Agenda Item
3.3 24-0505 Subject: Purchase And Sale Agreement For Oakland's Undivided 50 Percent Interest In The Oakland Coliseum.
From: Councilmember Kaplan
Recommendation: Adopt An Ordinance Authorizing The City Administrator To Negotiate And Execute A Purchase And Sale Agreement With AASEG Land LLC, A Delaware Limited Liability Company, Or Its Affiliate, For The Sale Of The City Of Oakland's Undivided 50 Percent Interest In Property Located At 7000 Coliseum Way, Oakland, California, For One Hundred Five Million Dollars ($105,000,000) To Be Paid In Installments And Conditioned On Development Of On-Site Affordable Housing And Other Benefits; And Adopting California Environmental Quality Act Findings; On The June 12, 2024 Special City Council Agenda On Non-Consent
This legislation is not specific enough to protect the interests of the Oakland community:
- HOW MUCH on-site affordable housing is required
- WHAT and HOW MUCH Other Benefits are required?
SInce the sale is conditioned on these items:
- When must these items be delivered?
- What if they are not delivered by the developer (ie the property is sold before meeting these items)?
- Is the city then obligated to buy back the property at the original sales price and return the funds?
- SInce this sale is conditional, and the conditions have not been met, I don't believe this sale revenue can be recognized under US GAAP, and cannot be included in budgeted revenue