Category Archives: San Jose

05.25.12
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Mayors go on the offensive, Wolff to meet with Knauss on Friday

Oakland Mayor Jean Quan is having caviar dreams on a canned tuna budget.

Quan finally agreed to an interview with The Game’s Chris Townsend, though he had to travel to Oakland City Hall to do it. I listened to the exchange intently, looking for some semblance of consistent messaging throughout. For the most part the message was consistent, but probably not what the teams and fans are looking for.

Quan continued to tout Coliseum City as a massive development stretching over 500 acres that could attract 32,000 jobs, major hotels, corporations, and anywhere from one to four pro sports franchises. That’s right, four. When Townsend pressed her on what she meant by that, she said that the City was looking at teams outside of the current three tenants.

In the wake of the Warriors’ announcement that they intend to build a new arena in San Francisco, East Bay backers are already talking about luring either the Sacramento Kings or San Jose Sharks to Oakland. Oracle Arena is built for basketball, not hockey, so the Sharks are out of the question. The Kings are a more intriguing proposition since Oracle is miles ahead of ARCO/Power Balance in terms of modernity and amenities. However, you can bet that Joe Lacob and Peter Guber would fight tooth and nail to keep a second team out of the Bay Area. Even if the NBA were to allow it, the Lacob/Guber ownership group would get a tidy compensation check from whomever brought a team to Oakland. You can forget about that being the Maloofs since they’re broke. David Stern has also stopped Larry Ellison twice from relocating a team to San Jose, so you can glean from those vetoes that Stern considers the Bay Area a single-team market. Remember that Oakland’s gambit is to replace Oracle Arena with a new one if the Warriors stayed. There is zero chance of anyone building an arena in Oakland if the Warriors are in SF. They’ll just soldier on with the current arena, which again is a perfectly fine venue from a technical standpoint.

As for the A’s, Quan revealed a couple of things that are quite germane to Oakland’s efforts going forward. She seems fully committed to Coliseum City in whatever form it takes. When asked about a site in downtown Oakland, she said that if Clorox CEO Don Knauss wants to move in that direction and can figure out how to pay for the extra cost, it shouldn’t affect Coliseum City adversely. She didn’t exactly dismiss Howard Terminal or Victory Court, but by now she has to be fully aware of the nine-figure costs associated with either of those sites, which makes them quite difficult to develop. For that she deserves a lot of credit – Oakland’s advantages are that it has land and a potentially easier process to develop venues. The flipside to that argument is that Oakland’s not as desirable or coveted as SF or San Jose, so there’s a very good reason why it’s easier or more available.

Beyond that, Quan may be getting a bit too starry-eyed for her own good.

As long as we have one huge sports facility [plus] we will have a much bigger convention center than we currently have in downtown Oakland.

That sounds like a pivot to me. If Quan and the City are pivoting it’s probably no coincidence that AEG is on board to manage the complex and provide consulting for the next phase of the Coliseum, which would be to have something along the lines of what they are planning in LA: retractable roof stadium, arena, and convention center in one location. Maybe AEG will get a team to relocate there, maybe they won’t. What they can do is influence both LA and Oakland by shaping development there. It worked in LA, and it sure looks like it’s moving in that direction at the Coliseum. Two years I wrote about re-using the Coliseum for a convention center after teams vacated. It sounded preposterous back then, but it could make sense with AEG steering things. Though again, it’s important to note that AEG has never shown much interest in baseball. AEG could decide that it would be best to use as much available land as possible for a top-notch convention center. A large convention center can easily take up a greater footprint than two stadia side-by-side.

The “one huge sports facility” term has me intrigued. Now the thought of Cowboys Stadium doesn’t sound quite as far-fetched since it would be part and parcel with the convention center. The key would be the flexibility of the stadium. If you want to go full-bore crazy, Oakland should shoot for what Doha, Qatar is doing with one of its 2022 World Cup venues. Called Doha Sports City Stadium, it’s a retractable domed affair with movable seating decks and facilities built into the roof, not a mere steel or fabric shell.

