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News

Civil Litigation,
Entertainment & Sports,
Land Use

Mar. 2, 2022

Dispute over sale of Angel Stadium goes to court today

“The lawsuit claims that we violated the Brown Act in approving the sale. We obviously disagree, and held many public hearings,” said Mike Lyster, spokesman of the city of Anaheim. “The plaintiff falsely argues that we did this deal behind closed doors. We did not. That would be illegal.”

Two years after a lawsuit sought to void the sale of Anaheim's Angel Stadium and 150 acres of land to a private company for $320 million, arguments were scheduled to be heard in Orange County Superior Court on Wednesday.

A group represented by Kelly A. Aviles of La Verne and Shaila V. Nathu of San Francisco alleged that the city committed multiple violations of the Brown Act, which requires public business to be done in public.

"The lawsuit claims that we violated the Brown Act in approving the sale. We obviously disagree, and held many public hearings," said Mike Lyster, spokesman of the city of Anaheim, during a phone interview Tuesday. "The plaintiff falsely argues that we did this deal behind closed doors. We did not. That would be illegal."

The complaint was filed in 2020 by People's Homeless Task Force, an Orange County organization that "creates ideas and programs focused on dissolving and eliminating hunger and housing insecurity for people suffering from abject poverty," according to its website.

In the trial before Superior Court Judge David A. Hoffer, the city is represented by Thomas B. Brown and Mark J. Austin of Burke, Williams & Sorensen LLP along with Robert R. Fabela, Kristin A. Pelletier and Gregg M. Audett of the Anaheim City Attorney's Office. Allan J. Abshez and Daniel J. Friedman of Loeb & Loeb LLP represent real party in interest SRB Management Company LLC, which bought the stadium.

Aviles said in a phone interview her clients don't oppose the sale outright. "Everyone has different views on the sale and what is the best deal for the citizens. I don't think it's a good deal, certainly, but the problem is the process. It lacks transparency, and that is what we think needs to be addressed. The city at every step took measures to keep the public out and that's not right," she said.

Lyster responded, "The lawsuit asks to nullify the sale, to void it. We of course, ask the opposite, for it to be approved. The judge has a clear decision to make there. The question is whether we violated the Brown Act and we did not. He can offer nuance, but that's the essence."

Aviles wrote in the complaint that "between the end of 2018 and the end of 2020, the city engaged in a pattern of secrecy surrounding the sale of Angel Stadium." People's Homeless Task Force Orange County v. city of Anaheim, 30-2020-01135406-CU-WM-CJC (Orange County Super. Ct., filed Feb. 28 2020).

"With the holidays just around the corner, at 2 p.m. on Friday, Dec. 20, 2019, the city council rubber-stamped the deal during a special meeting, agreeing to sell Angel Stadium and the surrounding property to SRB Management Company LLC, for $325 million, a figure many people in the community have claimed is far less than fair market value," stated the lawsuit.

A statement from the city reads, "We stand by our process and look forward to seeing this matter resolved. The debate and approval of our stadium site plan took place in several open city council sessions with extensive public input, with three community town halls, two informational open houses and widespread sharing of information. What is at stake here is simple. The land around the stadium can generate more for us to serve our community. We want to see that happen and keep baseball here for decades to come, and we know our community wants that as well."

Lyster confirmed that the city "expects the parties to present their arguments" but does not "expect the lawsuit to be settled at this instance. Judge Hoffer will listen to both sides and may ask for further hearings. He is unlikely to do a tentative ruling."

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Federico Lo Giudice

Daily Journal Staff Writer
federico_giudice@dailyjournal.com

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