Thursday afternoon, the San Francisco 49ers announced they filed a lawsuit against the Santa Clara Oversight Board to block the board from reneging on a commitment of $30 million in stadium funding for the 49ers' new stadium. The 49ers have requested a temporary restraining order to prevent the board from disbursing the money for any purpose other than the new stadium.
The Oversight Board approved a measure last Friday that would pull back $30 million owed to the 49ers as part of the stadium funding process. In proposing the measure, county tax collector George Putris said, "Let's be real: That stadium is going to get built whether or not you get this $30 million." The money was part of $40 million that would come from the Santa Clara City Redevelopment Agency.
Previously, California had numerous redevelopment agencies across the state that could finance a variety of projects. The agencies were scrapped last year as part of the state government's attempts to balance the state budget. After the agencies were scrapped, the state created oversight boards that are required to follow specific parts of the law that were designed by the state in order to dissolve the Redevelopment Agencies.
In response to the dissolution of the agency, the 49ers advanced Santa Clara $30 million, with an agreement in place for the 49ers to be reimbursed for that money. The oversight board decided the money could be better spent elsewhere in spite of this agreement, leading to the 49ers lawsuit.
Following the filing of the lawsuit, a Sacramento Superior Court judge issued an order requiring the County to hold the disputed funds until a July 3 hearing on the 49ers request for a temporary restraining order. Construction will not stop at this point because the money was already advanced by the 49ers. If the 49ers lose at the temporary restraining order hearing, they would simply need to find another way to cover the $30 million they had advanced on the $1.2 billion project.
For more on the 49ers and their new stadium, head over to Niners Nation.