Oakland Coliseum City Gets New City Development As Investor? Yes!
Oakland Mayor Jean Quan, in what can only be called a victory lap in her race against re-election time to bring good news related to the retention of Oakland’s Sports Teams, announced that a new investor / developer has joined the team responsible for the Oakland Coliseum City Mixed Use Development. I’m going to post the “breaking news” press release I just received a few minutes ago, and then we’ll do more updates on the new member of the group, New City Development and it’s boss Floyd Kephart.
NOTE: Oakland Sports Forum / Oakland Mayoral Debate October 29th, 6PM to 8 PM, Lakeshore Avenue Baptist Church, 3534 Lakeshore Avenue. Website: OaklandSportsForum.com
Meanwhile, Sean Maher sent an official City of Oakland press release, and then Mayor Quan issued an Oakland Raiders-colored and branded press release connected to her campaign website (talk about the old one, two punch) and which contained this message:
BREAKING NEWS: COLISEUM CITY UPDATE
Don’t count Oakland out! Oakland proves the naysayers wrong time and time again, and once again, we have shown our stamina and our “commitment to excellence.”
Three years ago I put in motion the necessary steps needed to save our teams. I knew the public would not fund future stadiums and we needed private developers that would partner with the teams but also transform the the vacant land out at the Coliseum into a 24/7 “city.”
We also needed to start and fund the necessary environmental and transportation studies that would allow us to develop over the next 25 years.
Yesterday, in private session, the City Council voted 6-1 to extend the Exclusive Negotiating Agreement with a partnership led by a team of finance professionals and a team of development groups now led by San Diego businessman Floyd Kephart of New City Development. Kephart represents a group of major hedge funds which are expected to fill the gap in the stadium funding. He must also obtain approval of the master developer from the NFL and finalize the terms with Raiders, the City and County. He will also reach out to the A’s and Warriors.
I’m also excited about the recent commitment by the A’s ownership to sit down and discuss their own opportunities to build a new ballpark in Oakland. As I have promised since I took office, we now have two viable building sites for the A’s to choose from: Howard Terminal and Coliseum City. After the vote to extend the lease with the A’s, the decision of where to build the new ball park is in their hands. I’m looking forward to a fruitful conversation with them.
From Maher: Oakland moves Coliseum City negotiations forward with new lead investor
Oakland, CA – The vision for Coliseum City and its revitalization of East Oakland took a big step forward Tuesday when the City Council voted 6-1 in closed session to extend talks with a negotiating team that has brought a new investor to the table.
Added to the negotiating team was New City Development, managed by San Diego-based businessman Floyd W. Kephart, chairman of the board for The Renaissance Companies, a private financial and real estate advisory firm representing major private equity and hedge funds. The addition represents significant new capital being brought to the project. The City’s exclusive negotiating agreement with the development team was extended by 90 days, during which time the negotiating team must name a master developer for the project. That developer will also have to be approved by the City, the County of Alameda, the Raiders and the NFL.
“Today is a critical step forward in the work we kicked off three years ago, when my administration began the process of developing the master plan and environmental impact report for Coliseum City,” Mayor Jean Quan said. “I am grateful to the Raiders for their continued commitment to Oakland, and excited to partner with Mr. Kephart. I expect the negotiating team to reach out to the A’s and the Warriors, because there is room for all three teams in this project. I am determined to keep all our teams. But this is also about more than the sports facilities: I am excited to build the thousands of housing units, the hotels and the entertainment venues we need to make Coliseum City an exciting, year-round destination providing thousands of jobs for our residents.”
The initial investment funds cover $5 million in pre-development costs and commitments of significant equity to invest in both the Raiders deal and the larger Coliseum City deal, according to Zack Wasserman, an attorney representing the development team.
Kephart thanked the City Council and said it was the leadership of Mayor Quan and Vice Mayor Larry Reid and their commitment to the larger vision of Coliseum City that convinced him New City should join the project.
“The leadership of Oakland has given us a clear vision to work toward: we can provide capital, but just as important is to build this project with community support as we work to meet the objectives of the Master Plan and provide what the community needs,” Kephart said. “We’re interested in keeping all three teams here and will do all we can to make that happen.”
Vice Mayor Reid thanked Kephart as well and noted the progress occurring — and that could be developed — throughout Oakland.
“This will transform East Oakland for a lifetime. I believe in Mr. Kephart and I thank him for his commitment to my district,” Reid said. “My city’s progress is inspiring. Coliseum City, Brooklyn Basin and the Port of Oakland expansion project are all bringing powerful change to Oakland.”
Stay tuned.