Oakland approves its own term sheet, tells world, “It’ll be fine, we’re good for it”

We’ve seen a wide range of reaction pieces in the wake of the Tuesday’s City Council meeting in which the Council voted on their own proposal, not the A’s own plans. The A’s and MLB responded in the negative, which was to be expected. Since then, Howard Terminal supporters took the A’s choice to let their legal team review the City’s proposal and not dismiss it outright as a hopeful sign. Which was, well, also to be expected. The supporters are ready, bent over, crying to the A’s, “Thank you sir, may I have another?”

You have to wonder if Oakland likes being bent over

News links:

Ray Ratto on Defector

Scott Ostler in the Chronicle

Mercury News

KQED

NY Times

If Oakland wants to feed that appetite, it should be allowed to do so. It shouldn’t involve Alameda County in any part of it. I liken it to a recent college graduate who didn’t get the dream job right after graduation. Six months into the search, he has an opportunity to get a decent job, one that could give him a good income, pay back his loans, and move out of his parents’ house. All that’s required is a lengthy commute. He has a 2011 Honda Accord as his steed, but trusty as it is, it has 100,000 miles on it. He has designs on a Tesla Model 3. He tried to buy one earlier but found that without an income and a good credit score he’ll need his parents to co-sign the loan. Clearly he doesn’t need the Model 3, but it would make him feel good!

Alameda County, as the parents in this labored metaphor, want to empty the nest, downsize, and travel during retirement. That’s why they sold their half of the Coliseum. The City is holding onto their half despite historically having greater difficulty servicing their share of the Mount Davis debt. Alameda County knew when to call it a night. Oakland can’t do it. After the Tuesday Howard Terminal session, Council entered negotiations sell their half to one of two Black-led developer groups, with an upfront promise of a WNBA team at the vacant Oakland Arena and the future promise of a NFL stadium (AASEG) or a MLB ballpark (Dave Stewart/Lonnie Murray). 

The City will give itself six months to evaluate either bid, then decide on one to enter one of those vaunted Exclusive Negotiating Agreements. The A’s surrendered their position when they shifted completely to Howard Terminal, but thanks to their agreement to buy the County’s half of the Coliseum, they will have their own say in the Coliseum’s future. Six months is fine as I wasn’t planning to cover that deal until the offseason begins.

With that pending distraction on the back burner, let’s take a look at what the City approved during the Howard Terminal session. Out of all the mostly nothingburger was one really important bit of news.

I don’t know what the City and the A’s spent much of the weekend negotiating, but for the City to say they’ll handle the responsibilities of the offsite IFD is a mind boggling bit of capitulation on their part. Let’s take a step back and consider what this really means for the project. First of all, the A’s are essentially not responsible for any of the needed transportation improvements outside Howard Terminal. They’ll handle the cleanup and grading of the 55-acres, sure. The grade separations and other rail safety measures? City’s problem. The transit hub? City. The ongoing cost of whatever shuttles have to be run between the BART stations and the development? Also the City. In a previous post I lamented how the Howard Terminal vision didn’t include the transportation infrastructure onsite. Now that chicken is coming home to roost. You can try to argue how much this tax or that assessment will help fund it, the fact is that it’s the City’s responsibility.

In that capitulation, Oakland still has the temerity to request Alameda County’s participation in the Howard Terminal IFD. Supporters are actually saying the County just has to turn on the faucet and let the tax increment come out. No big deal, right? But they’re forgetting that once the County opts in, they have to create their own Public Financing Authority to run the tax increment collection and governance of Howard Terminal. That’s on top of the existing jurisdiction of the Port. So City is asking County to help create its own Coliseum Jr. on the waterfront. Sounds like a great proposal for a party that wants to get out of the pro sports game, no?

Hello, Coliseum Jr!

Naturally, those infrastructure imperatives will compete with community benefits, which are still being negotiated at the moment, and because they are being tacked on are likely to be the last items in line to be funded if any funding is left over. Maybe in 20 years when the vision is developed and mature, and the collected tax increment catches up. The A’s proposal sets forth $450 million, which all parties will end up competing for like Oakland’s running its own civic funding reality show.

But there’s state and federal funding to be had, right? A Politico report points to $280 million made available by Governor Newsom that could be leveraged for the Port. The report focused on this phrase:

“improvements that facilitate enhanced freight and passenger access and to promote the efficient and safe movement of goods and people.”

