Lott-Perry group provide $167 million offer for Coliseum complex

Updated to include poll:

BANG’s David DeBolt reports tonight that the investment group led by Ronnie Lott and Egbert Perry offered to buy the Coliseum complex for $167.3 million. The offer comes during the 90-day MOU between the City of Oakland and the investment group. They would get the Coliseum stadium, arena, the surrounding parking lots, and additional adjacent properties bought by Oakland over the past several years.

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The $167.3 million offer would also retire debt on the Coliseum. There’s still $113 million of debt left at Mount Davis after 2016, making the remainder for the land worth $43 million. Or is it? The arena’s debt after the Warriors leave is still very much in dispute. That figure could be upwards of $88 million even if the Warriors stay through 2019 as they announced earlier in the summer. Lott-Perry’s first pitch looks like a serious lowball, especially if they have to factor in the arena’s debt.

Perhaps this is why we got another update late:

Chances are that the two parties are not exactly close on the sale price, an issue Perry encountered in Phoenix. In that case Maricopa County is looking to sell Chase Field, not so much because of debt (which has been retired), but because of $187 million of deferred maintenance due for the venue. The maintenance costs and revenue generating potential combined to suppress the ballpark’s appraised value, $40-50 million in 2010. That could rise with a reappraisal, though there are no guarantees. Either way, it’s somewhat absurd to think that a large, modern MLB facility could be worth less than the average project cost of a AAA ballpark, such as the one planned for San Antonio.

The City has no reason to sign anything right away since their own property appraisal hasn’t yet been released. They’ll be guided by that document to counter Lott-Perry. Lott-Perry will be under pressure to minimize this particular cost as much as possible, since every dollar spent on land means another dollar that isn’t spent to bridge the gap on the new Raiders stadium, $300-400 million and rising with every day.

NFL relocation heavy Eric Grubman visited Oakland on Sunday and Monday to see how things were progressing. For now there’s little to report. By the end of the MOU period it will be imperative for Oakland to show something substantive that represents all parties, including the so far non-participatory football franchise. As for the A’s, they are under no pressure to make any deals right away, somewhat to the chagrin of MLB commissioner Rob Manfred. At the very least, the process is moving forward.

MLB 2017 Travel Grid Available

I think I finally got the hang of this.

Usually it takes a couple days of patched together free time to put together the Travel Grid. This time I did it in a couple hours. As usual it’s available on Google Drive in various formats, in both multiple sheet and one-sheet formats. Have at it!

  • Excel (.xlsx)
  • PDF (alphabetical)
  • PDF (regional)
  • PDF (one-sheet alphabetical)
  • PDF (one-sheet regional)

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If you’re wondering what the font is in the PDF versions, it’s Futura, used in so much 20th century signage and print. It’s a nod to Vin Scully, who was born the same year as Futura, 1927. Scully will hang up his microphone at the end of the 2016 regular season. Futura will go on indefinitely, including on the walls of Scully’s professional home, Dodger Stadium.

My one definite trip to take will be the A’s-Rays doubleheader on June 10. I’ll probably figure out a way to head up to Cobb County to catch a couple of Braves games as well.

Enjoy planning your trips everyone.

 

 

It Takes Two to Contract: Cal League Edition

Last week, Minor League Baseball announced two huge moves within the High-A level. The California League franchises in Bakersfield and Adelanto (Bakersfield Blaze and High Desert Mavericks, respectively) will fold at the end of the 2016. Their player development contracts would not be renewed, and two new Carolina League teams would rise in Fayetteville and Kinston. That would leave the Cal League with only 8 teams, whereas the Carolina League would grow to 10. The Florida State League would stay at 12 teams, the largest of the three leagues.

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Sam Lynn Ballpark entrance

Bakersfield had a plan for a privately developed ballpark a few years ago, but the financing never materialized. Next, Salinas tried to lure the team north. That too went nowhere. With no relocation sites on the horizon, Bakersfield was on the clock to replace antiquated Sam Lynn Ballpark. The LA Times’ Bill Shaikin wrote an obituary on the 75 years of baseball in Bakersfield, a city of 300,000 that also lost its NBDL (D-League) franchise earlier this year. As for the fate of the westward-facing ballpark, the city’s trying to figure that out. Bakersfield’s exit makes San Jose Municipal Stadium the oldest remaining venue in the Cal League.

