Anaheim Paid Too Much in ‘Rush’ to Buy Arena Land, Pickler Says : City government: The councilman says the site was appraised at less than half the $3.2-million purchase price.

In their rush to acquire land for a proposed indoor sports arena, Anaheim officials paid $3.2 million for property that was appraised at less than half that price, City Councilman Irv Pickler said Thursday.

Pickler said he believes that Anaheim has approved too much money--more than $21 million to date--to acquire land for a facility that may never house a professional sports team. About $18 million of that money was raised by issuing bonds to be paid off from an increase in the hotel and motel bed tax.

“We’re rushing through something that isn’t in our best interest,” said Pickler, a lone council critic of the ambitious arena construction plans. “We’re on a fast track. . . . It’s moving too fast.”

The council voted 4-1, with Pickler opposed, on Dec. 27 to pay $3.2 million from its general tax fund for 2.7 acres in two adjoining parcels at 1630 Douglass Road. The land had been assessed at only $1.4 million last June, Anaheim City Atty. Jack White said.

But White said a subsequent appraisal of furniture, fixtures and equipment at the location, combined with relocation costs for the owner and “good will,” the value over and above tangible assets, brought the total value to $3 million. Structures at the site were deemed to have only “nominal” value, he said.

Council members were willing to pay the agreed-upon $3.2-million price, White said, to avoid the expense of a condemnation lawsuit.

The former owner of the land, Paul and Karen Root of Newport Beach, could not be reached for comment Thursday.

Pickler’s criticism underscored his growing disagreement with other Anaheim council members, who have been accused by some property owners of ramrodding through approval of the $85-million arena with little concern for its effects on the community. Pickler also expressed doubt that the city can attract sports teams to play in the proposed arena.

Lack of Teams

“I’m trying to do it low-key, and I’m not getting anywhere,” said Pickler of his opposition. “I’m out here on a limb. I haven’t convinced any of the others yet.”

Pickler also voted against another $2.3-million land purchase this week that was approved 4-1 for property that may be used for the arena.

As proposed, the city will buy the land for the arena and Ogden Corp. of New York will finance its construction. Ogden will then deed the arena to the city, and in return manage the facility, splitting revenue with City Hall.

“We put out $21 million for . . . land already and we don’t know if we’re going to get an NBA team until we build the arena,” Pickler said.

The $21 million has gone toward the purchase of numerous parcels of land, including some at the proposed arena site at the northeast corner of Katella Avenue and Douglass Road, and property elsewhere in the city in a complicated series of land swaps.

It is not likely that a National Basketball Assn. team would move to Southern California, where it would compete for fans with the established Los Angeles Lakers and Los Angeles Clippers franchises, Pickler said.

And although the National Hockey League has announced plans to expand, there are numerous other arenas in locales that do not already have NHL teams nearby, he said. (The NHL’s Los Angeles Kings play their home games in the Forum in Inglewood.)

“I think they (the NHL and NBA) are going to look at other areas where there are fewer teams,” Pickler said. “How many expansion teams do you think they are going to have?”

Moreover, under a tentative agreement with the arena’s developers, the city stands to lose up to $1.5 million a year subsidizing the arena for 10 years if it is not profitable, Pickler said.

“I just think the return is not there for what we’re putting out,” Pickler said.

Pickler said he prefers that the city use its money in other ways, such as aiding the expansion of Disneyland or hiring more police officers.

Mayor Fred Hunter has expressed confidence that the city’s arena will attract a sports franchise. And Assistant City Manager James Ruth has said that if the arena needs a city subsidy because of operating deficits, the money would be reimbursed the following year before profits can be taken by the developer.

Pickler said he originally believed that the city would spend only about $8.5 million to acquire arena land, and only after an agreement was signed with the developer.

“We have not signed any papers and we have (law)suits hanging fire from the Angels, ASA (Anaheim Stadium Associates) and the Rams,” Pickler said.

The California Angels, Los Angeles Rams and ASA, a development partnership which includes Rams’ owner Georgia Frontiere, are among critical neighboring property owners who have formally asked that the council reconsider its Dec. 27 vote approving the arena’s environmental impact report. The request is necessary if any of those parties later wishes to sue the city to block the project.

The Rams, Angels and other critics claim that the council rushed approval of the arena environmental report and other related matters at the Dec. 27 meeting.