T
he African American Sports & Entertainment Group (AASEG) has increased its offer to purchase half of the Oakland Coliseum from $105 million to $125 million. The revised price is part of an amended agreement signed with the City of Oakland, which also includes a faster payment plan for the property at 7000 South Coliseum Way in East Oakland. According to Oakland Mayor Sheng Thao, "This amended agreement with AASEG is a win-win" that secures a higher purchase price and faster payments for the city.

    AASEG had initially missed a deadline to pay a $10 million down payment for its July purchase of a 50 percent interest in the 120-acre property. The group led by Ray Bobbitt was supposed to have made the payment by September 23, but it never came. The revised agreement expedites AASEG's payment schedule, allowing the city to receive $110 million within the current fiscal year.

    The new deal will also enable AASEG to quickly redevelop the 58-year-old stadium and surrounding parking lots. As part of its proposal, AASEG plans a $5 billion redevelopment of the Oakland Coliseum site, including housing, hotels, a convention center, and other amenities. The city has agreed that 25 percent of homes built at the site must be affordable.

    The revised agreement requires both parties to close the deal within the fiscal year, triggering early defeasement of the last arena bond payment of $4.2 million. The additional revenue received by the city will increase general fund resources for city-wide services, including public safety and fire services.