Santa Ana Moves Ahead on Arena : Sports: City Council approves environmental impact report for $75-million facility. But there are still several hurdles ahead.

The City Council voted 6 to 0 Tuesday to approve the environmental impact report for a proposed $75-million sports arena, putting the city in a position to break away from Anaheim in the race to build Orange County’s first indoor sports arena.

The next step for the 20,000-seat facility is city approval of a financial agreement with developer Anthony V. Guanci of Newport Beach-based King Guanci Development Inc. The latter firm is a partner in the project with Spectacor Management Services and MCA Entertainment.

The council must also approve a zoning change in the area, as well as a development agreement. The arena would be built on a 17-acre site at Edinger Avenue and Lyon Street.

Questions over potential traffic trouble spots by Tustin officials were addressed during the council meeting. In a letter to the council, Tustin city officials wrote that both cities have resolved two out of the three traffic congestion questions.

Tustin planner Susan Tebo said in an interview Tuesday that she had hoped Santa Ana would not certify the environmental impact report until it had addressed the arena’s impact on traffic resulting from the Newport Avenue extension to Edinger Avenue. But she said Tustin will work with Santa Ana traffic consultants to address the matter.

Initially, Anaheim raced ahead of Santa Ana in laying the groundwork for a sports facility. Anaheim approved its environmental impact report in December, but Santa Ana undertook a lengthier review process that began last summer.

However, Anaheim recently hit a snag in court.

On Jan. 26, a Superior Court judge issued a temporary restraining order that prevented Anaheim from taking any further steps. The restraining order was requested by the Los Angeles Rams and Anaheim Stadium Assn., which filed suit against the city claiming that it had rushed through the environmental impact report.

Last Thursday, Anaheim agreed to sign an accord with the Rams and ASA that forbids the city from building, demolishing or even grading on the site pending a court hearing on the city’s environmental impact report.

At the time they approved the environmental impact report, Anaheim council members said they hoped to begin construction this month and to open the arena by October, 1991.