Oakland (Special to ZennieReport.com) – The City of Oakland (Hereinafter “The City”) recommends authorizing the City Administrator and/or their designee to negotiate and execute a purchase sale agreement with the African American Sports and Entertainment Group (AASEG) for The City’s undivided fifty-percentinterest of real property at 7000 Coliseum Way, Oakland, CA.

The City owns a fifty percent (50%) undivided interest (the “City’s Interest”) in real property
located at 7000 Coliseum Way, located in the City of Oakland, California (the “Property”)

The Property is approximately 112 acres in size and abuts the Damon Slough Channel to the
North and East, S. Elmhurst Creek Channel to the South and Coliseum Way and I-880 to the
West, and consists of two parcels with improvements thereon including an arena (the “Arena”), a
stadium (the “Coliseum”), parking areas and related structures, roadways, sidewalks, loading
areas and other improvements (collectively, the “Coliseum Complex”)

It is essential to note that the proposal to dispose of the City’s interest in the Coliseum Complex
reflects over a decade of work. This report highlights critical milestones and decades of
legislative efforts to untangle a complex ownership structure involving the city, county, and
private parties.

The City does not fully own the Coliseum Complex. As a result, the complexity of operating
efficiently that maximizes the desired effects, such as tax revenue, job creation, and tourism,
hinges on multi-lateral consensus of operations. For example, the other 50% interest of the
property is being sold by the County to a private business. Thus, this property is already not quite
“public land” as commonly understood. The unusual ownership structure of the Property has
raised efficiency issues, impeding activation of the site due to complex multi-party approval
rules for booking events and taking other actions for the site. Additionally, the complex
ownership structure is also impeding long-term development.

The sale of the Property can bring multiple benefits, including helping provide a different
ownership structure to support activation, events, and development. The overall intent, decades
in the making, is to revitalize, develop, and redevelop the property, for example, constructing
new housing, both affordable and market-rate, launching mixed-use commercial spaces,
encouraging new activations that benefit neighboring residents, and streamlining event planning.
The proposed minimum terms to enter into the purchase and sale agreement are: (a) a purchase
price in the amount of One Hundred Five Million Dollars ($105,000,000) of which at least Sixty
Million Dollars ($60,000,000) will be paid in Fiscal Year 2024-2025; (b) close of escrow for the
purchase and sale of the City’s Interest (“Closing”) shall not occur until the Bond Debt related to
the Coliseum is paid in full; (c) a deed restriction requiring at least twenty-five percent (25%) of
any residential units built on the Coliseum Complex in the future be designated affordable up to
sixty percent (60%) of Area Median Income (“AMI”) with at least ten percent (10%) affordable
to households earning up to thirty percent (30%) of AMI; and (d) a deed restriction requiring the
City and Developer to negotiate in good faith a bundle of community benefits, including but not
limited to, labor agreements and labor peace; local and small business contracting goals;
workforce training and local employment provisions; living wage; public open space and parks;
sustainable and green development standards; transportation infrastructure and transportation
demand management programs including transit affordability and accessibility; anti-
displacement and housing preservation policies; City participation in profit-sharing; and other
community benefits.

BACKGROUND / LEGISLATIVE HISTORY

The City and County established the Oakland-Alameda County Coliseum Authority (“JPA”) to
hold a ground lease on the Property and manage the Property on behalf of the City and the
County. On June 25, 2012, the JPA and AEG Management entered into a Coliseum Complex
Management Agreement to provide management services for the Property.
The Coliseum and the Arena both have outstanding lease revenue bond debt (“Bond Debt”)
existing from bond issuances for Property renovations and improvements. The City’s share of
the current outstanding Bond Debt related to the Coliseum is approximately Twelve Million
Eight Hundred Five Thousand One Hundred Twenty-Five Dollars ($12,805,125) and is
scheduled to be fully defeased by June 30, 2025, and the City’s share of the existing outstanding
Bond Debt related to the Arena is approximately Twelve Million Eight Hundred Seventy-One
Thousand Two Hundred Fifty-Eight Dollars ($12,871,258) and is scheduled to be fully defeased
by June 30, 2026.

The City, the Mayor’s office, and the City’s Council have diligently pursued official actions
through legislation, such as making recommendations and receiving reports regarding the
development and revitalization of the Oakland Coliseum Site.

