Melodyland Sues to Halt Theater Sale

Melodyland Christian Center has filed a lawsuit against the owners of the Grove of Anaheim in an attempt to block the sale of the 1,100-seat theater to the city.

Over objections from Melodyland, the Anaheim City Council recently approved the $6.7-million purchase of the Grove, located in the city’s sports and entertainment district near the Arrowhead Pond and Edison International Field.

The city is buying the theater from SMG, a company that manages arenas and stadiums, and expects escrow to close in several days.

Under the agreement with SMG, the city retained the first right of offer if the Grove should ever be sold. Melodyland had approached SMG with a $6.7-million offer to buy the theater.

In the lawsuit filed last week in Orange County Superior Court, Melodyland is alleging breach of contract, fraud and negligent misrepresentation and breach of good faith and fair dealing.

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Kimi Yoshino