May 2012

The Airport Area Business Association is a regional association of business and industry

Coliseum City & Area Master Plan Discussed at AABA EDC

2011/12 DIRECTORS
ARTHUR WHITMORE PORT OF OAKLAND Acting President

ANN COOKE Secretary ULTIMA TIMATE SPORTS ULTIMATE SPOR TS GUIDE

AABAs Economic Development Committee meeting of April 25th at One Toyota featured an introduction to Coliseum City and the master planning of the acreage that surrounds the Coliseum complex, including the Airport Area business park west of 880 freeway dubbed Innovation Gateway. A team led by JRDV Architects and Lamphier-Gregory have been awarded a combined $3.5 million by the City of Oakland toward the development of Coliseum City at the Coliseum site, as well as an agreement for the creation of a Specific Plan and EIR. JRDV International managing director Ed McFarlan discussed the core project subconsultant team and its function for Coliseum City that includes Forest City Development and HKS Architects. HKS is a firm with vast experience in the design of sports venues. AMP, an entity specializing in stadium finance, will be brought in to examine how the development can be privately funded without the need for public monetization. Scott Gregory, principal of Lamphier-Gregory, an Oakland urban planning company, will oversee 17, mostly local, companies in creating an area Specific Plan and EIR. The Lamphier team includes economists who will examine local market potential, traffic engineers, civil engineers, biologists, and historic architects, amongst a myriad of other professionals. The JRDV team will address overall strategy, and the Lamphier team the nitty-gritty of implementation, navigating local governmental entities and public agencies, entitlements, and the environmental review process. The implementation of Coliseum City and master planning present an opportunity to transform the commercial corridor while retaining our teams. Look for future reports on each effort in this newsletter.

TOM BUCKLEY HOLIDAY INN & SUITES ANA CHRETIEN ABC SECURITY SERVICE, INC. ALFRED J. MUSANTE, JR. CITY OF OAKLAND, RETIRED RON RISI RECOLOGY EAST BAY MIKE TALLENT THE ART SIGN COMPANY RANDALL WHITNEY SAFE STORAGE MANAGEMENT CO. MICHAEL YOELL STAR PROTECTION AGENCY

EXECUTIVE DIRECTOR DEBRA HAUSER

Business exerts a more effective, influential voice when it speaks and acts in unison.
AABA Newsletter published monthly by the Airport Area Business Association and distributed at no charge to its members. Contributions, comments and ideas are welcome. Send your information to Editor, AABA News, P. O. Box 14123, Oakland, CA 94614, fax to (510) 261-4112 or e-mail [email protected].

For membership information, please call (510) 545-7773.

Thank you to AABA E-Mail Sponsor

Attendees at AABAs April 25th EDC listen to Ed McFarlan of JRDV Urban International

AABA, partner tnership AABA , in par tner ship with

Lighthouse Community Char ter High School, Chart

27th hosts April 27th

For Bro Food For Thought Brown Bag

Your Credit Score. What Is It? Why Impor portant? Why Is It Impor tant?
with Wil Mendoza, Senior Vice President, Business Banking Manager

AABA Youth Outreach Program

Wil Mendoza took Lighthouse 11th graders through the ins and outs of establishing and maintaining good credit as well as the importance of saving from an early age. Students will certainly remember Wils animated explanation of FICO scoring, increased purchase power brought about by good credit, and his excellent advice about banking. They will now be more prepared when stepping out into the real world to receive that very first credit card. Consumable food for thought, courtesy of Torrey Pines Bank.

Bay Broadband Consortium AABA a Member of East Bay Broadband Consortium

And what is the EBBC? The East Bay Broadband Consortium is a regional effort, organized to improve broadband deployment, access, and adoption in Alameda, Contra Costa and Solano counties through a collaborative approach. The EBBC was organized by the East Bay Economic Development Alliance in partnership with the California Emerging Technology Fund. This past January, EBBC was awarded a three-year grant from the CPUC to implement a plan of action, recognizing that infrastructure and access gaps are present in the East Bay resulting in a persistent Digital Divide. Consortium members consist of East Bay cities, chambers of commerce and individual companies interested in advancing high speed broadband connectivity. As AABA continues its own, independent advocacy endeavors to bring affordable highspeed service to the business park, it will also play an active role in contributing toward the efforts of the EBBC. Visit www.ebbroadband.org for more information.

