Raiders could stay at Alameda HQ through Feb 2019 even if they leave Oakland next year

Update 10:00 AM from Steven Tavares:

Original post:

When the Raiders balked at paying past due rent at the Coliseum last month, we figured it had something to do with the lease extension, but we couldn’t figure out the rationale. Now, looking at the new lease terms – set to be voted on by the Coliseum JPA Friday morning – there’s little that stands out. There are clarifications on how to handle signage and advertisements inside the stadium, along with updated parking revenue definitions. The $400,000 in back rent will be paid. Then I saw this:

7.5 Additional Payments for Use of Permanent Training Facility and Training Site. If the Raiders announce a relocation or sign a lease to play football games outside of the City of Oakland or Alameda County (a) for the 2015 season prior to March 1, 2015, then, commencing on March 1, 2015, or (b) for the 2016 season prior to March 1, 2016, then, commencing on March 1 of the year following such announcement Raiders shall have the option of continuing to use the Permanent Training Facility and Training Site for up to thirty-six (36) months, up to and including February 28, 2019 as determined in Raiders’ discretion. For the first two years, Raiders shall make an additional payment to Licensor each month for continued use of the Permanent Training Facility and Training Site in an amount equal to the fair market rental value of the Permanent Training Facility and Training Site on a monthly basis, as determined by a mutually agreeable licensed commercial real estate broker based on comparable rental space. Raiders and Licensor agree that the fair market rental value shall not exceed $525,000 per year for the first two years. For the third year, Raiders shall pay Licensor an amount of One Million Fifty Thousand Dollars ($1,050,000), payable monthly in equal installments. In the event the Raiders are engaged in good faith discussions concerning an extension of the Operating License or other arrangement for the Raiders to play future Football Events in the OACC Stadium as of March 1, 2016, any obligation to make payments shall not commence while such discussions are continuing and the thirty-six (36) month period and obligation to make additional payments shall begin when Raiders agrees to play football games at a location other than OACC Stadium for the 2016 season; provided, however, that if Raiders agrees to play football at such other location, Raiders shall pay such rental payments retroactively from March 1, 2016.

Compare that to the same clause from the 2014 lease, which allowed for 24 months of training facility use and ended on February 28, 2017. Now they’ll get an extra year, giving them until early 2019 to stay. That could prove useful if the Raiders head to LA for the 2016 season, but the Carson and/or Inglewood stadium plans fall apart in the interim.

It’s a great situation for the Raiders, allowing them to stay fairly cheaply in Alameda while entertaining stadium concepts in Oakland, LA, etc. Allowing the team to be in Alameda past the 2018 effectively gives Mark Davis a three-year grace period, even if the Raiders leave Oakland starting with the 2016 season. If they stay at the Coliseum and engage in further stadium talks, rent on the facility is abated.

Can, kicked.

The grace period allows Davis to not have to look for or build a training facility in LA right away. He could continue to keep the team training in LA, fly them down for “home” games at a temporary stadium on the weekend, and fly them back up Sunday night. The stadium plan in Carson has to be modified to include a second team training facility, though chances are it wouldn’t be ready until at least spring 2018, based on what we know about the political landscape involved and construction lead times.

Let’s be clear about this: a training facility is not make-or-break item when billions of dollars of stadium speculation are the order of the day. It’s still a critical part of team operations. That’s where players will be 5 of 7 days every week during the season, and where they’ll report going back to OTAs. Now it makes more sense that the Raiders are funding improvements to the weight room and other parts of the facility, since they know they’ll be there for a few more years.

As usual, it’s Davis looking out for his team first. Maybe he’s not so different from his dad after all.

Oakland Planning Commission postpones Coliseum City vote to 3/11

Update 3/11 – After another round of comments, the Planning Commission unanimously approved the Specific Plan and Zoning changes. There will be additional public meetings (see schedule below), including City Council sessions on 3/31 and 4/21. The last meeting is when the EIR can be certified.

