ANAHEIM : City May Change German Club Pact
The City Council tonight will consider changing an agreement between the city and a German social club that had to move to make way for the Anaheim Arena.
Because the owner of the property next door to the club’s new site has filed two lawsuits against Anaheim, the city and the Phoenix Club German Assn. of Orange County may alter an agreement so that the club will be protected in case the court decides that the group cannot operate there.
Under the changes, the club would loan the city about $2.7 million, which was the sale price of the city property it had intended to buy, and in turn lease the site from the city.
The 7-acre property, where the new club is now under construction, would be leased for $22,900 a month, which would be about the interest payment on the club’s loan to the city.
The existing agreement calls for the club to buy the city’s property for the same price under a complex series of land swaps that allows the city to acquire land to build the arena on Douglass Road near Anaheim Stadium.
At issue are two lawsuits filed by Newport Federal, which owns property next to the relocation site.
The first case, filed last November, alleges that the city broke verbal agreements it made when Newport Federal bought the land. The property owners claim that the city wanted the property to become part of an auto mall.
The second case, filed last month, says the city failed to adequately address the environmental concerns the club could pose and is asking for a full environmental impact report to be conducted.