Developers Give Up on Main Street Site for Westdome Arena

A 20,500-seat arena will not be built on a proposed site at MacArthur Boulevard and Main Street in Santa Ana because of opposition from nearby residents and difficulty in putting together a deal for the land, city officials said Friday.

Developers backed away from the proposed site, which was the first choice of a citizens’ site selection committee, saying they will search for another location for the proposed Westdome arena.

The four-man partnership plans to build the facility in the hope of attracting Orange County’s first National Basketball Assn. franchise. However, the partnership has had repeated difficulties in finding a site.

In January, for example, the project was put on hold when the City Council voted to eliminate a downtown site because of staunch opposition from nearby residents.

The council subsequently appointed a 20-member committee to select another site for the $40-million project. In April, the committee issued its final report, listing the MacArthur Boulevard-Main Street location as the most suitable site, followed by a 25-acre site at Grand Avenue and St. Gertrude Place and an 18-acre location at Main Street and Owens Drive.

But the top choice ran into opposition from residents of Sandpointe--a neighborhood west of the proposed location--who said the domed arena would generate excessive traffic, parking and noise.

Led by Richard Merritt, Sandpointe residents began circulating petitions, resulting in the presentation of about 1,200 signatures opposing the development to the City Council on June 3. On Friday, the developers decided to throw in the towel and search for another site.

Westdome partner Donald Oliphant said that he now believes an industrial site should be selected where the impact on neighborhoods would not be a problem. He declined to identify a specific site, saying that to do so would interfere with negotiations for a sale.

“We’ve learned a lot about being sensitive to the concerns of neighbors and homeowners on a project of this magnitude,” he said. “Now I think we can get down to the business of actually finding a site. In my opinion, there are many areas of the city that are good sites.”

Oliphant also pointed out that no deal for the MacArthur Boulevard-Main Street property could be reached with the owners, the Sakioka family, despite a cash offer. He wouldn’t say how much the group had offered, except to say that the amount was higher than the land’s market value.

Merritt called the decision “good news” for the neighborhood, adding that he had “serious doubts” about the financial success of the project wherever it is built.

City Councilman Dan Young said construction of Westdome and success in luring an NBA team to Santa Ana would increase the city’s ability to attract new business. He said that conventions would be able to use the facility in addition to sports, concerts and other major events.

Young, who noted that the council was unwilling to acquire the Sakioka property through eminent domain proceedings, said he believes the project can still be approved this year. That time frame is vital because Westdome is expected to be financed with tax-exempt industrial development bonds, which will expire Dec. 1.

Although talks have been held with the City of Anaheim to develop a similar facility in that city, Santa Ana is still the leading candidate, Oliphant said, largely because of the bond issue.

However, the financing would require some intricate planning because the bonds were approved last December for the downtown site, and they are intended for use at a specific location. The developers are awaiting an Internal Revenue Service ruling on whether the bonds can be used for another site.

If the IRS rules against the financing, the developers have indicated they would consider other approaches, including the use of taxable bonds, to pay for the construction.

The NBA is scheduled to continue discussions on awarding expansion franchises in October, said Alan Durkovic, one of the Westdome partners. If Santa Ana doesn’t get one of the franchises--cities such as Minneapolis, Miami and Toronto are also in the running--the partners hope to persuade an existing team to relocate here, Durkovic said.