Walnut To Get $9M, Other Concessions For Dropping Stadium Suit

City of Walnut Drops Lawsuit Against Proposed NFL Stadium In Nearby Industry

The city of Walnut, California, "agreed to drop its lawsuit challenging the construction of a proposed NFL stadium" in neighboring City of Industry in return for $9M, an "annual cash payment and assurances that traffic and noise will be controlled," according to documents cited by James Wagner of the SAN GABRIEL VALLEY TRIBUNE. Industry will "guarantee that Walnut receives an annual payment into a 'community fund,'" and the amount of that payment will "vary year-by-year depending on how many events the stadium hosts." Estimates suggest that Walnut would receive $350,000 per year if at least 24 events are held, and that amount "can also be raised if there is an increase in the average price of an NFL ticket." Under the agreement, all parties also will "work to build a Metrolink platform near the stadium and provide service on game days, including on weekends." Industry will "build a Los Angeles County fire station to serve the stadium and surrounding area." Wagner notes terms of the settlement "won't officially be released until the Industry City Council votes on whether to approve it at its meeting" today. Meanwhile, "one hurdle remains" for stadium developer Majestic Realty Co., as the company has "yet to reach an agreement with a group of Walnut residents, which filed a separate lawsuit against the project on the same grounds as Walnut" (SAN GABRIEL VALLEY TRIBUNE, 9/24).

OBSTACLES REMAIN: In L.A., DiMassa & Farmer write Majestic Realty Chair & CEO Ed Roski has "gotten further than some other NFL dreamers." But even if Roski can "clear the remaining legal and zoning thicket, it remains unclear whether such a large project -- which would include retail and office space, as well as practice fields and banquet facilities -- could get construction loans amid the credit crunch." Another "big issue is naming rights, which would be a major source of new revenue for the stadium," and there also is the "question of whether a team can be persuaded to move to L.A." DiMassa and Farmer note if there is an NFL work stoppage, it "might further delay the NFL's return" to L.A. However, Roski "has one advantage" over other L.A.-area sites in that these "potential rivals cannot match -- undeveloped land." Roski said the Industry site is the "only place we can do it in" Los Angeles County, and added, "We've physically spent time and effort on all of the different opportunities, and you just can't find 600 acres in" Los Angeles County (L.A. TIMES, 9/24).

OMINOUS SKIES: In San Diego, Tim Sullivan writes though Roski has "yet to stick a ceremonial shovel in the ground" in Industry, his maneuvers are "making those people paying attention mighty nervous" in San Diego. Former San Diego Citizens Task Force on Chargers Issues member Geoff Patnoe said the settlement between Walnut and Industry "could certainly be a sign that the final minutes for Chargers football in San Diego could be on the horizon." Sullivan notes San Diego Mayor Jerry Sanders and California Assembly member Nathan Fletcher also have "seen poaching potential in bill ABX3 81, a measure designed to grant the City of Industry an exemption to state environmental building regulations." However, Chargers Special Counsel Mark Fabiani yesterday said that there is "nothing new on the Roski front and that the team's stadium efforts remained focused on San Diego County." Sanders spokesperson Darren Pudgil said, "We are sincere in our interest to keep the team here and have supported their efforts in Chula Vista and more recently in Escondido. We have and will continue to work with the team to find a solution that keeps them in San Diego County" (SAN DIEGO UNION-TRIBUNE, 9/24).