Arsenic and a new case: Inglewood stadium developers sue over contamination

The 2 firms, owned by billionaire Stan Kroenke, are suing their insurer over a $5M policy that would go toward remediating the under-construction NFL stadium

TRD LOS ANGELES /
Jan.January 10, 2020 02:00 PM
Stan Kroenke feels he’s owed for Rams stadium clean-up (Credit: Getty Images)
Two development companies that Stan Kroenke owns are suing their insurer over a cleanup effort at the under-construction Hollywood Park complex in Inglewood. (Credit: Getty Images)

Among the obstacles developer Stan Kroenke has faced at his under-construction Hollywood Park megacomplex have been cost overruns, delays and pushback from Inglewood residents who say it has made the city unaffordable.

Add environment cleanup — namely arsenic — to that list.

In a lawsuit filed last week, two Kroenke-owned companies — TKG Management and Pincay Re LLC — are demanding Chubb Custom Insurance Company pay out the roughly $5 million limit on its environmental insurance policy, according to the Los Angeles Times.

Chubb owes “no less” than $4.6 million in cleanup costs for contamination issues surrounding the 60-acre area adjacent to the $2.6 billion Inglewood Stadium, according to the suit. The stadium will be home to the Kroenke-owned L.A. Rams, along with the L.A. Chargers. Construction on the stadium — part of the $5 billion mixed-use megadevelopment — is set to be completed in time for the 2020-2021 N.F.L. season.

In suing to collect on the insurance money, the Kroenke companies have also revealed the dangerous levels of arsenic near the stadium, which the City of Inglewood hails as a showcase for their fast-developing community but which residents say have gentrified the once-affordable city.

Around November 2015, TKG and Pincay determined that arsenic concentrations were “dozens of times higher than would be found as background concentrations of arsenic in the surrounding area,” according to the lawsuit filed in L.A. County Superior Court. The Real Deal obtained a copy of the lawsuit.

The Kroenke companies have so far spent $17 million to remediate the arsenic contamination, on what had been a parking lot, according to the suit. The claim alleges that Chubb has not paid its fair share to reimburse the entities. Chubb could not be reached for comment.

The megadevelopment is now five years in the making. In September, SoFi Financial secured the naming rights to the 70,000-seat stadium, which is also slated to host the opening and closing ceremonies of the 2028 Summer Olympics. The entire complex will also include a 6,000-seat performance center, hotels, office and residential buildings, and parks. [LAT]Matthew Blake


Related Articles

arrow_forward_ios
Frederik Eklund and a rendering of 8899 Beverly Boulevard (Getty, building courtesy of 8899 Beverly)

In tough market, West Hollywood condo developer plans $100M listing

In tough market, West Hollywood condo developer plans $100M listing
Clare Bronfman and 8517 Franklin Avenue (Patrick McMullan/Getty, Zillow)

Heiress and sex cult financier sues over West Hollywood swimming pool

Heiress and sex cult financier sues over West Hollywood swimming pool
Photo illustration of Hudson Pacific Properties CEO Victor Coleman and Blackstone Group President Jonathan Gray (Coleman by Rich Polk/Getty; Gray by Drew Angerer/Getty; Top Gun by Paramount Pictures/Sunset Boulevard/Corbis/Getty)

Inside Hudson Pacific and Blackstone’s field of streams

Inside Hudson Pacific and Blackstone’s field of streams
JLL's Peter Yorck (JLL)

JLL moves top San Francisco broker to help lead LA multifamily operations

JLL moves top San Francisco broker to help lead LA multifamily operations
Boston Properties CEO Owen D. Thomas and the project site (Credit: Google Maps)

Boston Properties invests in El Segundo media campus project

Boston Properties invests in El Segundo media campus project
Mike Bannon, California Apartment Association, executive director

Mom-and-pop resi landlords are already struggling

Mom-and-pop resi landlords are already struggling
Cypress CEO Michael Sorochinsky and 1216-1224 Menlo Avenue (Google Maps)

Cypress Equity plans 128-unit affordable complex in Pico-Union

Cypress Equity plans 128-unit affordable complex in Pico-Union
Robert Durst (Photo by Alex Gallardo-Pool/Getty Images)

Pandemic pushes back Robert Durst murder trial yet again

Pandemic pushes back Robert Durst murder trial yet again
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...