A’s stadium plan worthy, report says
The Oakland A’s proposed new stadium could generate $7.3 billion in economic benefits over 10 years and create more than 6,100 permanent jobs in Jack London Square, according to an analysis by the Bay Area Council Economic Institute released Wednesday.
The report, commissioned by the A’s, breaks down that $7 billion into an estimated $902 million per year if the team builds out its proposed 35,000-seat waterfront ballpark plan at Howard Terminal along with nearby housing and commercial developments.
A 2017 report from the same group estimated $3 billion in economic benefits from a new A’s stadium, but that was before a site was selected and did not include activity outside the facility.
Some economists have expressed concerns that the number of economic benefits seems unreasonable and could be a precursor for the A’s to make a big ask from the city for funding.
“I don’t think I have ever seen a case where a report like this has not been followed by some sort of big ask for public financing,” said Victor Matheson, a professor at the College of the Holy
Cross in Worcester, Mass., who studies the economics of stadiums, sports and major events. “Even if it’s not public financing, they will say things like, ‘We don’t want any public financing at all, we just want a few years of tax breaks.’ If you add the few years of tax breaks, it will turn out to be hundreds and hundreds of millions of dollars.”
Dave Kaval, president of the A’s, has remained steadfast that the ballpark will be privately financed. No agreements are in place between the team and public agencies that are in negotiations. No economic deals have been reached, and there will be a months-long process to determine community benefits, infrastructure spending, transportation plans and other issues.
The Mayor’s Office did not immediately return a request for comment.
The A’s plan to develop an infrastructure plan in conjunction with the city, according to the team. The Oakland City Council will ultimately decide whether the A’s are eligible for city funding.
Rodney Fort, a professor of sport management at the University of Michigan, said the economics benefit number seemed “far-fetched.”
“If you could build a stadium and have it generate $7 billion, everyone would want one,” Fort said. “That’s an astronomical number.”
The proposed gondola system that would carry park-goers to Jack London Square could generate $685 million more in economic benefit over 10 years, the Bay Area Council Economic Institute’s report said.
The stadium project includes 3.3 million square feet of housing, 1.5 million square feet of commercial and office space, as well as a hotel, performance center and retail space. The majority of the jobs that would be created through the development would be from the office space, according to the report.
The development will result in 667 ballpark jobs, 132 jobs within the residential development, 2,500 office jobs, 186 retail employment opportunities, 110 hotel workers and 28 jobs at the proposed performance center.
“The office piece is where much of the economic impact will come from,” said Jeff Bellisario, director of the Bay Area Council Economic Institute.
A portion of the jobs would include concessions, maintenance and game-day staffing, Bellisario said. But with the building of housing and offices near the stadium, that could generate other jobs throughout the city, he said.
Bellisario said based on the group’s research, most of the attendees at the Coliseum come from out of town. The new ballpark would be an even bigger draw than the Coliseum because of its location and it could drum up tourism interest.
The port’s maritime tenants and the International Longshore and Warehouse Union, whose members work the port’s docks, said the report validates their position that the new stadium “doesn’t make sense.” The economic benefits report does not include maritime jobs.
“The stadium certainly doesn’t drive these economics, office space does,” said Pacific Merchant Shipping Association Vice President Mike Jacob. “It looks like to me, the city of Oakland should be focusing on how do you maximize investment in commercial real estate and office space.”