State probes Alameda County’s sale of Coliseum site share to A’s

OAKLAND>> The state is investigating whether Alameda County followed the law when selling its share of the Coliseum site to the A’s in 2019, according to a state agency letter.

In the letter to Alameda County Administrator Susan Muranishi, the California Department of Housing and Community Development said it has no record that the county declared its share of the property either “surplus land” or “exempt surplus land,” or notified the appropriate developers that he land is available for sale, as required by state law.

The Surplus Land Act requires public entities selling or leasing their land to determine whether the property is considered surplus and to notify developers who may have an interest in developing affordable housing there. The law aims to increase production of affordable housing through such a notification.

The county has until Oct. 18 to prove it followed the law or “correct the deficiency,” according to the letter signed by Sasha Wisotsky Kerganwhich, unit chief of Housing Policy Development for the state.

Neither Muranishi nor the county’s lawyer, Donna Ziegler, responded to questions about whether they believe the county followed the law.

Alicia Murillo, a spokesperson for the Housing and Community Development division, said the county could provide documentation showing it either sent the required notices or is eligible for an exemption.

It’s unclear whether the sale could be halted or other measures taken if the county doesn’t come up with proof it handled the transaction correctly.

A local agency that sells its land in violation of the Surplus Land Act could be liable for paying a penalty of 30% of the final sale price for a first violation and 50% for any subsequent violation.

According to the agreement signed by the A’s and county in 2019, the team is scheduled to make annual payments in mostly increments of $10 million or $15 million toward the purchase of the property through 2026.

The A’s did not respond to requests for comment.

The investigation began after Communities for a Better Environment notified the state last month of its “intent to enforce” the Surplus Lands Act by suing the county.

Shana Lazerow, legal director for the environmental organization, said the East Oakland residents it represents want the city and county to work with them and others to develop affordable housing and other amenities at the Coliseum site.

“If (the state) will enforce with the clear goal of unwinding the deal, that would be great,” Lazerow said.

The A’s have said they plan to develop housing, commercial space and other uses at the site but ditch the Coliseum in a few years and play elsewhere, preferably in a planned waterfront ballpark a few miles up Interstate 880.

The team is in tense negotiations with the city over the financial terms of its proposal to build a $12 billion mixed-use complex at the Port of Oakland’s Howard Terminal that would include the ballpark as well as 3,000 homes, hotels, offices, retail and a performing arts center.

Because the A’s have so far refused to commit to building affordable housing at the Howard Terminal site, some residents and activists worry they’ll also resist calls to build such housing at the Coliseum site.

The state letter advises the county that Communities for a Better Environment can sue it after waiting at least 60 days beyond the Aug. 19 date the letter was sent.

It’s not the first time Alameda County has been accused of disregarding the law when it comes to the Coliseum site.

In late 2019, Oakland — which owns the other half of the Coliseum site — sued the county, alleging its pending sale of Coliseum property to the A’s would be illegal under the Surplus Land Act.

In court filings at the time, the county argued that the law did not apply to the sale. The county contended the sale would be permitted under the state’s Economic Opportunity Law, which allows property to be sold or leased if approved at a public hearing “to create an economic opportunity.”

While the city’s attorneys countered then that the Economic Opportunity Law does not supersede Surplus Land Act requirements, and a judge granted a temporary injunction to halt the sale, the city dropped the suit. The county went on to reach an agreement to sell its share of the the Coliseum site to the A’s for $85 million spread over six years of payments.

Mayor Libby Schaaf said then it was important that the city work nicely with the county and the A’s, which also were trying to buy Oakland’s half of the Coliseum site.

Oakland issued its own notice under the Surplus Land Act in 2019, but it didn’t sell its share and is currently negotiating with two development teams that want to buy or lease the property.