The city of Oakland announced on Monday night that they reached a deal to sell its share of the Coliseum to the African American Sports and Entertainment Group. The sale is worth $105 million.
It’s a move that city officials said that it will help the city avoid budget cuts to its public safety departments.
But some groups are skeptical the money will arrive in time to fix the city’s budget shortfall.
In a prepared video statement, Oakland Mayor Sheng Thao addressed the impact of the deal. The mayor’s office did not respond to NBC Bay Area’s specific questions about the agreement on Monday.
But the Mayor’s Office released the following statement:
“Our agreement with AASEG is a massive win for Oakland. And let me be clear, this isn’t just a short-term solution that keeps police and fire stations open. It’s a deal that will lead to a multi-billion-dollar investment in east Oakland, which will bring business opportunities, affordable housing, tax revenue, and community benefits for decades to come.”
Thao said the sale will address the city’s budget shortfall and avoid more than $60 million in budget cuts that could impact both Oakland’s police and fire departments.
However, the developers have until 2026 to pay for the entire purchase in five installments with only $30 million arriving by 2024.
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The Oakland Police Officers Union released a statement on Monday night:
“The OPOA is doubtful the sale of the OaklandColiseum will solve the mayor’s and city council’s epic mismanagement. We are deeply concerned for the safety of residents, businesses, and our police officers.” The Oakland Firefighters Union said the budget cuts could close up to five fire stations, but if funding arrives by September, the closures will be avoided.
“That’s up to 20 to 25% of our fleet, huge win for us,” said Zac Unger, president of the Oakland Firefighters Union 1.
The developers will pay its first installment to the city of Oakland of $5 million within five days of the agreement being finalized on August 23.
