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. The deal has not yet been approved by Oakland City Council.
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 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 any 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.
The final payment will not come in time to ward off tens of millions of dollars in immediate spending cuts.
Three councilmembers said the sale isn't solving the city's longterm financial woes, and they called an emergency meeting for Monday morning to discuss matters.
"From our Budget Commission, from our Finance Department, from our City Administrator, it would lead to fiscal insolvency not having those funds," Reid said.
"Pay salaries, keep fire stations open, fund police academies and contracts. What is going to happen?" asked Ramachandran.
"Information has been withheld, information has been delayed, information has not been forthcoming. There has been a great deal of manipulation and deception," said Reid.
Since members Bas, Fife, and Kaplan did not attend the meeting, there was no quorum to take any action.
"If they don't want information to be shared out to the public, they'll simply not show up," said Ramachandran.
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