California Construction News staff writer
The African American Sports and Entertainment Group (AASEG) will take over the Oakland Coliseum under a deal finalized with the city.
The city has agreed to sell its 50 percent share of the 112-acre Coliseum last month to the African American Sports and Entertainment Group, an Oakland group of developers and investors, for $105 million. On Saturday evening, the city and AASEG signed a final purchase and sale agreement.
AASEG will pay installments — $15 million in September, another $15 million due in November. AASEG has then agreed to pay $33 million in January, and $42 million when the sale is complete — no later than June 30, 2026 — according to the purchase agreement.
The Oakland A’s agreed to sell their share of the Coliseum to AASEG for $125 million.
The agreement allows the city to avoid $63 million in cuts that would have been needed to reduce a budget deficit for the next fiscal year.
Oakland Mayor Sheng Thao says the deal will bring new capital investment to the area.
“This historic deal will lead to a multi-billion dollar investment into East Oakland that will be felt for generations to come,” Thao said. “The agreement was completed ahead of our deadline and will have both immediate and long term financial benefits.
“With AASEG also completing a deal for the A’s half of the Coliseum, we will finally have one entity in control of the site, which will fast-track much-needed and deeply deserved development.”
Construction at the Oakland Coliseum site is expected to last at least 10 years. Work will be completed in phases.
AASEG has proposed a $5 billion megaproject with housing and a new convention center. The term sheet with the city states that 25% of any housing built at the site must be affordable. Also, AASEG must develop a community benefits plan within five years that includes labor agreements, workforce training and anti-displacement measures.
