Flashback: Alameda County sells its stake in the Oakland Coliseum for $85 million (2019)
To make sense of the present, one must know the past: A look back at the board of supervisors’ 2019 decision to sell the county’s half of the Oakland Coliseum to the Oakland A’s.
BY OAKLAND REPORT AND LOCUNITY
EDITOR’S NOTE: Oakland Report is experimenting with a new service to monitor and recap the proceedings at Oakland government meetings.
As part of this experiment, we’re launching a new “Flashback” series focused on multi-year issues that are coming back into the news. We begin with the multi-year project to sell and redevelop the Oakland Coliseum complex.
We understand that circumstances and people change over time. Change is integral to growth and an essential aspect of the human condition. But in order to understand change, one must first understand the previous state. To make sense of the present, one must know the past.
Our goal with this experiment is to build timelines of past decisions to help deepen our understanding of present-day issues in a visceral new way.
Future installments will flashback to other past actions taken by the Alameda County board of supervisors and the Oakland city council with respect to the Oakland Coliseum sale and redevelopment project.
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Alameda County sells its stake in the Oakland Coliseum to the Oakland A’s for $85 million
December 23, 2019 – The Alameda County Board of Supervisors voted unanimously to sell the county’s 50% ownership stake in the Oakland-Alameda County Coliseum Complex to an affiliate of the Oakland A’s for $85 million. The deal ends decades of the county’s part-ownership in the sports and entertainment venue while holding hope that the A’s baseball team will remain in Oakland.
Key points
The Oakland A’s, through its affiliate Coliseum Way Partners, will pay $85 million to the county in cash installments, to be fully paid in January 2026, and take over $5 million per year in operating costs from the county.
After full payment is made and bond-related closing conditions are met, the deed is expected to be issued to the A’s around February 2026.
An economic analysis concluded that the $85 million sale price exceeds the $82 million appraised value, and that the sale will generate new property tax revenue for the county.
County supervisors said the sale is an opportunity for the county to exit the sports business and refocus its resources on core county services such as health, housing, and other human services.
Trade union representatives offered comments in support of the deal, citing existing jobs for local workers, and called for a community benefit agreement to protect local workers.
Faith leaders and advocates expressed concerns about gentrification and displacement of Black residents due to the redevelopment.
Video clip 1: Supervisor Nate Miley expressing that it is in the county’s best interest to, “get out of the sports business… in a responsible way: $85 million. We’re getting our value for the property.” December 23, 2019. (Source: County of Alameda.)
“A very responsible way” — A’s will pay in cash installments through January 2026
The board of supervisors approved and authorized board president Richard Valle to sign a disposition agreement that transfers Alameda County’s undivided 50% interest in the Oakland-Alameda County Coliseum Complex to Coliseum Way Partners (CWP), an affiliate of the Oakland A’s, for $85 million.1
CWP will pay the $85 million in cash installments, with the final payment due by January 31, 2026.
CWP also will assume the county’s share of the operating costs of the Oakland Coliseum complex — approximately $5 million per year — immediately upon committing to the sale.
The city of Oakland owns the other 50% interest in the Coliseum property.
The agreement includes escrow provisions and bond-related closing conditions that will require cooperation from the city of Oakland and the Oakland-Alameda County Coliseum Joint Powers Authority (JPA).
Discussion highlights
Supervisor Nate Miley said, “None of us were here when the decision was made with the city and the county to jointly have that property and have sports out there. That decision was made more than 50 years ago. Now we’re at this juncture in time, and we think it’s in the best interest of the county to get out of the sports business and get out of it in a responsible way. And this is a responsible way: $85 million. We’re getting our value for the property. We’re going to be able to retire our bond indebtedness. After we retire our bond indebtedness, we’re still going to have proceeds left over from the sale of the property that can be utilized for other services. We’re doing it in a very responsible way.”
Supervisor Scott Haggerty said, “I’ve always cared about the county’s fiscal health. Well, you heard today that not only will we be able to pay our portion of the debts, but we will no longer be responsible for the operating deficits that happen on a year-end basis, when in fact we can put that $5 million or $5 million-plus towards services within this community. And that’s what’s important to us as county supervisors.”
