The city of Oakland has reached an agreement to sell its 50% ownership share of the Coliseum to a local buyer, the African American Sports and Entertainment Group.
Mayor Sheng Thao's office held a news conference Wednesday afternoon at Castlemont High School, in which they gave more details of the deal, which is for a minimum purchase price of $105 million over two years.
Funds from the sale will help Oakland cope with its projected $177 million budget deficit, according to the mayor's office, and could enable the city to avoid painful cuts to city departments, including police services.
But Thao emphasized during Wednesday's news conference that the ultimate goal was not to close the deficit gap but to revitalize East Oakland.
"It takes a partner that understands there is a return on investments that doesn’t necessarily show up on that balance sheet," she said. "That is not just all about the money. But it’s about the community and making sure that they’re thriving.”
Thao was joined by AASEG's Ray Bobbit and Carolyn "CJ" Johnson of the Black Cultural Zone during Wednesday's announcement.
The 112-acre stadium property has been part of numerous proposed plans. Oakland had publicly said it hoped to sell the entire site to developers but ownership of the other half of the Coliseum has been murky.
The A's bought the other 50% from Alameda County for about $85 million in 2019. But community groups are fighting to invalidate that deal in court. The A's also rejected an offer from AASEG before.
Bobbit said that the deal means the project planning can still go forward.
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“I’m under an NDA with respect to our negotiations with the Athletics. So, I can’t expand on that too much," he said. "But I can say that we are in healthy negotiations, and they’ve continued and they are moving in a positive direction.”
In the past, AASEG has said it was considering bringing a Women's National Basketball Association team and a Black-led NFL team to the site, as well as affordable housing, retail spaces and parks.
Johnson said the Black Cultural Zone has a goal to to revive East Oakland and she’s optimistic.
“Talk about vibrancy, retail, arts, culture, movies, sports, all of those things that we need to make a city, to make a town," she said.
The developers said they will show an actual site plan soon, which could include urban design plans submitted by students at Castlemont High School.
Thao said that she will talk more about how the money will help Oakland's budget crisis in a news conference on Thursday. She added that she expects the city council to vote on the deal in about two weeks.
An A's spokesperson didn't immediately respond to a request for comment.
Bay City News contributed to the report.
