49ers sue Santa Clara County Oversight Board

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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