Inside the 65,000-seat Doha Sports City Stadium, which is planned for a 2017 completion date.

The project picks up where Japan’s Saitama Super Arena left off, doubling SSA in size and scale (UNLV has a similar proposal to SSA). Let’s be clear about what DSCS is: $1.5 billion in state oil profits to be used for a showcase venue that could conceivably be used for a future Olympics gig. And if you think the picture above is nuts, save your jawdrop for the next image.

Exterior view. The stadium is only a part of the extremely large development, with ancillary features all under the "single" roof.

I suppose that the attitude here is that if this is going to cost $2 billion, might as well go all the way. Something like DSCS would certainly give Oakland the “one huge sports facility” that Quan alluded to.

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Meanwhile in San Jose, the City is quietly building up its case and legal team for a potential attack on baseball’s antitrust exemption. The call for such a lawsuit has only gotten louder in the last several weeks as the team continues to languish with no direction in sight. San Jose is not going to sue as long as Lew Wolff continues to follow MLB’s process. The buzz will only get louder. I’ve even heard that legal proceedings may not cost the City much if anything. We’ll see if that actually happens. I wrote last week that as long as Selig doesn’t make a decision, there’s no trigger for a lawsuit since Bud Selig can say he’s continuing to study the matter. That could be a big reason why Wolff’s position has been “any decision is better than none” since either a yes or no could provide a jumping off point for Wolff.

Wolff supposedly met or is meeting with Don Knauss today, according to the Chronicle’s Susan Slusser. Maybe they’ll share Diamond Level seats for tonight’s Yankees game. Maybe Wolff will host Knauss in the owner’s suite. Knowing what we know about what both sides want, I don’t expect any earthshaking news. If I hear something I’ll be sure to update this post accordingly.

Update 5/26 7:37 AM – BANG’s Joe Stiglich has this regarding the Wolff-Knauss meeting:

A’s co-owner Lew Wolff confirmed that he met Friday with Clorox CEO Don Knauss, who has been outspoken about wanting to keep the A’s in Oakland.

Wolff declined to share what exactly the two discussed, other than to say he enjoyed the chance to talk with Knauss.

“I think we had a nice dialogue,” Wolff said. “We just exchanged some ideas. That’s all I want to say.”

There you have it. 

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BTW, I’ll be tailgating at today’s Yankees game. If you want to drop by and chat, reply here or via Twitter. I’ll provide location info once in the parking lot.

05.18.12
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The illusion of pendulum swings

There’s been a wide range of reaction from Bud Selig’s non-update yesterday.

  • Gwen Knapp: “No decision means ‘no’ to the A’s. They aren’t getting the rights to San Jose, not yet, not soon, not even over Larry Baer’s stone-cold corpse.”
  • Mark Purdy: “And no action was taken — although Wolff’s quotes do indicate the blue-ribbon panel’s findings back up his contention that none of the Oakland stadium ‘proposals’ amount to anything.” (Purdy also brought up a potential antitrust case on KNBR.)
  • Ray Ratto: “So [the owners] see no compelling reason to hurry toward a decision they don’t want to make anyway.”
  • Art Spander: “The solution to all this is for Wolff, who wants nothing to do with authorities and business people in Oakland, a place he doesn’t live, to reach a compromise.”
  • Robert Gammon: “…it seems clear that the Giants’ presentation was more persuasive and that the rest of the league has no intention of overruling the Giants’ opposition to the A’s move.”
  • Jon Heyman: “Some progress is seen in that a significant amount of discussion is being dedicated to the A’s to the point where the talk has moved from committees to baseball’s Executive Council.”
  • Buster Olney: “The time has come for Oakland Athletics owner Lew Wolff to start firing off lawsuits in effort to move to San Jose — or sell the team.”
  • Ken Rosenthal: “Do not get distracted by any of this. The A’s focus is still on San Jose. The focus of the entire sport is on how the A’s can get to San Jose.”
All of that came from a few rather innocuous quotes from Bud Selig. At this point it doesn’t matter what Selig did or didn’t say – the quotes have been twisted so completely that anyone can weave their own “truth” from owners meetings.

