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Complications with county delay million-dollar payment to Oakland
The City of Oakland has yet to receive a $10 million payment from the African American Sports and Entertainment Group for the sale of the Coliseum, and city councilmembers are expressing their concerns.
OAKLAND, Calif. - The City of Oakland has yet to receive a $10 million payment from the African American Sports and Entertainment Group for the sale of the Coliseum, and city councilmembers are expressing their concerns.
The sale of the Oakland Coliseum is not so simple, as the African American Sports and Entertainment Group (AASEG) is handling business with multiple entities to develop the site into an entertainment hub and affordable housing.
AASEG has agreed to pay the city of Oakland $125 million for their half of the facility, and another $125 million for the A’s side, which is still under agreement with Alameda County.
The city said the group provided evidence that the funds were in an escrow account in October, but the nonrefundable payment, due Thursday, was never made to the city.
Ray Bobbitt of AASEG said it's because the group needs the Alameda County Board of Supervisors to vote in its favor on the other half of the deal.
"What we're looking for is the approval from the county to allow for us to step into the shoes of the A’s," said Bobbitt. "The A’s have an agreement with the county to buy the county’s 50% interest. The A’s have agreed to sell it to us, and now we need the county’s approval."
Bobbitt said if the group does not own both halves of the Coliseum, it would be nearly impossible to develop the site.
Simultaneously, Alameda County is dealing with a lawsuit filed by the nonprofit Communities for a Better Environment, which could jeopardize the sale of the A’s half. The lawsuit says the county and the A’s did not follow the Surplus Land Act, which governs how public land is sold.
Councilwoman Janani Ramachandran expressed her concern about the sale in a statement, saying, "At a time when our budget is in an especially precarious position, this nonpayment is a blow to public trust."
"…It was an irresponsible mistake to depend on the proposed coliseum sale - a highly complicated real estate deal relying on so many variables outside of our control - to plug holes in our budget deficit," she continued.
"We understand the caution," Bobbitt said. "But at the end of the day, we are literally one or two meetings away from completing this process."
Even though the city said the election has no impact on the sale, Councilman Noel Gallo said he is concerned as a recall of Mayor Sheng Thao looms, and says he just wants to see the coliseum at its full potential.
"Right now, there’s a big question mark about where we’re going but the ultimate goal is to have soccer that’s interested and bringing in professional teams and musical talent," he said.
So far, the city of Oakland has only received $5 million for its half of the site.
The city said as soon as the County Board of Supervisors approves the A’s deal, Oakland can expect to receive AASEG’s November payment.
Bobbitt said he’s confident everything will move forward.
KTVU reached out to Alameda County for clarification on its role in the deal but did not hear back.
The next county Board of Supervisors meeting is on Tuesday, where a vote on the matter may take place.