One of the most coveted pieces of property in Oakland appears to have a new owner Monday. The Oakland A’s announced the tentative sale of their half of the Coliseum Complex to an investment group. But as Ian Cull explains, not everyone thinks it’s a good deal.
The A's have reached a tentative agreement to sell their share of the Coliseum Complex to the African American Sports and Entertainment Group, which recently purchased the City of Oakland's share for $105 million.
The deal announced Monday finalizes a new path for the Coliseum Complex.
In a joint statement, both sides said the A's will sell their share for $125 million.
Alameda County supervisors must ultimately sign off on the deal.
AASEG founder Ray Bobbitt said terms of the payment have not yet been reached. Bobbitt said he is also excited to move forward with what he calls a critical piece to the revitalization of East Oakland.
A's President Dave Kaval in a statement said he is pleased to reach a deal with AASEG.
"AASEG has a community-oriented vision for the long-term development of the site and will be strong stewards of the property," Kaval said. "Their leadership and development provide substantial opportunities and benefits for East Oakland and the broader Oakland community."
The A's purchased their share of the Coliseum for $85 million in 2019.
AASEG said it now plans to build a thriving sports, entertainment, housing, educational and business district on the property.
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Any housing built would be at least 25% affordable.
The announcement comes just days after AASEG reached a deal to buy the city’s half of the complex for $105 million.
Oakland plans to use that money to prevent deep public safety cuts and layoffs.
But the Oakland Police Officers Association argues the sale only helps dodge a one-time budget bullet and isn't a long-term solution to the city's ongoing budget crisis.
“So this is a temporary fix for this year, but next year the city is facing another deficit,” Oakland POA President, Huy Nguyen said. “What is the solution then? Are we eliminating more police officers?”
Oakland Mayor Sheng Thao disputes that.
Oakland Mayor Sheng Thao released the following statement on Monday:
"This is another incredibly exciting day. When we agreed on our terms with AASEG for the City’s half of the Coliseum site, we knew this was right around the corner. Having one entity control the entire Coliseum site will fast track much-needed and deeply deserved development in East Oakland. I applaud the A’s for doing the right thing and coming to their own terms with AASEG for the County’s half of the land. Again, this isn’t a short-term solution. This is a multi-billion-dollar development that is going to deliver affordable housing, jobs, business opportunities, community benefits and tax revenue for decades to come."
Sgt. Tim Dolan, vice president for the Oakland Police Officer's Association released the following statement on Monday:
“The Oakland Police Officers Association does not believe the sale of city assets is a sound financial solution to the likely economic disaster the City of Oakland, its residents and businesses are facing. Generating one-time monies without a serious fiscal strategy makes no sense.
“Today’s announcement by the Oakland A’s of the tentative sale of its portion of the coliseum property should be a moment for reflection that our city has lost its last professional sports team. It should also be noted that the A’s got $20 million more for their half of the property than Mayor Sheng Thao’s sale of the city’s half portion.
“Mayor Sheng Thao is simply kicking the can down the road and fiddling as Oakland burns from crime, disorder and an epic economic failure under her leadership and the council majority. We are concerned that Oakland will be facing financial ruin and that residents, businesses and police officers will pay the price for the mayor’s and council majority’s mismanagement.”