Supervisor Wilma Chan said: “I think it is a gift to the residents of Alameda County and Oakland, in the sense that if everything goes smoothly, which I assume it will, that operations will be covered. There’ll be a payment of $85 million coming to the county. And we were very serious four years ago when we said that we really need revenues to pay for our core services. We don’t really want to be in the sports business. We have so many other things that we have to cover – housing, homeless, mental health and food, all those kinds of things. So I think this is really a great opportunity for us to do that.”
Video clip 2: Supervisor Wilma Chan expressing that, “we really need revenues to pay for our core services… we have so many other things that we have to cover – housing, homeless, mental health and food, all those kinds of things.” December 23, 2019. (Source: County of Alameda.)
Sale price exceeds fair market value, will bring in new property tax revenue
An economic analysis by Economic & Planning Systems (EPS) estimated that the sale price exceeds the fair market value, thus meeting legal standards governing the sale of public assets, and would result in new tax revenue to the county.
EPS reported that the county’s share of the Coliseum complex is valued at approximately $82 million, based on a 2016 Cushman Wakefield appraisal adjusted to 2019 dollars.
Government Code Section 52201 requires the county to make findings of “economic opportunity” when disposing of property below market value, and in this case the sale price exceeds the appraised value.
The EPS consultant noted that the transaction will convert tax-exempt public property to taxable private ownership: “That would result in an increase in property taxes of around, conservatively of around 85% above what is currently being accrued to the county.”
Video clip 3: Supervisor Nate Miley, on December 23, 2019, confirming details of the $85 million payment schedule and deed transfer to the A’s by February 2026. (Source: County of Alameda.)
Full text of the agreement
Here is a downloadable copy of the December 23, 2019, agreement selling Alameda County’s 50% ownership stake in the Oakland Coliseum complex to Oakland A’s affiliate Coliseum Way Partners, LLC:
Faith and community leaders express concerns about housing displacement of Black residents
The board heard public comments from faith and community leaders who expressed support for keeping the A’s in Oakland but expressed concern that redevelopment would accelerate gentrification and displace Black residents from the neighborhood.
Notable quote
“The county strongly supports affordable housing in all residential developments and recently sponsored a $580 million general obligation bond passed by over two thirds of the voters. Any future developments on the [Oakland Coliseum] property will be governed by the requirements of the city [of Oakland], which also has made a strong commitment to affordable housing. CWP and the Athletics have publicly expressed strong support for affordable housing in any future developments of the complex.”
– Alameda County administrator Susan Muranishi, reading the staff report into the record at the board of supervisors special meeting on December 23, 2019.
Public comments
Pastor L.J. Jennings, president of Bay Area Community Benefit Organization said, “The challenge is that a development at that Coliseum site, should they be successful in purchasing this site and moving to Harbor Terminal, will continue to displace Black folks. There’s no question about it. It’s happened all around us. And I know that as you, as policymakers, you see that happening. The $580 million that we, that we all worked so hard on passing, how much of that really touched Black folk? So when we think about, when we think about the things that we’re talking about and when we really think about selling public land, we need to be concerned about those individuals that are currently in this city and how it will affect whether they are able to remain in this city.”
Video clip 4: Pastor L.J. Jennings expresses concern that the Coliseum redevelopment project will displace Black residents. December 23, 2019. (Source: County of Alameda.)
Dr. Lawrence Van Hook spoke on the gentrification impacts stadium development had on residents in Inglewood (Los Angeles) and urged commitments to prevent similar displacement from occurring in the Oakland Coliseum redevelopment.
Elaine Brown, representing Oakland and the World Enterprises, said OAW is “developing two properties, one in West Oakland and one in East Oakland, both fully affordable… I think that the purchase has to be made or the deal has to be sealed because it is going to potentially benefit the Black community that has not been benefited, certainly not by the City of Oakland’s money, but which has done zero, especially in West Oakland, which has tremendous so-called gentrification and displacement of Black people since the days of the Black Panther party when 70 some percent of West Oakland was Black, now down to 20 something. I’m trying to hold the line and I believe that I can begin to deal with a group that wants to do something in West Oakland and that will do something. And so I hope that you will go forward with this deal.”
