City leaders in Oakland are expected to vote on a $125 million deal to sell the Oakland Coliseum complex, a deal that would include revenue from future events.
According to officials, the city council is scheduled to hold a special meeting Monday morning on a plan that would authorize selling the city’s 50% stake to the Oakland Acquisition Company (OAC), an entity comprised of Loop Capital and the African American Sports and Entertainment Group (AASEG).
Under the agreement, OAC would pay $110 million plus 6% of all future annual gross ticket sales from events held on the 103-acre site. The city would also receive an additional $15 million as OAC obtains building permits for new construction, which would be received “at a later date” according to officials.
“My bottom line is always what’s best for Oaklanders and the City’s ability to serve them well — and this proposal is a step forward,” Mayor Barbara Lee said in a statement. “This deal will pave the way towards creating jobs and economic opportunities, specifically for east and deep east Oaklanders.”
The deal would approve an initial cash sale of the arena parcel to OAC, which would result in the city receiving $50 million by early next year, while the stadium parcel will be sold for $60 million, crediting a $5 million deposit held by the city.
Consisting of the Coliseum and Oakland Arena, the city holds a 50% interest in the site, while Alameda County holds the other 50%.
Officials are expected to discuss the deal at a briefing Monday morning ahead of the council’s vote.