In tiny Adelanto, fewer tears are being shed over the Mavericks. The city even went to the lengths of threatening to evict the team over tensions related to the Mavericks’ onerous $1-a-year stadium lease. Instead, they made a deal with the San Bernardino County Fair to reuse Mavericks Stadium, a facility that opened in 1991. 25 years? It’s been a good – albeit sparsely attended – run.

It’s important to note that these contractions and expansions would not have been possible if not for both teams being in dire straits. No avenues remained in California, with Salinas fizzling out and Chico seemingly satisfied for now with independent ball. The serial, everyday scheduling of baseball makes it impractical to contract only a single team. Whether we’re talking the California League or the American League, it would take two teams to contract. And in the American League, that’s a payout that could reach $1.5 billion, though it should be noted that contraction is not in the cards for the next round of CBA negotiations.

Baseball America’s podcast last week covered the Bakersfield/High Desert contractions in great detail, with hosts John Manuel and J.J. Cooper talking about what ailed the markets, along with the issues facing California in general – including our own Oakland Athletics. It’s worth a listen.

John Fisher to tour Howard Terminal with technical experts

After several months of keeping plans mum, A’s majority owner John Fisher will tour Howard Terminal Thursday. The Chronicle’s Matier & Ross report that Fisher will be accompanied by other team executives and Port officials and technical staff. City officials and Lew Wolff may not attend, but if Lew doesn’t there’s a decent chance that his son, Keith, will. The younger Wolff is the current VP of venue development, the same title Lew had when he was hired by Steve Schott and Ken Hofmann in 2003.

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Howard Terminal ballpark site rendering (MANICA Architecture)

The tour is being characterized as “hush-hush,” so don’t expect much coming out of it in the way of a statement or anything else. The A’s environmental and legal team will have questions for Port staff about the state of the sealed asphalt cap that prevents toxic leaks. Relatedly they’ll discuss the soil and the water monitoring system embedded within. Most importantly, they’ll talk about requirements to get the site ready, including digging up and cleaning up the toxic dirt underneath the site.

It would take too long rehash all of the details, so I’ll provide links to previous posts instead.

Infrastructure will also come up, but much of that won’t be the responsibility of the Port. Any new transit modes that come to the HT area (BART, streetcar) will be the planning domain of the transportation agencies and the City more than the Port. The Port will be largely responsible for getting people efficiently in and out of Howard Terminal. To do this a system of vehicular and pedestrian bridges will need to be envisioned. This is of paramount importance because there will be some limited amount of parking at Howard Terminal that can’t be jeopardized by the presence of a freight train blocking the gate to the property. Additionally, pedestrian will be descending upon the ballpark from points north and east. Unlike the Coliseum BART bridge, which was designed to provide ingress for at most 10,000 fans for an event, the system in place at Howard Terminal will need to support 35-40,000 visitors smoothly.

The tour is part of the process described last year by Lew Wolff as a search for the best site for the A’s in Oakland. Only sites within Oakland city limits are under consideration. Wolff initially gave 6-8 months as the timeline, but chances are that the ongoing tenancy of the Raiders has complicated matters. Now the A’s are looking to the end of the year, though the A’s can’t fall into the trap of choosing first to wait for the Raiders and their Las Vegas plans. By taking steps to study Howard Terminal and perhaps other sites, A’s ownership is showing a more proactive effort than it had shown in Oakland previously. Nevertheless, it would’ve been nice if the folks who backed Howard Terminal for two years, OWB, published their (unfinished) work. Same goes for the A’s and their decade-old research. It would’ve given fans at least some insight into the process, which has been completely opaque from the start.

20 Years Is Enough

Turner Field and Chase Field opened for baseball in 1997 and 1998, respectively. Turner Field was a gift to Atlanta courtesy of the 1996 Summer Olympics, whereas Chase Field was a domed stadium borne of necessity in order to host the expansion team in the searing Sonoran Desert summer. Both are in the 15-20 year-old range, putting squarely in a sort of venue midlife crisis.