What does that mean in the context of Howard Terminal? Expanded ferry service? Maybe, though that doesn’t help the existing fanbase much if at all as most of them aren’t on the water or have access to a ferry terminal. The proposal doesn’t include a new Amtrak station at Howard Terminal. Freight? By repurposing Howard Terminal for commercial and residential use, the A’s and City are taking freight out of the equation except for the possibility of providing funds for the grade separation. Which is great in theory, but doesn’t actually make the Port’s shipping operations more efficient or productive than the status quo.

As for federal funds? Republicans filibustered the first vote on the current infrastructure bill yesterday. It looks like the Democrats will take a shot next week, pairing the bill with a social safety net bill as they try to get it through the Senate. Will it provide the kind of funding this project needs? Tune in next week to see what comes out of the sausage grinder. Note that Congress has its own recess in a week, just like their counterparts in City/County/State government.

As Howard Terminal supporters look far afield for dropped coins to fund this boondoggle, I’m reminded of the lengths Oakland and Alameda County had to go to get the Coliseum complex funded initially. Some things don’t change. It also reminds me of former Mayor Jean Quan’s desperate attempts to get Coliseum City funded by the use of a controversial visa program and also by name checking the “Prince of Dubai.” It isn’t enough to do things on a manageable scale in Oakland. The thirst to become a big city never dies. It evolves into something more wretched, more complex. Who’s willing to co-sign this one?

7/20 #oakmtg Live Thread

Oakland’s City Council passed the City’s term sheet on Howard Terminal (6 ayes, 1 no, 1 abstention). With that the A’s braintrust is off to Vegas while they and MLB decide what to do next.

You didn’t really think this would magically come together in the last few weeks, did you?

Tweet-by-tweet coverage

… and a snap poll for good measure:

There’s a baseball game on today. In Oakland. Enjoy it. I’ll provide feedback on the meeting later today.

How to Turn Win-Win-Win into No-Win in a Few Short Hours

Well, that was a disaster.

Friday morning started off with great anticipation, as fans and the media eagerly awaited the City of Oakland’s version of a term sheet. As I wrote last week, the City and the A’s are working at cross purposes in trying to come to terms, as the A’s don’t want to stray too far from what they proposed while the City wants change enough of it for the City Council to pass it.

The term sheet with attachments dropped Friday morning at 9:15 AM. Reporters from all major Bay Area print and broadcast outlets swooped in to study it. Now keep in mind that the City is now dealing with two term sheets, the one proposed by the A’s during the spring and the version put together by City staff. While the A’s and City keep working to come to agreements on major deal points, the only big achievement so far is a consensus on a 25-year non-relocation clause, up from 20 proposed originally by the A’s.

The City’s term sheet entirely omits the offsite IFD (infrastructure financing district), called JLS though it doesn’t include Jack London Square proper. Instead the focus is on a single IFD at the 55-acre Howard Terminal site. From a passage standpoint this is the best move by the City, since the offsite IFD didn’t have broad support and likely wouldn’t withstand a vote of property owners to tax themselves. However, the A’s lobbied for the offsite IFD from the beginning and continue to push for it, turning the issue into a potential showstopper.

Casey Pratt from ABC7 and Brodie Brazil from NBC Sports California both interviewed A’s President Dave Kaval later in the day. Kaval didn’t budge much on the IFD stance, though Pratt caught Kaval not being forthcoming about the state of a potential short-term extension at the Coliseum. I started to feel uneasy at points in both interviews as I got the feeling that Pratt and Brazil were practically negotiating, but for what? The City has its own negotiating team, as do the A’s. Were they representing fans, who until now have been criminally underrepresented? Perhaps, though there are always dangers in turning this already public negotiation even more public. I understand wanting to give fans some nuggets of hope, but this isn’t the way to do it. It’s already a confusing mess, since if the resolution passes on Tuesday it will likely be rejected out of hand by the A’s. If it’s voted down, which the A’s prefer, the City will have to go back to the drawing board while the A’s will have license to look beyond Vegas in terms of relocation. Hell, they’ll have the freedom regardless of what happens on Tuesday. That Kaval already has a Vegas trip planned immediately after the vote indicates that Kaval and Fisher are anticipating either outcome.

What I find puzzling is that at some point in the past 3/6/12/18 months the City should have recognized the offsite IFD was a loser and proactively adjusted the plan accordingly, or at least pushed the applicant (the A’s) in that direction. Now City has a funding gap of $351.9 million and no clear path(s) to bridge it. Kaval mentioned in one of the previous public hearings that the A’s could get the ballpark built with only $22 million in infrastructure built prior to opening day. My guess is that $22 million would go only towards the fencing and other safety measures that would be required for minimal rail safety, though obviously that’s far short of the full grade separation wanted by Union Pacific and Amtrak.

