How Oakland Can Use IDBs To Privately Finance Raiders, A's Stadiums

How Oakland Can Use IDBs To Privately Finance Raiders, A's Stadiums The basics: the Oakland Coliseum City project would be financed via an Industrial Development Lease Revenue Series of bond issues (IDBs) let by the Oakland-Alameda County Joint Powers Authority but on behalf of a specially formed corporation, an LLC, that would be a partnership of the City of Oakland, the A's and the Raiders and a Hotel Corporation. If the City of Oakland elected to buy out the County, then the JPA name would be called the "Oakland Coliseum JPA". Because of the use of an Industrial Development Lease Revenue Series of bond issues, the City and County (or City) would not have to pay for defaults. The Raiders / A's / City / Hotel Company owns the project (which includes the stadiums), but title is signed the over to the JPA issuing the bonds. The JPA bonds are secured by a first mortgage on the project and property. The Raiders / A's / City / Hotel Company then makes lease payments to a bond trustee using revenue from the Coliseum City Project (which includes PSL, NFL G4 Loan, Hotel Revenues, and other identified project-generated monies), who acts as a third party and uses the money to pay off the JPA bonds. The bond trustee is commonly a highly rated and regarded national banking organization. If the Raiders / A's / City / Hotel Company is not able to make the bond payments and the bonds go into default, the bond trustee forecloses on the project and sells it off to repay the bondholders without damaging or affecting the JPA as the issuer - note that neither the City of Oakland or the County of Alameda, or any other government entity would be effected. No public subsidy or loan is required. When the bonds are retired, the JPA which issued the bonds transfers title back to the Raiders / A's / City / Hotel Company. The real property that the Oakland Coliseum City Project is developed on is exempt from property taxes during the entire 40-year life of the JPA bonds. That said, the project generates sales tax and hotel tax revenues, even though I ask for a 40 percent hotel tax break in the spreadsheet.

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