The Braves are leaving Turner for the richer suburbs in Cobb County. Turner will be renovated again and reborn as a football stadium for Georgia State University’s growing program. Georgia State had been playing its home games at the far-too-large Georgia Dome. They’ll play one more season there. Come Fall 2017, they’ll play in the reconfigured (and soon-to-be-renamed?) Turner, where much of the baseball grandstand will remain intact. The seats in right field will be ripped out, replaced by a new smaller grandstand that will run parallel to the sideline. Georgia State bought both the stadium and the surrounding parking lots for $30 million, all of which will be transformed into additional athletic facilities, dormitories, and academic buildings. GSU’s main campus is in downtown Atlanta, a similar distance between San Jose State’s main campus and its south campus, where Spartan Stadium and other outdoor facilities are located. Final capacity of the redone stadium will be around 30,000, 33% smaller than Turner’s baseball capacity and less than half of the Olympic stadium configuration.

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Turner Field renovation for Georgia State University football

Speaking of 30,000, that could be the new capacity of Chase Field, if an investment group that wants to buy and renovate the ballpark has its way. A partnership headed by Integral Group wants to modernize Chase and develop a few blocks of unrealized potential between the ballpark and Talking Stick Resort Arena down the street. Plans were approved for redevelopment of that area outside the ballpark in 2008, squashed by the recession. Integral is notable for being one of the partners in Ronnie Lott’s plans for the Coliseum which will include at the very least a new Raiders stadium. There are also plans (or at least space) for a ballpark should the A’s have any interest, though it’s unclear how that would pencil out.

To push the Chase concept further, Maricopa County is looking to sell Chase Field for at least $60 million, depending on appraised value. That value could include those additional blocks along Jackson St. Phoenix is undergoing a resurgence which started in earnest around 2013, thanks to numerous tech companies opening campuses near Tempe and Scottsdale, along with gentrification of some of the older neighborhoods in Phoenix. The County’s motivation isn’t primarily to spur development. They’ve been in quite a battle with Dbacks ownership over who’s responsible for $65-137 million in improvements to the stadium. They already rejected the lower figure, meant to cover peripheral items like scoreboards, suite refurbishment, and cosmetics. Major projects such as reimagining the upper deck and outfield concourse are well down the road.

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Diamondbacks FanFest with Chase Field roof closed

If I were looking to rework Chase, I’d look entirely at the block containing the stadium. There are 3-4 acres of additional space outside the walls that isn’t properly used. The photo above shows what it looks like with the roof closed. Gigantic ads that double as windows (when the weather cooperates) dominate the view. When the roof is open for games, the place transforms into an almost fully outdoor park. It’s not as complete a transformation as Safeco Field or Minute Maid Park, but it’s close.

Limitations imposed by the building’s design and the need for an air-conditioning environment prevent a full opening of the outfield. The contents could be rebuilt to great effect. A gym exists in center behind the batter’s eye, with parking dedicated to it. All of that should be scrapped and rebuilt as a children’s play area and a midway with rides and a carousel. The current children’s area is in the upper deck left field corner, notable only for having the stadium organ located there as well.

The main plaza on the west side where most of the gates are is also wasted space. It deserves a revamp with restaurants and bars that are open more than on game days. There should also be a way to directly connect the buildings in the plaza to the ballpark so that the whole area can be navigated outside the stadium.

Back Camera

Then there’s that 30,000 figure. That doesn’t happen without knocking down most of the upper deck. Like US Cellular Field, that should help to make the place look less cavernous. Once that’s done they’ll have to put something behind the seats to fill that space. They don’t need more suites or amenities up there. Tacky looking signage? Curtains a la an arena? A second partial roof inside the original roof? It’s a tough task to make Chase Field look intimate.

While the Phoenix market’s economy has rebounded, downtown near the sports venues is still not a hotspot despite the numerous venues (ballpark, arena, convention center, theater, ASU’s downtown campus, museums). It’s largely event-driven, with more interesting restaurants and bars on the other side of downtown. It goes to show that no matter how much money and resources is thrown at a neighborhood it doesn’t always translate into a lively district.

