Tweets and commentary from 10/1 Oakland Planning Commission meeting

The public came out of the Planning Commission meeting with more questions than answers, and that’s a good thing. When the EIR comment period ends, it’s up to City staff and consultants to provide answers to the many question posed by the public.

A presentation was given to start. Early discussion focused on affordable housing as part of the plan. The plan calls for 5,750 housing units to be built. 25% of those are supposed to be affordable, whether via rental or purchase. The Bay Area’s ever-skyrocketing housing market makes that 25% a growing subsidy (public and/or private) with each passing month. According to trulia, the median price for a home in Oakland is $475,000, up 8% from September 2013. Oakland uses a HUD formula to calculate affordable housing on a regional basis. In essence, 25% of housing would have to be affordable for households making $72,000 or less per year. However, the median income in Oakland is less than $52,000/year. To make it work, the City and developers would have to crunch some serious numbers to determine the proper mix of pricing and subsidies, not to mention addressing low income residents and senior citizens – both groups represented by commenters at the meeting. Chances are that most of it would come out of developers’ pockets, though Governor (and former Oakland mayor) Jerry Brown has been working to get rid of affordable housing set-asides. This puzzle has to be solved by all residential developers in California, so it would affect Coliseum City’s principals or Lew Wolff and partners if they were given the opportunity. One East Oakland resident got straight to the point.

As the Commissioners took their turns picking apart the plan, one asked about the status of discussions with other parties that need to be involved. The responses?

That third tweet is interesting. We haven’t covered the bay inlet much. That’s a reference to the new part of the bay that would approach the new arena (assuming the Warriors stay at Coliseum City).

Inlet at top

Inlet at top

You might think that the inlet was designed for a ferry terminal or for boats with a dock. You would be incorrect. It’s merely a shallow extension of the estuary, a tidal mudflat not meant for recreation. It’s meant to provide an additional habitat to go with all of the new construction, but it seems like a wasted opportunity. Of course, providing a ferry terminal would bring about an even greater environmental review since some dredging would be required. A couple commissioners seized on the fact that of the various development options the no-build alternative was barely touched except to say that the various venues would be demolished and other development would fill in at some point. Since this is a Specific Plan and not just a small project-level EIR, it’s within the Planning Commission’s right to ask about what happens if the teams leave, since it’s a distinct possibility. The scenario should be addressed in more detail in the final EIR.

A few Raiders fans showed up to provide their support, including Dr. Death and Godfather Grizz. They were largely outnumbered by local residents who expressed concerns about the aforementioned housing problem, gentrification, the need for improved police and fire services in the area, and questions about the effects Coliseum City could have on the rest of Oakland. One thing I’m surprised to not hear was a question about what impact a second downtown (which is what CC represents) would have on the current downtown/uptown area. While that’s a question that goes broader than the existing project, it’s well within the Planning Commission’s purview to take on that kind of dilemma – if it’s a dilemma at all.

Coliseum employees who want to see their jobs protected were well represented. One resident noticed the streetcar that runs through the complex and wanted to see it expand all the way out through East Oakland and up International Blvd. If a streetcar is going to be put in at all, that’s the way to do it. A commissioner noted that while BART and the new AirBART are getting a lot of attention, very little is being paid to how AC Transit and Amtrak will be integrated. AC Transit is as important as anything, because while buses aren’t sexy, they will be responsible for providing transit for many of the low-wage workers that will be working at the hotels in the plan, especially at odd hours.

Overall, there was a large undercurrent of sentiment that Coliseum City is being conceived as an island, not well integrated with East Oakland. That itself is a dilemma, because developers don’t want their shiny condos associated with East Oakland’s rep while community groups and residents are desperately hungry for the opportunities the project represents. As part of Mayor Jean Quan’s 10K-2 plan, Coliseum City represents a big piece of a goal she’s trying to reach.

