Well, we could have predicted this when we wrote about the city of Santa Clara reneging on a deal that would pay the 49ers $30 million to help fund a new stadium. In response, the 49ers are going to court to force the city to pay the tax funds it already said it would provide for the $1.2 billion stadium.
It might not, however, be so easy to collect.
According to the San Francisco Chronicle, Santa Clara can't provide the money after the state dissolved “all local redevelopment agencies” earlier this year and because it wants to invest in schools.
Sacramento Superior Court Judge Lloyd G. Connelly has issued a temporary order, requiring the county to hold the funds until a July 3 hearing.
“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.”
Not only did the city say it would pay the 49ers $40 million -- not to mention the fact that voters in Santa Clara voted to approve the stadium -- it only has chipped in $10 million so far. Santa Clara also took a $30 million loan from the team to begin construction on the stadium, and the 49ers expected to be repaid from the tax funds.
Now, however, county officials don't think investing money in a football stadium is such a great idea. Which means the team might have to eat the money instead (the 49ers, however, will not halt construction), and that's why the organization is taking the city to court.
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