Challenge to Sports Arena in Santa Ana Thrown Out

A Superior Court judge on Monday threw out a challenge by a citizens group opposed to plans for a 20,000-seat sports arena here, clearing the way for Santa Ana to resume its race against Anaheim to be the first in Orange County to build an indoor sports facility.

Santa Ana officials called the decision “a major legal victory” in the city’s quest to build the arena and attract professional sports teams.

Superior Court Judge W.F. Rylaarsdam denied the request of Citizens Against the Arena, a group of 12 residents and business owners who had sued Santa Ana and the arena developer. The group sought to overturn an amendment to Santa Ana’s general plan that allows the $70million arena to be built at Edinger Avenue and Lyon Street, an area once restricted to office and commercial space.

The group had argued that the city did not have the authority to enter into a development agreement for the arena because Santa Ana’s previous general plan did not allow arenas to be built on the site.

“We’re on our way to getting the arena built,” said Councilman Miguel A. Pulido Jr., whose ward includes the arena site. “We’re in a strong position now.”

City Atty. Edward J. Cooper said the court’s ruling squashed the strongest legal obstacle Santa Ana faced in pursuing the arena plans.

“This pretty much cleans out our legal issues. We’re doing fine now,” Cooper said.

Attorney Peter A. Seidenberg, who represented the 12 residents, called the ruling a “setback.”

“We’re terribly disappointed,” Seidenberg said. “We have lost the first stage of proceedings. But we’re not going to give up the fight.”

Seidenberg said he might appeal Rylaarsdam’s ruling.

Niles Gates, one of the residents opposed to the arena, said the group will continue to try to halt the arena plans. Gates said he has collected more than 430 signatures from residents who do not want the arena in the proposed site.

Meanwhile, the Anaheim City Council will vote today on the financial agreement that was negotiated with developer Ogden Corp. of New York. In the proposed agreement, Anaheim would be liable for up to $2.5 million a year if its proposed 20,000-seat indoor arena operates at a loss.

In the race between Anaheim and Santa Ana, the first city to build a facility is expected to sign with a professional basketball and hockey team. Only one arena is expected to survive financially.

Santa Ana would have fallen behind in negotiations with professional basketball franchises if the judge had granted any delay on the arena, said developer Anthony V. Guanci, president of King-Guanci Development Co. Inc. of Newport Beach.

Guanci said he has meetings scheduled with arena architects next week and is negotiating with basketball and hockey teams.

“We’re playing it cautious right now because we don’t want any wrong moves to jeopardize anything. But we’re full steam ahead,” Guanci said.

Guanci said that he and city officials have almost completed a financial agreement, which city officials hope to sign by July.

Both Santa Ana and Anaheim have been slowed down by legal challenges.

Citizens Against the Arena sued Santa Ana and the developer on May 3. Anaheim’s project has been on the legal edge numerous times with three lawsuits, filed by the Los Angeles Rams, Anaheim Stadium Associates and the owner of a neighboring mobile-home park, that challenged the project on environmental grounds. The lawsuits, however, were settled out of court in May.

The Santa Ana arena is to be privately built, operated and owned. The Anaheim arena is to be privately built and operated but ultimately owned by the city.