AASEG Plans $5 Billion Redevelopment After Buying Half of Oakland A's Home Stadium

As the Oakland Athletics play their final season at the Oakland Coliseum, a significant redevelopment plan is underway. The African American Sports & Entertainment Group (AASEG) has purchased the city's share of the stadium site for $105 million, aiming to transform the area into a $5 billion mixed-use development. This plan includes commercial and residential projects designed to revitalize the region.

Purchase and Future Plans

AASEG is negotiating with the Athletics' ownership to acquire the remaining half of the 112-acre site. Once both parcels are secured, the developer intends to introduce a variety of new facilities, including sports venues, entertainment options, a hotel, and housing units. This transformation is set to begin next year, with the Athletics temporarily relocating to Sacramento before their permanent move to Las Vegas in 2028.

Economic and Community Impact

Oakland Mayor Sheng Thao emphasized the city's commitment to leveraging this project to stimulate economic growth, provide affordable housing, and create local jobs. The sale proceeds will help mitigate a budget deficit and prevent layoffs, contributing to broader community benefits.

Sports-Oriented Development

AASEG plans to maintain a strong sports focus in the redevelopment. This includes potential collaborations with the United Soccer League’s Oakland Roots for a new stadium. The developer is also exploring opportunities for a WNBA franchise and an NFL expansion team.

Temporary Relocation and Ownership Challenges

With the Athletics' lease expiring at the end of the season, the team will temporarily play in West Sacramento until their new Las Vegas stadium is ready. Meanwhile, team owner John Fisher retains control of the other half of the Oakland site, including an indoor arena. His acquisition of this property from Alameda County for $85 million is currently contested in court.

Historical Context and Broader Trends

The Athletics are the latest in a series of teams to leave Oakland. The Golden State Warriors moved to San Francisco in 2019, and the Raiders relocated to Las Vegas in 2020. Similarly, in Anaheim, California, the area around the Honda Center is being developed into a mixed-use community, reflecting a broader trend in stadium site transformations.

Potential Benefits for Oakland's Office Market

AASEG's redevelopment plan could significantly benefit Oakland's struggling office market, which has experienced record vacancy rates due to business departures during the pandemic. Currently, the office vacancy rate in Oakland stands at 18%, the highest in 25 years, highlighting the need for revitalization efforts.