Oakland Raiders And A's: 1,010 Room Coliseum City Hotel Is Feasible

Oakland Raiders And A's: 1,010 Room Coliseum City Hotel Is Feasible
Oakland Raiders And A's: 1,010 Room Coliseum City Hotel Is FeasibleFor those who have followed the Coliseum City story closely, many of you know about my plan, which consists of two new stadiums for the Oakland Raiders and the Oakland A’s, and over 300,000 square feet of retail and a two-wing, 1,010-room hotel. People, mostly from the City of Oakland and the County of Alameda, and I’m told Marc Badain, the President of the Oakland Raiders (undoubedly influenced by at least Oakland City Administrator Claudia Cappio and Alameda County Real Estate Consultant Pat Cashman) have panned the idea of a hotel without even bothering to seriously investigate that the fiscal plan) which only calls for 60 percent occupancy or 600 rooms filled of the 1,010 rooms) to break even, can, as they say “pencil out”. The hotel is important, because in my spreadsheet, it throws off enough revenue to allow the construction of stadiums for both the Raiders and Athletics without public subsidies. This flies completely in the fact of the Raiders call for the City of Oakland and the County of Alameda to put in public money. Fortunately, the Oakland A’s have said they don’t need government dollars – news that is to be celebrated. If you’re reading this and involved in the local San Francisco Bay Area Hotel Industry, your jaw is dropping about now. You know the demand for new hotel rooms to be built is at an all time high, and going higher. You know Oakland, alone, as a base-level demand for 1,000 new rooms. You are shocked about now. Keep reading: it’s going to get a lot worse by the end of this post. To put it bluntly, the parties did not even bother to run their own spreadsheets and evaluate my proposal. Moreover, it’s not even evident they have a set of computer models or spreadsheets they refer to for the Coliseum City project. Thus, my proposal, and I would venture a guess that of Floyd Kephart’s, were not subjected to true, build-your-model-and-run it, fiscal and real estate investment analysis. Indeed, the homework I did, and the involvement of Piper Jafrrey Investment Bankers, were all subjected to a group who makes decisions by the seat of its collective pants, with angles and devils on their shoulders. And all for a multi-billion dollar project that is Coliseum City. I have said this and I’ll repeat it here: I am not seeking money or a job, but trying to move along something that should have been done years before. That Oakland has taken this long to get these stadium plans even formed is the best example of government malpractice I’ve ever seen outside the Federal Government response to Hurricane Katrina. Oaklanders who (those left) who remember a time when our city didn’t look so incompetent, should be alarmed and angry. Here’s the reason why, in the form of a recap of events, and then a discussion of the hotel demand market in the San Francisco Bay Area. MORE: http://ift.tt/1Xeqb2J
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