\u201cThis deal paves the pathway for a powerful economic revitalization in Oakland,\u201d added Ramachandran. \u201cI am excited for the new terms of the deal and additional stakeholders involved \u2013 including entertainment legend Irving Azoff. Not only does finalizing this deal save Oakland money and provide a significant one-time cash infusion but will also create a sustainable revenue stream that will help fund City services and uplift our economy.\u201d<\/p>\n
\u201cMy bottom line is always what\u2019s best for Oaklanders and the City\u2019s ability to serve them well \u2014 and this proposal is a step forward,\u201d said Lee. \u201cThis deal will pave the way towards creating jobs and economic opportunities, specifically for east and deep east Oaklanders. Thank you to the city negotiating team for their hard work to bring this proposal forward.\u201d<\/p>\n
AASEG has emphasized its commitment to community-centered development, with plans that include entertainment venues, housing, and commercial space to revitalize East Oakland. The involvement of OVG, known for its work on major sports and entertainment projects nationwide, adds industry expertise and credibility to the effort.<\/p>\n
AASEG President Ray Bobbitt called the agreement \u201ca great win for East Oakland\u201d that will benefit the entire city.<\/p>\n
The restructured deal could also release the city from its long-standing financial obligations tied to the Coliseum by January 2027. Oakland has historically subsidized the complex, which has operated at a loss of approximately $6 million annually.<\/p>\n
The deal includes:<\/p>\n
Initial Cash Sale (Arena Parcel): The city will sell the Arena parcel to OAC, receiving $50 million by early 2027.<\/p>\n
Subsequent Sale (Stadium Parcel): The Stadium parcel will be sold for $60 million, which includes a credit for the $5 million deposit already held by the city.<\/p>\n
Ongoing Revenue Stream: The city will receive 6% of annual gross ticket sales from all events at both the Arena and Stadium, a new ongoing income stream to Oakland’s General Purpose Fund.<\/p>\n
Financial Terms: Payments will be made to the city on a prescribed schedule without lending any funds to OAC, and the city will be immediately relieved of significant financial liabilities associated with ownership and operations.<\/p>\n