Oakland leaders vote to sell city's 50% ownership stake in Coliseum complex

OAKLAND, Calif. (KGO) -- The City of Oakland is one step closer to transforming the aging Oakland Coliseum complex after the City Council voted Monday to move forward with the sale of the city's 50% ownership stake in the property.

Supporters say the deal could unlock billions of dollars in future development, bring new jobs and housing to East Oakland, and generate much-needed revenue for the city. Critics, however, say questions remain about the role of Alameda County, which still owns the remaining half of the site.

Mayor Barbara Lee hailed the vote as a major milestone for Oakland.

"This is one of those good news days," Lee said during Monday's council meeting.

Under the proposal, the city would sell its interest in the Coliseum complex to Oakland Acquisition Company (OAC), an affiliate of the Oakland-based African American Sports and Entertainment Group (AASEG). The agreement is valued at $125 million and also provides the city with six percent of future ticket revenue generated from events at the complex.

MORE: Alameda Co. votes unanimously to move forward with sale of its ownership of Oakland Coliseum

Lee said the agreement lays the groundwork for long-awaited investment in East Oakland.

"It really paves the way to create jobs, economic opportunity, specifically in underserved areas of East Oakland," she said.

Councilmember Janani Ramachandran said redevelopment of the property could significantly boost city revenues through expanded entertainment offerings.

"We have the potential to have hundreds of more shows and events at the Coliseum. That means millions of dollars additional flowing into the city," Ramachandran said.

The vote comes after years of failed redevelopment proposals and the departures of Oakland's major professional sports franchises, including the Raiders, Warriors and Athletics.

MORE: Oakland Coliseum purchase deal revised to raise price, speed up payments, mayor says

The project has attracted support from entertainment executive Irving Azoff, co-founder of Oak View Group, which is partnering on redevelopment plans. Azoff said community engagement will be essential to the project's success.

"You're not going to have a successful Coliseum or arena if you don't reach out to the community," he said.

Many supporters hope redevelopment of the 120-acre site will include housing, jobs and community benefits.

"I want to thank the council for assuring there will be housing, jobs, environmental protections," Oakland resident Cecilia Cunningham told councilmembers.

City leaders also point to Oakland's ongoing financial challenges as a reason to move forward with the sale. Officials say proceeds from the transaction could help reduce long-term financial obligations and address the city's budget deficit.

"We are doing the responsible thing by paying down long-term obligations which have ballooned," said Council President Kevin Jenkins.

Not everyone supported the agreement.

Councilmember Noel Gallo cast the lone vote against the proposal, saying he wants stronger commitments from Alameda County before the city finalizes the sale.

"We do a lot of talking, but at the end of the day it's public land, and Oakland and Alameda County need to be unified," Gallo said.

The proposal is scheduled to return to the City Council for a final vote on July 21. If approved, it would mark a major step toward redeveloping one of Oakland's most recognizable properties and could reshape the future of East Oakland for decades to come.