49ers Public Relations
The Santa Clara Oversight Board Wednesday voted to approve a settlement agreement regarding the disposition of disputed state redevelopment funds. In 2010, Santa Clara voters committed RDA funds for a stadium, now under construction, that will be the new home for the San Francisco 49ers. The Oversight Board stunned the team and the city in June when it claimed that $30 million of the committed RDA funds could be redirected for use among a number of entities including the school district. Today, however, the Oversight Board approved an agreement with the 49ers, which resolves the dispute and provides immediate funding to the schools.
The tentative agreement was announced last week; details of the settlement were reviewed at the meeting today.
Under terms of the settlement, the 49ers will defer payments and reduce the interest rate on amounts owed by over 30 percent in order to assist the school district in meeting their anticipated needs. City and school officials praised the settlement agreement and the 49ers willingness to assist schools burdened with budget shortfalls.
"This settlement will provide more than $7 million in critical funding to the school district over the next three years," said Bobbie Plough, Superintendent of the district. "We appreciate the 49ers willingness to work out a creative plan that provides the money to maintain the high quality of our programs. This agreement will deliver those much-needed funds quickly since it ends the litigation."
Santa Clara Mayor Jamie Matthews, who is on the Oversight Board and played a key role in brokering the settlement, praised the plan to settle the lawsuit.
"The 49ers delivered a practical and creative plan that helps keep programs in place for the school children and still keeps the project on schedule for a 2014 opening,” said Matthews.
49ers representatives also expressed relief with the expected resolution.
"This is a win-win for everyone," said Hannah Gordon, Director of Legal Affairs for the 49ers. "Because of recent budget cuts, the school district has an immediate budget gap. This settlement will result in the allocation of $2.1 million to help balance that budget this year. At the same time, everyone in the region will continue to see returns from the jobs and new tax dollars already being generated by the stadium construction."