The City Council will hold a public hearing Tuesday to decide whether or not it should sell land to owners of the Oakland A’s.
Councilmembers and the San Jose Diridon Development Authority will discuss an option agreement with the A’s, which would allow the baseball organization to put a deposit down to buy land if given permission to relocate by Major League Baseball. The land would be sold on the condition that it is used to build a ballpark.
The city would sell the property for $6.975,227, which is 36.5 percent of the total ballpark site’s current value. The theory, according to ballpark advocates, is the economic benefit of a ballpark would outweigh some combination of corporate, retail offices and housing on the property, which is located next to HP Pavilion. There are three remaining parcels of land privately owned that would need to be bought to complete the ballpark site.
The option agreement is for two years, and the A’s would pay $50,000 as a deposit. The agreement could be extended for another year for $25,000 if both the A’s and the Diridon Development Authority agree. None of this money would be included in the property purchase price, according to the city.
In a memo written by City Manager Debra Figone, here is a rundown of how much the property is worth, what the city is asking for and what would be expected of the A’s to acquire the rest of the land needed to build a ballpark:
“The Redevelopment Agency paid approximately $25,160,000 for acquisition and relocation costs for the entire ballpark site. Colliers International conducted an appraisal for the entire ballpark site in September, 2010. Colliers concluded that the entire ballpark site, vacant, assembled and available for development at its highest and best use would be valued at Thirty Eight Million Two Hundred Fifty Thousand Dollars ($38,250,000). Using the estimated value for the highest and best use of $65.75 per sq.ft, the highest and best use value for the Property is approximately $13,970,000. Colliers also concluded that the market value of the entire site, vacant assembled and restricted for development of a ballpark, would be valued at $19,100,000. The Property to be optioned to AIG, on a square foot basis, represents approximately 36.5% of the appraised value of the entire ballpark site. The Purchase Price of Six Million Nine Hundred Seventy Five Thousand and Two Hundred Twenty Seven Dollars ($6.975,227) represents approximately 36.5% of the appraised value of the entire ballpark site restricted for ballpark use. The Purchase Price does not include acquisition of the adjacent City streets. Staff is verifying the ownership of the streets. It is intended that the adjacent streets would be purchased by the developer for site development at a later time.”
While A’s owner Lew Wolff has said he believes MLB Commissioner Bud Selig is going to make a decision’s on the club’s fate “very soon,” a report on the proposed property sale suggests otherwise. According to the Chronicle, baseball owners are expected to talk about the A’s at their winter meetings in January rather than this month, because of the messy Los Angeles Dodgers ownership situation.
Another item expected to be under council consideration Tuesday is an amendment to the city’s revolving door policy for employees who were laid off due to continuing budget shortfalls.
Two items that have been deferred to later meetings include janitor services and commission appointments. Apparently, city-wide janitor costs run more than $6.3 million a year. A decision on approving a new agreement with GCA Services Inc. has been deferred to the Nov. 29 meeting. Appointments to the Civil Service Commission have also been deferred to Nov. 15. The candidates are Roy Truitt, Holden Green, Melinda George, Joan Smith and Randy Martinez.
Correction: An earlier version of this article stated that the property the city is considering selling to Oakland A’s ownership is being sold for $6.975,227, or 36.5 percent of its current value. The land is actually being sold for 36.5% of the appraised value for the entire ballpark site. San Jose Inside regrets the error.