Okay, there was real news about the Raiders and Oakland today, not rumors, so I feel compelled to write about it. I’m over the soap opera news cycle of the last year, looking forward to January, when something LA might (not) be resolved to the NFL’s satisfaction.
As St. Louis and San Diego provided stadium financing plans pledging $350-400 million in public funds for their respective stadia, Oakland officials offered a mere five-page letter promising no public money for construction, hoping that the NFL’s respect of legacy and history would help keep the Raiders in the East Bay. The NFL’s reaction was that the letter was expected, while Mark Davis expressed befuddled disappointment.
At this point, you have to think that based on the efforts City of Oakland and Mark Davis, few people within the NFL believe that any new stadium is going to happen in Oakland. The City has no will to do it, and Davis has spent far more time and effort on Carson than Oakland. The NFL will have to gauge the owner’s interest in resolving the Raiders’ situation against resolving the dilemma in Oakland. Of course, many within the league previously preferred to have the Raiders share Levi’s Stadium with the 49ers, the same way the Giants and Jets share MetLife Stadium. Even with Davis continually dismissing the idea, the concept remains a viable backup plan should nothing continue to happen at the Coliseum.
But again, my beat isn’t the Raiders except in how the Raiders’ plans might affect the A’s. From today we got a big list of deal terms the City is willing to make in the pursuit of the Raiders’ new stadium. Whether or not the Raiders stay, regardless of the Coliseum’s future as the home of the A’s, the numbers are effectively setting the bar for future stadium deals for either team. What is Oakland willing to provide? Let’s take a look at the “concepts” presented to the Raiders.
- 69 total acres in and around the Coliseum, including the “South 60” consisting of the B & C parking lots, plus the Malibu and HomeBase parcels. Also included are 9 acres of publicly owned land near Coliseum BART could be used for a hotel or other commercial development adjacent to an expanded BART station and transit hub. The Raiders and a partner developer would receive development rights based on the Coliseum City rezoning effort.
- $90 million in infrastructure, to be designed and approved by the City of Oakland.
- No public money towards construction of the $900 million, 55,000-seat stadium. The Raiders would be responsible for all stadium construction costs, including overruns.
- At least 8,000 surface parking spots with minimal ancillary development.
- Raiders would own the stadium, City and/or County would own the land underneath. That would set up recurring ground lease and possessory interest tax (PIT) payments.
- Raiders would take in all stadium revenues while assuming all operating costs.
- City’s promised defeasance of the outstanding Coliseum debt (worth $100+ million now, goes down over time).
- Construction to start in 2017, stadium opening in 2019.
Per the A’s current lease at the Coliseum, if they are to be evicted because of new stadium construction for the Raiders, the Coliseum JPA has to give the A’s at least two full seasons at the Coliseum while they figure out where to play next. The lease terms also call for the A’s to be compensated for the scoreboards and for lost revenue associated with new football stadium construction.
If we’re to assume that the A’s should get a similarly valued deal to the Raiders in order to stay in Oakland, the deal would be worth $200 million straight away because of the debt and infrastructure costs, plus the value of any development rights wherever the A’s end up, whether that’s at the Howard Terminal, Uptown somewhere, or the Coliseum. That’s the price Oakland will have to pay, and MLB will be happy to press Oakland hard on that. The A’s are expected to build their ballpark entirely with their own money, so it should in theory be a pretty clean deal with no intrusions or complications created by new, single-purpose quasi-governmental agencies like stadium authorities.
Just to be clear, that’s $200 million in value, not cash. The A’s would never see that money except in terms of the completed infrastructure. It could be that certain sites have such high infrastructure costs that they could approach $200 million on their own. New parking garages, the community benefits agreements and PITs Mayor Libby Schaaf mentioned during tonight’s press conference – they’re all worth something. Will Oakland show as much restraint for the A’s as they have displayed with the Raiders? I imagine they would, though it’s far too early to speculate. For the time being, let’s continue to watch how the NFL-LA business shakes out, and see where the Raiders end up as a result.