Thank Jeebus for meeting minutes. I was only able to catch part of the Coliseum City agenda item during the March 31 City Council meeting. Oakland voted 7-0 with one abstention to certify the EIR and Specific Plan, figuratively paving the way for financiers and developers (and, Oakland hopes, at least one team) to make CC happen. The good news is that a major bureaucratic hurdle has been overcome. The bad news is that several key issues related to the project haven’t been resolved.
As has become commonplace over the past few months, a litany of residents and business in the Plan area and surrounding neighborhoods made their way to the mic to address specific concerns. The business owners got their biggest concern dealt with, housing in the Airport Gateway area west of 880. Zoning has been changed to eliminate housing in that area, referred as C/D/E in the Plan. They also got housing eliminated from Area B, along Edgewater facing the Estuary.
The change is nothing to sneeze at since it removes 1,750 units out of 5,750 total. All 4,000 units will be located in either around the BART station (2,300) or as part of the “Ballpark Village” at the Coliseum (1,700). That puts even more pressure on money men and developers to figure out creative ways to bridge the football stadium funding gap. It’s also a blessing in disguise because putting housing right on the water was expected to be highly contentious, any development requiring numerous approvals from outside agencies (ALUC, BCDC, EBMUD, EBRPD to name a few).
Residents of East Oakland found less to agree with, thanks to a lack of consensus on just how much affordable and low income housing would be built there. In the post-redevelopment era, Oakland has set targets of 15% of units as affordable or below market rate. Unfortunately, funds used to help subsidize affordable housing have dwindled to practically nothing. The normal instrument for replenishing such funds, housing impact fees, continue to be merely a study topic for Oakland with no release of the study – let alone decision on how to enact such fees – until next year. Larry Reid, in whose district lies the Coliseum and East Oakland, continued his protest against having affordable housing at Coliseum City, running directly in opposition to many of his own residents who maintain concern over gentrification and rising rents in the neighborhoods surrounding the Plan areas.
A community benefits agreement negotiated weeks ago is meant to provide jobs, but that’s the low hanging fruit of the project that is entirely dependent on what gets built. Those jobs won’t materialize on their own. They need a catalyst and willing developers to bring those jobs to fruition.
All of that is not to diminish the accomplishment of getting the EIR work done. It’s done, and while it’s not perfect, it’s an important benchmark to getting something built. The actual deal – that’s the hard stuff. As of today Floyd Kephart has about 11 weeks to start making good on his deliverables.
Not reported elsewhere were two other important items that were also on the agenda. The Raiders lease, which was approved at the JPA level a month ago, was approved 7-0 by the City Council last night. One year, no drama. At least until the fall.
Oakland is also wrestling with what to do with the Arena. The Warriors may be hell bent on leaving, but that isn’t stopping the City from incorporating the Dubs into Coliseum City, hope against hope. In the near term there’s also the problem of the ongoing debt at the Arena, whether or not the Dubs are there past 2017-18. Despite the ongoing uncertainty, the City and County have until June 21 of this year to refinance that debt. Without refinancing in place they could be liable for $19 million per year thanks to the expiration of a letter of credit. Refinancing at current historically low rates could save $10 million per year regardless of the Warriors’ plans. Refinancing would also require meeting of some sort of “seismic criteria,” which could involve a retrofit or other additional work to keep the venue in good shape.
Refinancing was approved 7-0. The Warriors may not be much longer for Oakland, but the City and County appear to be getting ready to move on after the Warriors leave.