Disney Reaches Tentative Pact in 1 of 2 Suits : Law: Two sides won’t release details. If suit is settled, the only remaining legal obstacle to park’s $3-billion expansion would involve Tiffy’s restaurant.

The Walt Disney Co. has reached tentative settlement agreements with various property owners in one of two remaining lawsuits filed against the company’s $3-billion plan to expand Disneyland, an attorney said Monday.

Attorney Cynthia M. Wolcott, who represents three motels, a hotel and several other property owners, said her clients and Disney have tentatively agreed to settle their differences.

Disney, the city of Anaheim and Wolcott’s clients have asked a Superior Court judge for 90 days to work out the final details, she said. When the settlement is final, the lawsuit would be dropped, she added.

Disney officials Monday declined comment on the negotiations.

Wolcott also declined to discuss the details of what Disney is offering to settle with her clients. However, according to a source familiar with the talks, Disney is making financial concessions to at least some of the property owners.

Deputy City Manager Tom Wood said city officials are “pleased we’re reaching agreement” on the lawsuit. Wood, however, also refused to discuss the details of the proposed settlement.

If the lawsuit is settled, the only remaining legal obstacle to Disney’s planned expansion would be a lawsuit filed by the owner of Tiffy’s family restaurant.

Wood confirmed Monday that “positive” settlement negotiations are progressing in that matter as well.

In June, after the environmental and planning documents covering the massive project were approved by the city, three lawsuits were filed by challenging the findings in those documents. Those suits contended that the city and Disney did not adequately review all the adverse impacts the community would feel from the project.

Wolcott’s clients have contended that the height and zoning ordinances, which were passed to accommodate the Disney venture, unfairly restricted the land use by property owners surrounding the project.

Furthermore, they alleged that Anaheim was unlawfully intending to use the powers of eminent domain to benefit the private venture.

The parties in the lawsuit filed by Wolcott included: the Best Western Courtesy Inn, the Flamingo Motel, the Anaheim Maingate Inn, the Anaheim Plaza Hotel, and members of the Schlund family, who own about 23 acres of land that would be part of the proposed resort.

A third suit was filed by the Anaheim City School District, contending that the project would further overcrowd schools and drain district resources.

That lawsuit was dropped last month after the city and Disney offered to offset the district’s impacts with financial incentives. Under the settlement, the district will receive more than $2 million upfront when construction on the project begins.

As proposed by Disney and the city, the Disneyland resort would consist of a new theme park next to Disneyland called Westcot, 5,600 hotel rooms, a 5,000-seat amphitheater, a shopping district and two of the nation’s largest parking garages.

Aside from the legal issues confronting the proposed resort, Disney and city officials have also been trying to agree on exactly how much of the project will be publicly financed and when various elements of the resort will be built.

In addition to federal and state contributions of about $200 million, Disney wants the city to pay for as much as $500 million to $600 million in public works and other improvements.