Here’s what we knew going into the meetings:

  • There would be no official action taken on T-rights.

That’s it. Both the A’s and Giants made presentations, which some believe is encouraging and some don’t. Former Giants managing partner Bill Neukom was present at the meetings, presumably to plead the Giants’ case. It seems likely that both teams will continue to make presentations at future owners meetings until a decision is made.

The decision thing is the issue. The sad truth of the matter is that MLB doesn’t have to decide anything anytime soon, just as Lew Wolff doesn’t have to sell the team anytime soon. The A’s will stay afloat via revenue sharing through the end of the CBA, and as long as Wolff and Billy Beane don’t get out in front of their skis in terms of payroll, the team should continue to make money. In that short-term vein, the “best interests of baseball” may be to keep the status quo. You could easily say that Selig is kicking the can down the road, where his eventual successor will have to resolve the dispute. You might also say that the tossed off comment about moving outside the Bay Area is strategic one meant to incite at least a little panic. That may have worked in Miami and Minneapolis, but it’s not going to work here. It never has.

Eventually that short-term position will end and be replaced by a long-term, permanent solution. That’s when some kind of decision will have to be made. Unfortunately for us A’s fans, we have no idea when that might happen. There’s certainly no urgency on the matter. Maybe MLB is waiting for the Giants to retire debt, though the prospect of the team refinancing some of the remaining debt creates a gray area in its own right. The post-redevelopment world hasn’t shaken out yet, and won’t for at least several months.

Until some of these variables settle, it’s in baseball’s best interests to keep both Oakland and San Jose in play. For Selig to kill either option would be poor strategy on his part. San Jose boosters and politicians may be frustrated, but at least the city has most of its pieces in place. Oakland is finally getting some momentum thanks to Don Knauss, though it’s too early to tell if that momentum is real and sustainable. As long as a decision isn’t made on San Jose that shuts out Oakland, another lease extension at the Coliseum can be negotiated. This vague flexibility even opens up the possibility that Fremont could re-enter the picture, perhaps as soon as the next elected mayor takes office in 2013.

The wildcard here would be if San Jose decides to unleash the legal hounds. Again, this is where I think Selig’s M.O. comes into play. As long as Selig can say, “We’re still studying this,” there’s no specific decision to point to that San Jose can build an antitrust case around. Sure, they can make threats, but until someone files a case it won’t mean much.

Until then, what we’ve got here is a Mexican standoff. How do those usually turn out?

05.07.12
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Capitol Raiders

No, I don’t mean the Raiders moving to Sacramento. I’m referring to the state’s raid on redevelopment agencies, which we discussed last week.

At issue is a matter of dates. The state contends that via its new redevelopment laws, transactions that occurred in 2011 between RDAs and third parties (developers) are up for review, and that those that were done after June 28, 2011 would be struck down. June 28 is notable because that’s the date that bill AB 1X 26 was signed by the Governor. (A companion bill, AB 1X 27, was also signed by Governor Brown, but was killed by the state Supreme Court in December, leaving no path forward for redevelopment as we knew it.)

Cities are saying that there is no implicit cut-off date because none was specified in the legislation. There are dates for when certain transition activities are supposed to occur, but those were not the “effective immediately” date the state is gunning for. The League of California Cities’ lawsuit was filed last July. October 1, 2011 was when the RDAs were supposed to wrap up all activities, but the lawsuit granted a limited stay, so the RDAs were able to continue operations to some extent. San Jose City Attorney Rick Doyle characterized the legislation as “rushed” when referring to the lack of a date. Now the cities are saying that the effective date is April 20, 2012, the date Controller John Chiang sent letters to affected cities ordering properties to be transferred to the state.

