Real estate developer Floyd Kephart submitted a financial framework for a Coliseum City project that included a new Raiders stadium last week and, despite having a confidentiality agreement keeping his proposal quiet, at portion of it leaked to the press.
Kephart, as you’d imagine, wasn’t happy about it. The portion leaked to the San Jose Mercury News -- Kephart said the 19 pages made public was not the entire report -- was ripped for being unfriendly to the Raiders and virtually unworkable.
“The reaction didn’t bother me at all. The leak bothers me greatly,” Kephart said Tuesday afternoon in an interview with Fred Roggin on 980-AM in Los Angeles. “My whole business is based on confidentiality agreements, and this is the first time anything like this has ever happened. … By selective release, I think the motivation was to stop the process or harm the process to the extent that a potential deal with the Raiders couldn’t get done.”
Kephart’s New City group is working under an exclusive negotiating agreement to help bring investors to a $4.2 billion project that includes a privately-financed $900 million Raiders stadium, a plot of land for an Athletics ballpark, housing structures, a shopping mall, office space and a hotel.
The City of Oakland has promised not to use public funds for stadium construction, though they’ve offered to consider infrastructure improvements. Kephart’s proposal suggests that could reach $100 million. The land under a proposed Raiders stadium would be contributed, but the team would pay $250,000 per year in rent.
“The City and County aren’t putting in a penny,” Kephart said. “They say they want to save the team and are making every effort to keep them here, but the City and County aren't making an investment. They’ve rolled out the red carpet, but it’s about 100 yards short of the entrance to the field. I think that’s the biggest concern, because that does not show community support.
“…It’s hard to do without public funds.”
Kephart had to submit a framework of the deal last week and must offer a more detailed plan and reveal his investors in late August.
The City of Oakland and Alameda County discussed the New City proposal in a private meeting on Tuesday. Kephart said public officials and New City will continue to see if the plan is a workable solution.
You can read about project details revealed right here.
The Raiders will have their say in this as well, though Kephart believes a “potential transaction with the Raiders is certainly doable.”
Kephart wouldn't comment on details of the report, and did not speak to the report that the Raiders would sell 20 percent of the team to New City for $200 million.
Kephart considers the project in totality “a huge win for the city, a huge win for the region.”