Talks OKd on Building a 20,000-Seat Arena

Plans to build an $85-million sports arena in Anaheim that would lure a professional basketball team to Orange County took a major step forward Tuesday.

City negotiators received approval from the City Council to settle a deal over the next 45 days to buy or lease one of two county-owned land parcels near Anaheim Stadium for the proposed 20,000-seat arena.

City officials said the Papiano Group, a partnership of the Nederlander entertainment organization and Ogden Foods that is seeking to build the arena, has also received financial approval from the boards of directors of both organizations to go ahead.

‘Very Excited’

“We’re very excited about it,” Anaheim Mayor Fred Hunter said about the progress of negotiations. But he warned that such talks are extraordinarily complex.

Still, he said, “it does mean that we are very optimistic about” attracting a team from the National Basketball Assn.

County officials took a more cautious view of the latest development but remained upbeat.

“We are very optimistic that an equitable settlement can be reached with the city, county and private developers that guarantees a fair return to county taxpayers,” said Dan C. Wooldridge, an aide to county Supervisor Don R. Roth. “We are one step closer to a big-time, 20,000-seat arena in Orange County.”

The two proposed sites are near each other. A 15.6-acre lot at Katella Avenue and Douglass Road has been independently appraised at $9.6 million, city officials said. A handful of county offices and a corrugated-metal maintenance shed now stand on the land.

A final appraisal on the second location--a 7.6-acre site across Katella, north of the first tract--will not be ready until next week, but it was expected to be valued at $7 million to $10 million, city and county estimates indicated.

Also Picked for Jail Site

That site has also been picked by county supervisors as the location for a proposed new county jail, a plan that has generated community opposition.

“From the county’s standpoint, it’s (the proposed arena) obviously a good project for the community as a whole,” said Bert Scott, director of the county’s General Services Agency.

“But the county has to ensure we get fair value for the land,” Scott added, “and we have to be sure we have enough land to carry out our primary mission in that area, which is flood control and public works yards. We have to achieve that mission first. Now if we can accommodate (the arena) too, then everybody wins.”

The county has also offered to sell or lease two vacant lots of 17 acres and 5 acres along the nearby Santa Ana River for arena parking.

The Papiano Group and city negotiators estimated that 7,000 parking spaces will be needed for the arena. They would like at least 4,000 of those spaces on land other than the Anaheim Stadium parking lot. The remaining 3,000 spaces could be shared with the stadium when the Rams or Angels are not playing, city officials said.

Back to Council in 45 Days

A final arena package, with details on financing and site selection, will come back to the City Council for consideration in 45 days, extending the group’s March 30 deadline. If approved by the council, the package would be considered by the Board of Supervisors.

If approved by supervisors, an environmental impact report would be required before construction could begin. That would take about 6 months to complete, city officials said.

As for the prospects of attracting an NBA team, the city’s lead negotiator, James Ruth, said: “It’s a chicken-and-egg syndrome--we need the arena before anyone makes a commitment. But I think we’re probably more optimistic now than at any time.”

Two years ago, the NBA rejected Anaheim’s bid for an expansion team, largely because no suitable arena was available. According to sources familiar with those talks, NBA officials virtually promised Anaheim a team--perhaps an existing franchise that could be moved--if a new arena is built.

Los Angeles Clippers owner Donald K. Sterling said earlier this year that the Papiano Group had offered him a $30-million package to induce his team to move to Anaheim.

But Sterling has made no commitments to move; negotiations with the Clippers’ owner have cooled since January, according to sources close to the talks.