09 September 2005
SB 4 dies on the vine
The legislature ended its short session last night without SB 4 coming to a vote, which means any proponents will have to try again next year. As I noted earlier, the bill went through some major changes in terms of the bond approval mechanism, effectively neutering it. This effectively keeps the status quo, where groups looking for tax-free bond financing will have to go strictly through municipalities and joint powers authorities, and if public sources are required such as taxes, votes will be required.
08 September 2005
Recap of Selig speech
Bud Selig's speech and subsequent Q&A session was about an hour long total. The speech was a brief history of Selig's time as an owner, then as the commissioner. Not naturally the most charismatic of speakers, Selig's sporadic eye contact with the audience made the delivery fairly dull, and the speech an exercise in self-aggrandizement. As expected, Selig didn't say anything to encourage San Jose supporters. In fact, his statements should provide some hope for Oakland supporters, though no one should be proclaiming Selig as the savior of baseball in Oakland just yet.
Notes: The audio stream of the event will be played on KQED-FM on Friday night at 8 p.m. An AP article focused largely on steroids is now available on the Chronicle's SF Gate site. Daniel Brown from the Merc also wrote an article more geared towards territorial rights. Channels 5, 7, and 11 were present getting video.
Selig was initially flanked by former Commonwealth Club president Joe Epstein and somewhat surprisingly, County Assessor Larry Stone, better known as an irritant for East Bay supporters. Stone emceed the event, and before he finished his introduction of Selig, he plugged the MLB-to-San Jose effort, almost on cue.
Notes from the speech portion:
1. What happened to the Reggie Jackson group's bid to buy the A's?
The San Jose boosters I overheard upon leaving didn't appear discouraged, least of all Larry Stone. While Selig dismissed the idea of overturning the Giants' territorial rights, that's the weakest option because it's the least realistic. Maury Brown of Business of Baseball and the Oregon Stadium Campaign and I have had this discussion in the past, and I agree with him that for the A's to move anywhere, whether it's San Jose, Portland, Vegas, or Sacramento, the bidding group needs to make an extremely compelling case - not just to a single affected owner, but to all 30 owners and MLB. Oakland, with its location and access, is hard to argue against. Any bids to move the team will have to be comprehensive, probably including packaged TV and radio deals and lists of pre-committed corporate sponsors (because those are Oakland's weak points currently). Without those requirements, I doubt any bid would be entertained.
Remember that in Wolff's press conference last month, he talked about the ability of the East Bay business market to fill the 40 luxury suites and 40 minisuites (plus club seats) that he wants to build in the new ballpark. It stands to reason that he'll compare that to other market studies, determine the costs and risk factors, and then decide - if it even gets to that point.
Notes: The audio stream of the event will be played on KQED-FM on Friday night at 8 p.m. An AP article focused largely on steroids is now available on the Chronicle's SF Gate site. Daniel Brown from the Merc also wrote an article more geared towards territorial rights. Channels 5, 7, and 11 were present getting video.
Selig was initially flanked by former Commonwealth Club president Joe Epstein and somewhat surprisingly, County Assessor Larry Stone, better known as an irritant for East Bay supporters. Stone emceed the event, and before he finished his introduction of Selig, he plugged the MLB-to-San Jose effort, almost on cue.
Notes from the speech portion:
- MLB will surpass last season's league attendance record by the end of the current season.
- He talked up the significant rise in the value of the Dodgers franchise when it changed hands from the O'Malleys to Fox and finally to Frank McCourt. He did not let slip an estimate of the Expos' eventual selling price.
- Moneyball was mentioned as a subject that is "theological in nature."
- Revenue sharing, payroll taxing (luxury taxes), and the debt service rule are the base of the current financial structure. He sees little need to change the structure in the near future.
- The speech was littered with quotes from Mark Twain, Thomas Wolfe, and Doris Kearns Goodwin.
- Steroids is cheating. The only other substance mentioned was andro, and only as a historical reference. No mention of HGH.
- He noted that in the midst of all of the media's criticism of how MLB handled steroids during the 90's, he looked up articles written during the era and saw only "11 articles that mentioned steroids."
1. What happened to the Reggie Jackson group's bid to buy the A's?
- Selig claims it was Schott/Hofmann that decided to not entertain Jackson. He acknowledged that this contradicts Schott's initial statements on the matter, but insisted that it was the ownership group that made the decision, noting that the commissioner's office doesn't have to time interfere with these things. MLB will only step in when it's time to evaluate a group's financial worthiness.
- Not happening. No way baseball will change rules for a single individual.
