The $125M deal advances plans to redevelop the sprawling East Oakland property—and temporarily patch the city’s budget deficit.
By ONME News - Oaklandside
The Oakland Athletics and African American Sports and Entertainment Group announced Monday morning a tentative deal that would bring sweeping plans to redevelop the 155-acre Coliseum area closer to fruition.
The A’s will sell their half-stake in the Coliseum to AASEG for $125 million, making AASEG the sole owner of the property. Dual ownership of the Coliseum, first between the city and Alameda County, and later the city and the A’s, has complicated future plans for the site ever since the A’s announced they plan to move out of East Oakland.
If the deal is ratified, it would also mean the city of Oakland has more breathing room to respond to its dire budget situation.
The agreement between the A’s and AASEG comes one week after the city signed a term sheet outlining the sale of its 50% ownership interest in the Coliseum to AASEG.
City leaders are banking on the sale, hoping to use millions it will generate to patch a massive deficit in their budget. Without the funds, Oakland will almost surely be forced to slash fire, police, and other services. The city will still need to confront long-term, structural forces that generate deficits, however.
AASEG’s Managing Partner Ray Bobbit called the deal “historic.” A’s President Dave Kaval said AASEG’s “community-oriented vision” ensures the Coliseum area is redeveloped in a way that provides economic opportunities for East Oakland.
The A’s plan to move to Las Vegas but will play in Sacramento next season.
Led by Black developers, community leaders, and backed by Loop Capital, a Chicago-based private equity firm, AASEG plans to build a mix of residential, sports, entertainment, and retail projects where the Coliseum is today.
“This is another incredibly exciting day,” Oakland Mayor Sheng Thao said in a statement. “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.”
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