California Construction News staff writer
The City of Oakland and African American Sports & Entertainment Group (AASEG) have signed an amended Purchase and Sale Agreement (PSA) for the city’s half of the Coliseum site. The new agreement results in a total price increase of 14 percent to $125 million and accelerates the payment schedule for the city to receive $110 million within the current fiscal year. The previous agreement had a purchase price of $105 million with $60 million being paid by June 30, 2025.
Under the ordinance authorizing the sale, Mayor Sheng Thao returned to the negotiating table and secured additional funds to be received within a shorter timeframe to enable the transformative investment and redevelopment of the Coliseum site.
“We are very grateful for the hard work of the City team in helping reach our amended agreement,” said AASEG Managing Member Ray Bobbitt. “The creation of jobs, housing, art, clean green space and a new generation of Sports and Entertainment at the Coliseum Site cannot wait; and will provide a certain pathway to the revitalization of East Oakland through massive investment.
“The Coliseum is a treasure to all of Oakland and to the entire East Bay Region. We look forward to driving this historic opportunity and to embracing this profound responsibility that the community has entrusted us with.”
The acceleration of the deal will also allow AASEG to take title and begin development of the site sooner than the original agreement. The additional revenue received by the city of Oakland will increase general fund resources for city-wide services, including public safety and fire services.
The new agreement requires both parties to close the deal within this fiscal year, triggering early defeasement of the last Arena bond payment of $4.2 million. As such, the amendment obligates the buyer to pay all early defeasement costs for the City and County.
“This amended agreement with AASEG is a win-win,” said Thao. “The city secured a higher purchase price with faster payments. This structure also allows AASEG to kickstart their historic investment in East Oakland and create jobs and economic opportunity sooner than under the original agreement.
“Our partnership with AASEG will continue to pay dividends for generations to come. I am immensely proud of this historic achievement.”
Under the restructured agreement, the total purchase price for the City’s stake in the Coliseum has increased from $105 million to $125 million.
Also, the city will receive an additional $47 million in the current fiscal year, bringing the total to $110 million, which can be utilized for core city services as officials work to address a structural deficit.
“The restructured agreement will help launch Oakland’s economic development boom and generate long-term revenue,” said councilmember Nikki Fortunato Bas stated. The agreement enables the developer to secure title to the entire site sooner, facilitating the drafting of project proposals and negotiations for community benefits.
A key aspect of the agreement includes deed restrictions mandating that at least 25% of the housing developed on the site be designated as affordable for low-income households. The deal also encompasses a community benefits agreement focusing on labor standards, local business contracting, workforce development, and sustainable practices.
Council President Bas emphasized the importance of transparency and community engagement in the process. “We owe it to our constituents to ensure responsible oversight and collaboration with the Administration,” she noted.
“As we move forward, this is a moment to unite around the historic opportunities for Oakland and our economy,” Bas said. “Together, we can ensure that this project benefits our beloved city.”
The city council will continue to review the amended Purchase and Sale Agreement and its impacts on Oakland’s future.
Public meetings will be scheduled to allow for community input and discussion as the project progresses.