The Coliseum area had lost a few hundred jobs over the decade from 2000-10. Now it’s being counted on to retain three sports franchises – two of whom have no interest in the plan, along with around 4,000 new jobs throughout the 800-acre development. Developers tend to make big promises about such economic growth which get lost in market realities. Perhaps it’s time for more scrutiny of these estimates.

Oakland Planning Commission meeting (October 1st, 6 PM)

Tonight’s monthly meeting of the Oakland Planning Commission may be of interest to you, since the third item on the agenda is Coliseum City. Some relevant links:

This session comes on the heels of Coliseum City presentations made for the JPA Board and Port of Oakland’s Board last week. I’ll live tweet when the item comes up for discussion and do the wrap-up in this post after they’re done. Apparently there will be numerous Raiders fans there in support of the project. If you’re interested in the subject, I suggest watching.

Former Assemblyman & Dublin Mayor Guy Houston in running for JPA Exec Director position

Rumors bubbled up last week on the inter webs about the Coliseum JPA potentially filling its vacant Executive Director position. BANG has reported further on it, lending the story credence. The leading (only?) candidate is Guy Houston, a Republican lobbyist who spent 6 years in the Assembly. Prior to that he was the mayor of Dublin.

Guy Houston

Deena McClain has been the Authority’s Interim Executive Director for some time, also serving as legal counsel. During the lease discussions over the summer, you may remember that she was the point person for any and all questions about the current lease terms, outstanding debt, and operations of the Coliseum complex. McClain, in concert with outside counsel, negotiated the A’s lease on the JPA’s side. That would be Houston’s role should he take the job.

Should the Raiders elect to stay in Oakland for however many additional years, Houston’s first task would be to negotiate that lease extension. Beyond that, he’d have to lead talks for the future of the complex, whether it’s Coliseum City or a successor plan. The position has been vacant for so long that it’s easy to forget its importance. Take a look this excerpt from the still-relevant-albeit-outdated job description:

The ideal candidate will:

  • Be a strong and visible leader;
  • Have very strong analytical and problem solving skills;
  • Be able to evaluate, analyze and interpret complex financial statements and reports;
  • Be able to develop, present and defend financial reports/profit loss statements;
  • Have excellent communication abilities both orally and in written form;
  • Be able to draft, interpret, negotiate and apply complex contract language;
  • Have strong facilitation and mediation skills;
  • Be a consensus builder;
  • Understand the political process and public meeting dynamics and requirements;
  • Identify and present the best business decisions and practices in a political environment;
  • Understand sports franchise businesses and the dynamics of their operation;
  • Understand comparable stadium/arena/entertainment facility operations;
  • Will know or be able to learn the market and the best practices;
  • Be able to build and maintain a good organizational public image;
  • Develop and maintain positive media relations.

Before any of you start emailing your resumes, there are also some specific requirements for the job:

MINIMUM REQUIREMENTS

  • A degree in business administration, public administration, economics, or another closely related field. An advanced degree is desirable.
  • Experience managing a similar revenue generating enterprise owned by a public entity or managing a facility comparable to the Coliseum Complex.
  • Experience demonstrating successful application of the abilities and traits of “The Ideal Candidate”.

If you’re still in college, or you work some midlevel position in the private sector, you need not apply.

Having served in the public sphere for well over a decade, Houston’s certainly qualified. The real questions are about his station within the JPA and his designs on the job. Houston was termed out of his Assembly District 15 job in 2008. He then ran for Contra Costa County Supervisor and lost, then went for the GOP chair job and lost. Since then he’s been a lobbyist, continuing to work out of Dublin. If he wanted to get back into elected office at some point, successfully negotiating new deals as the JPA’s Executive Director would be an excellent feather in his cap, though it’s unclear what elected offices he could capably shoot for as a Republican in Alameda County.

Houston’s reputation is very pro-business, developer-friendly. In the mid-2000’s he was caught up in a scandal involving his father, Fred Houston, who was accused defrauding senior citizens to the tune of $340,000. Fred Houston was also the longtime head coach of San Ramon Valley High’s football program. Zennie Abraham noted Guy Houston’s close ties to Alameda County Supervisor Scott Haggerty, who is also known as very pro-business.