Airport Area
Business Improvement District
sponsored by To make the Airport Area a better place to visit and do business
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AABAs AABAs

JPA JPA Chooses AEG

On April 20th, the Joint Powers Authority board of commissioners chose bidder AEG over Global Spectrum and existing facilities operator SMG. Entering into negotiations with the worldwide company may result in the awarding of a ten-year contract to manage the Coliseum. Should negotiations with AEG prove fruitful, the Coliseum complex will be managed by a new entity for the first time in 13 years. AEG is a global operator of entertainment and sports venues, including world famous LA Live in Los Angeles and the O2 entertainment district in London. While AEGs contract with the JPA will extend only to facility operation, the company is also a leader in real estate development as it pertains to entertainment districts, is the largest owner of sports teams in the world, as well as being a concert promoter and producer. Vice Chair Scott Haggerty (District 1 Alameda County Supervisor) made assurances at the April 20th board meeting that the agreement with AEG precludes the company from moving Oakland teams to new venues outside our city. He stated AEGs management of the Coliseum complex completes a West Coast network for the company that offers an increased ability to book concerts and events. As the complex now operates at an annual deficit, AEGs involvement may decrease the subsidy expended on the facility each year, saving taxpayers money in the long-term. AEG has a track record of community involvement and outreach.

Coliseum BusinessAlert BusinessAler t

ednesday May Wednesday, May 30
10:00 9:00 - 10:00 a.m. To One To y o ta
Oakport Street, 81 81 Oakpor t Stree t, 2nd Floor
Look for a meeting agenda in your email box!
Coliseum BusinessAlert provides a forum to express your business-related safety and security concerns

Truc Study ruck East Oakland Truck Study

The City of Oakland Transportation Division is launching a study of truck traffic routes in East Oakland that includes portions of the Airport Area. A series of meetings are focused on receiving community input in regards to the viability of historic routes and identification of more efficient routes that reduce adverse impact to the East Oakland residential and business community. The study will update some routes established in the 1940s that are no longer optimal due to current land uses. Study boundaries are Seminary Avenue to the north, Mountain Blvd. to the east, 104th Ave. to the south, and Oakport to the west. AABA is participating in the study meetings and will report back outcomes in this newsletter. A new route map will eventually be published online for review.

MEET THE GOLDEN STATE W ARRIORS

Mayor Jean Quan, Warriors President Rick Welts and minority owner Jerry West spoke to a packed suite on the evening of April 18th at Oracle Arena. AABAs Meet the Teams event provided the opportunity for Golden State Warriors leadership, City of Oakland representatives and Bay Area business to network and share remarks over good food, wine, and Warriors-Lakers. A great time out was had by all. Thank you to the Golden State Warriors, our Sponsors, our Host Committee and all participants for what turned out to be a premier event for AABA. View more event photos at http://coliseumscribbles.blogspot.com/

Companies Represented:

Thank you Generous Sponsors

AC Transit AEG Alameda County Bar Association Approved Maintenance Co. BAWP Bay Area Black Expo California Capital Investment Group Cassidy Turley BT Commercial City of Oakland Clear Focus Marketing Club Sports Columbia Cosmetics Comcast Elite Sports Therapy Farmers Insurance Forest City Global Lending Source Gray, Greer, Shelby & Vaughn LLC Health Net Hispanic Chamber of Commerce Holiday Inn & Suites House of Chicken and Waffles Jobs and Housing Coalition JRDV Architects Keenan Lamphier-Gregory LBA Realty Loh Realty Mann Edge Properties Milo Group of California Northwestern Mutual Financial Network Oakland Athletics Oakland Chinatown Chamber of Commerce Oakland International Airport Oakland Raiders Oakland Tribune Pacific Builders, Inc. Pacific Thomas Capital Recology East Bay Ricoh Safe Storage USA Save Oakland Sports Scotts Restaurant Siebert Brandford Shank & Co. Simpson, Garrity, Innes & Jacuzzi Southwest Airlines Stephen Gould Ultimate Sports Guide US Bank Visit Oakland Wells Fargo

