Proposal Deadline Won’t Be Met : Anaheim Sports Arena Site List Down to Two

Anaheim city officials and a group eager to bring a professional basketball team to Orange County have identified two preferred sites for a proposed $50-million sports arena but have been unable to reach a final decision on a location, a city official said Thursday.

The group hoping to build the 20,000-seat arena faces a deadline of today to complete its proposal, but will ask the City Council for more time to address concerns over parking, according to Jim Ruth, assistant city manager.

“We do need more time,” said Ruth, who is negotiating with the arena proponents. “We have made substantial progress but the problems we are dealing with are very intricate.”

The list of sites has been narrowed down from a dozen to two locations--one downtown and one near Anaheim Stadium, Ruth said. Two alternative sites near the stadium will remain under consideration if the first two locations prove unfeasible, he said.

In September, the city entered into an exclusive negotiating contract with the investors, known as the Papiano Group, and had set today as the deadline for them to present a detailed arena financing proposal, along with a $100,000 deposit. That deadline would be postponed 60 days if the City Council approves an extension.

The extension request will go before the City Council on Jan. 10. If the request is approved, a full report with final recommendations on a location would come back to the council in March, Ruth said.

The downtown site, 20 acres bounded roughly by Broadway, Lincoln Avenue and Harbor and Anaheim boulevards, would be on city redevelopment property, Ruth said. An office high-rise and parking structure are on the land, which is otherwise vacant.

The site near Anaheim Stadium is 15 acres of county land at the intersection of Katella Avenue and Douglas Road, Ruth said. That land would probably be leased from the county, which would have to relocate a maintenance facility on the site, he said.

City officials have scheduled more meetings with the county to discuss the Douglas site, Ruth said.

Last year, the National Basketball Assn. rejected Anaheim’s bid for an expansion team, largely because no suitable arena was available. According to sources familiar with those talks, NBA officials have virtually promised Anaheim a team--perhaps an existing franchise that could be moved--if a new arena is built.

The NBA added teams this fall in Charlotte, N.C., and Miami, and plans to add teams in Orlando, Fla., and Minneapolis next season.

In a decision that ended years of squabbling over the choice of an arena builder, a group headed by Los Angeles lawyer Neil Papiano was selected last summer by city officials to prepare a proposal to build the sports arena.

Earlier Proposal Killed

One of the groups not selected, the Westdome Partnership of Santa Ana, saw its plans for an arena in Santa Ana killed by neighborhood opposition 2 years ago. The other two investor groups rejected by the city had ties to existing NBA franchises--one included the owner of the Denver Nuggets and the other included a former owner of the Phoenix Suns.

Papiano heads a partnership that includes the Ogden Corp. and the Nederlander Organization, both of New York.

Ogden, a sports management firm, operates the Louisiana Superdome in New Orleans, the Kingdome in Seattle, the Great Western Forum in Los Angeles and other convention centers and arenas.

The Nederlander Organization operates 30 theaters across the country, including the Pacific Amphitheatre (with Ned West Inc.) in Costa Mesa, and the Greek and Pantages theaters in Los Angeles.

Both Papiano and city officials say their major aim with the arena is to attract an NBA team to Anaheim by the 1991 season.

But before there can be fans there has to be parking for the proposed arena, which would require 7,000 spaces, Ruth said.

Given available parking near the preferred sites, at least 4,000 additional spaces completely under the arena’s control would be required wherever the sports venue is located, Ruth said.

Parking for the downtown arena site could be provided by expanding the existing parking structure there, Ruth said. But at an expected cost of $5,000 a space, he said, it could be very expensive.

If the Douglas site is chosen, Ruth said, the arena probably would share parking with Anaheim Stadium. Scheduling for events at the proposed arena would be made around baseball and football games to prevent conflicts, he said.

Stadium Area Backed

Anaheim City Councilman Irv Pickler said Thursday that he would prefer to see an arena built near the stadium.

“The downtown area doesn’t hit me as a spot for the arena,” he said. “It belongs in the (stadium) area. But I’m willing to look at anything.”

The Rams and Angels organizations have been kept abreast of the negotiations, Ruth said. Team officials could not be reached for comment Wednesday night.

When selected last summer to draft a proposal, the Papiano Group offered to build and operate the arena at no cost to the city, which would own the land.

Details of the proposal have not been settled. But Papiano said last summer that the arena would include luxury suites and two restaurants. The city and his group would divide the profits, he said.

The arena could also be used for other professional sporting events, shows and concerts, Papiano said.