Howard Terminal ballpark with lots of park and open space around it

The A’s chose to propose the ballpark with all of the virtually all of the needed infrastructure, especially the transit hub, located offsite. In doing so, they made the offsite part of the project much more expensive. The transit hub, which will cover a two-block stretch of 2nd Street, is likely to cost $50-100 million to implement. There are also the bridges to build for grade separation. If the A’s included the transit hub as part of the Howard Terminal IFD, they could’ve reduced the offsite cost while providing a reasons for the City to invest in the transit hub: efficiency and better packaging. The team probably didn’t go this route because they didn’t want a transit hub right next to their luxurious condo towers. The funny thing about that is that because they already conceded the western blocks of the site as a buffer against Schnitzer Steel, those blocks are set up well for office uses, parking, and a transit hub if they want it.

Site plan with the southwest corner cut out for the expanded turning basin

Even if the transit hub is relocated, the grade separations remain a priority, even moreso because of the refocused traffic. That $352 million cost doesn’t magically go away. As I leafed through the term sheet it struck me that the offsite infrastructure cost is about the same as the construction cost for PacBell/AT&T/Oracle Park (not adjusted for inflation). It never gets cheaper, and as the A’s keep dillydallying with sites and cities, the price will continue to rise especially if new requirements they didn’t anticipate 10 or 20 years ago are piled on.

Other cities will be talked about as the A’s and MLB grow more frustrated with Oakland. These days that’s par for the course. Just remember that there are a couple factors that will have sway that no candidate city can control. One is inflation, or the rising cost of construction. That’s partly explained by building more complex buildings than what used to be standard (see my visit to Globe Life Field as the most recent example). Places that need retractable roofs and comprehensive HVAC systems can add a cool $300-400 million off the top. That’s an equalizer for Oakland. The other factor is written into the MLB’s constitution.

As a team in one of the largest markets, the A’s agreed to be taken off revenue sharing indefinitely. When that occurred I complained that Oakland, while in the powerhouse Bay Area, is functionally more of a mid-market team like San Diego or team in the Midwest due to its inherent disadvantages in media and location. Regardless, the A’s have to play by big boy rules, so they get no quarter, no revenue sharing. That means that any move to a new market (Portland, Las Vegas, Vancouver) must be contemplated not only as a new market, but also a market that will require the A’s to go on revenue sharing due to yes, inherent disadvantages in media and location or market size. If MLB’s philosophy is to get franchises off revenue sharing as a necessity (call it small market welfare), moving the A’s to a much smaller market contradicts that notion. Ironically, crippling the A’s revenue picture a few years ago may be the one thing that saves the A’s for Oakland in the end. If only they can get a ballpark built.

P.S. – The Oakland Coliseum is about 16 acres in size. It’s huge. The Howard Terminal looks very close, maybe 14 acres. The packaging could be a lot better for 30,000 seats.

Union Pacific explains their Howard Terminal position

After the release of the Howard Terminal Draft EIR, I waited for the compiled comments to become available. Beneath the pleas from transit agencies and housing groups, there was a video provided by none other than Union Pacific (UPRR). The well-produced video comment is not much longer than a typical music video and comes with a highly professional voiceover.

Video illustrates hypothetical train parked in front of Howard Terminal

Union Pacific continues to raise concerns over the project, saying that it will impact its operations. The chief problem is that when a train stops at UPRR’s yard to the west of Howard Terminal, it will often be stuck there for 10-45 minutes as a long train is effectively split into three parts to fit it into the tracks at the yard. After that switching activity is completed the train can be loaded or unloaded. Presumably, the train has to be reassembled to some extent in order to begin its next journey.

Okay, we knew that going in, nothing new, right? Ah, but there’s a twist. UPRR acknowledges that despite its concerns, the City of Oakland could plow ahead with the project anyway. If that happens, UPRR is prepared to make demands. The big ask, which I heard from PMSA’s Mike Jacob in a discussion with Zennie Abraham yesterday, is that UPRR will request that all construction traffic be grade separated from the active rail line before construction on the rest of the project begins.

Block or charge? You make the call

It’s a reasonable request from a safety standpoint, one that I could see the Federal Rail Administration, Caltrans, and Amtrak supporting. If you’re going to reduce the risk of train-automobile or train-pedestrian/bike interactions, putting in a grade separation at Market Street (location not finalized) makes sense. The problem with that what we’re really talking about is putting in a big concrete bridge at Market, a piece of infrastructure that the A’s have been hesitant to commit to. As UPRR’s Robert Bylsma wrote in May:

So, apparently it was the Oakland A’s who made the decision to reject grade separation — the only safe and effective means of protecting Oakland A’s fans, as well as families residing in the Project area and other Oakland citizens, using Project facilities — as infeasible because of the “length of time it would take” to design and build, and would affect negatively “the Oakland Athletics’ competitive position within MLB.”