Thank you to our Host Committee & Volunteers

Ann Cooke, Ultimate Sports Guide ~ Cynthia Lee, Cassidy Turley Ken Maxey, Comcast ~ Amber Merrigan, CCIG Christopher Weills, Ultimate Sports Guide ~ Randall Whitney, Pacific Thomas Capital Extraordinary Thanks to Ms. Lynne Longmire Special Thanks to Master of Ceremonies Randall Whitney & AABA Board Member Ann Cooke Thank you to Warriors Staff ~ Thank you AABA Programs Committee
Photography provided by Photographers@Large

New Generation Fleet for BART

BART staff has just recommended a fleet for the future, the next generation of vehicles proposed to be built by one of several worldwide bidders. North American-based Bombardier has been selected by BART staff and recommended to its ninemember board as providing the best combination of low price, high technology and proven reliability. After a 31-month-long procurement process that evaluated bidders on eight criteria, Bombardiers bid came in approximately 12% lower than French manufacturer Alstom while also earning the highest technical score to assemble an initial order of 410 new cars at an average cost of about $2.2 million per car. The technology score is the result of painstaking evaluations by two independent teams of 29 BART and industry experts that drilled down into the
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details of the proposals, appraising criteria such as brake configuration and hydraulic fluid type. Technical and price scores were added together to arrive at a combined score that put Bombardier on top. The first new cars could be in service by 2017, and all 410 cars of the initial order could be carrying passengers within eight years. BART must replace its oldest-inthe-nation fleet of cars with at least 775 new cars in order to maintain safe and reliable service for an ever-increasing ridership that will include an extension to San Jose by 2018. Bombardier has committed to go above federal requirement that 60% of parts be built in America, and to assemble the cars in the US. Bombardiers bid was $1.54 billion. Funding for the new cars will come from BART (25%) and the MTC (75%).

Welcome New Members

Clear Focus Marketing
910 Florin Road, #101 Sacramento, CA 95831 Contact: Patricia Turner (510) 551-4469 www.clear-focus.com

Fresh Look for Exterior of for Exterior Aviation Oakland Aviation Museum
The Oakland Aviation Museum Board of Trustees has approved moving forward with a plan to remake the exterior areas of the museum. The plan is a co-design effort by ARuleDesign of Alameda and Urban Legend Consulting of Oakland. Completion is planned for Fall of 2012. The new installation represents the most significant change to the exterior of the museum since its move to the historic Boeing School of Aeronautics hangar. The plan calls for greater public access as well as areas for visitors to relax amongst the aircraft and even picnic on sunny days. Included will be a new and expanded Flying Boat exhibit area. Featured prominently in the plan is a new Solent dock area. This area will provide ramp access closer to the flying boat, making it easier to view for mobility-challenged visitors, as well as providing a base for an expanded Flying Boat Exhibit Area. The deck will add a dimensional component to the museums exhibit areas that have been in need of expansion. The illustrious history of The Bay Areas own Pan Am Clipper fleet will have a new home. The dock will create a proper context for flying boat history, both locally and as the pinnacle form of luxury air travel around the world during the Golden Age of aviation. The added dock and yard lighting will make the museums Solent dinner experience more easily accessible and the whole museum experience more dramatic and interesting for evening events. The Oakland Aviation Museum is accepting donations for its Capital Projects fund to expedite this project. Please contact Scott Buckingham at (510) 638-7100 or [email protected] should you wish to contribute. Oakland Aviation Museum is located at 8252 Earhart Road on OAKs North Field.

Farmers Insurance
4323 Piedmont Avenue Oakland, CA 94611 Contact: Kim McGuire-Reid Agency Owner (510) 428-2016 www.mcguirereidagency.com

Lamphier-Gregory
1944 Embarcadero Oakland, CA 94606 Contact: Scott Gregory President (510) 535-6690 www.lamphier-gregory.com

Motel 6
8480 Edes Avenue Oakland, CA 94621 Contact: Dora Muoz General Manager (510) 638-1180 www.motel6.com

Musante, Jr. A .J. Musante, Jr.

