Oakland to the buyer of its aging Coliseum: Where’s our money?
The city has cut a new deal with African American Sports & Entertainment Group, which has failed to pay a $10 million down payment for the city’s half of the Coliseum site at 7000 South Coliseum Way, in East Oakland, the San Jose Mercury News reported.
In July, the Black-led developer based in Sacramento agreed to buy the city’s share of the 120-acre property for $105 million. A month later, the firm bought the Oakland A’s half for $125 million.
But there was a catch to buying the municipal portion of the 58-year-old Coliseum: the group led by Ray Bobbitt was supposed to cough up $10 million by Sept. 23. The check never arrived.
The deadline contained a caveat: If the city notified AASEG in writing that it had defaulted on the payment, then the group would have 10 business days — until Oct. 7 — to complete the money transfer.
The city waived its notice of default because the two sides continued to negotiate in good faith, Bobbitt, an Oakland native, told the Mercury News.
After the purchasing group welshed on the payment, the cash-strapped city and AASEG have tentatively agreed on a new deal — upping the price of half the silent stadium to $110 million.
African American Sports & Entertainment Group agreed to send the city $10 million by Oct. 7 — then plunk down another $95 million by May 30, 2025, on top of $5 million in revenue the city has already received.
The Oakland City Council still needs to approve the revised deal. At a meeting Tuesday, two councilmembers worried aloud about the $10 million promised earlier by AASEG that hadn’t found its way to City Hall.
The timing is critical, according to the Mercury News. Mayor Sheng Thao has staked revenue from the land deal against the city’s crippling financial crisis, with plans to use the money to pay city worker salaries and general operating costs.
In July, the City Council even approved a worst-case scenario budget that would impose severe cuts to city police staffing and fire station availability if AASEG’s payment didn’t arrive on time.
In a statement, an unidentified spokesperson for Thao said the sale of the Coliseum site, including the former baseball and football stadium, basketball arena and surrounding parking lots, were “on track.”
AASEG has proposed a $5 billion redevelopment of the Oakland Coliseum, with housing, hotels, a new convention center, a youth amphitheater, restaurants and museums. A city term sheet says 25 percent of homes built at the site must be affordable.
— Dana Bartholomew
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