Underwriter Goes Ahead With Irwindale Bonds

A spokesman for the bond underwriting company that has been selected to sell $90 million in Irwindale bonds to finance construction of a new football stadium for the Los Angeles Raiders said Friday that state legislation introduced to block the sale will not delay his firm’s plans.

Paul Ekholm, senior vice president of the Minneapolis-based firm of Miller & Schroeder, said the firm had been advised by counsel that the mere consideration of the bill--authored by Assemblyman Mike Roos (D-Los Angeles)--is not enough to delay the sale. Only actual passage by the Legislature would block the sale, he said.

On Monday, when Roos proposed the legislation, he and two other officials, Elizabeth Whitney, acting state treasurer, and Walter Wiesner, a bond adviser to Atty. Gen. John K. Van de Kamp, contended that bond sellers would decide against going ahead with the sale while the Legislature considers the bill, a process that could take months.

But Ekholm said Friday, “We are continuing to work on it without delay, relying on the advice of counsel.”

The bonds are not scheduled to be sold until after a Nov. 4 deadline for Irwindale to come up with the financing and land necessary to consummate the deal bringing the Raiders to the city.

If the deal falls apart, the Raiders, under the agreement, would be able to keep a $10-million cash advance Irwindale has made to the team.