SANTA CLARA, Calif. (KRON) – The San Francisco 49ers are offering millions of dollars to settle a lawsuit with the City of Santa Clara over who operates Levi’s Stadium.

The potential settlement comes as two of the city’s council members are accused of accepting gifts from the NFL team. The 49ers are proposing a $3.3 million cash payment to Santa Clara to settle the ongoing litigation.

They said the deal would allow the city and the team to go back to a successful public-private partnership that once existed and end wasteful spending on lawyers. But after several hours of a closed-door session Tuesday night, the city council did not take action on the proposed settlement.

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Instead, the council members turned their attention to their colleagues.

The California Fair Political Practices Commission is investigating Raj Chahal and Karen Hardy for allegedly accepting expensive 49ers football tickets to a game. Despite being under investigation, council member Chahal and Hardy both refused to recuse themselves Tuesday from voting on a settlement with the 49ers. 

“Refusing for the council for such a frivolous thing? We were on an operational tour, and the city attorney has issued us a letter, that this was an operational tour, period,” said council member Chahal.