Details emerge to keep Raiders
$1.25 billion effort creates stadium, commercial project
OAKLAND — A longawaited plan to stop Las Vegas from plucking the Raiders out of Oakland emerged Friday — a $1.25 billion, 55,000-seat stadium at the Coliseum site as part of the proposed deal that could also make room for a new A’s ballpark as well as a large commercial development. A mixture of private money from Hall of Famer Ronnie Lott’s investment group and $200 million in city-backed money — no county money will be used — to improve infrastructure could also bring office and retail buildings and hotels to the aging home of Raider Nation.
But whether it will be enough to stall the team’s Vegas dreams remains to be seen. Raiders owner Mark Davis, who has said previously he is committed to the plan unfolding in Nevada, could not be immediately reached for comment Friday. And NFL owners, who must ap-
prove any move, would have the final say. A source familiar with the project’s funding said $200 million would come from the NFL and $300 million from the Raiders, which includes $100 million the league promised the team after its failed move to Los Angeles. The rest is from Lott’s group and money-management firm Fortress Investment Group.
The source, who was not authorized to discuss the deal and requested anonymity, said Lott, the city and the county will negotiate whether to lease the property to Lott for up to 99 years or sell it to him. The property is estimated to be worth $150 million, according to a recent appraisal. In separate meetings on Tuesday, city and county officials are expected to approve the term sheet and exclusive negotiating agreement to begin to hash out details from the “framework” deal with Lott’s Oakland City Pro Football Group, before NFL owners meet in early 2017 to potentially vote on the team’s move.
Next, they’ll have to persuade Davis, who sources has said stopped meeting with officials as his focus shifted to Las Vegas, to resume talks in Oakland or at least nine NFL owners to vote against the move. Davis has had no input on the Oakland deal. “This is bigger than all of us,” Lott, a former San Francisco 49ers star who played one season with the Raiders, said in a statement.
“This shows what is possible when the Bay Area comes together — community leaders, business, working people, athletes, government officials and fans ... we believe we have a fighting opportunity to keep the Raiders here and join in revitalizing the community around the Coliseum.”
City and county leaders, the landlords of the Coliseum complex, said the team belongs in Oakland. They described the public money being used as “skin in the game” and not a risk for taxpayers or the city’s general fund.
No public money would be used to build the stadium; construction costs would be covered by the investment group, the team, and the NFL.
The public money, generated through bond sales, would be paid back through revenues created from the stadium and surrounding commercial development. Some $95 million in debt from renovations when the Raiders returned in the 1990s will similarly be covered with new revenue from the site, the source said.
“This term sheet agreement
“This term sheet agreement puts Oakland in the running to keep the Raiders in a way that is responsible to the team, the league, the fans and the taxpayers.” — Oakland Mayor Libby Schaaf
puts Oakland in the running to keep the Raiders in a way that is responsible to the team, the league, the fans and the taxpayers,” said Oakland Mayor Libby Schaaf in the release.
“Everything the city and county and the investor team is doing is about putting forward the best offer to encourage the Raiders ownership and the NFL to keep the Raiders in Oakland, where the team belongs.”
“This is the best plan the city and county have ever achieved in attempting to keep the Raiders in Oakland,” said Councilman Larry Reid, an apparent reference to previous efforts that fell apart.
“We are offering control of the land, a respected investment team and no risk to taxpayers in putting this deal together.”
Fifteen acres of the 105acre site are set aside for the Oakland A’s, according to the term sheet. It’s possible it won’t be needed: the A’s owners recently have had their sights on properties closer to downtown Oakland.
“That’s one of the many sites we’re looking at, but we haven’t picked one yet,” A’s President Dave Kaval said of the Coliseum. “It’s important we preserve the ability to go there, and obviously we’re supportive of the Raiders finding a way to stay in Oakland as well.”
Oracle Arena, home of the Golden State Warriors, remains as well unless the NBA team’s plan to move to San Francisco happens and the arena is no longer needed for other events, according to the term sheet. The plan calls for the creation of a major Grand Central Station-like development around the property that incorporates and enhances the use of the BART station.
After years of failed attempts to build something new at the Coliseum, Andy Dolich, a longtime sports executive, said in an email Friday that “the Lott group represents the best and maybe last opportunity to bring this ‘Raiders of the Lost Park’ search to keep the Raiders in Oakland through the construction of a new football stadium.” None of this matters if three-quarters of NFL owners approve Davis’ plan to move to Las Vegas, where the state has pledged $750 million to build a $1.3 billion domed stadium.
Casino mogul Sheldon Adelson is chipping in $650 million but indicated to Reuters in October that he may walk away from the deal if the Raiders don’t change their terms.
Clark County Commission Chairman Steve Sisolak wasn’t worried about the emerging effort to keep the Silver and Black in Oakland.
“I’ve been dealing with both (team president) Marc Badain and Mark Davis regularly over the past almost two years now,” Sisolak said. “I’ve found them both to be men of great integrity. They’ve committed that their plan is to move the team to Las Vegas as long as we could build a stadium.”
Las Vegas’ new Stadium Authority held its first meeting on Monday and began weighing two possible stadium locations.
“I don’t blame Oakland for not wanting to lose the Raiders,” Sisolak said. “They’ve got a strong fan base in Oakland, but they’ve developed a very strong fan base in Nevada very quickly.”
But Oakland Raiders fans were pleased to hear of the framework deal with Lott and the fact space is being set aside in case the A’s stay at the Coliseum. “Most East Bay fans are fans of both teams and consider that irreplaceable community treasures,” said Jim Zelinsky of Save Oakland Sports. “This gives Oakland hopefully a fighting chance to keep the Raiders.”