Oakland Coliseum purchase deal revised to raise price, speed up payments, mayor says
OAKLAND, Calif. -- A $10 million payment has been made by the African American Sports & Entertainment Group toward the purchase of the Coliseum, Oakland Mayor Sheng Thao said Monday.
In addition, the city and AASEG have signed an amended agreement for the city's half of the Coliseum site, increasing the total from $110 million to $125 million, the mayor said in a press release.
The new agreement will also speed up the payment schedule, delivering $110 million within the current fiscal year.
"This amended agreement with AASEG is a win-win," Thao said in a news release. "The city secured a higher purchase price with faster payments. This structure also allows AASEG to kickstart their historic investment in East Oakland and create jobs and economic opportunity sooner than under the original agreement."
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Monday's announcement comes on the heels of criticism last week from some Oakland City Council members who questioned the timing of payments and expressed concern that it would trigger budget cuts.
Councilmember Janani Ramachandran said that she, Noel Gallo and Treva Reid have been asking city staff about the status of the first $15 million payment she maintains was due to Oakland back on Sept. 1.
AASEG founder Ray Bobbitt, however, said last week that the sale is on track and that the company made an initial payment of $5 million at the beginning of September upon the execution of the purchase and sale agreement.
Ramachandran said because that deadline for the full payment was missed, the city's "contingency budget" should have been put into place -- a budget that cuts the police force to 600 officers, temporarily closes five fire stations and pauses all city contracts.
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"The people of Oakland deserve full transparency from city leadership on this situation and the impact on our city's finances and public safety," Ramachandran said Thursday.
Thao's Monday announcement said the added revenue from the agreement "will increase general fund resources for citywide services, including public safety and fire services."
Oakland's police union on Monday called the amended agreement a "political stunt" by a mayor facing a recall vote in November.
"We believe the sale of the Oakland Coliseum property is a shortsighted attempt to address the serious structural deficit facing the city of Oakland," the Oakland Police Officers Association said in a news release.
