49ers Sue Santa Clara Over $30M Stadium Funding Loss

SAN JOSE (CBS SF) – As expected, the 49ers are taking Santa Clara County to court over $30 million in stadium funding that was unexpectedly pulled from the project last week.

The funding, in the form of tax money, was originally earmarked for the team’s new Santa Clara stadium. But, county officials approved a plan last week that instead allocated the money to improve schools and subsidize county services.

The team subsequently filed suit against Santa Clara County and the Oversight Board that voted 4-3 last Friday to make the funding switch.

Despite the lawsuit, it’s a move that Santa Clara County is defending.

“This is the kind of action that was exactly the action designed when the Legislature and the Governor began to dissolve redevelopment agencies and it essentially puts $20 million of cash into the Santa Clara Unified School District,” said County Executive Jeff Smith.

The Niners insist the funding flap and ensuing legal drama won’t impact the overall stadium project – a $1.3 billion football areans that’s expected to be finished within two years. Still, they have asked that a judge intervene and essentially freeze the money until the matter is formally ironed out.
KCBS’ Matt Bigler Reports:

The team filed a restraining order this week in an effort to stop Santa Clara County from spending the money, and the judge hearing the matter set a court date on the issue for next Tuesday.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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