Sheldon R. and Phyllis Milenbach, et al. - Page 31

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          election until the environmental impact report was performed.               
          Although the terms of the Irwindale MOA required Irwindale to               
          complete the environmental impact study, the injunction                     
          prohibited the Raiders and Irwindale from continuing in the                 
          implementation of the Irwindale MOA.  By the terms of the                   
          Irwindale MOA, third-party obstacles, such as the preliminary               
          injunction, did not excuse performance; therefore, the Raiders’             
          obligation to repay the loan was not discharged in 1987.                    
               1988                                                                   
               Respondent argues that, by their statements in pleadings               
          filed in the lawsuits designed to stop this project, the Raiders            
          and Irwindale admitted that the Raiders were entitled to retain             
          the $10 million without obligation.  In the amended answer dated            
          March 21, 1988, the Raiders alleged that the Raiders were                   
          entitled to retain that money whether or not the stadium was                
          built.  Irwindale conceded the right of the Raiders to keep the             
          $10 million “regardless of what happen[ed]”.                                
               Legislation enacted in September 1988, by its terms,                   
          prohibited the implementation of the Irwindale MOA.  Although               
          negotiations continued after September 1988, those negotiations             
          were not conducted under the Irwindale MOA.  At trial, Birren               
          admitted that the legislation precluded Irwindale from complying            
          with the terms of the MOA.  General obligation bonds could not be           
          issued to construct a stadium that Irwindale would then turn over           
          to any private company, such as the Raiders.  The parties to the            




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