Anaheim Gets Right to Develop Stadium Lot : Settlement: City will pay $13 million to end lawsuits. Deal opens way to plan vast sports complex on site.

ANAHEIM —  The city gained full development rights Monday to the Anaheim Stadium parking lot, effectively ending a 12-year legal dispute over the property.

The settlement will cost the city $13 million but clears the way for Anaheim to proceed with a major revitalization plan for the stadium area without legal challenge.

“It’s great news to bring an end to all these years of lawsuits over the stadium property,” Mayor Tom Daly said. “The property has tremendous value. This means that the city can now move forward and obtain the maximum economic benefits from the property.”

The legal battle concerned development rights to 68 acres of stadium property that the city granted the Rams as part of the deal to lure them there in 1978. A development group formed with the Rams had at one time planned to build high-rise office buildings on the parcel.

The city will pay the money to Anaheim Stadium Associates, which includes Ram owner Georgia Frontiere; the four children of Frontiere’s late husband, Carroll Rosenbloom; and developer Trammell Crow.

In exchange for the money, Anaheim will regain development rights to the stadium property. Also, Anaheim Stadium Associates has agreed to dismiss its three lawsuits against the city that seek $100 million in damages, city officials said.

The settlement, imminent for several months, brings to an end one of the longest and most expensive lawsuits involving a municipality in Orange County. Total legal costs for the case are estimated to be in excess of $20 million, with the city spending at least $8 million.

The litigation at one time also involved the California Angels. Team owner Gene Autry contended that the city “sold the same horse twice” when it granted development rights to Anaheim Stadium Associates and sued to stop development of any portion of the stadium parking lot.

In 1994, a state appellate court ended the Angels’ litigation when it ruled that the city and Anaheim Stadium Associates had the right to develop the parking area as long as at least 12,000 ground level parking spaces were available for Angel baseball games.

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The city had been eager to settle the legal battle because it is preparing to unveil its plans for the stadium area which have been unofficially dubbed “SportsTown,” a 125-acre entertainment and retail complex.

“The Anaheim Stadium property, because of its one-of-a-kind location, is one of the best development opportunities in Southern California when you consider its freeway access and Amtrak train station,” Daly said. “There is great visibility and many wonderful possibilities.”

Added Councilman Bob Zemel, “Now, the sky is the limit as far as ideas and possibilities, but they have to be financially feasible.”

The city’s project would likely include a renovated Anaheim Stadium, which would be returned to a baseball-only facility. The plan also would leave room for construction of a new football stadium in the event the city is successful in its efforts to bring a National Football League team back to Anaheim.

Zemel said the city, still smarting from losing the Rams to St. Louis earlier this year, is now in a stronger position to try to lure another football team to Anaheim.

“Without the development rights, it would be difficult to sway a football team to come,” Zemel said. “But with the rights, I think we could have a team by next year. The doors are now open.”