[email protected]

thwest estern Nor thw est ern Mutual Financial Network

100 Pringle Avenue, Suite 505 Walnut Creek, CA 94596 Contact: David Casper Financial Advisor (925) 296-5149 www.david-casper.com

Courty tyard Makeo eov Courtyard Undergoes $1 Million Makeover

With a renovated lobby, restaurant and fitness center, the Courtyard Oakland Airport is looking like a million bucks inside and out after an extensive remodel project. The hotels renovations provide guests with flexible areas to eat, drink, work and socialize. The new lobby features a state-of-the-art home theater and library along with a giant touch-screen GoBoard that provides visitors with directions, flight-checks, news and weather. The addition of The Bistro gives guests multiple menu offerings for breakfast and dinner, including pizzas, salads, soups and sandwiches made onsite. The restaurant also offers Starbucks coffee and specialty beverages in a brightly-lit, cafestyle area featuring high-definition TVs placed throughout for viewing sports, news and entertainment. Look for more information coming soon in regards to Courtyards major remodel.
The hotels easy check-in and check-out welcome pedestals, above Comfortable media pods feature free wireless internet access and power outlets for cell chargers and laptops, below

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2203 Harbor Bay Parkway Alameda, CA 94502 www.snelling.com/alameda www .snelling.com/alameda [email protected] [email protected]

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Its easy to contribute, or just stop by and read at http://coliseumscribbles.blogspot.com

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AABA Coliseum Case Study

in partnership with University of California Berkeley, Haas School of Business Dr. Robert Edelstein, Co-Chairman Fisher Center for Real Estate and Urban Economics

hat happens when you gather eleven MBA students, a renowned economics professor, and graduate intern together with several seasoned businesspeople to facilitate dialogue? Add in a dynamic business district as the focal point of discussion and youve got yourself a real-world case worth studying. An AABA Coliseum Case Study, that is. And so it happened on the eve of May 2, 2012 in Cheit Hall, Room C325, that this gathering occurred as part of Course 284 taught by Dr. Robert Edelstein to his MBA class at Haas School of Business. The Coliseum Case Study project, several months in the making, began in 2011 with a meeting between Dr. Edelstein and AABA. MBA intern Thu Banh was brought on board to write a case study with the guidance of Dr. Edelstein, AABA Economic Development Group Chair Randall Whitney, and JRDV Architects Managing Director Ed McFarlan. The study would focus on the Airport Area, more specifically the Coliseum complex, in solving a hypothetical (but very real life) problem of retaining an NFL football team at the site. Dr. Edelsteins students would read the case study and come up with solutions in overcoming a $400 million funding gap to get a new NFL stadium constructed and generating revenue. Students were provided with the AABA case study document and three guiding questions two weeks in advance of class to aid in preparing solutions to the problem.

Authority. From a macro development perspective, how would you create a PPP that: Significantly increases revenues and closes the anticipated $400 million funding gap through various public-private finance and marketing strategies that employ innovative and best business practice, taking into account stadium indebtedness? Attracts private-public sector financial entities (e.g., sports teams, investors, hotel operators, developers, public assessment districts, etc.) and devises a schema for risk-reward sharing related to participation in the overall performance of the Coliseum area? Has a positive fiscal impact on both the local and regional economy, with the goal of maximizing social and economic benefits?

Closing the Gap

uch of class time centered around discussion of generating a revenue stream to fund the stadium. As Ed McFarlan noted, a gap would exist in any city where a billiondollar NFL stadium is built whether in Santa Clara, Los Angeles, or right here in Oakland. Closing the loop on funding is obviously not an easy assignment and requires some big thinking. Students and facilitators were up to task, citing both typical and creative sources of revenue in delivering solutions to get the stadium built and operating in the black. Case in point: Maximization of non-game day events Renegotiation of existing debt Taxation of concessions and merchandise Negotiation of a better naming rights deal Sale of public land to private investors Restructured parking fees Use of New Markets Tax Credits Creation of a REIT to attract investment Use of technology in advertising and media Innovative seating and suite programs

Guiding Questions

ou are a private developer crafting a Public-Private Partnership (PPP) to finance the construction of a new venue that will incentivize the hometown professional sports team to remain in Oakland. You are presenting your proposal to the team and the Oakland-Alameda County

PHOTOS, top to bottom: Haas School of Business, where Course 284 is taught AABA Executive Director Debbie Hauser, board member Randall Whitney, Dr. Robert Edelstein, and Thu Banh meet at the Faculty Club before class Ed McFarlan (skyped in larger than life from Malaysia), Dr. Edelstein, and Mr. Whitney are ready to engage with students for a three-hour class session

Case Study Participants

eveloping and presenting a case study has many moving parts, and thus many people to thank. AABA acknowledges the following individuals for their time and effort in participating in the Coliseum Case Study on behalf of the organization: The recipient of high academic honors throughout his distinguished career, Dr. Robert Edelstein is the author of numerous books and papers on economics and real estate investment. A past lecturer at Harvard University and Wharton School, Dr. Edelstein has taught at Haas School of Business since 1985. His fields of expertise include urban economics, money and banking, public finance, urban land economics, energy economics, economic forecasting and real estate financing.

