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Santa Clara Considers Legal Action Against 49ers Over Levi's Stadium Events

SANTA CLARA (CBS SF) -- Members of the Santa Clara Stadium Authority voted Tuesday to end an agreement that allowed the San Francisco 49ers to manage Levi's Stadium, the team's home, for non-NFL events.

The authority said it ended the agreement because of alleged infractions that include certain misrepresentations to the authority, failing to pay prevailing wages and the failure to manage the stadium properly and maximize financial performance.

For example, members of the authority allege the team booked events that lost millions of dollars rather than events that make money such as soccer games, weekend concerts and corporate events. Because of the poor management, the team is not in compliance with Measure J, the authority said Tuesday.

Measure J, which was approved in June 2010, gave Santa Clara officials the authority to look into developing a stadium for professional football and other events.

The stadium opened for the 2014 NFL season. The 49ers have had other disagreements with the authority, which is governed by the members of the Santa Clara City Council. In March the 49ers were issued a breach of contract by the city over a $643,568 bill for floor cleaning.

City officials allege the team did not provide documentation showing proper bidding and minimum wage practices in securing the contract for the flooring work.

Other disagreements between the two groups include the cost of renting the stadium, a curfew on events at the stadium and financial transparency.

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The authority got a legal victory in August 2018 by forcing the team to pay $238,000 more in rent after the 49ers requested a reduction. Rahul Chandhok, a spokesperson for the 49ers provided a statement Tuesday night in response to the canceled agreement.

"After City Manager (Deanna) Santana's dysfunction with respect to stadium events was exposed, she has chosen to spiral even further," the team said.

"Her actions are purely retaliatory, and we are not surprised that she has commenced yet another legal battle. She is abdicating her fiduciary duty by destroying a city asset for petty, political vendettas."

© Copyright 2019 CBS Broadcasting Inc. and Bay City News Service. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

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