Howard Terminal Update: Oakland A’s Dave Kaval Expects City TIF Revenue Estimate This Week
– vlog by Zennie62 YouTube. OaklandNewsNow.com is the original blog post for this content.
Dave Kaval, Oakland Athletics President, explained to me, Zennie Abraham, CEO of ZENNIE62MEDIA,INC., that he expected to have the City of Oakland’s Howard Terminal District Tax Increment Financing Revenue Estimate “this week.” That is based on our full interview from Monday, and available for review, here:
In a nutshell, it goes like this:
1. City of Oakland Mayor Schaaf and Oakland A’s President Dave Kaval worked with California State Senator Nancy Skinner to get the California Legislature to pass a bill called SB 293 Skinner that allows the City of Oakland to establish a tax increment financing zone at Jack London Square.
2. Their efforts were based on an idea I communicated to Mr. Kaval during our phone conversation about financing a ballpark in Oakland, and what had been done to date, on April 4th, 2017 at 4 PM. At the time, Dave was convinced public money could not be used for an A’s ballpark. I am the one who pointed him to the base Enhanced Infrastructure Financing District (EIFD) law called SB 628 Bealle, signed into law by California Governor Jerry Brown September of 2015.
3. On the same April 4th, 2017 call, I also shared with Kaval the 2010 Gruen and Gruen study on a ballpark at Jack London Square that featured TIF calculations. The then new law SB 628 Bealle allowed the use of TIF after Governor Brown had worked to stop its use, and the original California Redevelopment Law, in 2011.
4. The State of California calls SB 293 Skinner a type of Enhanced Infrastructure Financing District (EIFD) law. Sacramento passes SB 293 Skinner and California Governor Gavin Newsom signs it into law on October 11th 2019.
Why Howard Terminal District Tax Increment Financing Revenue Is Important
What the Howard Terminal District Tax Increment Financing Revenue Estimate should consist of is the result of the current year expected Howard Terminal District Assessed Value, minus the first year of Howard Terminal District Assessed Value, times the tax rate of one percent, done to represent each year of a 45-year bond period, and the result of each year added to accumulate to a final year total.
Then, the City of Oakland can use various types of what are called “bond sizing” formulas to figure out how big the bond issue should be. For example, if a ratio of monthly debt to revenue of 2 to 1, or for every $2 of revenue, the planned bond issue should equal $1 of debt, is used, that means a total TIF revenue of $1.6 billion, assuming a base year assessed value of $2 billion (not counting the expected $7 billion of additional development expected by the Oakland A’s over a period of years covering 2025 to 2036), and a 4 percent annual rate of growth in that same base year assessed value of $2 billion (or whatever value the City determined it should be).
Determining what that estimate is then opens the door to how much money the A’s can expect to see as pay-back for their expected infrastructure investment of $350 million. It also tells the Oakland community how much of its wish list can be paid for by the TIF Revenue over and above the A’s $350 million payback from its upfront spending on Howard Terminal Infrastructure Improvements, like a platform to mitigate sea level rise and incentives to build affordable housing.
Initial Howard Terminal Fiscal Work Should Have Been Done Two Years Ago
The fact is, that the City of Oakland has taken this long to do what should have been done first, is redevelopment malpractice. As I discussed, SB 293 Skinner, the law that allows the City of Oakland to establish an Enhanced Infrastructure Financing District (EIFD) and use tax increment financing, was signed into law by Governor Gavin Newsom October 11th, 2019. Other cities, like Sacramento, established their EIFD zone and public financing authority in less time than Oakland has. What Oakland has failed to do in the matter of Howard Terminal Fiscal Work is shameful, and all of the finger-point helps to figure out who to blame and form a plan to right the ship and fast.
Else Oakland loses the As to Las Vegas, and just like it lost the Raiders and the Warriors to San Francisco.
Here’s the time to present Warriors Principle Owner Joe Lacob’s 2012 comments about why he could not get an arena deal done in Oakland:
In fairness to history, many believed Lacob planned to move the Warriors to Oakland the moment he purchased the team, even though he put on a good face by working with then Oakland Economic Development Director Fred Blackwell.
Andy Dolich This Friday On Zennie62 YouTube Live
Join me this Friday at 5 PM EST to talk about this with former Oakland A’s, Warriors, and SF 49ers Executive and still consultant Andy Dolich live here at Zennie62 YouTube and Oakland News Now:
Focusing On Washington Football Team New Stadium Efforts
Also, for those interested in stadium financing issues, The Washington Football Team is the focus of proposed legislation that focuses on the use of sales tax revenue to finance development. This video-blogger asserts sales tax revenue on its own will not produce the revenue The Washington Football Team and the two Virginia Senators who offered bills, seek, to bring NFL Football to Virginia. Here’s part one in a series that will explain why: https://oaklandnewsnowblog.com/on-virginia-football-stadium-authority-for-new-washington-football-team-stadium/
Stay tuned.
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Note from Zennie62Media’s Zennie62 YouTube and Oakland News Now Today Blog SF Bay Area: this video-blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media , Inc. mobile media video-blogging system network that was launched June 2018. This is a major part of Zennie62Media , Inc.’s new and innovative approach to the production of news media. What we call “The Third Wave of Media”. The uploaded video is from a vlogger with the Zennie62 on YouTube Partner Channel, then uploaded to and formatted automatically at the Oakland News Now site and Zennie62-created and owned social media pages. The overall objective is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours. Now, news is reported with a smartphone: no heavy and expensive cameras or even a laptop are necessary. The secondary objective is faster, and very inexpensive media content news production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and seeks interested content and media technology partners.