The Executive Director serves at the behest of the JPA Board of Commissioners, so it’s not as if he/she can create an agenda and start dictating terms. However, the ED could certainly steer negotiations one way or another, based on ongoing evaluations of potential deals. As divided as the JPA has shown itself to be over the future of the Coliseum, it’ll be more important than anything for the ED to build consensus. Should Houston get the job, it’ll be no small feat if he gets everyone rowing in one direction.

Quan, BayIG strike back with “basics” of Raiders deal

Matier and Ross reported today that the City of Oakland and BayIG, the group behind the Coliseum City project, have put together the “basics” of a deal that would include a ~$1 Billion stadium for the Raiders and development of up to 800 acres surrounding the stadium.

Now, Zach Wasserman, an attorney representing backers of a hoped-for sports, housing and retail complex called Coliseum City, says the “basic terms” of a financial deal have been worked out among his group, the city’s negotiators and the Raiders.

The big takeaway is that the City and County, which would be giving up land and paying for infrastructure costs as part of any deal, would also have to pay off the remaining $120 million in Coliseum debt. That is an enormous giveaway on Oakland’s part no matter how you slice it. Both City and County officials have insisted in the past that any large plan like Coliseum required the debt to be taken care of – preferably by the developers. If you can remember back to the “adult conversation” in December, County Supervisor Keith Carson practically hijacked the proceedings by having the first 10-15 minutes of the meeting spent on recounting the debt liability faced by the JPA.

Carson emphasized that there will be no future project if debt isn’t addressed first.

So, let’s tally up what we know are the costs of Coliseum City so far:

  • $344-425 million in infrastructure cost
  • $120 million in Coliseum debt

That’s up to $565 million in project costs, all without building a single stadium, hotel, or office building. And there’s more. Not included is the $80 million in arena debt, the responsibility for which is up in the air. In the EIR (you guys have been reading that, right?), the City states that of the 800 acres covering the entirety of the project, 535 are publicly owned. That includes the City, County, JPA, and EBMUD. The remaining 265 acres are privately owned, making those properties subject to negotiation. Most of that land is on the west side of 880, but some important pieces are right next to the Coliseum or in between the Coliseum and the BART station. Now let’s take a low market rate offer of $2 million per acre. That’s another $530 million that would be borne probably by developers, but could also be paid to some degree by the City since Oakland has eminent domain capability. No matter who pays for it, the total cost of land, infrastructure, and dealing with outstanding debt is $1.1 Billion. That’s the cost of the Raiders stadium right there, or two A’s ballparks.

The counter is that the Raiders, NFL, and BayIG are paying for the football stadium, which may or may not have a retractable roof, may have 56,000 or 68,000 seats, etc. The potential upside is 10,000 new residents, 21,000 jobs, and retaining all of the teams – though it still hasn’t been articulated how any sort of carveout for the A’s would work.

Now compare that to what Lew Wolff is offering, which is to pay off the debt on both the Coliseum and the Arena. While we haven’t seen plans, the planned development is not expected to be as expansive as Coliseum City, as Wolff has said that acquiring private property for this purpose is a bit sticky for his liking (Coliseum North being Exhibit A). Besides, even 120 or 200 acres is a lot of land.

We haven’t yet heard Alameda County’s side, and Carson is certain to raise questions about the giveaway. The City can come to terms on a deal, but without the County as a partner the deal isn’t sealed. I fully expect a sequel to the adult conversation, when all of the costs and liabilities are laid bare. If the A’s get it together in time, there may even be a sort of competitive situation with two bidders. Let the rich guys duke it out over what is purported to be high quality, valuable land. Chances are that such a discussion won’t happen until after the election. After all, there’s something fishy about the timing of this release, considering that last week Oakland mayoral candidate and CM Rebecca Kaplan took credit for “saving the A’s in Oakland” (h/t Zennie Abraham).

