ANAHEIM, Calif.—Angels owner Arte Moreno’s development company is asking Anaheim for $5 million to cover expenses from the now-abandoned stadium sale.
Anaheim and SRB Management first reached an agreement to sell Angel Stadium to the team’s owner for $320 million in December 2019, and it was amended nearly a year later. However, Anaheim’s city council voted May 24 to void the stadium sale following revelations in an FBI investigation that alleged former Mayor Harry Sidhu was involved in corruption related to the sale.
The former mayor was not indicted or charged with a crime following the release of the FBI investigation information.
“We have received SRB’s letter, which was expected,” the city said in an online statement. “As we agreed to release escrow deposits and SRB agreed not to seek a court order compelling a sale, other legal positions and questions remained for future discussions. We continue to have concerns about whether the agreement any claim is based on is even valid, given what has recently come to light.”
Anaheim’s spokesman Mike Lyster told The Epoch Times SRB Management’s claim request will trigger a process of reviews and discussions with the company.
“It begins a long process of reviewing the claim as well as potential discussions between both parties and advising and getting any direction from our city council,” Lyster said.
SRB management considers the city council’s action to be a legal denial or refusal to perform a contract obligation, according to the claim filed with the city. The company said the city’s action was a default of the agreement.
Anaheim’s City Council voted this month to return $50 million plus interest in escrow payments to SRB Management.
The Angels baseball team can still play at the stadium under a lease agreement that ends 2029, with an option to extend the agreement. So far, the city has not received a request from the team to cancel the lease.
“There has been no request regarding the lease,” Lyster said. “They actually do not have the ability to opt out of the lease before 2029.”
Anaheim is working with its city council to address the stadium sale issue, according to the city’s statement.
A request for comment to SRB Management’s Nevada office was not returned by press time.