Alameda Co. Board of Supervisors delay approval of Oakland Coliseum sale

OAKLAND, Calif. (KGO) -- The deal to sell the Oakland Coliseum Complex to the African American Sports and Entertainment Group hit a speed bump Tuesday at the Board of Supervisors meeting.

Dan Noyes: "Why isn't this just a simple signoff?"
David Haubert, Alameda County Supervisor: "Yeah, well, it's a very complicated deal, in fact, we have a property owned by two separate owners and one is already in transaction."

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They want more time to consider the sale of the Oakland A's 50% share of the complex to this new group of investors. I-Team reporter Dan Noyes has been speaking to the parties involved and going through the documents.

The tension is ramping up as AASEG missed a $10 million payment last week. They did put that money in an escrow account last month, but won't transfer it to the city until they see how the county part of the equation works out.

Members of the African American Sports and Entertainment Group lined up at the Alameda County Board of Supervisors meeting, urging them to approve an important step for the Coliseum project. The team formerly known as the Oakland A's, has agreed to sell its 50% share of the complex to AASEG, but the Board of Supervisors has to agree.

Ray Bobbitt, AASEG co-founder: "We just want to move this process to the next step. We also want to see if there's an opportunity to set a date to get this completed."
Lamar Hously, Lincoln University: "And we're so thankful to be a part of making history. We're excited about moving this project forward."

What AASEG hoped would be a quick approval process is dragging on, as supervisors tell me they hope to bring it to a public vote at the last meeting of the year in December.

Haubert: "And as for a timeline goes, I'm pressing for as fast as it can happen as soon as possible, but that we take the right steps to do it right. That means we're going to take the time to do it right. Weeks, not months."
Noyes: "Is there any doubt that it is going to happen?"
Haubert: "In my mind, there's no doubt that there's a great opportunity to have happen if it doesn't happen. It's a loss."

But with that uncertainty, the financial partner to AASEG, Loop Capital, is withholding a $10 million pre-closing payment that was due last Thursday.

"There's some due diligence that has to be completed as well," Bobbitt told the I-Team. "Just some small things in a transaction this large that you just want to dot and cross every T."

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There are also problems on the horizon at City Hall. Council member Noel Gallo doesn't want to sell the property to the investors, but to carry out a joint project with AASEG.

"They should ask Alameda County to join in the investment to develop the land," Gallo said. "That can benefit both the private industry and also benefit the public."

And council member Janani Ramachandran was surprised when we told her that $10 million payment, when it comes, goes into a city escrow - that it can't be spent until the Coliseum deal closes on May 30 of next year.

Noyes: "It wouldn't be immediately available anyway, right?"
Jananai Ramachandran, Oakland City Council member: "And that was not what we were told in the first place. This is new information to many of us."

The Coliseum sale will be part of the budget discussion in one week at the Oakland City Council. Clearly, a lot of moving parts - AASEG trying to put all the pieces together, so they can have total control of the project as it goes forward.