Original post:

The night started with a report on affordable housing, and pretty much ended with a discussion about affordable housing. Item #3 in tonight’s Oakland Planning Commission meeting was Coliseum City, but the debate among the commenters wasn’t much about environmental impacts or zoning as was expected. Instead it was something of a face-off between Raiders fans who believe that Coliseum City will bring much needed jobs and an economic boost to the area, and East Oakland residents and advocates who fear the displacement effects CC could bring.

Public comments were taken for a good two hours. Many commenters had signs or stickers that said “Public Land Public Good.” They focused on trying to get living wage jobs as part of the deal, truly affordable housing for locals, and rent protections against broad speculation. One speaker noted that 70% of residents in the Coliseum’s ZIP code are renters, so there’s likely to be a solid base of potentially affected citizens.

If that wasn’t enough, the Commission announced that the information packet for the agenda item wasn’t complete, so they would be forced to move the item to a special meeting on March 11. Oral comments were still taken during the meeting, and written comments will be accepted through the 11th, but the vote will be taken next Wednesday.

That won’t be the only vote, as the process must continue. Several other public meetings are planned, culminating in two City Council actions three weeks apart. A first reading of zoning changes and adoption of the Specific Plan are slated to occur at the end of March. A final vote to certify could occur as early as April 21. Here’s the list of remaining meetings:

  • Planning – 3/11
  • ALUC – 3/18

City Council

  • CED – 3/24
  • 3/31 – First Reading of zoning, adoption of Specific Plan
  • 4/21 – Second Reading of zoning

That last date is 60 days after the EIR was distributed, which makes the approval process technically kosher. Since tonight’s meeting was rather light on EIR discussion, I’ll cover that separately tomorrow. I fully expect the EIR to be certified and approved, if only because it’s so vague on what the actual project is.

Until then, I’ll leave this Keith Olbermann interview of Jerry Springer (h/t @StadiumShadow). Skip to 4:21 for the relevant stadium discussion.

Tomorrow I’ll get into many of the EIR details that weren’t covered in the meeting.

P.S. – In case you’re wondering, the green arrow on the chart below shows where Coliseum City is in the CEQA process. Keep in mind that this has nothing to do with funding the project or getting teams to sign on.

ceqa_process_chart-arrow

P.P.S. – The real highlight of the night was this:

Wolff wants surface parking over garages and development at Coliseum

Here we go again with that nasty word: infrastructure.

Lew Wolff told Matthew Artz today that not only was he not interested in Coliseum City, he felt there isn’t enough space at the 120-acre Coliseum for development the City desires and the surface parking the team needs. That’s a major revelation because Wolff’s vision not only precludes other development in what’s considered a potentially high-density transit hub area, it goes against the City’s goals for the Coliseum.

There’s a lot that’s being unsaid by Wolff, who demurred on questions about financing and multiple venues. Let’s focus on what he said.

The only way it could work, Wolff said, would be to build multilevel parking garages, but that would leave fans waiting in long lines to exit the garages and begin their drives home.

‘Parking is a key issue for us,’ Wolff said. ‘We want surface parking surrounding the ballpark wherever we build it unless we’re in the heart of a downtown.’
‘We said it before he even came on the scene that we are going to 100 percent control our own destiny, period,’ Wolff said. ‘We don’t need a third party involved.’

First off, let’s be clear about how much land is available: 141 publicly owned acres in the area bounded by 66th Ave, Hegenberger Rd, 880, and Damon Slough. Take away 18 for the existing Coliseum or its replacement, and 8 for the arena if it stays. There’s other stuff like the sewer interceptor and power lines, but we’ll leave that out for now. The remaining land totals 115 acres.

As Andy Dolich notes in the same article, garages are ill-suited because they’re expensive and don’t get utilized well. Parking garages cost around $20,000 per space to build. ROI can be difficult to achieve unless those garages can be filled nearly everyday. But the City is supposed to fund infrastructure like garages at Coliseum City, so why is this such a big deal? The surface parking requirement, which Raiders owner Mark Davis has also communicated at times, stands in the way of the City’s plans for Coliseum City, whether you’re talking 120, 200, or 800 acres. The Coliseum City plan has 13,000 event parking spaces in it, only 4,200 of which are surface spaces mostly in the south lots out to Hegenberger.

