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Tax Group Won’t Call Foul on Talks for Clippers

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TIMES STAFF WRITER

The leader of a group that opposed the use of any taxpayer funds to clear the way for Walt Disney Co. to buy the California Angels and keep the team in Anaheim said it would not object to the city’s contributing money to help lure the Los Angeles Clippers to the Pond.

The difference is that the city stands to lose millions of dollars if a professional basketball team does not begin playing at the arena by next season.

For the record:

12:00 a.m. June 8, 1996 For the Record
Los Angeles Times Saturday June 8, 1996 Orange County Edition Metro Part B Page 3 Metro Desk 2 inches; 44 words Type of Material: Correction
The Clippers--A story Thursday about efforts to attract the Los Angeles Clippers to the Pond in Anaheim incorrectly reported the results of a City Council vote last month concerning the contribution of taxpayer funds toward renovation of Anaheim Stadium. Two of five council members opposed the use of public money.

Under its lease agreement with Ogden Corp., which manages the Pond, the city would be forced to pay up to $7.5 million over five years if no professional basketball team arrives.

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“This is the kind of situation where you have to spend money to make money,” said the Rev. Louis P. Sheldon, leader of the Anaheim Taxfighters Assn. “That is a beautiful facility at the Pond, and they have good management.”

The Clippers on Saturday notified the Sports Arena of its intent to end its lease at that facility, where it moved in 1984 from San Diego.

Anaheim Mayor Tom Daly has suggested the city contribute some of the $7.5 million toward a financial incentive package that Ogden would propose to Clipper owner Donald T. Sterling, who has not indicated whether the team would leave Los Angeles. Neither the Clippers nor Ogden would comment, and some City Council members said they would oppose use of that amount of taxpayers’ funds.

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The basketball negotiations come a month after the city ended painstaking negotiations with Disney over a new lease for the Angels and a $100-million renovation to Anaheim Stadium. The city will contribute $30 million toward the stadium refurbishment. Disney bought controlling interest of the baseball team and will become the official operator of the Big A this fall.

Sheldon’s group, as well as three of four council members and other taxpayers organizations, derided the use of public funds.

Discussions about the Clippers moving to the Pond continued Wednesday, but there are still issues that need to be resolved before a deal can be finalized, an arena spokesman said.

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“At this point, negotiations are continuing, and we are still hopeful that all of the parties involved in this very complicated deal can come together,” Pond spokesman John Nicoletti said.

One of those issues appears to be how much of a financial incentive Anaheim is willing to contribute to lure the team to the Pond, where they would become the Anaheim Clippers.

Councilman Lou Lopez said Wednesday that City Manager James D. Ruth had been given financial “parameters” by the council during a closed meeting Tuesday night.

Lopez said Ruth was to meet with Clipper and Ogden officials Wednesday. Ruth could not be reached for comment.

Lopez said the incentives are less than the $7.5 million the city could ultimately be forced to pay Ogden Corp. if the arena is still without a professional basketball team for each of the next five seasons.

“I don’t want to pay that much,” Lopez said. “I think we’re in the driver’s seat. They want some money and I think there’s going to some kind of compromise.”

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But the council appears to be divided on the issue.

Councilman Bob Zemel declined to discuss any financial incentives, saying, “There has been no formal request for the city of Anaheim to participate at this time.”

Zemel said that although he would like to see the Clippers or any NBA team at the Pond, he is reluctant to invest any taxpayer money. Councilman Frank Feldhaus echoed that sentiment earlier this week.

According to the Pond lease agreement, next year the city would have to begin paying Ogden $1.5 million annually toward the arena’s mortgage for each year that it is without an NBA team. That financial obligation has a cap of five years and $7.5 million.

Lopez said the council might have another closed session on Monday to further discuss the negotiations.

“It’s a whole combination of scenarios,” said Lopez, who declined to elaborate.

Several sources have said current discussions involve a 27-year lease with a provision that would allow the team to leave after four years.

A new lease must be approved by the City Council before the Clippers can move to Anaheim. The move must also be approved by the NBA Board of Governors.

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Los Angeles Coliseum-Sports Arena officials said the Clippers can return if they don’t reach an agreement with Ogden Corp.

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Noelia Rodriguez, spokeswoman for Los Angeles Mayor Richard Riordan, stressed the good relationship between team owner Donald T. Sterling and the city.

“We don’t want to lose the Clippers,” Rodriguez said. “We want to keep them in Los Angeles. The mayor is a fan, and we understand Don Sterling is a fan of Los Angeles. There certainly is a mutual admiration thing.”

But Los Angeles apparently is not mounting a campaign to keep the team and would instead focus on acquiring another one if the Clippers leave.

The Clippers have played 15 regular-season games at the Pond in the last three seasons, averaging 15,954 spectators. It has applied to play an unspecified number of games at the arena next season.

The team set a franchise single-game attendance record of 18,321 for a game against the Chicago Bulls last December at the Pond.

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If the team were to move to the Pond permanently, it would play 45 home games there, including preseason games, city officials said.

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