Oct 09, 2024
OAKLAND, Calif. (KRON) -- Oakland Mayor Sheng Thao and several city council members continue to send different messages regarding the state of the city's plan to sell its stake in the Oakland Coliseum and the ripple effects that the ever-evolving sale could cause. According to Councilmember Janani Ramachandran, the city administrator's office has triggered a "contingency budget" put into place if certain installments from the sale were late to arrive. Thao says that while the deal has been altered, it is still moving forward and "is great for Oakland." The city based its latest budget around the deal, which entailed the African American Sports & Entertainment Group (AASEG) paying more than $100 million for a 50% stake in the Oakland Coliseum. If the deal fell through, the city would have to trigger a contingency budget that includes slashing its police force and closing several fire stations. SFO ‘manipulated results’ on new airport name confusion: Port of Oakland Ramachandran said in a lengthy video posted to her Instagram on Tuesday that aspects of that budget have already been put into place. Not all the cuts will happen immediately, and the city administrator will decide the order, Ramachandran said. "We have entered what's called the contingency budget stage," Ramachandran said. "And our city administration has confirmed that we've already started the process of making these $48 million in cuts." Mayor Thao shot back at Ramachandran in a tweet on Wednesday, saying that the city is "creating both temporary and permanent solutions to the decades-long budgetary challenges we face here in Oakland." "They are welcome to be a part of the solution, not deepen distrust with false information and further divide us," Thao said of Ramachandran and Councilmember Treva Reid. Thao also tweeted a link on Wednesday to a list of FAQs about the Coliseum sale on the city's website. The page contained more than 2,000 words, none of which were "budget." While the deal is still on track to get done, it looks different from how it was originally constructed. The original deal called for the city to get the first $15 million by the end of September, Ramachandran said. The AASEG instead paid $5 million on September 1 and delayed the next payment of $10 million to November 7. In exchange, the city stands to get an extra $20 million at the end of the deal, and the deal is to be completed in 2025 instead of 2026. Ramachandran said that the contingency budget got triggered because the city's budget plan relied on that first $15 million to come in before October. Additional payments of $15 million and $33 million were also pushed back to May 2025. "The reality is, we're in a bad situation that's only about to get worse because right now we have to make a fairly immediate set of $48 million of cuts," she said. However, Thao says the delayed $48 million payment is not a problem. "Do we have a cash flow issue? And that is the answer to that is 'no.' Because we're working in fiscal years, you know, coming in with the money coming in March, even if it came in May, that is still within the fiscal year for that budget cycle," she said. City staff said there is no need for additional cuts as long as quarterly revenues remain on track and the $10 million payment comes through on Nov. 7. When reached by KRON4 on Wednesday, Ramachandran insisted that the cuts have already begun. Thao and Ramachandran have traded barbs since at least last summer when Ramachandran voted against Thao's budget plan. As the deal moves forward, details around the sale and the budget remain murky.
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