- "I'm comfortable where we are," Selig said.
- "That phenomenon is a myth that somehow keeps getting perpetuated," said Selig. According to Selig, the league shares the books with the owners, and the payers (big market "have" teams) wouldn't stand for any prolonged effort by other owners to stash the money. Again, he reinforced the notion that the baseball's economic model is good.
- This gave Selig the chance to tout the World Baseball Classic. He did this during the speech as well.
- The DH was one of the few things on which he agreed with former A's owner Charlie Finley (Yes for the AL). He's happy with the way it stands since the teams in the two leagues are happy with the existing rules. (A good follow-up would've been to ask for his take on using the DH in NL-hosted games and the hitting pitcher in AL-hosted games, but there was no opportunity for follow-ups.)
- The only change he might see happening is a geographical redistribution of teams, but he didn't get specific.
- Without outright saying it, Selig indicated that he's leaving the records alone and will keep them asterisk-free. We'll see if that holds up if any other high-profile sluggers are shown to have used.
- Repeating a statement he made weeks ago, Selig said, "You couldn't run the sport without internal rules and you can't make exceptions."
- The Giants' territorial rights were affirmed when they made the huge private investment in SBC Park.
- His feelings on relocation are heavily shaped by the Braves' move to Atlanta. Besides the territorial rights issue, he appears to be stridently anti-move, though his previous statements about the situation in Miami raise questions about that.
- Regarding San Jose, he said that "San Jose is a great location, but that's not the issue. We have to protect the status quo. We're clearly not going to expand."
- "No. It's not a question of overturning rights," replied Selig. I'm not certain if the response meant that he would not allow it to come to vote, or whether he was rendering his opinion on the outcome of a vote. Surely the owners would not vote for anything that could potentially threaten their own financial well-being.
- He trumpeted the party line about "staying focused on Oakland." The question of what would happen if the Oakland deal didn't succeed was not asked.
The San Jose boosters I overheard upon leaving didn't appear discouraged, least of all Larry Stone. While Selig dismissed the idea of overturning the Giants' territorial rights, that's the weakest option because it's the least realistic. Maury Brown of Business of Baseball and the Oregon Stadium Campaign and I have had this discussion in the past, and I agree with him that for the A's to move anywhere, whether it's San Jose, Portland, Vegas, or Sacramento, the bidding group needs to make an extremely compelling case - not just to a single affected owner, but to all 30 owners and MLB. Oakland, with its location and access, is hard to argue against. Any bids to move the team will have to be comprehensive, probably including packaged TV and radio deals and lists of pre-committed corporate sponsors (because those are Oakland's weak points currently). Without those requirements, I doubt any bid would be entertained.
Remember that in Wolff's press conference last month, he talked about the ability of the East Bay business market to fill the 40 luxury suites and 40 minisuites (plus club seats) that he wants to build in the new ballpark. It stands to reason that he'll compare that to other market studies, determine the costs and risk factors, and then decide - if it even gets to that point.
07 September 2005
Commonwealth Club - Selig appearance
I'll be attending tonight's Commonwealth Club event featuring Bud Selig in San Jose. I may be able to ask him a question. What would you ask the commish? I have a list so far, and I except to check off most of those questions as the night progresses. Expect an update later tonight.
06 September 2005
Business Journal picks up the SB 4 trail
An article in the San Jose Business Journal summarizes the current situation with SB 4 and has comment from local politicians from Fremont and San Jose. Though the piece has a definite South Bay focus, the financing structure created once SB 4 passes would be available to every city, county, and joint powers authority in the state that wants to finance a public venue, including Oakland and the JPA. As noted in an earlier post, it could create an competitive bidding environment among cities, with the winner providing the most favorable deal for a team owner.
There should be some potential benefit for San Jose Earthquakes fans. AEG, which has threatened to move the Earthquakes as early as after the end of the 2005 season, is on record as supporting the bill, so it knows the ramifications. The Santa Clara County Fairgrounds, which has been touted as a possible site for a huge soccer complex with a 25,000-seat soccer stadium at the heart of it (like those in Dallas and LA), would become a much more likely possibility.
There should be some potential benefit for San Jose Earthquakes fans. AEG, which has threatened to move the Earthquakes as early as after the end of the 2005 season, is on record as supporting the bill, so it knows the ramifications. The Santa Clara County Fairgrounds, which has been touted as a possible site for a huge soccer complex with a 25,000-seat soccer stadium at the heart of it (like those in Dallas and LA), would become a much more likely possibility.