Of course, a fully grade-separated entrance to the site that can handle trucks and heavy iron won’t be cheap. It’s not a showstopper, since if that’s the cost of doing business at Howard Terminal, that’s the cost of doing business. It does push a major project cost to the front of the line where it would compete with other line items. Plus there’s the visual issue of an eyesore bridge going up before the ballpark or anything else along the waterfront. During last week’s session, City staff still considered the vehicular grade separation an alternative, not a requirement.

With the separate vehicular and pedestrian bridges added to the project, the grade separation cost alone threatens to run into the $300 million range. There’s no surprise there. Good quality infrastructure costs money. When HT was considered 10 years ago for a ballpark, guess how much a new BART station at Market or Brush streets was estimated to cost? $250-300 million. I guess in hindsight I can see why A’s ownership is being so tightfisted about an item as fundamental in 2021 as affordable housing. Even if your budget is projected to hit $12 Billion, every $300 million counts.

Let’s Take Stock

It’s the early morning of July 8. In less than two weeks, the City of Oakland is scheduled to vote on a term sheet, which despite it being a non-binding document, could play a major role in determining whether the Oakland A’s remain the Oakland A’s. Will it be the term sheet submitted by the A’s? A term sheet written by City staff? Or a compromise version that incorporates key principles from both parties? Or will the parties reassess this mess of a situation, and punt?

Towards the end of today’s study session, Council Member Dan Kalb, who chairs the Community and Economic Development Committee, offered his assessment of how Howard Terminal has progressed since the beginning of the year:

Tonight I’m hearing from the optimists that this all smacks of negotiation in one form or another. Looking at it through Kalb’s (and the other City Council members’) prism, the view is much more chaotic. We are now to believe that the A’s provided their term sheet in January with every intention of getting it approved with minimal changes. Then, having not received much feedback early this year, the A’s publicly released the term sheet in April. City staff, with its divergent goal of getting a term sheet in place that would get enough votes for the Council to approve it – a markedly different goal from the A’s take-it-or-leave-it proposal – scrambled to get that passable term sheet in place. As of now it’s still not finalized. Once it is, if it is passed, it will go back to the A’s for their approval or markup. Or the A’s could find points to compromise and approve it, or dismiss it altogether.

That’s a wide range of outcomes to have at this artificially late stage of the game. There are major deal points that have not been agreed upon yet, chiefly the issues of affordable housing within Howard Terminal and the fate of the “offsite” IFD encompassing much of the area north of Howard Terminal and going west to Mandela Parkway and east all the way to Oak Street. I tweeted out a snap poll to gauge which was most important among the four main issues I identified.

The affordable housing question seems like the most cut-and-dried issue. Simply put, any major development in Oakland requires a percentage of it to be considered affordable housing. The target is 15%, though because Howard Terminal is under the Oakland Army Base redevelopment rules, the target at HT is only 8%. That equates to 240 affordable homes in the final buildout. A lowered goal should be achievable, right? Not for the A’s, who feel they’re already providing enough via tax increment from the development that could fund affordable housing elsewhere. That argument worked well 20 years ago when California’s housing crisis was less stark. Now it’s downright unreasonable to expect that a developer could go this route especially with the historically poor yields of finished affordable housing throughout the Bay Area. 

To illustrate, let’s posit that a newer one-bedroom apartment at HT costs $2,300/month. Under one measure, affordable housing could mean that apartment costs a qualified renter $1,500/month, plus an $800 monthly subsidy paid by an affordable housing fund. That subsidy translates to roughly $10,000 per year, which multiplied by 240 units equals $2.4 million per year. I recognize I’m oversimplifying the problem with this illustration because I’m not tackling levels of affordability, but it should serve the discussion well. No matter how you slice it, that’s a hefty expenditure to be paid by tax increment, a developer, or a renter.

Next up, let’s look at the non-relocation clause. The City wants a term of at least 45 years, which would keep the A’s in Oakland for the next generation or two. The A’s are promising only 20 years, which they say is in keeping with other markets where, as Dave Kaval pointed out, the ballpark is often publicly financed (meaning the City is putting skin in the game). If the City isn’t directly subsidizing the ballpark, the A’s have less reason to take a longer than standard contract. From a practical standpoint, it’s rare to see relocation occur when the first lease term ends, mostly because a team has spent enough time and resources cultivating its home fanbase that it seems wasteful to pursue another so quickly. That generally holds true in baseball, where the last relocation was in 1972 (Washington Senators-Texas Rangers). In other sports it’s far more common, whether you’re talking about the Raiders or hockey in Atlanta. Usually whatever complaints a team has about its venue or market can be addressed by upgrading the facility or building elsewhere in the same market. The A’s sudden scorched earth campaign has sort of laid waste to Oakland, leaving Howard Terminal as the only desirable spot in the East Bay market.