If October 1 is decided as the transfer date, both the SJDDA-Wolff land option deal (November 2011) and funding for the Coliseum City feasibility (March 2012) would be in jeopardy. In the land deal’s case, the property would be transferred to the state and would subsequently be sold or auctioned, preferably for as close to market value as possible. The key there is that Wolff locked in a discount based on the property’s use for a ballpark, a price that would be presumably lower than an open market price. If the state were to assume and sell the land, there would still be an opportunity for Wolff to buy the land. The market isn’t great in the Diridon area right now, but when speculation comes into play all bets are off. If the city refuses to put the ballpark  parcels on its transfer list, the state could sue to get the land, which would tie up the deal for some unknown amount of time. Eventually the land will be sold because the state needs to get proceeds for the state budget and for schools, so it’s a matter of when and how much as opposed to if.

In Oakland’s case, the problem is a matter of expenditure, not property. $3.5 million has been approved for the study, which is supposed to be concentrated in the Coliseum-Hegenberger-Edgewater area. If the state gets the funding for the study struck down, all work would have to be terminated and would remain incomplete, unless a third party came in and volunteered the funds for the rest of the study. Perhaps Let’s Go Oakland or Don Knauss’s group could front the money. The issue there is that both groups prefer waterfront ballpark sites over the Coliseum, so those precious resources may not be best spent on what is effectively a third option, and a bunch of stuff that is not related to a ballpark at all.

There’s also a third way that is emerging, though it’s definitely an edge case. The successor agencies that are taking over for the RDAs are county-based bodies that report to the state. Their boards ultimately decide how the assets get divvied up. Some counties have had their own redevelopment agencies that were also affected by the new law. In Sonoma County’s case, they’ve chosen to keep two redevelopment projects going that would normally have been turned over to the state because they felt the projects were worthwhile. There would appear to be a conflict of interest for in-county activities as opposed to city-county activities, which are more arms-length. Alameda County’s board could conceivably come to Oakland’s rescue because both are partners in the Coliseum JPA. At this point it’s too soon to tell if that will a matter of discussion.

Both the Oakland and San Jose situations are not quite doomsday scenarios (that already happened when 1X 26 was passed), but they create uncertainty and delay at the very least. For Lew Wolff it’s a matter of cost. If Bud Selig is looking to put off a decision until all of this shakes out, he certainly has reason to.

05.03.12
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The enemy of my enemy is my friend, Part Deux

Shortly after Commissioner Bud Selig convened his three-man panel to figure out what to do with the A’s, all sorts of political machinations started happening. That included then-Oakland City Attorney John Russo (now City Manager of Alameda) penning a lawsuit threat against the A’s. I wrote back then:

What recourse do the Giants have, then? They can try to go to bat for Oakland, even though they have no history of doing that previously. Even though, in moving to China Basin, they’ve actively siphoned East Bay fans away from the A’s. Even though they’ve held a regional hegemony for decades. It wouldn’t be hard to posture themselves as saviors of baseball in Oakland – no matter how strange that sounds – as it wouldn’t require much effort and could be done in a sort of stealth mode. It wouldn’t be difficult to get a few letters from prominent pols in order, so no problem there either. The best part is for the Giants is that it works. It paints Wolff as a villain and Oakland as a victim, despite the backstory’s greater complexity.

Eerie, no?

Now we have word from the Trib that Jean Quan has met with Giants ownership. That wouldn’t be the first time. Perhaps it’s completely altruistic, in that they’re instructing her on how to put together an AT&T Park-style stadium deal, the kind that Clorox CEO Don Knauss is pursuing. (Knauss also had a lengthy interview with KQED.) Then again, this is the same Giants ownership group that may have pulled a power play to kill the Piccinini-Dolich group’s chances to buy the A’s, because the Giants didn’t want an Oakland-based group owning the A’s:

More likely, Piccinini suspects the San Francisco Giants ownership had a hand in convincing Selig to make sure the deal never materialized, especially since Selig has called the A’s move from Kansas City to Oakland “a terrible mistake.”

