Update 10:25 PM – Not surprisingly, the Merc’s editorial board has come out in favor of the land deal.
Procedurally, the approval of the land deal to complete the Diridon ballpark site should be a slam dunk, considering the SJDDA (which approved it in the first place) and the City Council are effectively one and the same. Still, since tomorrow’s City Council session will be a public affair, there should be a mix of voices pushing to persuade/dissuade the Council. In particular, I wonder if any/many of the Occupy San Jose protesters will attend, since they will be in close proximity. Far be it for me to expect fireworks at a San Jose City Council session, but I’ll be attending anyway. The session will be at 1:30 PM at Council Chambers.
- The issue at hand is the approval of an option agreement (end of memo), in which terms are laid out for the A’s to purchase the land. That’s not the end of it, because a formal purchase agreement will have to be drawn up within 90 days of execution of the option agreement.
- Quoting from the memo directly here: “The Redevelopment Agency paid approximately $25,160,000 for acquisition and relocation costs for the entire ballpark site.” That’s a bit misleading, because the land being sold does not include the parcels that are yet to be purchased to complete the ballpark site.
- Colliers International estimated that the entire value of the site is $38,250,000 if for its “highest and best uses”. Appraised solely for a ballpark use, the land is worth only $19,100,000. Back when Diridon was first discussed in 2005, the market value of the entire Diridon site was probably close to $70 million. If they had purchased the PG&E substation and the land fronting Los Gatos Creek, the cost would’ve soared over $100 million easily.
- Purchase price of the site for AIG (yes, that’s the “Athletics Investment Group” if you haven’t been watching local broadcast disclaimers) is $6.975,227, or 36.5% of the appraised value, and does not include the already public land within the site (Montgomery and Otterson Streets).
- AIG’s option to purchase the site is for two years ($50,000), with the possibility of an additional year ($25,000).
This is the only item on the afternoon session agenda, which should allow for a lengthy discussion and comment period. Baseball San Jose put out a letter on its blog providing talking points on the deal.