01 September 2005
Radio and SB 4 news
Any pursuit of KTCT-1050 AM as the A's flagship may soon be rendered moot when Susquehanna Pfaltzgraff decides which bidder wins the right to purchase its radio properties. Bidding is open for Susquehanna Media until September 13, though the company isn't releasing any other details. The parent company, Susquehanna Pfaltzgraff, has already divested itself of its Internet consulting business, SusQtech, and its dinnerware business as well. Top suitors include Infinity, Clear Channel, Cox Radio, and Entercom. Business continues at KTCT, which is applying for the abililty to broadcast at 50,000 watts at night as well as during the day.
SB 4 continues its march through legislature. Next up is a vote in the Assembly's Committee on Jobs, Economic Development, and the Economy, which should be a breeze since the potential impact of large numbers of construction jobs makes the bill (at least within the limited context the JED&E committee works) a near no-brainer. According to the Assembly's published schedule, the next meeting for the committee is on Tuesday, September 6. That would give the bill 3 days, or the rest of the week, to pass the committee, get a vote after the third reading on the Assembly floor, then get concurrence for the amended version on the Senate floor before the end of business on the 9th. Keep in mind that the bill does not need to be signed by the Governor to become law, it only needs to pass both houses and not get vetoed by the Governor afterwards. If all of that happens, on January 1, 2006 the bill would become law.
SB 4 continues its march through legislature. Next up is a vote in the Assembly's Committee on Jobs, Economic Development, and the Economy, which should be a breeze since the potential impact of large numbers of construction jobs makes the bill (at least within the limited context the JED&E committee works) a near no-brainer. According to the Assembly's published schedule, the next meeting for the committee is on Tuesday, September 6. That would give the bill 3 days, or the rest of the week, to pass the committee, get a vote after the third reading on the Assembly floor, then get concurrence for the amended version on the Senate floor before the end of business on the 9th. Keep in mind that the bill does not need to be signed by the Governor to become law, it only needs to pass both houses and not get vetoed by the Governor afterwards. If all of that happens, on January 1, 2006 the bill would become law.
Measuring a stadium's value
SI.com just released their baseball Fan Value Index, which attempts to quantify the experience at each of the thirty MLB ballparks based on prices, amenities, and "intangibles" such as neighborhood and atmosphere.
McAfee Coliseum landed right in the middle, at #15 between Yankee Stadium and U.S. Cellular Field. In giving the Coliseum a score of 40 out of 70 possible points, reviewer James Black hit the nail right on the head in one of his closing comments:
Incidentally, the top-ranked venue this year was Miller Park, which like the Coliseum has lots of parking and plenty of walk-up tickets available. Limited public transit options knocked it down a bit, but the great tailgating experience and the amenities available in the new ballpark boosted its score. PNC Park placed second, Coors Field third, and Angels Stadium fourth (thanks to Arte Moreno's promise of reasonably-priced concessions and tickets).
McAfee Coliseum landed right in the middle, at #15 between Yankee Stadium and U.S. Cellular Field. In giving the Coliseum a score of 40 out of 70 possible points, reviewer James Black hit the nail right on the head in one of his closing comments:
"Despite regularly producing playoff teams since the 1970s, the A's play in one of the majors' least interesting ballparks, while across the Bay the Giants' inconsistent play (at best) is rewarded with a veritable Taj Mahal."Surprisingly, that very Taj Mahal across the bay placed 24th on the list, scoring a total of 37. The low scores came largely from inflated prices cited from Team Marketing Report's Fan Cost Index, with which I have to take some issue. It basically assumes that a family will buy the same food and souvenirs at every game, which is less likely to happen the more one goes. I can't comment on souvenirs since I don't buy them, but food prices are only slightly higher at SBC versus those at the Coliseum. A microbrew usually costs a quarter more in SF, while a hot dog is 25-50 cents more. SBC, through its pouring rights deal with Coke, has one pretty unique item not found in other ballparks: Coke vending machines. When the park opened in 2000, those 1.5 L bottles cost only $1. They've steadily gone up since then and are no longer a great deal at $3 (IIRC), but they more than did the job since they didn't have long lines and the sodas were always cold. It's an idea that should be considered for a new A's ballpark, since the overhead compared to using vendors is relatively low. No, I am not arguing for the return of the Automat, but for something as simple as a drink, there are obviously more efficient ways of selling it, and vending machines make sense.