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20 years later, the area between the ballpark and arena remains mostly parking

Fortunately for everyone involved, the ballpark is debt-free and has been for years. Same goes for the arena. Like Oakland, Phoenix and Maricopa County find itself trying to please two teams looking for new venues at the same time. There’s no inherent competition between the teams for sites or land, but they will be pushing for resources. In the past Maricopa County financed numerous sports facilities using a car rental tax, which has now been deemed unconstitutional. A similar tax just for the City of Phoenix is also being challenged. Phoenix owns Talking Stick Resort Arena. And finally, the Dbacks have the option to veto any purchase of the stadium by a third party. The Dbacks previously discussed buying the park from Maricopa County, which seemed like that most natural route at the time. Let the team make the investments since they’ll get all of the proceeds. The process may end up with such a deal happening since the Dbacks are the linchpin to everything. That doesn’t mean it’ll be easy. The Dbacks could attempt to leave Chase Field completely in search of a location outside downtown Phoenix, but without the aforementioned tax revenue streams a move threat doesn’t have legs. There’s a really good shell at Chase that could be fixed up into a fairly intimate ballpark for far less than the cost of a new ballpark.

Manfred strengthens case for Oakland

As has become customary over the years, reporters asked the Commissioner about the state of new venue pursuits for the A’s and Rays. Since Rob Manfred took the mantle from Bud Selig, Manfred has taken a slightly more hopeful and defined stance than his predecessor. Taking that a step further, Manfred today said that he remains committed to Oakland, seemingly indefinitely.

From the AP:

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And another Manfred comment from the Chronicle’s John Shea:

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Hear that? The commissioner is bullish on Oakland! That can’t be said for any other time since the A’s have been in the Town. Baseball was more concerned about Charlie Finley than Oakland in 1968. Throughout the Finley, Haas, Schott, and Wolff tenures, no one inside or outside baseball talked glowingly about Oakland’s economic prospects. Now Manfred is, and for good reason. By the numbers, Oakland is exploding in terms of real estate values and rents. It’s attracting tech companies and their employees. For the Lodge, Oakland has finally become more than a centrally-located fanbase, it is a healthy market unto itself. What’s more, Manfred likes Oakland’s prospects into the near future. If you’re wondering what took so long, consider the economic prospects of Oakland in 2009.

Manfred continued to push the notion that the A’s should pursue the stadium plan regardless of what happens with the Raiders. He hasn’t gone so far as to set a deadline or mention consequences (for either the A’s or Oakland), but if you’re paying attention, you know that this fall is the time for MLB to make hay with Lew Wolff and John Fisher.

The current CBA calls for the A’s to get off the revenue sharing dole once a new stadium opens. So far, Wolff has pledged to pay for the stadium without requiring Oakland to issue any new debt or raise taxes. But if Wolff and Fisher are going to pay full freight on the stadium, they’re going to need some relief from that debt service. The best arrangement within baseball would be to allow the A’s for the possibility to receive revenue sharing if they hit a shortfall. That shouldn’t be an issue for the first few “honeymoon period” years after the ballpark opens. There are some potentially lean years in the future, so allowing the A’s to stay within the revenue sharing pool could be an effective safety net, especially if the A’s start entertaining larger payrolls normally shouldered by a new stadium.

One other interesting quote came from Manfred:

Baseball is the best economic investment for a city because of the number of home dates it drives.

Unless you’re a Raider die-hard economic denier type (they exist), this is a basic truism – at least relative to football. However, buried in there is the term best economic investment for a city. That could mean infrastructure, or public funding, or a quasi-governmental agency like the JPA to get bonds or loans, or free land, any number of things. That’s an indicator that for Manfred’s belief in and protection of Oakland, he’s going to want Oakland to make its own investment. To what extent is unclear. Rest assured that Manfred will play the bulldog at some point in the future, and he won’t be a pushover. Look at how he’s treating the “threat” of a minimum wage or overtime vs. the economics of minor league baseball.