The other major issue concerned the two IFDs or infrastructure financing districts. The A’s prefer two, one at the 55-acre Howard Terminal site and the offsite JLS site. City prefers a single IFD which would essentially be Howard Terminal with few surrounding parcels. City thinks the single IFD structure would be easier to get buy-in from Alameda County, which as you might have heard, isn’t exactly jumping for joy at the prospect. For their part, the A’s continue to say that they need both IFDs to ensure there’s enough tax increment revenue to cover all of the infrastructure and other costs. The problem with this is that without the JLS IFD there’s a major funding gap. As @hyphy_republic noted, City has identified Port-related sources that could backfill that need. Those would have to be studied thoroughly for their efficacy. As I started processing this detail, it occurred to me how ironic it is for the City go to the Port for funding while alienating Port stakeholders who are among the harshest critics of the proposal.

Lastly, there’s a question about the amount of community benefits in the package. The concern is that most of the money raised by tax increment usually goes straight to hard infrastructure in a straight line, or perhaps affordable housing. Other community programs may be more likely to be sacrificed in the event of a budget crunch or just plain old-fashioned value engineering.

Remaining milestones assuming it gets that far: Tell me how the City of Oakland is supposed to make a final approval of this project in September as Dave Kaval suggests

Look, I have no idea if the term sheet will pass in less than two weeks. It might, and then in September the County could choose not to take part, wrecking the project. Again, someone could punt on 7/20 and hope MLB doesn’t accelerate relocation talks. All I know is that this project has now come up in three separate major public hearings in the last two months: the Oakland Planning Commission, the Alameda County Board of Supervisors, and now the Oakland City Council. In every venue there was serious tension and rancor between the governing body and the applicant (the A’s). You’re not going to just wipe it away by calling it negotiation. This is much deeper than mere negotiation. The City and the A’s appear to be at cross purposes, and if you throw the County into the mix, all three are. This is what I worried about when Howard Terminal was first proposed and when it came back to life. It’s an already complex set of circumstances made all the more complicated by the current regional economy. Maybe there is a breakthrough on the horizon. Judging from CM Kalb’s reaction, he was expecting a breakthrough sometime ago. It ended up being a mirage.

P.S. – The City has officially opened up discussions on its half of the Coliseum complex. I’ll save that discussion for another day.

P.P.S. – You read that right earlier and I almost forgot to mention it. During the hearding, the A’s filed a suit against Schnitzer Steel alleging a Clean Air Act violation. Now that’s some multitasking.

Thread for today’s City Council Study Session (with poll)

Update 7/7/21 4:44 PM – Session’s over. Now take a quick poll. Read the thread below for comprehensive coverage.

Public comments were scheduled before the presentations, so this is what you get. The study session is still going as of 3:30 PM.

Baseball in Arlington, Take 3

During its baseball tenure, I visited The Ballpark in Arlington (now Globe Life Park) three times. Other than the last time I went in early April 2017, every time it was as hot as hell. After living in the desert for a few years, the pure heat doesn’t bother me anymore. The humidity can be stifling. On Thursday I walked the neighborhood around my hotel, a mixture of budget accommodations and light industrial buildings. If that sounds like the Coliseum, it’s not far removed.

Left to Right: Globe Life Field, AT&T Stadium, Texas! Live, Globe Life Park

Anyway, a mile into my journey I checked my watch, which showed it was 90 degrees outside at 10 AM. I was feeling the humidity, so I decided that after I completed my walk and returned to the hotel I would take a quick shower because I was feeling sticky. For all its retro design cues and outdoor feel, the old Ballpark in Arlington was not designed to comfortably accommodate tens of thousands of people during the brutal Texas summers. It became obsolete for that reason alone. When an opportunity arose to extend an Arlington sales tax to build a new retractable roof ballpark nearby, Arlington jumped on it. The Rangers, who previously flirted with moving to Dallas, jumped on board. The rest culminated in air conditioned bliss.