Selig’s Lamentations and the Law of Unintended Consequences

To hear outgoing MLB Commissioner Bud Selig explain it, he was stuck in the middle. Powerless. The issue was forever “complicated.” He wished he could’ve resolved it. So when he rolled through Oakland on his farewell tour, there was no staged ceremony near home plate, no televised gift of a rocking chair made of bats. The only real exchange was a series of questions from local media, asking him if he could’ve done more get the A’s to a new ballpark. All he could say was that a ballpark was needed. Acknowledging that the so-called Blue Ribbon Commission/Panel/Tribunal was effectively shut down, the only thing missing was a hook to pull him off the podium.

Anyone’s thoughts on how the A’s (and Giants) should be treated are largely colored by three views:

  1. Oakland’s standing as a major league host city
  2. How much power the Commissioner has over teams and whether he should wield that power
  3. The sanctity of territorial rights and baseball’s antitrust exemption

There was never a question of whether the Coliseum is decrepit enough to be replaced; of course it is. There’s also little question of whether San Jose is large enough or wealthy enough to host a team if not encumbered by territorial rights; of course it is. The three items listed above, however, are up for serious debate. And despite the A’s 11th-hour lease extension last year and the hurried extension talks this year (done to give Selig something to hang his hat on as much as anything else), those questions will continue to dominate the discussion moving forward. All we get for the next few years as A’s fans get is a brief respite. Frankly, that’s rather welcome at this point.

Selig touted the 22 parks built during his tenure as head cheese. Virtually all of those parks have a single thread in common that Oakland can’t give at this point: public funding. The notable exception is San Francisco, where the Giants were somewhat ostracized for daring to privately finance their yard. The Lodge thought that baseball was on a slippery slope to No-Subsidies-Ville, with noted baseball town St. Louis playing hardball with its beloved Cardinals enough that the team financed $290 million for Busch on their own. They didn’t need to worry, as the extortion game succeeded in Miami and Minneapolis, even through the recession.

Oakland doesn’t have cash to offer. Despite their repeated shows of incompetence, Oakland’s pols are not crazy enough to offer cash straight up (I think). But they’re showing signs of being willing to offer up a big swath of Coliseum land, which in the long run is nearly as good as cash. If the City/County hadn’t gotten so legally entangled with the Raiders, Oakland would’ve been in the position to offer a Coliseum City-like deal to the A’s. Selig would’ve acknowledged the skin that Oakland was willing to wager, and I’d be watching the game in a new ballpark right now instead of an old one. That’s not to say it would’ve been a good deal for Oakland. It would still be a big-time subsidy. But it wouldn’t have been as disastrous as Mount Davis, that’s for sure.

Selig took the acting commissioner job in September 1992, as Bob Lurie was finalizing a deal to sell the Giants to the Vincents (Naimoli and Piazza). Still carrying the scar from losing the Braves to Atlanta, he purportedly held off the deal long enough (enduring a lawsuit in the process) to allow San Francisco interests to pull an ownership group together. After failing to save the 1994 season, he worked hard to avoid further work stoppages, though he sacrificed the Montreal Expos to do it. After he screwed over the original TB Giants owners, he settled with another group to get them an expansion team in 1998, helping to infuse baseball with cash after the Lodge took it on the chin with the owners’ collusion lawsuit. In the process, he bound the Rays to practically unbreakable lease at a domed stadium. Plus he forgot that San Jose and Santa Clara County, which were gifted to the old Giants ownership when they pursued a ballpark in the South Bay, remained granted territories to the Giants after the new SF-only ownership group took over. All of that happened while he was acting commissioner.