Incidentally, the top-ranked venue this year was Miller Park, which like the Coliseum has lots of parking and plenty of walk-up tickets available. Limited public transit options knocked it down a bit, but the great tailgating experience and the amenities available in the new ballpark boosted its score. PNC Park placed second, Coors Field third, and Angels Stadium fourth (thanks to Arte Moreno's promise of reasonably-priced concessions and tickets).
31 August 2005
Selig to visit San Jose
According to this report from the Merc, the Commonwealth Club's Silicon Valley chapter scored big in getting an appearance from none other than commish Bud Selig. Selig is scheduled to speak September 7 at the McEnery Convention Center, where he will speak on numerous topics including steroids and expansion. The most locally intriguing issues are, of course, relocation and territorial rights. This is probably the best opportunity for San Jose partisans to find out if Selig is willing to budge on his hardline stance regarding the Giants' rights to Santa Clara County. There is an issue of timing, since the Oakland ballpark plans were announced only weeks ago and Selig won't want to say or do anything to potentially jeopardize that initiative. It's likely that Selig could spend the day touring the Coliseum North site with Lew Wolff, perhaps even alternate sites like Fremont. If San Jose officials were able to get an hour or so to make an unofficial pitch and tour, it would be a major coup for their efforts.
I, for one, will make every effort to attend the event.
I, for one, will make every effort to attend the event.
26 August 2005
SB 4 passes Appropriations Committee
Yesterday, SB 4 passed easily in the State Assembly's Appropriations Committee, 13-4. The three Bay Area Assembly members on the committee (Mark Leno, Johan Klehs, Joe Nation) all voted yes. Now, it should be on to a third reading and a vote in the Assembly. Afterwards, the heavily-amended bill has to go back to the Senate for approval, and then finally to the Governor's desk. SB 4 will have to compete with dozens of other bills, many of which are higher profile. The journey through the Legislature must be completed by September 9, which marks the end of the session.
Again, should SB 4 pass, there are possibilities for raising tax-free financing for a new ballpark and surrounding infrastructure, without requiring a local vote to authorize funds. Because the bill itself has been weakened, it's only reasonable to expect that the I-Bank Board would be very careful about how it qualifies projects, since it will have the final say. If the Wolff plan proceeds with land acquisition and then construction, it's likely that either the JPA or Oakland would be asked to make a proposal to the I-Bank, even though the revenue streams used to pay off the stadium would be largely private.
Again, should SB 4 pass, there are possibilities for raising tax-free financing for a new ballpark and surrounding infrastructure, without requiring a local vote to authorize funds. Because the bill itself has been weakened, it's only reasonable to expect that the I-Bank Board would be very careful about how it qualifies projects, since it will have the final say. If the Wolff plan proceeds with land acquisition and then construction, it's likely that either the JPA or Oakland would be asked to make a proposal to the I-Bank, even though the revenue streams used to pay off the stadium would be largely private.
22 August 2005
CBS-5 Mayoral roundtable
CBS-5's Hank Plante hosted a Charlie Rose-style roundtable including the mayors of the three big Bay Area cities: Jerry Brown, Ron Gonzales, and Gavin Newsom. The discussion covered a multitude of issues including crime, the Bay Bridge, gay marriage, and homelessness.
Inevitably, Plante brought up the issue of competition among the three cities, and that meant the A's and San Jose's thinly veiled efforts to get the A's. True to form, Gonzales said little about the A's directly, and Brown repeated his position of "let's keep the A's here, but at what public cost?" Anyone expecting heated debate about the A's was sure to be disappointed. It's becoming apparent that Gonzales is merely keeping the idea of baseball in San Jose warm for the next San Jose mayor, while Brown used the roundtable as a lengthy politicking session, as shown by his almost complete disinterest in the subject matter.
Inevitably, Plante brought up the issue of competition among the three cities, and that meant the A's and San Jose's thinly veiled efforts to get the A's. True to form, Gonzales said little about the A's directly, and Brown repeated his position of "let's keep the A's here, but at what public cost?" Anyone expecting heated debate about the A's was sure to be disappointed. It's becoming apparent that Gonzales is merely keeping the idea of baseball in San Jose warm for the next San Jose mayor, while Brown used the roundtable as a lengthy politicking session, as shown by his almost complete disinterest in the subject matter.
Attendance watch, August edition
The recent surge in the standings helped boost the A's turnstile performance during the first week of the 12-game August homestand. As expected, attendance cooled somewhat with the weather and the arrival of the Baltimore Orioles and Kansas City Royals, but the average attendance for the homestand was still excellent, at 32,555 per game.