“I can tell you there’s an executive with the Giants, who shall go unnamed,” Piccinini said. “I ran into him at a Warriors game. He said, ‘I hear you’re getting involved with the Padres. We want you in San Diego; we just didn’t want you here.’ “

Speaking of Piccinini, he’ll be available soon if he wants to deal with the struggle to be an owner again. Piccinini is part of the Moorad group who were teased the Padres, only to have the rug pulled out from under them. Moorad won’t be able go after another team, knowing that there are permanent veto votes against him within the Lodge. Much of the rest of the Central Valley base of the ownership group should be available, and they could pull in another frontman – Andy Dolich, perhaps?

If Piccinini’s right, the Giants don’t care for the A’s in Oakland or anywhere else in the Bay Area. That makes it frustrating to see Quan consult with the Giants. The Giants aren’t doing the City of Oakland any favors. Just because they may have a somewhat allied interest (keeping the A’s out of San Jose) doesn’t mean they are allied.

If Quan’s smart, she’ll ask for some of the SF sponsors that Oakland will need because as much as the East Bay wants to puff its chest out , the pickings are slim. The Chron 200 is an annual list of the Bay Area’s largest independent, publicly-traded companies by revenue. Generally these are companies with revenues over $100 million annually. Some private companies, like Bechtel, or subsidiaries, like Matson (Alexander & Baldwin), and nonprofits (Kaiser Permanente) are excluded. Distributed by region, San Francisco has 19 of 200, with 5 in Marin County and 26 in San Mateo County. Santa Clara County has 102, or 51% of the list. Oakland has 3 companies on the list, the East Bay in total has 38.

Chron 200 list by city/county-region

If you combine SF, San Mateo, and Marin Counties, you get 50 companies. That’s not significantly greater than the East Bay’s 38 – or 40 if we include Kaiser and Matson. Straight up it would appear that there’s enough corporate strength in the East Bay to make a privately financed, $500 million ballpark happen. But the Giants’ argument for years has been that they needed the South Bay to finance AT&T Park. If that’s true then there’s a logical incongruence at work. Either the South Bay was required and there’s no other way but to include them, or the South Bay wasn’t required and the strength of the West Bay is enough. So which is it?

Also, check out the imbalance of companies in the Giants’ designated territory and the A’s. The Giants have over 75% of the Chron 200. The A’s have less than 20%.

The secrecy of the mystery ownership bidder is also a bit baffling. Lew Wolff has said that no interested party has asked him directly about selling the team. Instead, whoever’s interested has chosen to use back channels to engage Wolff – once. What is the point of that? If the East Bay coalition’s goal is to first work with the current ownership group to develop a plan to keep the A’s in Oakland, why have they never directly called Wolff once? They’ve gone semi-public twice in the last several months to indicate there’s an ownership group in waiting. Seems to me it’s a lot harder to put together a press conference than to call Wolff or arrange a meeting. For whatever reason, they haven’t done the latter. In the last comments thread, a question was posed, “Why doesn’t Lew listen to what these guys have to say?” I think the answer is that they have to present something to the man first. They’ve presented a plan to MLB three years ago that went unanswered. If they want to work with Wolff, they might want to first try to, you know, work with Wolff instead of posturing. It’s somewhat embarrassing that Mayor Quan has probably spent more time talking the Giants brass than the A’s. If A’s ownership is the enemy, don’t pussyfoot around it or hedge. Declare it and get to work. Otherwise it’s just another exercise in scoring PR or political points. And the only real winner in the end is the Giants.

05.02.12
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San Jose lists former redevelopment agency assets for sale

As part of efforts to pay down $4 billion in redevelopment debt, the City of San Jose is listing numerous properties owned by the now-dissolved San Jose Redevelopment Agency for sale. Included are the Jose Theater (Improv), Billy DeFrank Center (LGBT), two separate pieces of land on which the Hilton and Camera 12 sit, and numerous others. Many of the properties have liens on them or are tied into long-term ground leases, making them rather unattractive for speculators.

