Top News: Major Insights On “Oakland’s Coliseum Sale: New Timeline Sparks Fresh Questions!”
It’s an understatement to say that the stakes are significant regarding Oakland’s sale of the Coliseum site to a group of investors.
The city is selling its share of the property to help balance Oakland’s budget and avoid $63 million in painful cuts to police and fire services.
KPIX reported on Wednesday night that the African American Sports and Entertainment Group (AASEG) has a new timeline for delivering the necessary funds.
City Councilmember Janani Ramachandran supports the AASEG deal but is currently more concerned about the city’s budget since the group has not yet made the initial $10 million payment. She expressed frustration that the mayor has not provided clarity on the situation.
“Why are council members being left in the dark? What’s happening with the contingency plans? Are we going to see fire stations closed? Are we going to lose officers? Those are my concerns too,” Ramachandran stated.
Ray Bobbitt, AASEG’s founder and managing partner, asserts that the deal is still on track and that they are finalizing amendments to the original agreement, planning to pay the city the $10 million within the next five days.
The initial sale agreement, signed at the end of July, outlined four payments totaling $63 million from September 1 to January 15.
The proposed amendment would allow for a $10 million payment on October 7, followed by the full balance of $95 million by June 30, 2025, increasing the total sales price from $105 million to $110 million.
“We increased the price slightly to expedite the process,” Bobbitt explained.
According to him, AASEG was concerned that if the city faced bankruptcy, they could lose their investment under the original payment plan. The amended agreement would allow them to take ownership of the property immediately after the initial payment.
Bobbitt indicated he was unsure why city council members were not informed about the proposed changes, suggesting there may have been miscommunication among city departments.
Ramachandran clarified that the AASEG deal is separate from the city budget, which mandates spending cuts if AASEG’s payments are delayed. However, she criticized the city administrator and mayor’s office for not revealing which cuts would be prioritized.
“Contingencies are starting to be implemented, and we want to know what those cuts will be. Will they impact public safety significantly, or will they be less severe? We don’t have that information,” she said.
Oakland Mayor Sheng Thao declined an interview request on Wednesday but issued a statement Tuesday affirming that “the AASEG deal is on track” and that “no new contingencies have been triggered.”
Bobbitt also raised the possibility that some of the controversy could be politically motivated, given Mayor Thao’s impending recall election in November.