ANAHEIM : Suit Not Expected to Affect Sports Arena
A lawsuit seeking to block the move of a German social club to a new home may stall those plans but should have no impact on construction of Anaheim’s new arena, city officials say.
Newport Federal, which owns property next to the planned new home of the Phoenix Club German Assn. of Orange County, has sued the city for $5 million, claiming that officials broke business agreements with the firm.
The city has denied the claims, which were first filed in November, 1990. A court hearing is scheduled for July 17.
“It’s the ‘so what’ response,” said Mac Slaughter, a city attorney, describing Anaheim’s reply to Newport Federal’s claims. “Even if everything they say is true, they aren’t entitled to any relief.”
City officials say the litigation is unlikely to affect Anaheim’s plans to build the $100-million, 19,500-seat indoor sports arena on the site formerly occupied by the club. The arena is currently under construction and scheduled to open in the summer of 1993.
But the suit may hold up the club’s plans to relocate to city-owned property, where construction crews have already begun grading, officials said. The club held an official ground breaking at the site last month.
“There’s theoretically some risk involved,” Slaughter said.
Moving the club was part of a complex series of land swaps which enabled the city to purchase land on Douglass Road near Anaheim Stadium for the arena. Newport Federal was not a party to those settlements.
Newport Federal, which bought the property at 1380 Sanderson Ave. in 1988, claims the city encouraged it not to renew a lease with then-current lessees, the National Education Corp. The firm contends that the city made an oral agreement which has cost them hundreds of thousands of dollars in lost rents when it fell through.
The city, which has hired outside counsel to handle the case, says that Newport Federal has little grounds on which to base the case.
“They’re alleging claims that just aren’t recognizable,” said Paul L. Gale, an attorney handling the case.
Recently, Newport Federal appealed the Phoenix Club’s move to the City Council, hoping to deny the club use permits needed to operate. The council approved the relocation.
The firm claimed a full environmental review of the area is needed. Additionally, the North Orange County Community College District currently leases the property and operates an adult education school nearby, and Newport Federal outlined a number of concerns it had with operating a social club next door to a school site.