Notably absent from the list are the ballpark parcels near Diridon Station. Those properties were transferred to the San Jose Diridon Development Authority. The state may try to sue for those properties and put them under the control of the SJRA successor agency, though we haven’t seen indicators one way or another on such a move. For now any property sales have to be approved by the successor agency’s board, which is basically under the county’s control.

The notable property on the list is the $31 million North San Pedro site, also known as the Brandenburg property. It’s under contract with developer Barry Swenson for 600 housing units as well as a one-acre park, plus a rerouting of Julian Street through the area. Tony D. suggested a few weeks ago that the ballpark properties could be “swapped” with the North San Pedro parcels, resulting in a very clear site (10+ acres) for the stadium.

There are several issues with the Brandenburg property that could potentially outweigh any advantages it has in its ease of acquisition.

  • The western edge of the site is less than 600 feet from the approach to the 30R runway at SJC airport. I’ve measured noise in the area, and it’s typically 10-15 db greater than at Diridon when a plane is flying over.
  • Due to its proximity to the airport and landing approach, the FAA is going to put up a fight if any building proposal is higher than the one already approved for the area. According to project documents, the apartment buildings that have been approved for Barry Swenson are at most 76 feet tall. A ballpark will be at least 10-15 feet taller, probably more depending on how the lighting elements are designed and incorporated.
  • At 0.8 miles walking distance from Diridon Station, Brandenburg is at the outer limits of what people are usually willing to walk to get to a stadium.
  • A brand new EIR would have to be done, given the change of location and scope. It could take a year to complete, though the City could leverage some existing work such as the recent traffic study. While the NIMBY element at Shasta/Hanchett would be reduced, new NIMBYs from Ryland Park and the Northside could emerge. On the other hand, support could solidify from former Mayor Tom McEnery, who has several interests in San Pedro Square just two blocks away. San Pedro Square is situated so well that I figure that 60% of fans would end up going through it to get to a Brandenburg ballpark.

I don’t know exactly how the land swap would work. Santa Clara County is supposed to get half of the selling price due to its settlement with the City last year, but other than that wrinkle it’s a cut-and-dried deal. Since both the ballpark and Brandenburg sales are at option stage and have not yet been consummated, it could require recalculation of land prices since the ballpark deal was based on a specific land use. For Barry Swenson, the ballpark land probably isn’t all that attractive unless all of it can be acquired, including the AT&T and AERIS properties. Otherwise the developments would look very disjointed and there would be some potential hazards (high pressure flammable gas, electric substation).

It’s not a great option, but it’s out there if someone got really frustrated with how land negotiations were going. Of course, we’d have to get to the point of land negotiations first.

04.25.12
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A’s not on May owners meeting agenda

Small item in John Shea’s report today:

Managing general partner Lew Wolff, who attended Tuesday’s game, conceded that the A’s stadium issue won’t be on the agenda at the May 16-17 owners’ meetings, and he wouldn’t guess whether it’ll be included at the next owners’ meetings in August.

As long as Bud Selig keeps leaving the A’s and Wolff twisting in the wind like this, he’s the one who’s going to have to fix it. The A’s lease runs out after 2013. Selig should have to be the one who negotiates any short or long-term Coliseum extension, not Wolff. The Coliseum Authority and Wolff aren’t exactly buddies these days. Then again, Wolff and Selig supposedly are. With friends like these…

04.13.12
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BART groundbreaking in San Jose

It’s happening.

Bolstered by the release of $250 million in funding, the BART-to-Silicon Valley project got its official groundbreaking earlier Thursday afternoon. Representatives of BART, VTA, plus East and South Bay politicians were on hand for the ceremony. Also there was reader @MarkyJ824 to take pictures. He sent many of them to me and I’ll repost them below.

December’s article looking at the BART project explains how fans would get to Cisco Field/Diridon Station from the East Bay. If you haven’t read it yet, it’s worth a look.

More shovels to come

Poster of Berryessa Station rendering.

A BART car model on site. Hopefully it has the new anti-pathogen seats and floor.

