REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Informational Report on Stadium Authority Litigation [Board Pillar: Ensure Compliance with Measure J and Manage Levi's Stadium]
Report
BACKGROUND
The Stadium Authority Board has requested a report on the status of litigation involving the Santa Clara Stadium Authority in order to provide the public with accurate information about various disputes with the San Francisco Forty-Niners organization involving Levi's Stadium.
DISCUSSION
All of the following cases were initiated by the 49ers' organizations against the Stadium Authority and/or the City of Santa Clara:
A. Forty Niners SC Stadium Company LLC v. SCSA Arbitration Proceedings
There have been a total of five (5) arbitration demands, all filed by the 49ers against the Stadium Authority.
The following three cases are now in arbitration proceedings and have been consolidated:
1. Shared Expenses: 49ers allege that SCSA failed to fulfill its contractual obligations under the Stadium Lease and Management Agreement by refusing to pay its share of operation and maintenance expenses and by requiring 49ers to complete additional management tasks without appropriate payment. SCSA denies the allegations and argues that 49ers failed to follow state and local law requirements in their management of the Stadium's affairs and, as a result, SCSA was forced to take remedial action.
2. Public Safety Cap: 49ers allege that they have overpaid public safety cost reimbursement under the Stadium Lease and demand that the Stadium Authority refund this amount, plus interest and attorney's fees. The Stadium Authority disputes their contentions such that there was no overpayment and seeks to have the public safety cap modified as provided for in the Lease.
3. Amendment to Stadium Procurement Ordinance: 49ers allege that the ordinance amending the SCSA's procurement ordinance to rescind the Executive Director's procurement authority was invalid because it results in a unilateral canc...
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