Blue and dark gray are garages, medium gray is surface parking

From the Coliseum City Specific Plan: Blue and dark gray are garages, medium gray is surface parking

Shouldn’t 4,200 (or maybe 5-6,000) spaces be enough for most A’s games when taken with a few thousand new garage spots?  Especially if the TPMP (Transportation & Parking Management Plan) were conceived in a way to manage traffic from these various lots and garages? Especially if it’s only a single venue such as a ballpark? Let’s say that the A’s average 30,000 in attendance at a new ballpark. According to BART, 15-20% of fans take the service. Let’s make it 20%. That means 24,000 will come in cars. At 3 per car, the A’s would need 8,000 spaces. So they’d need some 2-3,000 additional spaces, maybe half of those in garages, the rest in a remote lot on the other side of the complex where people would have to walk through the retail/commercial area to get to the game. That way you have everyone covered:

  1. Fans who want direct access to the ballpark and the quickest in-out (4,200 surface spaces adjacent to ballpark, south)
  2. Fans who want to have dinner/drinks at a restaurant nearby (3,000 garage spaces, perhaps with validation, center)
  3. Fans who want cheap parking and don’t mind walking through the business district (3,000 remote surface spaces, north)

If you look at the parking depiction above, it’s not hard to see how that would come together. Put the ballpark where the football stadium is and the remote parking where the ballpark is and you have the basic concept. The idea presupposes that the arena is no longer there either.

The problem, as ever, is that no one wants to pay for any infrastructure like parking. A 2,000-space garage is bad enough, and it’s merely a piece of the $300 million of infrastructure. Wolff has suggested that he’d take care of the Mt. Davis debt, but if he has to pay for infrastructure too it starts to become too much. The City has suggested a slew of taxes that would pay for it through huge Mello-Roos and infrastructure financing districts, but that isn’t certain. Some of those taxes would eat into A’s revenues, so again it becomes a question of cost-benefit for the A’s.

In the end, if the A’s and the City/County are going to make this work they’ll have to come to a compromise. Whether the A’s claim a large piece of the land for ballpark and parking and leave the rest for the development, or the A’s control development rights to the whole thing, they’ll have to come half way. That also means the City will have to dial down its pie-in-the-sky dreams of a bustling second downtown anchored by multiple sports venues for something a little less ambitious. There probably is a way to accommodate both Wolff’s and Oakland’s goals. It’ll take a lengthy negotiation, which I should remind you, hasn’t happened yet. In fact, we’re not even close to negotiating yet.

P.S. – Would you believe that until last year, there were no major pro sports venues in the Bay Area with adjacent or nearby garages? It’s true. The Coliseum, which houses three teams, obviously has no garages. Neither does AT&T Park, which has surface parking across Mission Creek from the ballpark. SAP Center has multiple surface lots, including an elevated lot next to the arena that some might mistake for a garage. Candlestick Park had a small peninsula of parking next to it.

That changed when Levi’s Stadium opened last year. As part of the deal, an 1800-space garage was built directly opposite the stadium on Tasman Drive in Santa Clara. That garage has been notorious for excruciatingly long waits to leave, thanks to its single point of entry/exit. Wolff knows this because his Earthquakes opened Levi’s last summer, Quakes fans as guinea pigs. As we saw with the Sharks-Kings Stadium Series game over the weekend, parking and transportation is still a puzzle that hasn’t been figured out by the 49ers, Santa Clara, and VTA.

Other ballparks in suburban locales (Dodger Stadium, Angels Stadium) also don’t have garages. PETCO Park, Chase Field are downtown ballparks with attached garages that work well in concert with other nearby parking options. Coors Field has practically all surface lots available as parking. Downtown ballparks not only have garages or plenty of nearby parking infrastructure, they have the proper street grids and built-in traffic management needed to support large events. The Coliseum City plan is not set up like a new downtown with many ways in and out. It’s essentially the same plan as before, which has led to poor level of traffic service (LOS) grades in the Coliseum City EIR. It’s natural for Wolff to want to avoid the Levi’s situation.

Manfred talks Coliseum ballpark

MLB Commissioner Rob Manfred made a few comments about the A’s and the Coliseum. The comments are in the 2nd item of Susan Slusser’s daily spring training update from Monday night.

