The Boring Company shelves Sepulveda test tunnel after reaching settlement in lawsuit

LOS ANGELES (KABC) -- Elon Musk's business The Boring Company reached a settlement with several parties and will no longer seek the development of the Sepulveda test tunnel.

A joint statement was provided by the Boring Company Tuesday.

"The parties (The Boring Company, Brentwood Residents Coalition, Sunset Coalition, and Wendy-Sue Rosen) have amicably settled the matter of Brentwood Residents Coalition et al. v. City of Los Angeles (TB- The Boring Company). The Boring Company no longer seeks the development of the Sepulveda test tunnel and instead seeks to construct an operational tunnel at Dodger Stadium," it said.

The residents' groups had challenged the company's lack of an environmental review for the project. The suit was filed shortly after the 2.7-mile tunnel was approved by a Los Angeles City Council committee.

The Sepulveda tunnel would have been under Sepulveda Boulevard from the Boring Company's property and ending near the corner of Washington Boulevard in Culver City.

As for the Dugout Loop, the project was proposed in mid-August as a way to bring fans from neighborhoods west of downtown to the stadium in four minutes.

The 3.6-mile tunnel would take about 14 months to complete, according to the company.

While the aim is to reduce traffic and parking issues around Elysian Park, the system would only carry about 1,400 people per event - or about 2.5 percent of the average Dodger Stadium crowd. But it could expand to 2,800 per game.