AFRICAN AMERICAN SPORTS &

ENTERTAINMENT GROUP
ECONOMIC EQUITY THROUGH SPORTS & ENTERTAINMENT DEVELOPMENT
1423 Broadway #183, Oakland, CA 94612

September 28, 2021

The Honorable Mayor Libby Schaaf

The Honorable Council President Nikki Fortunato Bas
The Honorable Members of the Oakland City Council
One Frank H. Ogawa Plaza
Oakland, CA 94612

Re: AASEG’s Offer to Acquire the City’s Interest in the Oakland Coliseum Complex

Dear Mayor Schaaf, President Fortunato Bas, and Esteemed Members of the City Council,

The African American Sports and Entertainment Group (AASEG) team is once again humbled and
honored to present our revised Term Sheet that sets forth the terms upon which we propose to purchase
the City’s interest in the Coliseum Complex. It remains our objective to undertake a community-
benefiting, transit-oriented, and high-density development at the Coliseum site.

Since this matter came before the City Council in July 20, 2021, the AASEG has engaged in productive
negotiations with City staff. This process has included the mutual exchange revisions to our original Term
Sheet offer. Our current Term Sheet includes, among other concessions, an increase in our offer price to
the amount proposed by staff. We have also further clarified our willingness to negotiate provisions that
allow the City to participate as an equity owner/partner in the development of all, or part(s), of the site.

Finalizing the purchase terms, and assuring the City’s robust economic outcomes, will require significant
due diligence by independent consultants as well as AASEG. Furthermore, ongoing stakeholder outreach
and feedback will be needed to ensure community needs and objectives are prioritized and ultimately
achieved.

This outreach and objective analysis will be extremely difficult to achieve (at best) without the provision
of clear negotiation authority. Furthermore, the future ability to navigate the complex processes to entitle
the site could be severely compromised if competing developers are concurrently interacting with key
environmental consultants and community stakeholders. Therefore, it is now important for the City and
AASEG to enter into a more formal and “exclusive” negotiation process.

AASEG’s Guiding Development Principles

It has been well documented that African Americans, and people of color, in general, have historically
been severely underrepresented in the development of public and private land. The Coliseum site is one of
few remaining land-use opportunities in Oakland (and the Bay Area, more generally) that is at a scale to

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AASEG’s Offer to Acquire the City’s Interest in the Oakland Coliseum Complex
Mayor Libby Schaaf and Members of the Oakland City Council
September 28, 2021

have a significant restorative economic impact. Therefore, we consider the acquisition of the City’s 50%
interest in this transformative development site, something that conveys a profound responsibility, as well
as opportunity.

Our development plans are being configured to facilitate much needed and unprecedented levels of
equitable access to employment, small businesses, and ownership participation. In doing so, we will
effectively address the root causes of historic inequality and help stem the ravages of its mounting
negative impacts in East Oakland and beyond.

In previous correspondence with you, we have shared our enthusiasm for a “Partnership” collaboration
with the City of Oakland, and with the community on this important opportunity. We remain ready and
willing to reimagine the Coliseum Complex and revitalize East Oakland. We are a multidisciplined team
of skilled industry practitioners with proven track records as drivers of economic equity and social justice.
We are prepared to use economic growth as a vehicle to help correct the most critical challenges that face
our community.

To recap our efforts so far, we have spent more than a year meeting with several dozen community
organizations to understand their needs and help us design our vision. Our revolutionary development
approach will include a true community-focused equity plan.

Our proposed project vision embraces some of the following objectives and features:

• AASEG remains committed to actively pursuing a) acquiring or attracting a WNBA team to play
at the Coliseum-Arena as its home court; b) obtaining a Black-owned/community-owned NFL
team; and c) facilitating improved facilities for professional soccer in Oakland.

• The AASEG will purchase and develop the site regardless of whether Oakland is able to attract
new professional sports teams.

• The AASEG will plan and pursue an environmentally friendly development project, creating up
to 40,000 jobs, and adding up to $1.5 Billion (NPV) dollars to the City’s General Fund over the
useful life span of the development.

• The AASEG will create a regional economic hub and focus on facilitating Black business
occupancy within the development, including attracting a Black-owned bank and a Black
educational institution.

• The AASEG will embrace the East Oakland Building Healthy Communities’ “Healthy
Development Guidelines” and focus on creating ownership participation of the surrounding
communities as well as developing further community benefits.

• The AASEG will showcase arts, life sciences, and family entertainment, including African
American cultural facilities; an Oakland Sports and Entertainment Museum; a cultural center that
celebrates Native American, Latinx, and AAPI Oakland residents; and a Social Justice Monument
that commemorates the history of all Oaklanders and the cultural diversity of this unique City.

• The AASEG will commit to at least 35% of the residential units being reserved as affordable
housing within the development – and pursue both rental and ownership options for prospective
residents.

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AASEG’s Offer to Acquire the City’s Interest in the Oakland Coliseum Complex
Mayor Libby Schaaf and Members of the Oakland City Council
September 28, 2021

• The AASEG will work to give priority in both market rate and affordable housing units, not only
to existing Oakland residents but also to former Oaklanders who were displaced from the City
within the last 20 years. This will serve as a powerful incentive and mechanism to embrace those
treasured members of the community who have been displaced. Not only will it prevent the
further displacement of Oakland residents, but it will reverse some of the harmful effects of
displacement and gentrification from the past.

• The AASEG has agreed to a unionized construction workforce and development of the project
and will continue to use unionized labor in the Sports and Entertainment operations.

• The AASEG will concentrate on training and hiring residents directly from the community,
including those who are facing re-entry from the criminal justice system as well as the formerly
and currently unhoused, to help them attain the skills necessary to be hired for and work in both
entry-level and unionized positions.

We remain willing to using the proposed due diligence period to work with the A’s, the City, and the
County to establish an amicable resolution of the ownership interest and achieve the unencumbered
disposition of the property necessary for finance and development.
We also look forward to following up with you and advancing our collective goal of building a more
robust and inclusive Oakland economy.

Respectfully,

Ray Bobbitt
Project Coordinator
AASEG

CC: City Attorney Barbara Parker

CC: City Administrator Ed Reiskin
CC: Deputy City Administrator Betsy Lake
CC: Program Manager Larry Gallegos

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