As the elected, properly sworn-in permanent commissioner, Selig orchestrated the Expos contraction-then-expansion ownership swap among three teams that netted baseball a handsome expansion fee and brought baseball back to DC. To satiate O’s owner Peter Angelos, he and his executive team cobbled together a deal that made the O’s majority owner of a new regional sports network, MASN, which owned broadcast rights to the Nationals. Apparently Selig didn’t see the TV rights bubble coming or the conflict such an arrangement might create. The Nats, whose initial term on MASN is now up, want in on that bubble while the O’s are unwilling to pay market rates. Naturally, the teams are in court. Selig, who gave Angelos MASN to get him to stop a lawsuit against MLB, now sees two teams stuck in trench warfare, arguing over hundreds of millions of dollars. To mollify the Nats, Selig is giving the team money from his eight-figures-per-year iscretionary fund. These days $25 million or so is small potatoes compared to the riches Ted Lerner sees going forward, so the struggle continues.

It’s with that perspective that Selig has found himself stuck trying to satisfy both the A’s and the Giants. There’s Selig the legacy-protector, who would prefer to keep the team in Oakland if they could just pull out their checkbook. There’s Selig the Lodge-unity-protector, afraid to take the territorial rights issue head on for fear of reprisal from one faction of owners or owner. Then there’s Selig the procrastinator, whose blind eye towards many baseball issues (PEDs, inner city youth development, growing economic disparity among teams) made this particular outcome entirely predictable. Some want to give Selig credit for MLB Advanced Media or growing TV revenues, when really he just stood aside and let his underlings innovate for him. I mean, really, Selig and MLBAM? The guy doesn’t even have email.

Complete conjecture on my part: I suspect there was a plan at some point in which the Nats-O’s TV issue was resolved permanently and the under-the-table payments could be rerouted to either the A’s or Giants as part of another temporary deal. If the A’s were granted San Jose, the Giants would be given a “refund” of their revenue sharing payment. If the Giants kept the territory, the A’s would get the piece of the discretionary fund as financial ballast as they built in Oakland (remember, per the CBA revenue sharing goes away if the A’s build anew in the Bay Area). Over time such payments would taper off as the teams adjusted. With such funds indefinitely in use for another conflict, there was no solution to be had. Another consequence of the Nats-O’s dispute is that any thought of creating a new Bay Area RSN with the Giants in control in a similar arrangement to the O’s now has to be considered verboten.

So yes, Selig is right to an extent. The problem is complicated. Still, all it would’ve taken is better foresight to manage this and all of the other problems. They are merely ways of moving money around a table, out of one pocket and into another. Some have argued for MLB to establish a stadium loan program like the NFL’s G-3/G-4. That’s not happening soon because the NFL’s TV dollars used to establish G-4 dwarf baseball’s national TV revenue $6 billion to $1.5 billion. The big market owners see the new TV contracts, in which each team receives $50 million per year, as enough in terms of support when coupled with revenue sharing and the luxury tax. That’s enough to give the sense of competitive balance that Selig likes to tout. Then again, we all know that’s an illusion.

Competitive balance means allowing the poor teams to play as if they don’t see the glass ceiling. That’s your Oakland Athletics, now and into the foreseeable future.

What happened to the Stand for San Jose case?

I really should check into these court cases more than once every couple weeks.

While many eyes will be focused on the City of San Jose’s Ninth Circuit appeal against Major League Baseball this Tuesday, another case appears to have been resolved. That would be “citizen group” Stand for San Jose’s lawsuit against the City in Santa Clara County Superior Court. A hearing was scheduled for the end of this week, August 15. However, that was wiped away as the court vacated the hearing. In fact, the court now has the case status as disposed as of July 24. In other words, the case is resolved, over, done. Big hat-tip to Wendy Thurm, who alerted me to this on Friday.

The only recent action leading up to that point was notice that the Oversight Board of SARA (Successor Agency of the Redevelopment Agency) would file its own motion to dismiss by July 25. The idea was that since the Oversight Board was given the power to dispose of the Diridon ballpark parcels however it saw fit as long as it took care of financial obligations to the state. That was to lead for a motion for pleadings on August 15. Then suddenly, the dismissal on July 24. It’s important to note that it’s a dismissal without prejudice, so it could come back at some point. Regardless, it’s a surprising move for all concerned. I’ve asked around to understand what happened, and haven’t gotten any answers yet.