In addition to confirming that the Coliseum is the best site for the A’s (as opposed to Howard Terminal, which was not mentioned), he also spoke out about the Raiders’ and the NFL’s role in the Coliseum drama.

‘I think that there is a lot of activity that could clarify the situation, and I’m not going to go beyond that, that I think could create an opportunity to move things along in Oakland. I think the A’s are willing to explore Oakland if they can find a workable arrangement and it’s always been our preference to keep clubs where they are.’

My immediate reaction was to read into his quote a little:

Slusser agreed with my assertion, as did Howard Bryant. Ray Ratto cautioned against reading too much into Manfred’s quotes, as he’s just starting his gig and lacks to power base to make any major decisions. But that’s kind of the point of the Raiders-leave-and-A’s-take-control scenario, in that MLB doesn’t have to make a decision. They effectively back into a solution for the A’s without having to do anything. They wouldn’t even have to take a vote. Follow the Twitter thread and it becomes a fun little discussion about this ballpark business, including replies from John Shea, Wendy Thurm, and the LA Times’ Bill Shaikin.

While it’s pretty good reading, no one should get any ideas that the A’s are about to get the keys from dad. There’s a long way to go until that happens, and the A’s housemates will have something to say about it before long.

M&R: 30 days or bust for Raiders in Oakland

It’s a short article and a rather incendiary headline from Matier & Ross, but it’s not like we haven’t seen this coming.

‘If we don’t have significant progress within the next 30 days, I’d say one party or the other will call an end to it.’ That’s how one source close to the Raiders stadium negotiations in Oakland characterizes the on-again, off-again talks.

Okay, I guess. This doesn’t mean that Coliseum City is dead. There’s a lot of context we don’t have here. Is the anonymous source only talking about the new stadium, or does the lease extension also have something to do with it? Remember that as of now, the Raiders have nowhere to play for the 2015 season. If the only issue is the stadium discussion, that’s an awful way for the Raiders to go about things. Besides not having a place to play and no approval from the NFL to make a move, there’s little concrete evidence that the framework of a deal can be reached in 300 days, let alone 30. Maybe, as Larry Reid said, the work is 90% done. So what’s keeping the rest of the 10% from being done? The Raiders? Maybe. New City? Floyd Kephart said that the ENA runs through April. The ever-balking Alameda County? Who knows?

To me it sounds like yet another bluff. Last week’s reveal that the Raiders and Chargers are working on their own plan was characterized as a bluff by many. Scratch the surface and you’ll see that the Carson site is nearly ready to go after a great deal of cleanup, according to the State. Again, there are so many moving parts here with all the different players and deliverables that it’s hard to know what progress really is. Frankly, if this is coming from the Raiders, I’d like to see what happens if they leave the table. It’s always been up to the Raiders to make the first move. Mark Davis may actually have the courage to push that first domino. And if that happens, expect everyone else – the public sector, the A’s, the NFL and MLB – to start moving in kind. Eventually.

Coliseum City EIR Final Draft now available, JPA postpones lease extension vote, Saperstein comments

The Coliseum City EIR Final Draft was made available around lunchtime today. It’s 17 MB in size and worth looking through. As I run through it I’ll post my observations on Twitter with the hashtag #ColiseumCityEIR.

(Update: As pointed out by Floyd Kephart, the vote was over the lease. The JPA isn’t a party to the ENA, only the City and County can be among public entities.)

Over at the East Bay Express, Steven Tavares reports that the Coliseum JPA postponed a vote (again) to approve the Raiders’ lease extension. Tavares got comments from various JPA Board members, including outgoing and incoming Board Presidents Nate Miley and Larry Reid. While neither said why the postponement occurred, both indicated that certain aspects of the deal don’t look favorable to the county. Miley went on to talk about some of the Coliseum City issues we have talked about on this blog many times: hundreds of millions in infrastructure costs, the Coliseum’s outstanding debt, and the value of the land. Miley even indicated that some public contribution may be required for a Raiders stadium, which should raise some eyebrows in the East Bay.