Oakland A’s president Dave Kaval said, “I think the community benefits process we’ve undertaken on the Howard Terminal site is a good example of, you know, the fact that: one, we’re using a race and equity lens to determine a baseline and an understanding of, hey, what are the different groups that could be either displaced or negatively affected by the project, and what are the ways that a community benefits process and dollars can be put in place to build that equity in those communities? And so we’ve committed to that process, which is kind of groundbreaking in West Oakland. And I would say that we would want to carry that forward at the time that we would actually develop the Coliseum.”
Supervisors and county staff noted that community benefit commitments could be undertaken through future negotiations as the A’s develop plans for the site.
Union representatives express support for the sale and call for a community benefit agreement
Organized labor representatives spoke in support of the county selling its Coliseum ownership stake to the A’s, pointing to existing worker protections and local union jobs.
Public comments
Wei-Ling Huber, of Unite Here representing 615 food service workers at the Oakland Coliseum said, “Unite Here is… working with the A’s to negotiate a community benefits agreement that would include items such as local hire. One of their contractors in the food service also already has an agreement with us that any new positions get first offered to Oakland and Alameda residents, including disadvantaged workers having a priority. And so agreements like that can carry over are being negotiated now in the other parts of the projects, along with affordable housing and environmental impacts. So we look forward to having an enforceable agreement that includes all of those improvements.”
Liz Ortega-Toro of the Alameda Labor Council representing 135,000 workers supported the sale as a way to keep the A’s in Oakland and preserve union jobs: “I also look forward to working with the A’s in partnership to develop a community benefits agreement that is beneficial to all of Alameda County.”
Jennifer Fothergill from the National Electrical Contractors Association said, “A project like this will provide Alameda County construction electricians hundreds of jobs keeping those earned dollars within Alameda County positively impacting the economy.”
Environmental review not required
Supervisors concluded that the sale does not require California Environmental Quality Act (CEQA) review because the transaction does not propose any change to the existing use of the property.
Notable quote
“There’s no CEQA requirement because we’re not doing any change in use or any development or anything like that. This is just purely the tenant that’s there. The Oakland A’s will continue to play baseball there, continue to be a facility, arena for entertainment, etc. So we’re not doing any type of a development deal here. This is just purely a sale of our interest.”
—Supervisor Nate Miley, December 23, 2019.
Staff explained that CEQA review would be required if and when the A’s propose redevelopment of the site.
What’s next
The $85 million sale sets the county on a path of divesting its co-ownership of the Oakland Coliseum, pending additional procedural steps:
The $85 million will be paid by CWP in cash installments, with the final payment due by January 31, 2026, and the deed issued shortly thereafter, provided that bond-related closing conditions are met.
Bond defeasance will require continued cooperation from the city of Oakland and the JPA. The city owns the other 50% interest in the Oakland Coliseum property.
As the A’s pursue both Howard Terminal and Coliseum development concepts, advocates have called for enforceable anti-displacement and other community benefit commitments.
A’s president Dave Kaval expressed support for a community benefits process as part of the redevelopment.
Meeting transcript and video
Here are a transcript and a video of the December 23, 2019 special meeting of the Alameda County Board of Supervisors:
This article is a flashback to events that took place on December 23, 2019. Future installments will flashback to other key events related to the multi-year sale and redevelopment of the Oakland Coliseum.
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County of Alameda, California. “Disposition agreement between the County of Alameda and Coliseum Way Partners LLC to sell the County’s undivided half interest in the Oakland-Alameda County Coliseum Complex.” Dec. 23, 2019. https://www.acgov.org/board/bos_calendar/documents/DocsAgendaReg_12_23_19%20spmtg/GENERAL%20ADMINISTRATION/Regular%20Calendar/CAO%20Board%20Letter%20Disposition%20Agreement%20Coliseum%20Way%20Partners.pdf
This new “Flashback” series is focused on multi-year issues that are coming back into the news.
We understand that circumstances and people change over time. Change is integral to growth and an essential aspect of the human condition. But in order to understand change, one must first understand the previous state. To make sense of the present, one must know the past.
Future installments will flashback to other past actions taken by the Alameda County board of supervisors and the Oakland city council with respect to the Oakland Coliseum sale and redevelopment project.
We want to hear from you! Please help us evaluate and improve this experiment by sending your feedback. Take the survey: https://www.surveymonkey.com/r/oakland-recap
Thank you.