The deal that brought the Raiders back to Oakland "will
cost taxpayers millions of dollars a year for nearly three
decades even if the stadium miraculously sells out,
according to documents obtained" by the SAN JOSE MERCURY
NEWS. While Oakland & Alameda County officials have said
"only that the public will have to pay subsidies this year
and next year using a one-time windfall," a "confidential
report" by a financial adviser David Stephens, who was hired
by the Oakland-Alameda County Coliseum Authority, "shows
that even if fans" buy every seat, the public "will be on
the hook to cover about" $185M in debt over the next 28
years of the 30-year bond deal. If the PSL sales "remain at
current levels," the debt "will be far worse" -- $415M.
Koury & Dinkelspiel write that East Bay officials "have
known for nearly a year about the report ... but have not
discussed it publicly. They downplayed its implications,
saying they haven't given up trying to salvage the deal and
didn't want to alarm the public" (S.J. MERCURY NEWS, 11/21).
FOLLOW THE MONEY: Koury & Dinkelspiel reported that
money to pay off the debt will eventually have to be paid
out of the city's and county's general fund. The annual $13M
subsidy needed under the sellout projection "would be
equivalent to" what the county will spend on "mental health,
alcohol and drug services and Aid to Families with Dependent
Children benefits," or what it will spend on 22 recreation
centers and the Oakland Museum (S.J. MERCURY NEWS, 11/20).
LOCAL POLS REAX: Alameda County Supervisor Mary King
and Oakland City Councilmember Ignacio De La Fuente issued a
statement "blaming the trouble on the Raiders' unwillingness
to restructure its deal or to sign an agreement letting UMAX
Technologies put its name in the Coliseum for $17 million."
Raiders spokesperson Al LoCasale: "Due to the litigation
they've (the city and county) filed against us, there's not
much we can say about the subject" (S.F CHRONICLE, 11/21).