The subway portion of the Warm Springs Extension is still under construction, and the line is expected to open for service in late 2015. The $2.3 billion BART-to-Silicon Valley project will get a total of $900 million from the federal government. Construction to Berryessa is expected to be completed by 2016, but could be done earlier. Testing should take another two years, putting passenger service at 2018, possibly earlier.

04.12.12
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All sides, now

KQED producer extraordinaire and friend-of-the-blog Nina Thorsen has been interviewing many people about the ballpark and potential relocation issue. Today she posted the second in a series, this one focusing on San Jose interests for and against Cisco Field. This follows up on last week’s Oakland-focused segment (which had a bit with our own Jeffrey). Next week will be a comparison of Oakland and San Jose from a bottom line standpoint. All of it is definitely worth a listen.

Something worth a read is a piece by Fox Sports’ Tracy Ringolsby from March 31. Somehow this article eluded me despite my best combing for news, and for that I apologize. Gojohn10 referred me to the article yesterday while we were at the game, and I was so astonished by the statement within that I couldn’t believe it. Sure enough, he brought up the article and I was very surprised. I posted the important blurb in the comments, but I’m putting it into this post so that front page readers will see it. Enjoy.

The challenges for Oakland A’s is not finding a buyer, but rather coming to agreement with the San Francisco Giants on the A’s desire to move their franchise to San Jose.

“Both sides are deeply positioned and I am in the middle of trying to fashion some type of an agreement,” Selig said. “It is very complicated.”

No other two-team market has territorial rights, but the Giants claim they control the San Jose area, and contend that was a critical part of their ability to finance AT&T Park. Giants officials also argue that Lewis Wolff and his partners were aware of that agreement at the time they purchased the franchise from the Haas Family, which is why they were able to buy the team for $180 million.

“It is different because in 1990 when Bob Lurie wanted to move the Giants to San Jose, Walter Haas, the wonderful owner of the Oakland club, who did things in the best interest of baseball, granted permission,” Selig said. “What got lost there is they didn’t feel it was permission in perpetuity. He gave Bob permission to go down there. Unfortunately or fortunately, it never got changed. We are dealing with a lot of history here.”

It’s part of the challenge of being commissioner.

“Nobody ever said it was going to be an easy job,” Selig said.

I’ve never heard or read Selig go into that much depth on the issue before. It’s a clear indicator that he is actually trying to broker a deal, which as I have written here repeatedly, would not be easy to do but could be done.

03.26.12
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New HOV lanes, BART-to-SJ good news for A’s fans

If you’re one of the 80% of A’s fans who drives to games, you just might get a quicker trip to the Coliseum in the future, thanks to a flurry of new road projects that Caltrans is starting this year.

According to Mr. Roadshow, the Bay Area is getting $5 billion to be spread among 19 projects. While none are in San Francisco, San Mateo, and Marin Counties, the bulk of the work (12 projects) will be in Alameda and Santa Clara Counties. Key among them are the extensions of carpool lanes along the Nimitz:

  • I-880 from Hegenberger Road in Oakland to Davis Street in San Leandro ($108 million)
  • I-880 from CA-237 in Milpitas to US-101 in San Jose ($31.5 million)

The South Bay project is less expensive than the East Bay project because most of the groundwork was already done for the former as part of a previous 880 widening project a decade ago. Combine these two with ongoing improvements to the Nimitz and improved interchanges at CA-92 and CA-262/Mission Blvd., and it should eventually be much smoother sailing in each direction for carpoolers, who are the usual profile for those who drive to games in Oakland.

If the A’s move south, the carpool lanes, along with at least 4 lanes in each direction the entire way between Oakland and San Jose, will help funnel gameday traffic. However, it’s not a complete, direct solution. Once a driver coming south along 880 hits the 101 interchange, the freeway will revert to not having carpool lanes, which could create congestion there and along surface streets as they try to make it the last two miles. A good way to go might be the Gish/10th Street exit on 880 South just before 101, as it’s a quick detour to downtown and SJSU.