Larry Reid characterized New City as “90% there” in terms of getting a team commitment, that team being the Raiders. Yet the Raiders’ joint announcement with the Chargers about a shared stadium in Carson took everyone by surprise. Reid still believes Mark Davis wants to keep the team in Oakland, and really, what choice does he have? The only shocker at this point would be if the JPA, City, and County kicked the Raiders to the curb after spending so much time, money, and energy on Coliseum City.

About that time, money, and energy:

Meanwhile, local officials met with NFL officials in January, said Reid. Their assessment was the city and county had made no progress in efforts to build a new stadium since a similar discussion between all the parties a year and a half ago. ‘They made it clear that the city and the county wasted the last eighteen months,’ said Reid.

Again, don’t pay attention to what people are telling you about how Coliseum City is progressing. When teams commit, when real actions happen to advance the ball, then you’ll know. As a wizard once said,

johnwooden380232

Last item today comes from a commenter on the blog named “Let’s Go Oakland,” who snipped a piece of a Facebook thread and dropped it in the comments.

wow

Guy Saperstein is a minority partner in the A’s ownership group

Assuming this is the real Guy Saperstein speaking, it sure sounds like the ownership group is still in lockstep in their position on San Jose, despite San Jose being off limits for the foreseeable future. Saperstein has long been based out of Oakland/Piedmont. Regardless, the only group the A’s can actually make a stadium deal with at this point is the Oakland/Alameda County/JPA triumvirate. As the fog enshrouding the Raiders and Mark Davis recedes, maybe they’ll actually make a decision on their future. Hopefully it doesn’t hurt the A’s in the process. If Davis can make a deal with Kephart, there will be a Raiders stadium at the Coliseum and the A’s can slide down to San Jose. If the Raiders can’t work something out, they’ll jet to LA while the A’s work out a new ballpark deal at the Coliseum complex. Those are the two most realistic scenarios that can be sussed out at this point. Anything else is wishful thinking.

 

Davis wants Alameda County at the table, but…

This is not unexpected, yet strange.

If memory serves, Davis still hasn’t paid the minuscule 2014 rent at the Coliseum, all while currently making improvements to the Alameda training facility. Seems like there’s a quick way to get everyone on the same page, especially if Davis’s request is just a first step towards completing a Coliseum City deal.

More from BANG’s Matthew Artz:

Looks like Davis’s go-it-alone strategy isn’t going so swimmingly, hence the pivot back to Kephart. Plus now Ron Leuty of the SF Business Times sheds additional light on the County’s resistance to Coliseum City.

‘Currently, (Alameda County) is not at the table,’ said Floyd Kephart, the lead executive of New City Development LLC told an Oakland business group Thursday, though he planned to meet Thursday afternoon with Alameda County Supervisor Scott Haggerty.

The City’s priority is clearly to work out the future of the Coliseum area, beyond the complex. The County’s appears to be fixated on the debt issue, which, while small in the grand scheme of things ($2-3 billion in total development), is plenty large enough to trip up any plan. Few entities can afford to write off $100+ million of debt. Packaging that debt creatively is a monumental task in and of itself. If the County wants to get tough on this, it’s their right and responsibility. Because without the County, there is no deal even if an EIR gets certified. So much for everyone being on the same page.

More comments from Kephart and reaction from Haggerty via Artz:

‘Just come to the bloody table and make a reasonable and fair attempt to see if we can keep the Raiders, build a stadium and do this development,’ said Floyd Kephart, a San Diego-based businessman who is trying to finance the city’s multibillion Coliseum City project, which envisions new stadiums for both teams at the Coliseum site.

Kephart’s remarks before a meeting of the West Oakland Commerce Association, didn’t sit well with Alameda County Supervisor Scott Haggerty who said the county was doing its due diligence. “I don’t know why people are insinuating that we are not at the table,” he said in a phone interview before a scheduled meeting with Kephart. ‘Just because you are asking questions doesn’t mean you are not at the table.’

So many moving parts. Davis wants to try his own bid, then gets back together with Kephart (how willingly is unclear). Haggerty, who is now the President of the Board of Supervisors, is taking on the role of chief inquisitor. Hey, nobody said it would be easy.