Agency assigned to the Coliseum Redevelopment Area. Jay views the Coliseum and Airport Area as unique drivers with clear market potential to anchor the Bay Area sports marketplace, and notes the Coliseum is already a championship venue with three professional sports teams, a rare commodity in the world sports marketplace. Aliza Gallo, who joined discussion, is the Business Development Services Coordinator for the City of Oakland, focusing on major projects, business retention and attraction, health care and life sciences expansion and the development of strategic partnerships with key private and governmental entities. Thu Banh is an AABA intern. Thu has a BA in Economics from Yale University and is currently an MBA candidate at Haas School of Business. Thu has over twelve years of experience in designing and facilitating meetings, trainings, and community planning processes for foundations, community-based organizations, and government agencies. Post-MBA, she will make a career transition into real estate, focusing on urban infill development that enriches the socioeconomic fabric of our cities.

The Managing Director of JRDV Architects, Ed McFarlan is also an alumnus of Haas School of Business. Ed and a team of multi-disciplined professionals his firm assembled were recently awarded an Exclusive Negotiating Agreement by the City of Oakland toward the development of Coliseum City on the Coliseum site, as well as an agreement for the creation of a Specific Plan and EIR in master planning the 750 acres surrounding the Coliseum. JRDVs success in attracting worldclass stadium developers, Forest City and HKS, bodes well for the Coliseum City project. Randall Whitney is President of Pacific Thomas Capital. The companys real estate activities and holdings span the Hawaiian Islands as well as West Coast locations. Randall heads a team involved in real estate acquisition, investment analysis, project management, lease-to-fee conversion, tenant management, and entitlement processing. Pacific Thomas Capital is the developer of the proposed Gateway Community, a ten-acre Transit Oriented Development (TOD) nearby BART in the heart of Oaklands thriving Fruitvale district. Jay Musante, AABA Board member, joined in the case study discussion. Jay was the Senior Project Manager for the City of Oakland Community and Economic Development

About the Course

eal Estate Investment Strategy 284, is a capstone course for students who have completed prerequisite real estate courses and-or have obtained significant previous real estate-related experience. The course utilizes the case method, with a focus on developing strategic real estate management decision-making skills. Class time is spent presenting and critiquing management strategies that students develop for each case. Cases are chosen to examine either recent or classic management problems in real estate development and acquisition, real estate financing and capital markets, corporate real estate, real estate transaction restructuring, repositioning and marketing, the entitlement process and project management. In most class session presentations, senior decision-makers involved in the case lead the discussion.

More on the Study

Visit http://coliseumscribbles. blogspot.com to read the Coliseum Case Study.

PHOTOS, top to bottom: MBA students react to a question posed by Ed McFarlan in a back and forth exchange of ideas MBA student Thu Banh, author of the Coliseum Case Study, will take Dr. Edelsteins Course 284 next year as part of her studies at Haas School of Business Case Study participants after class: students, professor, and business leaders, including City of Oakland manager Aliza Gallo (bottom left)

Thursday, May 31, 2012 5:30 7:30 p.m.

sponsored by

Oakland Harley-Davidson 151 Hegenberger Road

co-hosted by

Airport Area Business Association

Hispanic Chamber of Commerce Oakland African American Chamber of Commerce Oakland Chinatown Chamber of Commerce Oakland Metropolitan Chamber of Commerce Oakland Vietnamese Chamber of Commerce Save Oakland Sports
$10 Entry at Door RSVP to [email protected] or (510) 545-7773

After Hours Refreshments Raffle Prizes Free Harley Test Drives JRDV Architects Coliseum City Presentation Harley Photo Ops Networking
Beverage Sponsor

Free demo ride for any existing motorcycle licensee with completion of an insurance document. Test drives must be RSVPd in advance and will be provided prior to start of mixer. Arrive at 5:00 p.m. Test drive is approximately 25 minutes. Jacket and helmet available for test drives.