On March 31, 2015, pursuant to Resolution No. 85491 C.M.S., the City Council certified the
Environmental Impact Report, made California Environmental Quality Act (“CEQA”) findings,

and adopted the Coliseum Area Specific Plan, which included related General Plan amendments
(the “Specific Plan”). The Property falls within the boundaries of the Specific Plan.
For example, the Specific Plan2adopted in 2015 was the culmination of years of analysis
conducted by city staff, outside consultants, and community stakeholders. The Specific Plan
provided a detailed guide to maximize efficient utilization of the existing infrastructure,
recommended improvements to the existing infrastructure, and recommended new infrastructure
and mixed-use development.

In a 2019 opinion piece3 Published in The Oakland Post, Councilmember Rebecca Kaplan
responded to months of public comments from organizations and community leaders about the
future of the Coliseum site. She addressed the possibility of the site’s development with or
without professional sports tenants and the potential for mixed-use development. Echoing
notions similar to the recommendations found in The Specific Plan, Kaplan described the site as
“This large, well-located expanse of public land can and should be used to provide development
that benefits the community in multiple ways” (Kaplan, The Oakland Post 2019). Further,
Kaplan recommends that any site development include expansive affordable housing and mixed-

use commercial space; furthermore, “Quality jobs for the local community – Oakland residents –
including opportunities in construction, and incorporating existing workforce from
Coliseum/Arena such as concessions, security, etc. Local hiring, equity, and quality standards
policies for jobs.” The full article can be found at the end of this memo. The recommended
action in this ordinance incorporates the recommendations found in the Specific Plan and
extensive community input.

Pursuant to the California Surplus Lands Act (Government Code Sections 54220-54234)
(“SLA”), the City issued a 60-day Notice of Availability on December 3, 2019, and received
only one letter of interest. During the 90-day good faith negotiation period, the City determined
that the eligible entity was not interested in acquiring the City’s Interest. On January 21, 2020,
the City Council adopted Resolution No. 88000 C.M.S., which ratified earlier actions and
declared the City’s Interest as surplus land under the SLA and authorized the City
Administrator’s issuance of a Notice of Availability to solicit development proposals for the
disposition and development of the City’s Interest

Further, this action followed recommendations for revitalizing the Coliseum site found in the
Specific Plan. Furthermore, this step illustrated the City’s intent to sell its 50% undivided site
share. According to the SLA, the declaration must follow the legislative process of the respective
local agency. The Oakland City Council adopted the recommendation to declare the City’s
interest in accordance with the SLA.

On July 6, 2021, the City Council adopted Resolution No. 88742 C.M.S 4., which authorized the
City Administrator to negotiate non-exclusively with (1) the African American Sports &
Entertainment Group, LLC, a California limited liability company, (2) Tripp Development, (3)
The Renaissance Companies or an affiliate, (4) Dave Stewart and Lonnie Murray, and (5) The
Athletics Investment Group, LLC or an affiliate regarding the terms of the disposition of the
City’s Interest.

Furthermore, Resolution 889225 directed the City Administrator to enter an Exclusive
Negotiating Agreement (ENA) with AASEG. The resolution outlined the desired outcomes of
the ENA. Expressing the importance of selling to parties that intend to revitalize and increase the
professional opportunities at the Coliseum site and deeply investing in the lives of local
residents, often members of underserved communities. The resolution states, “AASEG is an
Oakland-based developer focused on creating economic opportunity for the Black community in
East Oakland and using the Coliseum Complex as a vehicle for economic equity and social
justice.

On December 17, 2021, the California Department of Housing and Community Development
indicated that it had no significant concerns warranting a findings letter within its thirty (30)-day
review period regarding the City’s compliance with the SLA.

On January 25, 2023, the City entered into that certain Exclusive Negotiation Agreement (7000
Coliseum Way – Coliseum Complex) with AASEG Land LLC, a Delaware limited liability
company (“Developer”), which is an affiliate of AASEG (as amended by that certain First
Amendment to Exclusive Negotiation Agreement (7000 Coliseum Way – Coliseum Complex)
the “ENA”), to negotiate in good faith the terms of a purchase or sale of the City’s Interest
pursuant to a disposition and development agreement (“DDA”) or a lease disposition and
development agreement (“LDDA”).

The proposed ordinance results from over a decade of strategic action to maximize the site’s
fiscal opportunities and increase access to social mobility for residents in and around the site.
The sale of the City’s 50% undivided interest in the Coliseum to AASEG demonstrates the
commitment to realizing decades of legislation with an entity that aims to improve the lives of
Oakland residents.

Fiscal Impact

The sale of the property marks the beginning of a new era for the Coliseum Complex. By selling
the City’s interest to AASEG, the first step in moving away from a complex ownership structure
will have been taken, paving the way for a trajectory of prosperity for both the private and public
sectors. The buyer was selected after an extensive search, with strict criteria for the buyer, which,
paramount to the selection, is a buyer with the proven intent to usher in a new, prosperous, and
equitable chapter for the Coliseum Complex.

