California has “rejected a $30 million settlement that sought to split taxpayer funds” between the 49ers’ Santa Clara stadium and the South Bay schools, according to Mike Rosenberg of the SAN JOSE MERCURY NEWS. The state's decision “could result in millions of dollars lost to both the Niners and struggling local schools and will send the battle over the money back to court.” But it “won't slow ongoing construction of the 49ers' new Santa Clara stadium.” Santa Clara voters had “earmarked $40 million in redevelopment taxes for the new stadium in 2010, but local officials shocked the region in June by trying to take the final $30.2 million for local governments, primarily schools.” An “ensuing public argument pitted football fans against school parents.” A compromise came in August when the 49ers “agreed to delay their full share of the funds for a few years and give school districts about half the money they were seeking.” But the California Department of Finance “denied the settlement in an Oct. 15 letter publicized Monday.” Finance officials said that “all redevelopment-related contracts needed to be signed before the Legislature and Gov. Jerry Brown approved a law in June 2011 scrapping redevelopment agencies.” The 49ers “expressed disappointment but said the decision would have no impact on their expected move to Santa Clara in 2014” (SAN JOSE MERCURY NEWS, 10/30).
