OAKLAND, Calif. (AP) – Oakland and Alameda County leaders will vote Tuesday on a financial and development plan to build a $1.3 billion football stadium at the Coliseum site to keep the Raiders from moving to Las Vegas.
Mayor Libby Schaaf and other local leaders on Friday presented details of the plan reached with the Ronnie Lott Group and Fortress Investment Group that includes public money only being used for infrastructure upgrades.
“This term sheet agreement puts Oakland in the running to keep the Raiders in a way that is responsible to the team, the league, the fans and the taxpayers,” Schaaf said. “Everything the city and county and the investor team is doing is about putting forward the best offer to encourage the Raiders ownership and the NFL to keep the Raiders in Oakland, where the team belongs.”
The Raiders had no comment on the plan and owner Mark Davis is committed to moving to Las Vegas, where a $1.9 billion stadium project has been approved. Nevada will raise $750 million from a hotel tax to fund the stadium with billionaire casino mogul Sheldon Adelson contributing $650 million and the Raiders and NFL kicking in $500 million.
The Raiders must get approval from 24 of the 32 NFL owners before being allowed to move with a vote possible as soon as January.
That put pressure on Bay Area officials to put together an alternative plan to keep the Raiders from moving. The parties have identified $1.25 billion in potential financing for a project that may cost upward of $1.3 billion for a stadium that would open in 2021.
The city will invest $200 million on infrastructure in the area as well as provide land worth $150 million. The Lott Group will contribute $400 million to the project with the NFL and the Raiders contributing $500 million. The NFL has already pledged $300 million to a stadium in Oakland when it prevented the Raiders from moving to Los Angeles earlier this year.
The city and county still must figure out how to deal with the nearly $100 million in debt on the current stadium before finalizing the deal.
Under the deal, the city and county will convey approximately 105 acres to Lott Group/Fortress for a football stadium with about 55,000 seats will be built along with mixed-use development for possible office or retail space, hotels, residential housing and parking.
There will also be 15 acres reserved for a new baseball stadium for the Athletics if they choose to stay at their current site. If the A’s decide to move to a different location that land will be added to the mixed-use development. Also, the 10 acres occupied by Oracle Arena could be added to the development if the Warriors move to San Francisco and the city and county decide not to keep using the arena.
“This is the best plan the city and county have ever achieved in attempting to keep the Raiders in Oakland,” councilmember Larry Reid said. “We are offering control of the land, a respected investment team, and no risk to taxpayers in putting this deal together. This shows the public, the Raiders ownership and the NFL that there is a viable plan to remain in Oakland.”
Hall of Famer Ronnie Lott has teamed with former NFL player Rodney Peete to head the Oakland Pro Football LLC, which is working with global investment manager Fortress Investment Group LLC on the project.
“This is about what it means to be from Oakland, and the values we share as a region,” Lott said. “If we put those things forward, we believe we have a fighting opportunity to keep the Raiders here and join in revitalizing the community around the Coliseum.”
Copyright 2016 The Associated Press.