Agreement Nears on Equestrian Center

In a decision that could hasten the settlement of a lawsuit filed against the city by the operator of the Hansen Dam Equestrian Center, the Board of Recreation and Parks has recommended extending a concession agreement at the site to 30 years.

The extension, contingent on the Army Corps of Engineers’ extending its lease of the property to the city, guarantees that Eddie Milligan would be allowed to continue operating the equestrian center for a total of 30 years.

Milligan, who has run the 50-acre center on a year-to-year basis since 1989, sued the city last year, contending that the city reneged on a promise to give him a 30-year contract after he invested $3 million to make improvements.

The city initially agreed to give Milligan a 30-year lease to operate the center and the go-ahead to begin construction, according to city records. But, in granting the agreement, the city had not obtained approval from the Army Corps of Engineers, which controls the land.

“They sold me the Cadillac, but they didn’t give me the pink slip,” Milligan once said.

Earlier this year, in an effort to end the litigation, the city offered Milligan a 21-year lease, but he rejected it.

Though not disclosing specifics, both Milligan and Los Angeles City Councilman Richard Alarcon said this week that the recreation board’s decision signaled that a settlement of the lawsuit was at hand.

“I hope that within 60 days the entire matter will be resolved; then we can go to work,” Milligan said. “It’s a shame that it took a lawsuit to make the city do what it should have done eight years ago.”

“I agree with Eddie to the extent that we are moving quickly toward a settlement,” Alarcon said. “If we can get an extension from the Army Corps, I would be fine with leasing to Eddie for 30 years.”

The Los Angeles City Council must still approve the extension of the concession agreement.

Herb Nesmith, a spokesman for the Corps of Engineers, said he was unaware that the city was close to settling with Milligan.

“Right now, our lease with the city extends to 2017. After that, I don’t know what’s going to happen,” Nesmith said.