As the Specific Plan notes, the site aims to create beneficial fiscal outcomes that will reverberate
throughout the neighboring community, particularly populations historically excluded from
municipal decision-making and wealth-building opportunities. For example, AASEG intends to
“Utilize our development model as a catalyst to fully implement the Coliseum Specific Plan for
the benefit of Oakland’s most under-served communities in East Oakland.”6
The mission of AASEG aligns with the values and desires of the City. Both parties intend to
revitalize the area by investing in infrastructure that will increase the tax base of the Coliseum
Complex. By investing in revitalizing and/or developing new structures, housing, and transit
mechanisms, the Coliseum Complex will attract and sustain mixed-use development such as
affordable housing, commercial space, gathering spaces, and transit-oriented development, all of
which will increase tax revenue and revitalize space that would otherwise be underutilized.
ANALYSIS
Key Terms of the Purchase and Sale Agreement
The proposed ordinance would terminate the ENA and authorize a sale of the Property by way of
a purchase and sale agreement (“PSA”) to AASEG for $105 million, with at least $60 million to
paid during the City’s Fiscal Year 2024-2025. This would provide needed revenue for the
midcycle budget that the City Council is currently considering, thereby avoiding painful cuts to
public services. The ordinance would authorize the City Administrator to negotiate additional
terms, such as a more detailed payment schedule, restrictions on transfers of the Property by
AASEG, closing conditions, and standard terms such as indemnification. Most significantly, the
Ordinance will require that the Property be sold subject to several deed restrictions that ensure
any future development of the Property provides needed affordable housing and robust
community benefits, as described further below.

Affordable Housing. The affordable housing requirement would be memorialized in a permanent deed restriction requiring at least twenty-five percent (25%) of any residential units built on the Property in the future be designated as affordable for households earning up to 60 percent (60%) of Area Median Income (“AMI”), with at least ten percent (10%) being made available to households earning up to thirty percent (30%) of AMI. This will ensure any future development of the site includes supportive housing
units.

Additional Community Benefits. A requirement regarding community benefits would
also be memorialized in a deed restriction requiring the City and Developer to negotiate in good faith a bundle of community benefits after the Closing, including but not limited to, labor agreements and labor peace; local and small business contracting goals; workforce training and local employment provisions; living wage; public open space and
parks; sustainable and green development standards; transportation infrastructure and
transportation demand management programs including transit affordability and
accessibility; anti-displacement and housing preservation policies; City participation in
profit-sharing; and other community benefits.

PUBLIC OUTREACH/INTEREST
The At-Large Office received numerous letters of support from community-based organizations
in and around the Coliseum area. This proposal is based on decades of legislation that in and of
itself is based upon the thoughts and concerns of Oakland residents.

COORDINATION
The At-Large Office, the office of the Mayor, The office of the City Attorney, The City Administrator Office, The City’s Economic and Workforce Development Department, and various community-based organizations worked tirelessly to bring forth this proposal.

ACTION REQUESTED OF THE CITY COUNCIL
Councilmember Rebecca Kaplan and recommend adopting the following:

AN ORDINANCE AUTHORIZING THE CITY ADMINISTRATOR TO NEGOTIATE AND EXECUTE A PURCHASE AND SALE AGREEMENT WITH AASEG LAND LLC, A DELAWARE LIMITED LIABILITY
COMPANY, OR ITS AFFILIATE, FOR THE SALE OF THE CITY OF OAKLAND’S UNDIVIDED 50 PERCENT INTEREST IN PROPERTY LOCATED AT 7000 COLISEUM WAY, OAKLAND, CALIFORNIA, FOR ONE HUNDRED FIVE MILLION DOLLARS ($105,000,000) TO BE PAID IN INSTALLMENTS AND CONDITIONED ON DEVELOPMENT OF ON-SITE AFFORDABLE HOUSING AND OTHER BENEFITS; AND ADOPTING CALIFORNIA ENVIRONMENTAL QUALITY ACT FINDINGS

For questions regarding this report, please get in touch with

Michael Alvarenga, Legislative Analyst, at
[email protected]
Respectfully submitted,

Councilmember Kaplan
At-Large District

Prepared by:
Michael Alvarenga, Legislative Analyst
Office of Councilmember Rebecca Kaplan
Reviewed by:
Kimberly Jones, Chief of Staff
Office of Councilmember Rebecca Kaplan

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