Jed will get the money he loaned to the Stadium Authority back, from the Stadium Authority, which is the Santa Clara City Council…LOL…
No Blazer,the team will get the money they LOANED to the City because the City owes them the $. The voters voted for it and the team has it in writing. The only question is will the County give the City the $ that the County promised,or will the City pay it back in other ways.
Remember that the team will be leasing the stadium from the City,the City will own the stadium. If the City doesn’t pay the $ they owe the team the team will just withhold the 1st $30 million in payments ,lol. Simple as that !
Are you sure you dont mean our Pres and Government too? ;-/
Leave it to the Warriors the screw up the draft.
Why do you say that Nick?
Jack, do you differ with Nick?
Just wondering why he says they blew it Welcher. I don’t watch enough basketball to have an opinion either way.
Oh poor little Jack,
Is that all you got!?? I’ve had battles here over the years with the best…MD, Bay, and Jordo. You don’t even compare. It’s sad. Welcher is your deal? LOL
Welcher,
I was taught to be nice to my elders so I want to take it easy on you. When does that order of Super Beta Prostate arrive?
Elders? You act like the old lady and are on all day long so you must be retired! Keep trying Hack. lol
Look Welcher, there are these things called smart phones, and tablets now, you are no longer stuck in your house to get on the Internet. Time to upgrade from that Commodore64 there old man. LOL!!
Oh poor little Hack,
Getting sensitive. lol Thanks the technology update. I don’t think I need your help but thanks anyway. You need to take a break. I just got back from vacation and it was tremendous. Have you had a day off from this blog in the last 6 months? You seem to be on all the time in between your naps. Take a breather…Grant won’t miss you much and you can catch up when you get back. lol
Look Whelcher, I actually like you. I’ve always held a special place for cheerleaders.
If a cheerleader is a fan of the HC and the team, then I take that as a big compliment – thank you. Are you a fan of the team Jack or just a fan of GC?
That’s a tough one Hofer because just like the 49ers, Grant is on the rise.
Jack,
The Warriors could have gotten better value had they picked Andre Drummond. This kid has the rare combo of size (7 footer) and athleticism. Don’t get me wrong, Harrison Barnes could turn out to be a great player, but I think Drummond has a higher ceiling nd can turn out to be a once in a generation type of player.
Thanks for the info Nick. Hope it works out for the Warriors. Would be great to see them start winning.
Hey Jack,
Watch the cheerleaders remarks :), my oldest son now 20, was in gymnatics for over 10 years and was the first male cheer leader at Valley Christian H.S. in San Jose, imagine being the only male cheerleader among 10 nice looking girls, many were envious of him, lifting them up and whatever else they do.
That’s one smart boy you’ve got there Neal ; )
Got nothing against gymnasts either, those dudes are ripped. Is he going to check out the qualifying for the US Olympic team down at the Tank this weekend?
He would like to go but he is working this weekend. He needs to pay for that car payment, the old man can’t bail him out on everything.
I was wondering when this would escalate to a court battle.
The funding or the previous string?
i enjoyed the one hitter by bumgarner sitting almost next to JH tonight ….. section 124 row 24 if you must know … yep khaki pants with a wierd little side zipper…i can report he had a good time was was very generous with his time and his social skills were exemplary
Would you categorize him as a jerk? Was his attitude jerkish? How much jerkatude did you notice?
like i said exemplary…it was all good
and ps….and dusty’s son was behind me as well … spittin image of his dad
Why were you looking at his zipper?
Counties generally run county offices of education not school districts. teaching costs for county offices of ed are small they are mostly administrative costs. I think Santa Clara county is running an emotional scam here. I would love to see a breakdown of exactly how the county plans on spending the 30 million dollars. They are trying to keep money that they agreed to give the 49ers and make the team and their ownership look selfish.
the “county” didn’t agree to give the 49ers nothing, the city of santa clara did.
