Amended Oakland Coliseum deal is now $125M
OAKLAND, Calif. - A new deal to sell Oakland's half of the Coliseum is now $125 million, the mayor's office announced on Monday.
That's a 14% increase from the original $105 million purchase price with the African American Sports and Entertainment Group, and accelerates the payment schedule so that Oakland receives $110 million within the current fiscal year, Oakland Mayor Sheng Thao's office said in a news release. The previous agreement between Oakland and the AASEG only had the group paying the city $60 million by June 30, 2025.
The $125 million is also the same price AASEG is paying the A's, The Oaklandside reported at the end of August.
The acceleration of the deal will allow AASEG to take title and begin development of the site sooner than the original agreement. The additional revenue received by the city of Oakland will increase general fund resources for city-wide services, including public safety and fire services, the mayor said.
"This amended agreement with AASEG is a win-win," Thao said in a statement.
AASEG Managing Member Ray Bobbitt said he was pleased with the amended agreement.
"The creation of jobs, housing, art, clean green space and a new generation of sports and entertainment at the Coliseum Site cannot wait; and will provide a certain pathway to the revitalization of East Oakland through massive investment," he said in a statement.
Neither the mayor's office nor Bobitt were immediately available on Monday to explain why the sports and entertainment group would be willing to pay $20 million more.
But last week, some controversy erupted over the sale, where Councilmembers Noel Gallo, Janani Ramachandran and Treva Reid said the city had not received no proof of payment that the initial $15 million from AASEG has been made.
Although the Purchase and Sale Agreement was signed by Sept. 1, the city had not confirmed receipt.
In a phone interview on Monday, Thao's spokesman Casey Pratt said that $10 million had been paid by deadline.
Still, the Oakland police union was upset about the sale.
In a statement, POA President Sgt. Huy Nguen reiterated the union's position that they feel the sale of the Coliseum property is a "shortsighted attempt" to address Oakland's longstanding structural budget deficit.
"The Coliseum deal buys the city a few months' reprieve and the one-time revenues will soon dissipate," Nguyen said in a statement. "Whoever is in control of city government in the new year will face the daunting task of keeping the city solvent when the bill comes due for the ongoing fiscal mismanagement."
Nguyen said the police union continues to urge Oakland to retain experienced fiscal consultants to address the ongoing budget crisis.