There were talks in the past about building a retractable roof over the old 17-acre ballpark, which fits into a neat superblock within the Arlington Sports and Entertainment District with little buffer around it. From an engineering standpoint that made it difficult to plan how to incorporate the retractable roof, which would require additional acreage to store itself when it was open. In addition, the cooling costs for a more voluminous building and footprint were clearly not attractive from a business standpoint. The Rangers looked across the street for a site where architect HKS could conceive the team’s 21st Century requirements: fewer seats, more concourses, and most importantly, air conditioning.

They ended up with Globe Life Field on that spot south of Randol Mill Road, covering 13 acres to the east of the Cowboys’ AT&T Stadium. Adjacent to GLF is Texas Live!, a combination of restaurants, a Loews hotel, and public congregation space. Just outside the commercial development is a tiny standalone 7-Eleven location. 

While Globe Life Park is a bigger stadium on a bigger parcel than successor Globe Life Field, when combined with the ancillary development Texas Live!, GLF’s footprint is larger. Before the game on Wednesday, I explored Texas Live! to get a feel for it. Wanting a pre-game bite after the 1 PM tour, I settled on the Lockhart Smokehouse location in the complex. It was mostly empty as you would expect several hours before a game. I asked the bartender if this was normal and what business was like during games. She said it’s pretty slow around 2 (when I dropped in), picks up quickly for the pre-game crowd, and drops off once the game starts. I followed up by asking if fans are allowed to go back-and-forth between the restaurants and the ballpark after first pitch. She replied in the affirmative, though she said that it hasn’t happened yet. It might be a behavioral conditioning phenomenon, as fans may not yet be aware that they could order from their seats, walk out to pick up food from one of the restaurants, then walk back. Pro-tip: If I was with family or on a date, that’s how I would roll. Incidentally, I had a half-pound of the brisket (fatty, excellently cooked, could use better bark) and jalapeño mac-and-cheese, washed down with a couple of Shiner Bocks.

Texas Live! including the Arlington Backyard 5,000 outdoor concert venue

As I had time to kill, I wandered out to AT&T Stadium and the Wal-Mart across the street to pick up a couple of items, as there are few places for provisions in the area. After picking up my items, I decided to walk all the way back to the hotel. Curiously, the 1.7 mile distance was nearly the same length as the entire Jack London Square IFD in Oakland from west to east. As you can imagine, I had to take shower when I arrived at the hotel. Then I took a nap, which prepared me for Wednesday night’s 7 PM first pitch. I took a Lyft to the ballpark, where there was a proper queueing area for rideshare, unlike the predecessor.

View west from outside Loews Hotel with Globe Life Field in the background

The Rangers upgraded ballparks in a big, expensive way with the opening of Globe Life Field. Arlington itself remains remarkably the same. Decades ago the city fathers decided to remake the area with a focus on sports and entertainment, creating an economic district to that effect. The first company from the industry was Six Flags, which opened its Six Flags over Texas location in 1961. Next was the Rangers, who moved into an expanded Turnpike Stadium in 1972 after the mayor directly solicited teams by handwritten letter. The Ballpark in Arlington replaced Arlington Stadium in 1994. The Cowboys moved from nearby Irving to Arlington in 2009. During the intervening years, Arlington attracted the International Bowling Hall of Fame from St. Louis, an eSports venue, and soon a small convention center on the site of Arlington Stadium. Globe Life Park is being redeveloped, with the field converted for football/soccer/rugby use, new office tenants including the world headquarters for Six Flags, and approved residential uses on site. Despite Dave Kaval’s insistence that a MLB ballpark must be built “downtown,” Arlington is the antithesis to this notion. Downtown Arlington is 2 miles southwest of the Sports and Entertainment District and has far less overt corporate branding. A rail line runs through the Downtown area, another nod to the city’s Wild West origins. Sadly, there is no train depot. The nearest train station is near DFW airport. Public transportation remains pathetic. Bike lanes are scarce. Large stretches of streets have no sidewalks. Arlington is an urbanist’s nightmare.

The City of Arlington knows what it is: North Texas’s playground

Arlington got these attractions and got itself on the map in the process. No pro team will ever name themselves after Arlington. Yet its population is nearly 400,000, just behind Oakland and slightly ahead of Cleveland. It has a large commuter school (UT-Arlington) on the other side of downtown. How much is it worth to be the playground for North Texas sports/entertainment even if you don’t get much credit for it? Judging by Arlington’s desire to keep this economic model going, they seem to be okay with it.

Later this weekend I’ll post my review of Globe Life Field. For now, consider the choice Arlington made, and how it in some ways mirrors what Oakland has done over the past 50+ years.