Besides the legal maneuvering, one other thing has happened this summer that might have brought all parties to the table. That would be the A’s and the Coliseum JPA approving an extension at the Coliseum through at least 2018 (up to 2024). Obviously that’s speculation, and the filings may reveal something else, which is why I’m heading to Superior Court tomorrow afternoon. Be forewarned: I don’t expect to get much out of my inquiry. When cases are resolved in a non-public manner as this was, the parties can sometimes choose to reveal little about the motivations to do so.

Then again, there’s this update which came in on Friday:

081414

Some day all this legal stuff will end and there will be a ballpark under construction. Maybe.

Mark Davis meets with San Antonio officials

In case the Mark Davis feels like moving the Raiders to San Antonio, there’s already branding in place. The NFL even owns it.

Card of future Cowboy backup QB and head coach Jason Garrett, whose career ended up far more successful than the WLAF

Card of future Cowboy backup QB and head coach Jason Garrett, whose career ended up far more successful than the late, not-so-lamented WLAF

The World League of American Football launched in the early 90’s, a half-hearted attempt to grow American football in Europe and shore up former USFL markets. Operating the league became a drain, and after shrinking to become a entirely European affair (NFL Europe), the league shut down after the 2007 season. Yet there are still reminders of the San Antonio RIDERS, only one letter removed from RAIDERS. The color scheme is 80’s-90’s awful, so it would be best if the Raiders stuck with the historical scheme, similar to the NBA Spurs.

Around the time Alameda County was approving the A’s lease, a report came out of the San Antonio Express News indicating that Mark Davis met with officials in SA over the weekend. Reached for comment, Davis said the following:

“Former San Antonio mayor Henry Cisneros is a friend and Henry suggested I take the opportunity to meet with some city officials while I was in town. I have nothing further to discuss on the topic.”

After his mayoral stint, Cisneros went to become HUD Secretary during the Clinton administration, then was taken down by a mistress scandal. Davis also met with current mayor Julian Castro, City Manager Sheryl Sculley, San Antonio Spurs owner Peter Holt, former Minnesota Vikings owner Red McCombs, and representatives from the San Antonio Chamber of Commerce. Together they toured the Alamodome and talked about San Antonio as a market.

The Houston Chronicle noted that Cisneros’s son-in-law is Brad Badger, a former Raiders and Stanford offensive lineman who now works in team’s corporate sales department. Sculley made her own statement:

“I was asked to meet two weeks ago with the owner of the Oakland Raiders, Mark Davis, and members of his staff. Mr. Davis has expressed interest in a possible relocation of his NFL team to San Antonio and we are engaged in preliminary due diligience. The agenda for this visit included a tour of the Alamodome and meetings with local business leaders.”

If Davis is going to use whatever leverage he has, the effort will have to involve making visits to San Antonio, Portland, and inevitably, Los Angeles. Heck, Minnesota leaders flinched big time just from a sighting of Vikings owner Zygi Wilf’s plane in LA. It doesn’t matter much that San Antonio is a small market. Football’s largely forgiving of that provided that there are enough regional corporate interests (Hello, Austin!) to bring in. San Antonio’s biggest problems are that the market is already a Cowboys stronghold (and Texans to a lesser extent), since the Cowboys have conducted training camp at the Alamodome on multiple occasions. Cowboys owner Jerry Jones signaled the difficulty Davis and San Antonio might face:

I wonder what Jerruh and Mark will talk about during the joint practice sessions set for August 12-13 in Oxnard?

Beyond the pre-existing teams, San Antonio faces the same problem all other prospective Raiders host cities faces: they need a new stadium. The NFL has set the whole thing up so that a team really couldn’t move permanently unless a stadium deal is in place, since the NFL provides a large amount of financing. And that piece doesn’t come until the public/team portions are committed.

I’m more curious about the reactions from Oakland, Alameda County, and Raiders fans are than anything else regarding this trip. This is how the stadium game is played, nothing more.