Settlement Near in Legal Battle Over the Big A : Litigation: Anaheim has agreed to pay $13 million to end long dispute, opening way for revitalization plan.

The city is on the verge of settling a long and expensive legal battle that would allow it to move forward with a plan to revitalize Anaheim Stadium and develop a multifaceted entertainment center that could provide millions of dollars in revenue, city officials said Thursday.

The city has agreed to pay $13 million to end the 12-year dispute, which involves the California Angels, Anaheim and the stadium’s former tenant, the Los Angeles Rams, which relocated to St. Louis earlier this year.

“We were able to sit down and work out what we think is a reasonable solution to a long, drawn-out process,” said City Manager James D. Ruth. “We want to bring some closure to this so we can move on with our future.”

The legal battle--one of the longest and most expensive involving a city in Orange County history--concerns development rights to a portion of the Anaheim Stadium parking lot that the city granted the Rams as part of the deal to lure them there in 1978.

The Rams planned to build high-rise office buildings on the parcel, but the Angels sued to stop the project, claiming that such a development would reduce the number of parking spots and adversely affect them and their fans.

The proposed settlement has been imminent for several months. City officials said Thursday that they were still awaiting final signatures on the deal from Anaheim Stadium Associates, which includes Ram owner Georgia Frontiere; the four children of Frontiere’s late husband, Carroll Rosenbloom; and developer Trammell Crow. In exchange for the money, the group would give up its development rights to the land.

The protracted litigation has carried a heavy price for all sides, with the city spending more than $8 million on the case. Total legal costs for the case are estimated to exceed $20 million.

Settlement of the matter would open the way for the city’s plan to develop 125 acres around the Big A. The project, which is expected to be unveiled early next year, has been unofficially dubbed “SportsTown” and is being designed by the same group responsible for the Universal CityWalk.

The Walt Disney Co., which in May purchased 25% of the Angels, is expected to have a major influence on the project, and Disney officials have been a part of planning meetings, sources said.

Details of the new development have been scarce, but in the past, restaurants, stores and a virtual-reality entertainment center in a park-like setting have been discussed. The project will probably be anchored by a renovated Anaheim Stadium, expected to be turned back into a baseball-only stadium for the California Angels.

How the city might finance the sports and entertainment center has not been addressed, and at least one councilman is angry about the plan being discussed before it--or the legal settlement--is approved by the council.

“If this council had voted for a SportsTown, it would be a surprise to me,” Councilman Bob Zemel said. “Funding issues have not been addressed for any future projects, nor has any design on a project been approved or even preliminarily approved.”

Walt Disney Co. Chairman Michael D. Eisner has said that the entertainment giant favors renovating the Big A instead of moving to a brand-new baseball-only stadium that the city had been negotiating to build for the team before the partial purchase by Disney.

“The Angels have designed several conceptual plans but haven’t decided on any of those yet,” Ruth said. “They want to make it more user-friendly. They are still working through it.”

A renovation would leave the city, which has been aggressively trying to lure another football team to Anaheim, without a football stadium. But Ruth said the development plans would leave room for a new football stadium to be built should the city land another team.

Once a development plan for the 125 acres is unveiled, the city will be looking to consultants to conduct a land-use study for a more than 800-acre area that includes The Pond arena, home of the Mighty Ducks professional hockey team. Ruth said the idea would be for the city to assist property owners in developing their land.