To date, that puts the A's 4% down from last year. This season's total attendance through 65 dates is 1,697,637. In 2004, it was 1,769,184. The good news is that the A's should surpass last season's pace (not total attendance) in the next series versus the Yankees. The following three opponents (Texas, Seattle, Minnesota) probably won't make much of a dent. At least there are a Mark Kotsay bobblehead night (rare to have bobblehead giveaways on weeknights) on September 6, and a Fireworks Night on September 23 versus the Rangers. The last series of the year is a four-game mid-week set against The O.C., and while the last two games should be well-attended by default, attendance at the first two games may depend on the A's relative playoff status. To beat last season's total attendance mark, the A's will have to draw around 31,500 a game for the rest of the season - not impossible, but a challenge because of the way the schedule is drawn up. If the A's are in wild card or division championship contention during the final week of the season, they should be able to beat it. They'll need 1,000 more than that per game to beat 2003's total.
To date, that puts the A's 4% down from last year. This season's total attendance through 65 dates is 1,697,637. In 2004, it was 1,769,184. The good news is that the A's should surpass last season's pace (not total attendance) in the next series versus the Yankees. The following three opponents (Texas, Seattle, Minnesota) probably won't make much of a dent. At least there are a Mark Kotsay bobblehead night (rare to have bobblehead giveaways on weeknights) on September 6, and a Fireworks Night on September 23 versus the Rangers. The last series of the year is a four-game mid-week set against The O.C., and while the last two games should be well-attended by default, attendance at the first two games may depend on the A's relative playoff status. To beat last season's total attendance mark, the A's will have to draw around 31,500 a game for the rest of the season - not impossible, but a challenge because of the way the schedule is drawn up. If the A's are in wild card or division championship contention during the final week of the season, they should be able to beat it. They'll need 1,000 more than that per game to beat 2003's total.
Wolff needs someone on the inside + Property owners have their say
Two articles by the Trib's Paul Rosynsky today. First off is a report with quotes from numerous property owners who may be willing to relocate if the price is right, but also hate eminent domain with a passion. Next is an article detailing a request from Lew Wolff to the City of Oakland, asking for someone within City Hall to assist with the plan (land acquisition, zoning, planning). Oakland did have just the man for that job once upon a time, but Robert Bobb was never supported by Mayor Brown, and so he left to a place where his skills could be utilized: Washington, DC. Larry Reid, as much as he may be committed to this, will not get the job done alone. There needs to be someone on the inside who can navigate the political maze and broker the necessary deals to get everything in place. At my day job, we call this person a "champion." The champion is willing to do the leg work, the follow-ups on all related parties - someone who has considerable influence within but won't be distracted by other issues, as an elected official would. Will the city produce such an individual? We'll find out shortly.
21 August 2005
The media has questions
The Chronicle has a new editorial that has the same tone as Thursday's Tribune op-ed. I imagine Wolff must be a pretty good poker player, though I imagine he's more likely to play hold-em, stud, or baseball than no-peekie. Then again, with so many Saturday evening games, perhaps he's a fan of night baseball.
Eric Lai of the East Bay Business Times has an excellent article on the impending land acquisition efforts. There are some mind-blowing numbers, including an estimate by the paper's analysts that the land in question could be worth up to $315 million. Or, at the below market rate of $20 per square foot, the land would cost $126 million. Keep in mind that the purchase of the land would not be a cost borne by the City of Oakland, but whatever the final figure may be, it's a substantial investment. The payoff potential is enormous though, as Wolff and his partners could net hundreds of millions if not billions if they built, say, 5,000 market rate condos on the site. The piece ends with a rather ominous note:
Eric Lai of the East Bay Business Times has an excellent article on the impending land acquisition efforts. There are some mind-blowing numbers, including an estimate by the paper's analysts that the land in question could be worth up to $315 million. Or, at the below market rate of $20 per square foot, the land would cost $126 million. Keep in mind that the purchase of the land would not be a cost borne by the City of Oakland, but whatever the final figure may be, it's a substantial investment. The payoff potential is enormous though, as Wolff and his partners could net hundreds of millions if not billions if they built, say, 5,000 market rate condos on the site. The piece ends with a rather ominous note:
Wolff has set a one-year deadline for garnering the political and monetary support for his project. That assumes unrealistically quick cooperation from a wide range of government bureaucracies, critics say.
"Lew might have come up with something so big in order to see Oakland fail," said Zennie Abraham, a former Oakland mayoral adviser and sports business owner.