Yeah,and the County agreed to give the City the Money so they could pay the team back. The team will get it’s money from the City sooner or later,that is not in question. What is in question is wheather or not the County will pay the City the promised $.
@Tim…
Exactly how many Cities are located in the County of Santa Clara? Those other Cities are entitled to that 40 million also, that is what this legal fight is about, the RDA money goes into a pot for all of the Cities located in the County of SC…not “just” the City of Santa Clara. That is the “public tax money” and it is NOT exclusively for the City of Santa Clara. The County & State made NO promise of money to the stadium project in Santa Clara….The elected officials of City of Santa Clara did.
Where have you been Tim…RDA was terminated in Janurary of 2011 for the entire State of California. The local Pols in Santa Clara knew this, as well as the 49ers, but the Yorks decided to loan the City the 40 million anyway to santa Clara…In my book that the 49ers “Bad”…They need to eat the loan they made, & move forward in their Stadium Scheme.
Can we get a new one Mr. Cohn?
Whew, this is getting a little bit stale. The Doldrums……..
We now can look forward to Steeplechase, Synchronized Swimming, and Archery to add to golf and Futbol for our viewing options…..Oh Boy!
C’mon TC & Preseason!
Brotha, the 49ers Packers Catch II game is on NFL Network right now. Maybe that will help the withdrawals ; )
@ Jack
Thanks Bro, it’s definitely better than picking out hardware for the bathroom remodel, which is where I’m headed next, unfortunately. : >)
“Well, um, actually a pretty nice little Saturday, we’re going to go to Home Depot. Yeah, buy some wallpaper, maybe get some flooring, stuff like that. Maybe Bed, Bath, & Beyond, I don’t know, I don’t know if we’ll have enough time.” – Hank the Tank
Hey Grant,
I hope all is well. I was thinking that a good blog topic would be what it will take for the Niners to win the Super Bowl. We know they are the most complete team, but there are so many things that have to break right for a championship. Staying healthy, players progressing, offensive improvement, defensive improvement and coaching improvement are all huge factors. I also think one of the bigger issues will be the teams ability to secure home field advantage throughout the playoffs. Most people expect the team to take a small step back record wise, but I think home field advantage will be important for the team to win a championship. It provided a huge emotional lift last postseason and I feel it’s important for the team to secure it again this year. Green Bay and the Patriots both have easier schedules than the Niners and are both loaded for another run. It would be fun to get your “big picture” take on the upcoming season and how you see things having to align for the Niners to secure their sixth Lombardi trophy. Take care and enjoy the weekend.
Hey Big P,
I disagree with you saying we are the most complete team. Yes we have a great defense and special teams, but we were 29th in the league in offense and low ratio of third down conversions. The experts would pick a handful of teams better then the Niners.
Top to bottom, the niners are the complete team. i think what you meant to say is the niners need to execute thier system completely which has been implmented one full year now, to be a championship team
None of it really matter’s if they don’t win the Super Bowl. You could be the most complete team without a ring it does not mean anything.
Of course Neal, winning is all that matters but when you look at the niners roster, its not only ready to win now but in the future to with a lot of the core players being so young.
I don’t see it that way, too many holes in the offense, weakest link on the chain, but we shall see.
Neal,
Are you from Missouri? You want to see it before believing it.
No Jack, not from Missouri, but KC has the best steaks in the universe, ok maybe on earth at least.
Alberta, Canada, best beef anywhere in the world!
The Niners case seems airtight on the issue of the loan, but the fact that the city (rather stupidly) ran it all through the now defunct RDA pits them against not just the county, but the state. Neither the governor nor the legislature wants to see a tidal wave of similar lawsuits (you think this is the only property tax money grab being pulled by a county?), so they’ll strong-arm everyone into a half-assed compromise that short-dicks everyone and walk away declaring victory.
The team and the city are better just eating the loss and scheduling a few more concert dates to cover the shortfall. Contract law means exactly squat when you’re up against the folks who actually get to write their own laws.