Oakland reportedly ready to sell Coliseum site, remember when that was A’s owners’ biggest problem?

The Oakland city council is reportedly (according to “sources close to the talks” who spoke with the San Francisco Chronicle’s Phil Matier) now ready to sell the city’s half of the Oakland Coliseum property to the A’s owners, after the Covid economic crisis has left the city desperate for cash:

The decision came Thursday in a closed session and marks a stark change from last October when city leaders filed suit in an attempt to block Alameda County from selling its half-share of the 155-acre East Oakland site to the team…

Council members are barred from discussing what goes on in closed session, but sources close to the talks said the city’s deal would mirror the county deal and net about $85 million spread out over a yet-to-be determined number of years…

“For me it is about looking at how things have changed when it comes to money,” Oakland City Councilman Noel Gallo said before the meeting.

“After the coronavirus shutdown, we are looking at a very, very serious budget deficit, and they are saying it could cost us $6 million just to maintain the site,” Gallo said. “We don’t have that kind of money. This way we can get some badly needed help.”

As discussed before, this isn’t a terrible idea: $85 million spread out over a few years seems pretty close to fair market value, and if it would get the A’s to start paying property taxes on the Coliseum property, all the better. Yes, there are still state laws requiring that public land for sale be used at least in part for affordable housing, and there’s still the whole issue of whether the Coliseum site would be used for development that would then help fund a new A’s stadium at Howard Terminal, or if a stadium would be built instead on the Coliseum site, or how exactly land value and demand for new development will even work in a post-Covid world. Many, many devils in the details in other words, all of which will presumably be haggled over by the two parties in the middle of a rapidly shifting health and economic disaster — watch out for information asymmetries, that the only advice I can give.


One comment on “Oakland reportedly ready to sell Coliseum site, remember when that was A’s owners’ biggest problem?

  1. This would certainly not be the worst deal in the world for the city, given what some of the options floated have been.

    It does seem like a distress sale, which is never a good thing, but the price is not unreasonable (at least, based on what we know of the property’s value). Many unanswered questions as you say. The first of which would be “Why let them pay for it over 6 years”? Normally you don’t allow someone to start building on the land you’ve sold them until they’ve paid for it…

    Of course, if it IS a reasonable deal for the taxpayers, this probably means it will die a quick death and be replaced with something far more beneficial to the billionaire’s club…

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