INGLEWOOD – Inglewood Mayor James T. Butts Jr. continues to be a legal liability to Inglewood taxpayers. He has entangled residents in another costly legal battle with billionaire Stan Kroenke.
The current lawsuit centers around the legality of the 2015 Development Agreement that covers the Hollywood Park development project. Mayor Butts is stating the agreement is void and Kroenke says it is still valid.
The legal question Stan Kroenke is asking a Los Angeles Superior Court judge to decide is whether the 2015 stadium initiative is legally binding. The Inglewood City Council approved it in February 2015. A 2018 ruling concluded the California Legislature intended to exclusively delegate approval of development agreements to local legislative bodies. This approval was subject to referendum, but not to initiative.
The appeals court made its decision based on Gov. Code sec. 65864, et seq. and article II, section 12 of the California Constitution.
- Gov. Code sec. 65864 ARTICLE 2.5. Development Agreements [65864 – 65869.5] – (a) The lack of certainty in the approval of development projects can result in a waste of resources. It can escalate the cost of housing and other development to the consumer. Additionally, it can discourage investment in and commitment to comprehensive planning. This would make maximum efficient utilization of resources at the least economic cost to the public.
- (b) Assurance to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules and regulations, and subject to conditions of approval, will strengthen the public planning process. It will encourage private participation in comprehensive planning and reduce the economic costs of development.
- (c) The lack of public facilities, including, but not limited to, streets, sewerage, transportation, drinking water, school, and utility facilities, is a serious impediment to the development of new housing. Whenever possible, applicants and local governments may include provisions in agreements whereby applicants are reimbursed over time for financing public facilities. (Amended by Stats. 1984, Ch. 143, Sec. 1.)
- Article II, Section 12 of the California Constitution: prohibits submitting constitutional amendments or ballot measures (initiative or legislative) that name specific individuals for office or identify private corporations to perform public functions. This ensures measures focus on policy, not personal appointments or specific company assignments. It maintains fairness and prevents legislative favoritism in initiative processes.
This battle erupted in mid-2025 after the City entered into a long-term digital billboard agreement with one of Mayor Butts’ campaign donors, WOW Media. A month after the agreement was voted on unanimously by the City Council, Kroenke received a $20 million “good faith deposit” towards a $376 million bill related to the Hollywood Park Development.
That wasn’t enough for Kroenke, who promptly sued the City on July 11, 2025. Mayor Butts responded by declaring the 2015 initiative retroactively void under the 2018 court ruling. He demanded the $20 million payment back under “Penal Code 424.”
Penal Code 424 relates to the City misappropriating public funds. The $20 million vanished from 1 W. Manchester Blvd. It disappeared like a fart in the wind, and no publicly available paper trail exists to determine how it was made and from what fund(s) it was paid from.
The legal question is whether Mayor Butts and the members of the City Council knowingly broke the law. This happened when they voted to approve the initiative after Hollywood Park Land Company and Stan Kroenke pumped over $100,000 into their respective campaign accounts.
Mayor Butts’ campaign has written off nearly $160,000 in loans made to former Inglewood Councilman George Dotson.
Companies held by Stan Kroenke filed a complaint with the Court last month asking for declaratory relief. They pointed to three estoppel agreements signed by former City Manager Artie Fields and Mayor Butts. These agreements continued to reaffirm the 2015 initiative deals in 2018 and two in 2021. The estoppel agreements were used to allow Kroenke to obtain financing to build out Hollywood Park.
As the City Council continues to vote in favor of raising fees on residents, they simultaneously continue to vote to pay the legal bills attached to the mayor’s atrocious negotiating skills.
If you’re keeping track, Madison Square Garden, Melanie McDade, Stan Kroenke, and Steve Ballmer all have the same gripe. The mayor’s word is no good, and for some people, your word is your bond.
How much will this lawsuit cost Inglewood taxpayers?
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