After a relatively brief, much less heated discussion over the A’s lease extension than was had by the City two weeks ago, Alameda County’s Board of Supervisors voted 5-0 to approve the extension. The deal keeps the A’s in the Coliseum until at least 2018, and up to 2024 if the team chooses to stay there. Though the deal is characterized as a 10-year lease, the 2014 season runs concurrent with the new deal.
Supervisor Keith Carson asked the most pointed questions of JPA negotiator Jon Streeter, mostly about the debt and the characterization of the new lease as a better deal for the County (and City) than previous leases. Streeter noted that the more money comes in upfront, plus the A’s have to pay off the lease even if they leave the Coliseum early. Miley noted that the original A’s escape provision calls for no payoff if the team pursued a new ballpark elsewhere in Alameda County. The language was changed to Oakland only, meaning the A’s would pay full termination even if they made a stadium deal in Fremont or even San Leandro. Streeter also repeated the notion that the upcoming scoreboard project, which the A’s are paying for, means that the JPA no longer has a potentially big liability item to worry about, since the JPA has been to date responsible for the outdated, frequently failing scoreboard.
To recap the major deal points:
- A’s stay until at least 2018, up to 2024. A’s must give at least 2 calendar years’ notice if they plan to leave early.
- The JPA must also give the A’s 2 years’ notice if a Raiders stadium deal comes to fruition and forces the A’s to vacate.
- Lease payments are $1.75 for this year, $1.5 MM in 2015, $1.5 MM in 2016-19, and $1.25 from 2020-24.
- A’s will spend at least $10 million on new scoreboard system. A’s retain all revenue from A’s games, Raiders/JPA can split non-A’s game revenue as they see fit.
- JPA sets aside $1 million per year (increasing 5% annually) to establish a stadium maintenance fund (presumably for fixing plumbing, leaks, etc.)
- JPA will pay $200,000/year for the O.co signage caps above the scoreboards. A’s may end up replacing those caps as part of the scoreboard project.
- A’s and JPA will continue stadium discussions on land at or adjacent to the Coliseum (nowhere else like Howard Terminal).
- The parking arbitration matter is resolved, all claims dismissed.
The JPA and County clarified that there is $191.4 million in outstanding debt at the Coliseum complex: $106.5 million for the stadium, $84.9 for the Arena. Bonds will be retired in 2025 and 2026, respectively.
Next up is MLB’s expected approval of the lease, and the City of Oakland’s next steps in negotiating with the Raiders and BayIG over Coliseum City.