Negotiations between A’s, Oakland go down to wire
Oakland and the A’s returned to negotiations Monday as a City Council vote on a proposed new stadium approached, but there was no sign the sides moved closer on reaching a deal that would keep the baseball team in the city.
Mayor Libby Schaaf joined city staff Monday in talks with the A’s in advance of Tuesday’s City Council vote on a term sheet for the A’s proposed $12 billion waterfront ballpark project and accompanying development at Howard Terminal.
The nonbinding term sheet with the A’s lays out the framework of a potential development agreement with the two entities. The vote isn’t a final agreement between the city and the A’s. Negotiations can continue even after the vote.
The A’s laid out their demands in April but the city
staff ’s response on Friday differed on how to pay for an estimated $351 million in offsite transportation improvements and infrastructure upgrades. The A’s want to create two taxing districts to raise funds to pay for infrastructure supporting the stadium and surrounding developments. The city has rejected that proposal, insisting on just one taxing district to reduce the burden on taxpayers.
The proposed financial agreement going before the City Council on Tuesday lays out the blueprint for what could be in the final term sheet. A final term sheet won’t be voted on until all sides — the A’s and the city — agree on its terms.
Despite the high stakes and signals from the A’s that they might leave Oakland without a deal that closely matches their proposal, city officials have balked at the team’s financial terms and said they will continue to work toward an agreement.
“The city and the A’s are continuing their dialogue today with the shared goal to make a worldclass ballpark a reality,” said Justin Berton, Schaaf ’s spokesman. “The city will continue to advocate for a proposal that supports and serves Oakland and our entire region, provides affordable housing, public parks, great jobs and other direct benefits for the community — all without risk to our port, our taxpayers or the city or county’s general funds.”
But Dave Kaval, the president of the A’s, said uncertainty remains on whether the city and the team will reach an agreement before Tuesday’s vote.
“We still remain apart,” he said. “What we are trying to understand is what is even going to be voted on. There is concern from our side and from the league, as well, that there is going to be a positive vote on something that we don’t agree with. That would not be something that would be a positive development.”
If the City Council votes on a proposed term sheet that the A’s don’t agree on, Kaval said, “it’s tough to see a path forward.”
At the heart of the disagreement is the A’s plan for an infrastructure financing district over a large swath of Jack London Square to generate $1.4 billion that would help cover the cost, in addition to a taxing
“I will vote no for the A’s being located at Howard Terminal . ... I’m going to miss (them), that’s not a lie. But let’s just kiss and say goodbye and move on.”
Councilmember Noel Gallo
district covering the actual stadium and development.
Kaval said the team continues to stand firm on the issue.
“If the city has other proposals, we are always happy to talk about them,” Kaval said. “But we continue to stand behind the approach we articulated in April.”
City staff are proposing a single infrastructure financing district over the Howard Terminal site with help from Alameda County to fund infrastructure costs. The remaining $351.9 million could be covered by local, state, federal and other regional funds.
The county is expected to take up the discussion on whether to join the infrastructure financing district over Howard Terminal in September at the earliest. If the county supervisors, who have said they want to be out of the sports business, decide against joining the tax district, the project could die.
Councilmember Carroll Fife, who represents the district that includes the proposed project site, didn’t indicate which way she was leaning, but said in a statement that she wants a deal that is best for the city.
“No Oakland resident wants to see the A’s leave,” Fife said. “The city is doing its due diligence to work on a deal that is best for Oakland. As the District 3 council member, I’m going to advocate in the best interest of my constituents.”
Councilmember Dan Kalb said the negotiations that are happening are “earnest, determined and from the city’s point of view, in good faith.” Kalb said many outcomes are possible in Tuesday’s meeting — one being that not all terms are agreed upon and negotiations continue after the vote. But one point is certain from his perspective
“I’m not going to vote for the term sheet (the A’s) released in April,” Kalb said. “That is not a deal.”
Council President Nikki Fortunato Bas said she wants the A’s to respond to what the mayor and staff are putting forward in terms of financing and building affordable housing. The city is proposing that the A’s include about 450 affordable units in their development of 3,000 residential units.
The A’s said they will “adhere to redevelopment laws” regarding the construction of affordable housing.
“I really hope we can find a winwin here,” Bas said. “So many of us want to keep the A’s rooted in Oakland. But at the end of the day, this project has to not only benefit A’s fans, it has to benefit our taxpayers in the surrounding neighborhoods and the port.”
Councilmember Noel Gallo said he plans to vote against any deal that the city puts forward. He wants the sports team to build at the Coliseum. The A’s and MLB have said the Coliseum is not a viable site for a new ballpark.
“I will vote no for the A’s being located at Howard Terminal,” Gallo said.
If the A’s don’t get what they want at Howard Terminal, Gallo said they will “absolutely” leave Oakland. And if that’s the case, he has one message for the team.
“I’m going to miss you, that’s not a lie,” he said. “But let’s just kiss and say goodbye and move on.”
The City Council will also vote Tuesday to enter into nonbinding negotiations with the African American Sports and Entertainment Group for the city’s share of the Coliseum site. The group, made up of East Oakland residents, former city staff and developers, offered the city $92.5 million to purchase their share of the Coliseum.
The Coliseum is the largest swath of publicly owned land in Oakland. The group has laid out an ambitious plan for the site that includes a new stadium for a WNBA team, affordable and marketrate housing and hotels.
In 2019, the Alameda County Board of Supervisors agreed to sell its ownership to the A’s for $85 million over six years.
Last week, the Oakland Alameda County Coliseum Authority, the board that oversees the site, voted to authorize the executive director to begin working out a lease with the African American Sports and Entertainment Group to bring in a WNBA team.