Oakland officials have reached an exclusive development agreement for a $5 billion megaproject. The deal comes after years of negotiations between the Oakland city council and the Oakland A’s baseball organization which started in 2018. The African American Sports and Entertainment Group signed a deal with the city to redevelop the site into housing, a convention center, hotel, restaurant and sporting arena. The development is expected to cost $5 billion and has a two-year deadline for approval. AASEG will pay Oakland a $200,000-per-year fee and a one-time $2.5 million payment. The Coliseum has been a long-time home for the Athletics, which are looking to redevelop the stadium land with housing, retail, offices and public parks.
The team is pursuing a move to Howard Terminal, a $12 billion waterfront ballpark development which would serve as the MLB team’s presence in the East Bay city. Plans to link BART and Howard Terminal began in 2019 as a part of redevelopment efforts. City officials will continue to invest in the area surrounding the stadium to create economic opportunities for local residents and businesses. The land has the potential to boost Oakland’s tax revenue, due to it being one of the largest developments in the city.
“Today we’re staying committed to deep East Oakland,” Oakland Mayor Sheng Thao said at a news conference to formally announce the city’s deal with AASEG. AASEG founder Ray Bobbitt said at the conference that the firm is evaluating how many multifamily units could fit on the site. The firm could purchase or lease the site, but that decision will be made in future negotiations. Under the development agreement, AASEG could purchase the site for $115 million. The project’s funding and public financing will be determined at a later date. The A’s have a lease to play at the Coliseum through 2024.
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* Source: Costar.