Having made his best effort, Wolff would then be free to negotiate moving the A's to a city such as Portland, Sacramento or Las Vegas, all of which are clamoring for a Major League Baseball franchise and willing to pony up more money than Oakland is.
20 August 2005
Coliseum South = Plan B? + Transit struggles + As the baguette turns
The CoCo Times' Guy Ashley mentions an important nugget not previously reported from the 8/12's JPA meeting:
Another item of interest is the fallout from the federal transportation bill (Fremont Argus). While San Jose Congressman Mike Honda inserted language that will help the BART-to-San Jose project, other projects were hurt because they didn't receive federal matching funds that are desperately needed to complete them. The BART Warm Springs extension and the BART Oakland Airport People Mover are two local projects that received nothing. The Metropolitan Transportation Commission may have the ability to shift money around to get some of 10 projects on the list going, but they're going to need to be creative. If something doesn't happen to bridge the funding gaps for each of these projects, they could be delayed at least two to four years, or even indefinitely.
The final item today is a report from the Chronicle on the closure of the Parisian sourdough bakery in San Francisco. An institution for 149 years, Parisian was swallowed up by Interstate Brands (Twinkies, Wonder Bread) several years ago.
Though Wolff said the team is open to all possible alternative sites, the preferred one appears to involve a compact new A's stadium in the Coliseum's north parking lot, and a massive new parking facility on the south side of the Coliseum near Hegenberger Road.While it's not the major development plan proposed at the meeting, it's a reasonable fallback should acquisition of parcels within the preferred site prove difficult. However, it does pose issues involving financing. Limited acreage makes the investment potential at the Coliseum North/South lots far less. There's also a question of whether such an option, which places the ballpark on the north end and extra parking along Hegenberger, makes sense. The Raiders don't want garage parking. They want surface lots for their fans to tailgate. It makes more sense to put a ballpark on the Malibu lot and build other parking along Hegenberger, so that interference with the Raiders' interest is minimal. They'd also have a chance to further develop the Hegenberger land, which would be a short walk from the ballpark itself. Whatever Plan B actually is, it's good to know that at least there is a Plan B.
One East Bay official at the center of the A's ballpark initiative said the site repeatedly comes up as the most logical Plan B for the stadium project.
"It's his fallback position," said Oakland City Councilman Larry Reid, who spoke with Wolff about the Coliseum scenario days before Wolff went public with the baseball team's grand Plan A to transform a tired swath of land along I-880 between 66th Avenue and High Street.
Another item of interest is the fallout from the federal transportation bill (Fremont Argus). While San Jose Congressman Mike Honda inserted language that will help the BART-to-San Jose project, other projects were hurt because they didn't receive federal matching funds that are desperately needed to complete them. The BART Warm Springs extension and the BART Oakland Airport People Mover are two local projects that received nothing. The Metropolitan Transportation Commission may have the ability to shift money around to get some of 10 projects on the list going, but they're going to need to be creative. If something doesn't happen to bridge the funding gaps for each of these projects, they could be delayed at least two to four years, or even indefinitely.
The final item today is a report from the Chronicle on the closure of the Parisian sourdough bakery in San Francisco. An institution for 149 years, Parisian was swallowed up by Interstate Brands (Twinkies, Wonder Bread) several years ago.
Interstate Brands, which filed for bankruptcy protection last year, is shutting down two San Francisco bakeries as part of a cost-cutting move, an effort "to right the ship,'' said Interstate Bakery spokesman Jason Booth. The second bakery, on Bryant Street near San Francisco's Potrero Hill neighborhood, made Wonder Bread, Twinkies and Ho-Ho snack cakes. It also closed Friday. Interstate said neither plant was profitable.The point of all of this? Interstate is keeping their Oakland bakery open. In a previous post, I noted that this is the landmark Colombo bakery, which just so happens to take up several acres of the land Lew Wolff is trying to acquire. There are a couple of possibilities here. Since Interstate has two factories that they would have to liquidate, it may be possible for Councilman Larry Reid to ask Interstate to relocate their Colombo operations to San Francisco, if that's feasible. Of course, that's probably not an appealing notion to workers at the Colombo bakery. There's also the possibility that because Colombo is a healthy brand and may have some special strategic importance to Interstate, that they may be unwilling to sell the property. Everything has a price, but there are certainly valid arguments for making it either more or less difficult. Only when these parties are engaged will we know for certain. Add to that the fact that negotiating with every individual company or landowner is a unique set of circumstances, and you can start to appreciate the effort that will be needed to pull this deal off.
