| Oakland – The City of Oakland and African American Sports & Entertainment Group (AASEG) have signed an amended Purchase and Sale Agreement (PSA) for the City’s half of the Coliseum site. The new agreement results in a total price increase of 14% to $125 million and accelerates the payment schedule for the City to receive $110 million within the current fiscal year. The previous agreement had a purchase price of $105 million with $60 million being paid by June 30, 2025. Under the ordinance authorizing the sale, Mayor Sheng Thao returned to the negotiating table and secured additional funds to be received within a shorter timeframe to enable the transformative investment and redevelopment of the Coliseum site. The acceleration of the deal will also allow AASEG to take title and begin development of the site sooner than the original agreement. The additional revenue received by the City of Oakland will increase general fund resources for city-wide services, including public safety and fire services. The new agreement requires both parties to close the deal within the fiscal year, triggering early defeasement of the last Arena bond payment of $4.2 million. As such, the amendment obligates the buyer to pay all early defeasement costs for the City and County. “This amended agreement with AASEG is a win-win,” said Oakland Mayor Sheng Thao. “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. Our partnership with AASEG will continue to pay dividends for generations to come. I am immensely proud of this historic achievement.” “We are very grateful for the hard work of the City team in helping reach our amended agreement,” said AASEG Managing Member Ray Bobbitt. “The creation of jobs, housing, art, clean green space and a new generation of Sports and Entertainment at the Coliseum Site cannot wait; and will provide a certain pathway to the revitalization of East Oakland through massive investment. The Coliseum is a treasure to all of Oakland and to the entire East Bay Region. We look forward to driving this historic opportunity and to embracing this profound responsibility that the community has entrusted us with.” Because the County’s approval of the sale has taken longer than expected, the City and the buyers have had to revisit the timeline on the City’s side of the deal. If the County approves its side of the deal, the City’s amendment will result in a better deal for the community. |
