SANTA CLARA -- The 49ers appear to have reached a deal over 30 million in tax funding for their new stadium in Santa Clara that was unexpectedly yanked by county officials in June.
The Santa Clara County officials said they wanted to spend the money on schools and were empowered to swap the funding under changes in state law after Gov. Jerry Brown disbanded development agencies.
Under a deal reached Thursday, the Santa Clara Unified School District and other agencies will get about half of the money they wanted, according to a report by the San Jose Mercury News. The school district will then be able to balance its budget to avoid teacher layoffs, according to the newspaper.
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The 49ers, meanwhile, will get the full 30 million, although not as quickly as they had hoped. The money is a small fraction of the total 1.2 billion stadium cost.
The Mercury News reported that the settlement must still be approved by county officials and a judge overseeing a lawsuit filed by the 49ers in response to the county's decision. But the newspaper reported that construction, which began in April, can now proceed at "full speed."
Santa Clara Mayor Jamie Matthew, who had supported the stadium funding, said the settlement was pushed by the judge's comments that he would rule in favor of returning funds to the stadium.
Representatives from the 49ers declined to comment about the agreement to the Mercury News until it is formally ratified at a county meeting in two weeks.