Wonder out loud threateningly about the future of the minors, an institution where no team pays its players? That’s the lawyer we all know and fear.

Rangers and Arlington Working On Third Ballpark

Third? You ask. The Ballpark in Arlington was the first true ballpark in Texas. Arlington Stadium was an overstuffed minor league park not worthy of full MLB bonafides, right?

Arlington Stadium was an overstuffed minor league park, true. But it held up for 22 years in an era where ballparks were not as obscenely specced as they are today. Arlington Stadium was redone during the time of the cookie cutter stadia. It was a round bowl. A bare bones facility. It had no roof. There were no cantilevered decks, and the press box attracted the North Texas winds like a vacuum. It was odd and disproportional, yet I had a slight affinity for it when I saw the A’s play road games there. Perhaps that’s because I never had a chance watch a summer game there.

Arlington Stadium (photo by Mike Fitzpatrick)

In 1994 the Stadium was replaced by The Ballpark in Arlington (review), an early entrant in the new era of retro-classical ballparks. TBiA (now Globe Life Park) was built to hold 50,000 fans, a bunch of offices in center field, and the new standard of club seats and suites. What TBiA lacked was any kind of roof with an air conditioning system. A fixed roof was not really in the cards, and the only retractable roof at the time was at the hulking SkyDome, far too expensive for the $191 million budget. So to compensate, the Rangers built ultra large covered concourses with an open facade. It felt airy, and felt pretty good in April and sometimes September. July and August were punishingly brutal thanks to the humidity. George W. Bush, who was looking for a trophy to propel his burgeoning political career, didn’t have six years to wait until the retractable technology evolved to the point of affordability, as it did for the Astros. So TBiA was built, Dubya became governor, and the Rangers stayed in Arlington.

Recently, Rangers ownership, now changed twice, started looking for a more technologically modern home, citing the need for a retractable dome thanks to the heat and humidity problems. A dome over the top of TBiA was considered problematic because of the lack of a support structure (and infrastructure) to carry the roof’s load. Prominent Dallas interests quietly started talking up a ballpark within the city, perhaps close to American Airlines Center. Arlington pulled the rug out from Dallas by working with the Rangers on an eventual replacement for TBiA, even though eight years remained on the lease.

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What will be the price tag for improved climate control? A cool $1 billion, half of it charged to the citizens of Arlington via extensions of existing sales/hotel/car rental tax hikes. Arlington pols feel confident about the plan because they may pay off the debt at the Cowboys’ AT&T Stadium 10 years early. Sure, they’ll outfit the park with more restaurants, bars, club levels, different types of suite boxes, and custom bat/bear/doohickey booths. And there will be a huge fan plaza with retail and a hotel, finally giving the immediate area something else walkable from the park. That mini ballpark village will be called Texas Live!, located kitty corner from the current ballpark to the southwest.

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There are a few sobering takeaways from this whole exercise.

  • Public money makes a stadium project move faster. Once those coffers are open, stakeholders are willing to move heaven and earth to make these projects happen. This is the #1 reason why no stadium is happening in Oakland right now, why San Jose’s ballpark fizzled, and why the Earthquakes’ stadium was delayed. Owners and leagues want municipalities to have skin in the game or a pound of flesh, whatever you want to call it.
  • There is little virtue in paying off a stadium early. Just as AT&T Stadium is projected to be paid off early, Phoenix’s Chase Field had its debt retired early. For Phoenix, all that meant was that the Diamondbacks asked for a new ballpark earlier than planned. Same goes for the Rangers in Arlington. Considering how so many sports venues don’t pay for themselves, such moves take a lot of chutzpah.
  • The next wave of ballparks is here. Cobb County’s park for the Braves will open next year. The Rangers are shooting for 2021. Arizona is asking for their own smaller, more intimate park. Arte Moreno has been saber rattling Anaheim for years. Other teams will call for extensive renovation plans. This new era may not have the same wholesale turnover of venues as it did during the Selig era, but whatever happens promises to be very expensive, and for most teams, largely unnecessary.

Sometimes it feels like the world is passing the A’s by. This is no more clearly evident than in the stadium game. At least the Rays are here to keep us company.