Anaheim settles Angel Stadium redevelopment dispute for $123 million

Anaheim and state officials today announced they have worked out a settlement of a legal dispute involving affordable housing related to the Angel Stadium redevelopment project. 

Anaheim City Council members are set to discuss the deal -- which will mean more overall affordable housing in Anaheim but less affordable housing at the stadium site -- when they meet Tuesday.

The proposal, if approved by the City Council, will be brought before an Orange County Superior Court judge to sign off on this month or next month. 

As part of the deal, Anaheim will set aside about $123 million for affordable housing throughout the city, with $96 million dedicated to the creation of affordable housing within the next five years, and the rest going toward 466 apartments on site at the stadium for low-income residents.

What had been in dispute was how much affordable housing should be created at the stadium site. City officials argued that affordable housing elsewhere in the city could be constructed faster than waiting on the Angel Stadium project to be completed. They said it could have taken up to 25 years to build affordable housing into the stadium deal because in part it would require parking structures as well. 

The California State Department of Housing and Community Development issued a notice of violation to the city of Anaheim in December 2021 stating that the plan to sell Angel Stadium of Anaheim is a violation of the Surplus Land Act. 

The Surplus Land Act requires that public land should be made available for sale only after being offered to affordable housing developers. But Anaheim officials argued it had a lease agreement with the Angels and that it did not violate the Surplus Land Act in the deal with the baseball club. The Surplus Land Act requires that public land should be made available for sale only after being offered to affordable housing developers.

"We determined early on and continue to hold that the stadium site is unique and does not fit the definition of surplus land,'' said spokesman for Anaheim Mark Lyster. "It is under lease for Major League Baseball for the next 17 years. ... It does not fit the definition of surplus, unneeded government land."  

They also indicated that the initial sale plans began earlier than September 2019, the date that the updated law began requiring public land be made available to affordable housing developers. CSDHC rejected this statement as cause to withdraw the warning. 

The agreement resolves the issue with the city not having to concede any violation of the Surplus Land Act.

"California is facing a housing crisis of epic proportions and it's going to take all of us, working together, to solve it," Attorney General Rob Bonta said. "This proposed judgment shows what a successful partnership can look like -- and how state and local governments can work together to promote affordable housing in a community. I call on the City Council to approve the proposed judgment, which would dedicate more than $123 million to fund the construction of affordable housing on an expedited timeline and could result in more than 1,000 new affordable homes. This is a win for the community and a win for the state."

Mayor Harry Sidhu said city leaders "welcome the proposed agreement with our state partners. It would move our stadium plan forward and bring with it the largest investment in affordable housing in our city's history. On behalf of Anaheim, I extend our city's appreciation to California for working with us to find a path forward. I welcome the opportunity to consider this agreement with my City Council colleagues."

The deal also would move the $319.8 million sale of the stadium to the baseball team forward with the transaction on track to close in the second half of the year, city officials said.

The city will receive $148.7 million with $95.9 million in new cash for the city's affordable housing fund, $46.2 million for a 7-acre park, $27.7 million for affordable apartments at the stadium site, and $1.2 million for maintenance around the Stadium Gateway offices overseen by the city. 

Angel Stadium is the fourth-oldest Major League Baseball stadium, operating as home of the franchise since 1966. It was also home stadium of the Los Angeles Rams from 1980 to 1994. It has hosted three All-Star Games, the most recent in 2010. The stadium is also slated to be one of the two stadiums designated for the softball and baseball events in the 2028 Summer Olympics, along with Dodger Stadium.