The big ticket item is $2.3 billion for the 10-mile BART extension from Warm Springs (its own separate project) to Berryessa in North San Jose. Again, it’s not a direct trip to Cisco Field, but it’s a lot closer than Fremont and the only way to get to downtown San Jose is to first build to Berryessa.

Not related to Caltrans funding is one more big mass transit project, Caltrain electrification. The long-awaited conversion from diesel to electric trains will create an opportunity for more frequent service, which will drive down the operating cost per trip and help keep Caltrain solvent. To achieve this, Caltrain cut a deal with the state’s troubled high speed rail authority to devote $700 million towards the electrification project. To support the more frequent service and greater number of riders, the San Jose, Millbrae, and San Francisco stations will be expanded. The $1.5 billion project is expected to be completed by 2020. HSR is teetering right now politically, so it’s not clear if that project will ever be built. This money shift appears to be an acknowledgement by the authority that it may need to start in the most heavily impact areas first, before it commits to the full intra-state backbone. The move could backfire in the long run, as it may convince stakeholders and citizens that high speed rail would be best if it terminated in San Jose, not San Francisco.

03.24.12
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Rosenthal calls “stAy” crowd flat-earthers

Another week, another media morsel. If it’s not the Giants leaking information out or Larry Baer defending the Giants’ territorial rights claims, it’s a national sports writer pleading Lew Wolff’s case or Lew himself answering questions. To me, it feels more like slow-motion tennis than baseball, and while I like tennis, this has gotten repetitive and tiresome.

This time it’s Fox Sports’ Ken Rosenthal again with a plan to resolve the A’s-Giants impasse. Rosenthal thinks that the Giants should be guaranteed a minimum revenue amount against potential losses incurred from an A’s-to-San Jose move. He cites the O’s-Nats deal as an example. However, while Peter Angelos got a $360 million sale price guarantee and $75 million to start up MASN, I don’t believe that he got an annual revenue guarantee ($130 million) as Rosenthal suggests. There’s a good deal of conflicting information on this. It’s sort of a moot point because the O’s cleared the supposed minimum in the first year of the agreement, 2005, and haven’t looked back. Forbes’ estimated revenue for 2011 was $179 million.

Guaranteeing revenue for the Giants is a different matter. According to Forbes, the Giants haven’t been below the $200 million revenue mark in three years. Last year the Giants were in the top ten at $230 million, whereas the average revenue was $211 million (median: $201 million). I have to think that MLB, in its desperation to get some kind of deal done, has floated a revenue guarantee number to the Giants, to which Baer has balked. I’ve argued frequently for some kind of compensation plan that includes revenue, but a revenue guarantee of $230 million gives me pause, so I imagine it gives Bud Selig and the other owners pause as well. Then again, Wolff is projecting a bump from $150-160 million to $230 million for the A’s, so for baseball the result should be a net positive.

Rosenthal also talked to Tulane law professor Gabe Feldman about the prospects of an offensive antitrust lawsuit against baseball. Feldman characterized such a suit’s chances as very slim, a “real longshot”. Also ready with a quote was San Jose City Councilman and future mayoral hopeful Sam Liccardo, who may see all of this baseball posturing end up as part of his election platform if the saga continues at its current pace.

The sucker punch is saved for the end:

Only a few hardy souls — a latter-day version of the flat-earth society — believe the Athletics still can make it in Oakland. San Jose is the largest city in the Bay Area. A new ballpark in the city not only would transform the Athletics’ business model, but baseball’s as well.

There will be some Oakland defenders who say things like, “If you tell a lie long enough people believe it”. No, that’s not it. Sometimes a spade is a spade. If it wasn’t the case, Oakland wouldn’t be pinning its urban revival hopes on a pie-in-the-sky plan like Coliseum City. If it wasn’t truthful, Signature wouldn’t be trying to offload O29 on any Tom, Dick, or Harry who might be interested in land. It’s telling that one of the chief pro-Oakland arguments is that baseball doesn’t have the wherewithal to change T-rights on Wolff’s behalf. That’s all well and good, but how is that confidence-inspiring for Oakland?