18 August 2005
SB 4 amended again - more changes
Prior to a vote in the Appropriations committee, SB 4 was amended again. This time, there's a wholesale change in how the funding system works. The biggest change is the elimination of the California Public Performance Facilities Authority, the body that would have approved or rejected any stadium or venue projects that applied for funding through this new state-based process. Instead, now all approvals would go through the State Infrastructure Bank's board.
The impact is huge, in that the I-Bank's board is made up of much different characters than the Authority's would-be board. The Authority board would have been comprised of entertainment and sports industry veterans. The I-Bank's board is made up financial and policy wonks, who collectively may be less inclined to approve some of the more questionable projects than the Authority's board would have been. The net effect is that the bill's potential power in practice has been significantly reduced. In fact, the I-Bank's staff provided the following comment:
Update (8/19): The bill was just placed in the Appropriations committee's suspense file, which means that it will be further studied because of its fiscal impact. Another vote in Appropriations is scheduled for Thursday, 8/25.
The impact is huge, in that the I-Bank's board is made up of much different characters than the Authority's would-be board. The Authority board would have been comprised of entertainment and sports industry veterans. The I-Bank's board is made up financial and policy wonks, who collectively may be less inclined to approve some of the more questionable projects than the Authority's board would have been. The net effect is that the bill's potential power in practice has been significantly reduced. In fact, the I-Bank's staff provided the following comment:
Conversely, staff at the Infrastructure Bank believe that this bill would not provide to the state any new tools from those currently available to a local government or joint powers authority seeking to finance these facilities.Will the bill come up for a vote in the Assembly and then get signed by the Governor before the end of the short session? I'd say no, at least not in this rather neutered form.
Update (8/19): The bill was just placed in the Appropriations committee's suspense file, which means that it will be further studied because of its fiscal impact. Another vote in Appropriations is scheduled for Thursday, 8/25.
17 August 2005
Trib Op-Ed
Todays' editorial from the Oakland Tribune shows optimism in the ballpark plan, but withholds judgment on it until more details come out. An important issue that is brought up in the piece is the High St/880 interchange. Will it have to be revamped to handle additional residential, commercial, and event-related traffic? Would the same have to happen for the 66th Ave overpass as well? One of the few good things about postgame traffic from the Coliseum is that the cars in the north lots have to exit via 66th Ave, while those in the south lots exit via Hegenberger Rd, splitting traffic. That wouldn't be the case with a new ballpark whose traffic would be largely centered around 66th. A new thoroughfare could be constructed to take northbound traffic to High St, but that traffic could end up running through a residential neighborhood, which isn't ideal.
There's also a larger philosophical question here: Does this mean Oakland is near the end of its image as a blue collar town? While it's possible that not all of the businesses that would be displaced would leave Oakland completely, the plan is a classic case of gentrification. Like many other cities with a long manufacturing and industrial heritage, Oakland has been struggling for several years with the idea of gentrification (and the economic benefits it brings) against maintaining its gritty image. Many of the food processing companies that once called Oakland home, such as Mother's Cookies and Fleischmann's Yeast, left long ago. Colombo Baking may leave as well. Some may bemoan this major change as the loss of Oakland's soul. Others may welcome it, saying it's a better fate than that suffered by Detroit or Cleveland. Considering the fact that yesterday, 12,000 people lined up outside the nearby Wal-Mart in East Oakland to apply for only 400 openings, perhaps progress isn't the such the bitter pill many make it out to be.
There's also a larger philosophical question here: Does this mean Oakland is near the end of its image as a blue collar town? While it's possible that not all of the businesses that would be displaced would leave Oakland completely, the plan is a classic case of gentrification. Like many other cities with a long manufacturing and industrial heritage, Oakland has been struggling for several years with the idea of gentrification (and the economic benefits it brings) against maintaining its gritty image. Many of the food processing companies that once called Oakland home, such as Mother's Cookies and Fleischmann's Yeast, left long ago. Colombo Baking may leave as well. Some may bemoan this major change as the loss of Oakland's soul. Others may welcome it, saying it's a better fate than that suffered by Detroit or Cleveland. Considering the fact that yesterday, 12,000 people lined up outside the nearby Wal-Mart in East Oakland to apply for only 400 openings, perhaps progress isn't the such the bitter pill many make it out to be.
