African American Sports & Entertainment Group, which blew a key deadline to buy the city’s half of the Oakland Coliseum, has upped its purchase price by $20 million, to $125 million.
The Black-led developer based in Sacramento signed an amended agreement with the City of Oakland on Sunday to pay 14 percent more than its previous price, and on a faster payment plan for the property at 7000 South Coliseum Way, in East Oakland, the San Francisco Business Times reported.
“This amended agreement with AASEG is a win-win,” Oakland Mayor Sheng Thao said in a statement. “The city secured a higher purchase price with faster payments.”
Last week, the developer began renegotiating its agreement with the city after the firm failed to pay a $10 million down payment for its July purchase for a 50 percent interest in the 120-acre property for $105 million. A month later, the firm bought the Oakland A’s half for $125 million.
The group led by Ray Bobbitt was supposed to have coughed up the down payment by Sept. 23. The check never came.
The cash-strapped city and AASEG then tentatively agreed last week on a new deal, upping the price for half the silent stadium to $110 million.
Now the price tag under the new agreement has reached $125 million — and expedites the group’s payment schedule so the city will receive $110 million within the current fiscal year, according to the Business Times.
The prior agreement, which the city and AASEG signed in July, had $60 million paid by June 30, 2025.
The new deal will also allow AASEG to more quickly redevelop the 58-year-old former baseball and football stadium, basketball arena and surrounding parking lots. The status of the $10 million down payment, vis-a-vis the revised agreement, isn’t clear.
According to the Mercury News, the city needs the money in time to alleviate a financial crisis, with plans to use the funds to pay city worker salaries and general operating costs.
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.
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Oakland Coliseum redeveloper misses $10M down payment deadline
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The new agreement requires both parties to close the deal within the fiscal year, triggering early defeasement of the last arena bond payment of $4.2 million. The amendment obligates the buyer to pay all early defeasement costs for the city and Alameda County.
The additional revenue received by the city will increase general fund resources for city-wide services, including public safety and fire services, according to the Business Times.
— Dana Bartholomew
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