Getting to Yes

Before I begin, I’m going to direct you to two blog posts on other sites. The first, by Jeff August, is at his own site, Jeff August Ego Trip. Jeff is a good friend and remains in the credits in the sidebar, though he hasn’t contributed to this site for several years. His viewpoint on Howard Terminal evolved over time, and while I haven’t had a chance to talk to him about it and I disagree with his conclusion, I fully respect it because it comes from an honest place.

The other link is from Alex Espinoza’s blog, The Rickey Henderson of Blogs. Espinoza did the inhuman task of compiling observations from Tuesday’s extraordinarily long Alameda County Board of Supervisors meeting. The 6,000-word entry is truly impressive in its scope. I admitted to him while reading it that there’s no way I would try to take such notes as I would have to watch it twice to do so.

Espinoza also interviewed me before the baseball season started to discuss ballpark stuff and economics. If you haven’t checked out that podcast episode yet, you should.

After reading both posts, I immediately recalled comments made by Oakland City Administrator Betsy Lake regarding the planning aspects of the Howard Terminal Ballpark project. Lake considered the current A’s/City proposal fiscally irresponsible. Lake was asked by Alameda County Supervisor Wilma Chan about why the City is going through with the Howard Terminal if it’s not expressly for the purpose of building a ballpark. That brought on the following awkward exchange:

That brings me to the belated thesis of this post. It would be one thing if the A’s built a ballpark on a 14-acre city block downtown, one that conformed with the existing city and neighborhood plans. The A’s, to my complete befuddlement, are instead proposing a mega-development with its own taxing authority (HT IFD), with ancillary infrastructure funded by a separate taxing authority (JLS IFD), yet nothing is being done to amend the City’s Downtown Specific Plan or West Oakland Specific Plan to properly accommodate those changes. The Downtown Oakland Specific Plan and EIR are still in Draft form and don’t include Howard Terminal, an odd choice given that Howard Terminal is being promoted as at least downtown-adjacent. It’s entirely a cart-before-horse scenario.

At the Oakland Planning Commission hearing in April, there was a mention of the Google Downtown development in San Jose, which went through the full planning process including a certified EIR. Not only that, San Jose expanded its definition of Downtown San Jose to fold in the previously separate area, which includes Diridon Station and SAP Center west of CA-87. Construction begins in 2023. Ironically, the catalyst for that entire effort was the planned A’s ballpark south of the train station. At the time San Jose went through with the exercise with no guarantee of obtaining the baseball club. But they did something that seems utterly novel when compared to the chaos in Oakland: they made a contingency plan. 

That’s right, they had a Plan B. 

San Jose Downtown West, dominated by Google

San Jose knew that as Silicon Valley grew eventually there would be demand for residential and commercial real estate in the newly-minted Downtown West area, which besides the arena was mostly surface lots and low-slung light industrial buildings. It was ripe for redevelopment, and despite Jerry Brown killing RDAs years ago, was assembled for a completely new vision with existing Caltrain/VTA light rail and future BART and HSR anchoring a transit hub, preposterously named the “Grand Central of the West.” Location and accessibility would earn attractiveness for a high-profile employer, most of whom generally avoided Downtown San Jose until that point. Next, the ballpark proposal died with the Giants’ legally upheld territorial claims, San Jose started looking for suitors for Plan B, and Google entered the picture. The rest is history in progress, with San Jose residents asking (and getting) more from Google in the form of a Community Benefits Agreement. Oakland is watching San Jose and is wise enough to take notes. The funny thing is that Oakland started pursuing Howard Terminal as a ballpark site years before San Jose did theirs. If you count the original HOK study which featured Howard Terminal, the site has been in an on/off pursuit for better than 20 years. Oakland, caught between trying and failing to keep their sports franchises, attracting new non-sports employers, and catering to the needs of its entrenched business interests (Port) as well as its unique and diverse population, showed the kind of indecision that could doom its ballpark plans, even its future as a MLB town.

San Jose Downtown West’s current state is humble and nondescript, not for long

Look, I am fully aware that San Jose and Oakland are worlds apart economically. Not as far apart as Oakland and San Francisco, but close. San Jose did the right thing by expanding their scope, by not limiting themselves to the pursuit of a sports franchise. If the A’s moved to San Jose, great. Maybe Google would look elsewhere for a secondary campus because the A’s partners would’ve gobbled up most of the nearby land. The A’s didn’t move south, which allowed San Jose to have the Adult Conversation about its vision with residents and businesses. That conversation is something I clamored for Oakland to have since nearly the start of this blog. It happens in fits and starts, never getting above a din peppered with occasional protests. Recently, Oakland asked Alameda County to participate in the Howard Terminal IFD by pledging its share for the on-site infrastructure. County Supervisors were taken aback, though if they were honest, they should’ve seen it coming and prepared for it. I didn’t expect Oakland to pull this off on its own. No one should have given how dysfunctional Oakland is. That said, Alameda County sold its half of the Coliseum in an effort to get out of sports. The Supervisors’ outrage at being put in this situation by Oakland is consistent with previous actions.