Coliseum North Photo Overview + Wolff development news
The ballpark site photo overview is now available. The file is slightly over 1 MB and is in PDF (Acrobat) form. A permanent link has been created in the sidebar as well. Here's a sample photo:

In tangentially related news, L.A.'s Staples Center (owned by Anschutz Entertainment Group) is getting $10 million in video and seating upgrades. Staples is only five years old, but AEG wants to preserve Staples Center's reputation as the most glamorous, feature-packed arena in the nation. AEG is also developing land near Staples, including the big 1,200-room hotel that it is building with Maritz, Wolff & Co. The hotel is scheduled for groundbreaking in the fall.
In tangentially related news, L.A.'s Staples Center (owned by Anschutz Entertainment Group) is getting $10 million in video and seating upgrades. Staples is only five years old, but AEG wants to preserve Staples Center's reputation as the most glamorous, feature-packed arena in the nation. AEG is also developing land near Staples, including the big 1,200-room hotel that it is building with Maritz, Wolff & Co. The hotel is scheduled for groundbreaking in the fall.
16 August 2005
Response from BART
I received a response from Linton Johnson, Chief Spokesperson for BART (and former NBC-11 anchor/reporter). The answers he gave indicated how early in the process all of this ballpark and ballpark village talk is.
According to Johnson, the $70 million figure is based on "rough paper estimates" on how much it would cost to build a new station. A complete study would have to be undertaken for BART to be able to obtain firmer figures and a breakdown of costs. More interesting facts:
In other news, columnist Evan Weiner of the Bergen Record/NorthJersey.com details the trend of ballpark village developments occurring in MLB cities.
According to Johnson, the $70 million figure is based on "rough paper estimates" on how much it would cost to build a new station. A complete study would have to be undertaken for BART to be able to obtain firmer figures and a breakdown of costs. More interesting facts:
- The cost would depend largely on whether the station is on-line (used during all operating hours) or off-line (used during games only). So far, no stations on the current system operate on an off-line basis, but it was considered for some of the stations between Colma and SFO.
- The 10 car estimate is based only on operating a station on an off-line basis. An unknown higher number of cars would be needed if the station were to operate on-line/full time. The final number of cars needed would depend on a final study.
- The A's have not called BART yet to ask them to explore this further.
- The process of getting a BART station approved and built involves some of the typical studies such as an environmental impact report (EIR) and a California Environmental Quality Act (CEQA) process.
- About prioritizing such a project, Johnson said, "Money and politics will determine priority."
In other news, columnist Evan Weiner of the Bergen Record/NorthJersey.com details the trend of ballpark village developments occurring in MLB cities.
15 August 2005
And in Sacramento...
The Legislature is back after their month-long recess. That means it's time to check on SB 4. According to the latest update from aroundthecapitol.com, SB 4 is scheduled to hit the Assembly Appropriations committee on Wednesday. This legislation could have an enormous impact on the final deal between the A's and Oakland/JPA, because of the tax-free financing that would be available, as well as the ability of groups to use that financing to fund all sorts of infrastructure - including transit improvements like a new BART station or off-ramps, pedestrian bridges, etc.
Meanwhile, in San Jose...
From the San Jose Business Journal: San Jose's Redevelopment Agency is continuing with its efforts to acquire the Diridon South properties. To do this they are going around the city's charter, which requires a public vote before any money is spent on a sports facility. They're able to do it by saying that the land could be developed any number of ways, a stadium only being one. While this is certainly true on the surface (previously published planning docs indicate the city's desire to developing housing on the site), most everyone around the new City Hall knows that it's definitely a stadium site they are trying to secure. The latest update:
The RDA is ordering up appraisals, and on Aug. 9, the City Council tentatively approved the sale of 9.22 acres on Julian Street to provide the agency with about $14 million to help pay for the land, which includes the old KNTV studios, a PG&E power substation and Stephen's Meat Products.Ever the cheerleader for San Jose effort, Santa Clara County Assessor and Baseball San Jose board member Larry Stone got in a few digs at Oakland over the plan when he was interviewed by KTVU-2 on Friday. Regarding the Diridon South site:
The San Jose Redevelopment Agency should have land secured for a possible ballpark on the western edge of Downtown San Jose, near the Diridon train station, within the next 30 to 60 days -- when Wolff's Oakland proposal collapses, San Jose will be waiting, Stone said.
13 August 2005
Pics of Coliseum North coming soon!
After today's game, I drove around the 90-acre site and took pictures of the various buildings in the area, the roads and railroad tracks. I'll put them into a Photo Overview soon enough. (And no, I was not accosted at any point.)
In the meantime, there's a new report from the CBS-5 (KPIX) with video of the area and feedback from local businesses.
In the meantime, there's a new report from the CBS-5 (KPIX) with video of the area and feedback from local businesses.
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