Credit: Kelley L Cox-US PRESSWIRE

Sacramento Superior Court Judge Lloyd Connelly has ordered Santa Clara County officials to not spend $30 million recently pulled from the San Francisco 49ers stadium fund. The judge set a court hearing for July 27 in which he might will rule on the 49ers lawsuit claiming the $30 million in funds was approved by Santa Clara city voters in 2010 to be used exclusively on the new stadium.  The judge will most likely side with the 49ers as he said at the court hearing this week, “this is a powerful argument, and one that may prevail.”

The restraining order stops Santa Clara County from spending the money at all.  The officials say the redevelopment money would be better used on education and local school districts.  On June 22, the Santa Clara County oversight board pulled the $30 million in funds saying under new state laws they have control over how the money is spent.  The 49ers say voters earmarked the money for the new stadium and thus it has to be spent on construction.

The 49ers vs. Santa Clara County ordeal is far from over, but construction and the opening of the new stadium will not be delayed no matter how the judge rules.  Stay tuned.

Credit: Kelley L Cox-US PRESSWIRE

In a surprising move by Santa Clara County officials, $30 million in tax funds were pulled from the new San Francisco 49ers stadium.  The 49ers and city of Santa Clara leaders were caught off-guard by the move because voters had earmarked redevelopment money to help build the $1.2 billion stadium.  In 2010, city of Santa Clara voters approved a measure that set aside $40 million in redevelopment funds for the stadium.  Because of this, both the 49ers and city leaders say the county has no right to keep the money.

On Friday, a new board that oversees property tax from redevelopment zones in Santa Clara County cancelled $30 million for the stadium in a vote that passed 4-3.  County tax collector George Putris explained the boards move by saying, “Let’s be real: That stadium is going to get built whether or not you get this $30 million.”  The board would rather spend the money at other public agencies and use it for school districts.

Since the measure was passed in 2010, the state of California has eliminated redevelopment agencies.  The new state law gives counties control over handing out property tax revenues from the former redevelopment agencies.  By the time the agencies were done away with, Santa Clara’s redevelopment fund had only paid $10 million toward the stadium.  The 49ers loaned the remaining $30 million in order to start construction.  The 49ers had hoped they’d be paid back from future tax revenues.  Santa Clara City Attorney Ren Nosky said the move was not on the agenda which could violate the Brown Act which is the state’s open meeting law.  The 49ers and city will likely file a lawsuit to reclaim the money for the stadium.

For the 49ers Faithful who want to see the team stay true to their name and history by staying in San Francisco, it is highly unlikely this will deter or delay construction at the stadium.  $30 million is only about three percent of the $1.2 billion price tag for the stadium, so I doubt this will affect anything.  The 49ers will likely just absorb the cost if the funds cannot be reclaimed.  The new stadium in Santa Clara is expected to open in 2014.

San Francisco is still in the picture although that took a huge hit yesterday with the passage of Measure J.  San Francisco Mayor Gavin Newsom said the city will still move ahead with the plans for a new stadium at Hunters Point.  With the 49ers expected to break ground on the new Santa Clara stadium in 2012 I don’t see many options for luring the team back to S.F.  The only thing I can see happening in the future that would bring S.F. back into the picture are financial reasons.  Measure J calls for city funds to only come out of redevelopment money to finance its share of the project without ever touching general funds.  All cost overruns will be covered by the 49ers.  Santa Clara will pony up $79 million, surrounding hotels will provide $35 million through a voluntary tax, and the 49ers and the stadium authority are on the hook for the remaining $823 million. The stadium authority plans to pay for their share through stadium naming rights, concession agreements, seat licenses and other sources like the NFL.

From my understanding this is where the stadium plan can go south:  The 49ers not being able to cover their share of the costs.  I am not sure exactly how much of those cash sources the 49ers need to have in hand to start building the stadium but this would be San Francisco’s last chance to keep the team.  Years ago when the idea of moving the 49ers outside of San Francisco city limits came up city officials said they might create a law that only sports teams residing within the city can use San Francisco in their name.  I have not heard anything of this being taken up again but it is something to look out for in the future.

For 49er fans in and around San Francisco and those outside who are traditionalists when it comes to the Red and Gold, a stadium in San Francisco is the only way.  I strongly agree but does that mean we have to root for the 49ers to fail when it comes to building the stadium in Santa Clara?