Unfortunately, the confusion over Oakland’s plans (or lack thereof) is also consistent with its previous actions. Friends, that is not a good sign. The Supervisors and their Oakland City Council counterparts put a positive spin on how things are progressing. HT supporters slurp it up without bothering to inspect the problems beneath the surface. The bottom line is that the Council is divided. The Board of Supervisors is also divided. Everyone wants to get to Yes, as Supervisor David Haubert suggests. The problem is that no one knows what Yes means except in the most vague, general terms. As Jeff pointed out in his post, 33 regional/state/federal agencies have to approve this project. Howard Terminal should be part of the Downtown Specific Plan, but that would have first required removing its maritime designation, cleaning up and disposing of the land through a public process, and numerous other steps which can’t start because of related complications. According to the A’s, time’s running out for Oakland. I don’t believe that because I believe in practical, real solutions. The A’s and MLB’s greatest tactical weapon is to ratchet up the tension on Oakland to get their desired outcome, whatever that is, however long that takes. They’ll do it again and again until they see results. It’s easy to confuse tactics with strategy, which so far the A’s and baseball have not shown an ability to execute either in Oakland or Tampa Bay. Yes, in absolute terms the A’s could move, but MLB has made it intentionally difficult to do so. I wouldn’t worry about that in the near term. Right now there’s a drought and a heat wave in the Bay Area. It’s not even summer yet! Frankly, it feels poetic.

Be safe out there.

P.S. – Google is not moving its headquarters away from Mountain View.

P.P.S. – The City of Oakland will release a revised term sheet after its study session on July 7. The release will occur no later than 7/16, which will give them 4+ days to review the terms prior to the 7/20 vote. My reaction to that news:

6/15 Alameda County Board of Supervisors Meeting on Howard Terminal

I spent over six hours livetweeting this thing for you.

You can see the full thread at the link below:

https://threadreaderapp.com/thread/1404907134270152705.html

There’s also a 9-page PDF digest version.

What you need to know is this:

I’ll drop in more of the select tweets as I go through the night. Enjoy the process.

My favorite moment of the long night:

Followed closely by this:

Looking ahead:

Ghost of Blue Ribbon Panel Speaks Out in Favor of… The Coliseum

Former Giants VP Corey Busch, who was part of Bud Selig’s Blue Ribbon Panel to study the A’s future in Oakland (and San Jose) a decade ago, was interviewed by the Merc’s Shayna Rubin yesterday. And boy, did Busch had some thoughts.

The big reveal was Busch’s belief that former Giants owner Bob Lurie was never going to ship the team to Florida. Selling the team was, as Busch recounted, merely a ruse to motivate a local buyer for the franchise, which eventually happened when Peter Magowan stepped up. That’s not to discount the tremendous amount of drama at the end of Lurie’s ownership tenure, which involved St. Petersburg and dalliances with San Jose and Santa Clara. Exploration of the South Bay included A’s owner Walter Haas agreeing to cede Santa Clara County to the Giants, which was previously an unassigned territory for MLB’s purposes. The South Bay is now and forever San Francisco Giants territory, even though they will probably never play a game there.

Busch also went out of his way to defend the Coliseum, decrying A’s ownership’s desire for a downtown ballpark – and only a downtown ballpark – at Howard Terminal.

Busch determined the Coliseum site was viable in 2014 on Selig’s blue-ribbon committee to explore ballpark options. He still attests the A’s can build the ballpark village of their dreams around the site. MLB and the A’s declared this month that the Coliseum site “not viable” as a location for a new park.

“The notion that the Coliseum, if properly developed in its totality, is not acceptable is kind of silly. It’s nonsense,” Busch said. “I know for a fact there are people in the commissioner’s office who know the Coliseum site is a good site.”

All Bay Collective’s 2018 Estuary Commons concept (Coliseum/Airport area)

Right now the Coliseum is not in the conversation due to the stubbornness of ownership. At some point it will re-enter the picture, unless everything from this point forward falls in line for Howard Terminal. For all their posturing, the A’s still continue to attempt to buy the City’s half of the Coliseum. And even though Dave Kaval announced the A’s were on “parallel tracks” with Oakland and Las Vegas (I thought there was no “Plan B”?), it’s not hard to see a third path, one that brings them back home.