The Oakland City Council cast its final vote this week approving the sale of the Oakland Coliseum complex to Oakland-based African American Sports and Entertainment Group (AASEG) for $125 million, which supporters say will bring immense benefits to city residents, including billions of dollars in future development, new jobs and housing to East Oakland, and generate much-needed income for the city.
Mayor Barbara Lee thanked the City Council for approving the deal and city staff for the hard work negotiating the final agreement.
“This agreement is one step forward toward creating jobs and economic opportunity in East and Deep East Oakland… communities that have been historically underserved,” Mayor Lee said in a video statement.
The city owns a 50% interest in the complex, and Alameda County, which owns the remaining half, has already approved its part of the deal.
Under the terms of the sale of the Coliseum complex to Oakland Acquisition Company, affiliated with the AASEG, the $125 million agreement will provide the city with 6% of ticket revenue from events at the complex.
The deal also allows a $50 million all-cash sale of the Oakland Arena to a third party, the Oak View Group (OVG). According to OVG co-founder Irving Azoff, the company will invest $40 million in upgrades to the arena.
Councilmember Noel Gallo, who made the motion, said: “This $50 million payment will be immediately assigned for the retirement benefits for our police, fire and city employees, since we are three years behind in making our payments to the state retirement fund.”
Providing financial protections to the city, the final deal removes the city’s obligation to pay millions of dollars to maintain the property. It also requires a bond to protect the city if payments on the property are not made when they are due.
The 112-acre Oakland-Alameda County Coliseum Complex is one of the city’s largest development sites. The city’s agreement culminates several years of negotiations with AASEG, an Oakland-based, Black-led developer that partnered with Loop Capital, one of the largest Black-owned investment banks in the world.
Gallo also invited a student volunteer named Mateo Ridge to join in the photo celebration to help send a message that Oakland’s future rests “with our youth who will volunteer to help keep our parks, recreation areas and neighborhood streets clean.”
Ridge, who is the grandson of Jane Garcia from La Clinica La Raza, will be entering as a freshman in Middle College High School in Contra Costa County.
Gallo also has agreed to work with the Oakland Post and El Mundo newspapers to expand a city-wide movement of volunteers to help expand his pioneering efforts to remove the trash from the streets.
Paul Cobb said he would take up Gallo’s offer by scheduling meetings with neighborhood groups, churches and the Oakland Metropolitan Chamber of Commerce to provide business leadership to help build pride in Oakland.
The post Council Gives Approval for $125 Million Oakland Coliseum Sale to AASEG appeared first on BlackPressUSA.
