Title
Public Hearing to Consider an Economic Development Subsidy to be Provided to the Oakland Roots & Soul; and
Adoption of Resolution Authorizing the Interim City Manager to Execute a Transient Occupancy Tax Sharing Agreement with the Oakland Roots & Soul in an Amount Not-To-Exceed $150,000 in Support of a World Cup Team at its Alameda Facility during the World Cup Tournament in Summer, 2026. (Base Reuse and Economic Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
In the summer of 2026, the FIFA Men’s World Cup tournament will be held in North America. The Oakland Roots & Soul (Roots) has been approved by the International Federation of Association Football (FIFA) to have its training facility, located in Alameda, be designated as a Team Base Camp Training Site for the Australia men’s national soccer team. The main benefit to the host community and surrounding area of being a Team Base Camp is the thousands of fans interested in following the Australia World Cup team, and the spending by these visitors in local businesses and at local hotels and short-term rentals during the World Cup.
However, the Roots training facility would require upgrades, and the host is expected to carry other costs estimated at $700,000. On July 15, 2025 City Council authorized the City Manager to negotiate and execute a Transient Occupancy Tax Sharing Agreement to enable the Roots to share up to a maximum of $150,000 from the City of Alameda Transient Occupancy Tax (TOT) increment above a baseline amount, in support of their proposal to FIFA to sponsor a World Cup team.
Staffs requests that the City Council hold a public hearing regarding the Economic Development subsidy being considered for the Roots and approve the execution of a TOT Sharing Agreement to fund the subsidy.
BACKGROUND
In February 2026, FIFA announced that the Roots would be hosting the Australia men’s World Cup team at their training facility. The main benefit to the host community and surrounding area of being a Team Base Camp is the thousands of fans interested in following the Australia World Cup team, and the spending by these visitors in local businesses and at local hotels and short-term rentals during the World Cup. Based on past World Cup events, FIFA projects an average of 30,000 hotel nights in the immediate vicinity of the training facility. Fans will be drawn to at least one community-based event with the visiting team at the training facility, and likely other events that will be curated in partnership with the team. This is in addition to activities such as World Cup watch parties and Roots sponsored events.
While the presence of a Team Base Camp will provide economic opportunity to the community, hosting a team results in a significant financial cost to the Roots club, estimated to be at least $700,000 and the need to invest approximately $5 million in field upgrades.
The Roots therefore sought partnership with Alameda and the neighboring cities to support and close the financial gap and for the community to benefit overall. On July 15, 2025, City Council authorized the City Manager to negotiate and execute a TOT Sharing Agreement to enable the Roots to share up to a maximum of $150,000 from the City of Alameda Transient Occupancy Tax (TOT) increment above a baseline amount.
The subsidy provided by the TOT Sharing Agreement is subject to California Government Code Section 53083 which requires that a Summary Report be prepared which outlines the deal points of the subsidy and that public notice and hearings be held to consider any written or oral comments on the information provided in the report.
DISCUSSION
At the July 15, 2025 City Council meeting, the City Council authorized the City Manager to negotiate and execute a TOT Sharing Agreement up to a maximum total of $150,000 to help cover the Roots’ costs. By ensuring a baseline amount of TOT revenue to the City of Alameda’s (City) General Fund, this proposal does not adversely impact the City’s budget.
TOT Increment
The incremental amount stated in the TOT Sharing Agreement is calculated by using the actual TOT collected June1 through 30, 2025 as a baseline, which totals $302,925.23. In addition, a 3% escalation will be added to account for room rate increases, for a new baseline total of $312,012.98. This baseline amount will be compared to the TOT collected June 1 through 30, 2026 to determine the amount of incremental increase to be awarded, up to a maximum of $150,000. The June 2026 TOT figures will be released in August, 2026 to enable the incremental funds to be awarded by November 30, 2026.
The increase in TOT for the time of the tournament is estimated to be between $132,000 and $225,000. If the City receives the maximum increase of $225,000, the City would receive an additional $75,000 in TOT revenue after the economic subsidy of $150,000. If the City does not exceed its 2025 baseline, there is no economic subsidy incurred. If the City exceeds its 2025 baseline by less than $150,000, the net would be the economic subsidy and there would be no net increase in TOT to the City.
Sales Tax
Though the Economic Development subsidy is based on an anticipated increase in TOT, it is assumed that an increase in sales tax will also occur as a result of increased visits to retail stores and restaurants. A 10% increase in taxable sales throughout the month would result in a net increase in sales tax revenue to the City of $22,000.
The purpose of the subsidy is to support the proposal by the Roots to host a World Cup team at their Alameda training facility. The public benefits are as follows:
- Increased global visibility for the Oakland Roots & Soul as a sports entertainment destination.
- Increased global visibility of, and improvements to, the Alameda-based Oakland Roots & Soul training facility as a world class sports venue.
- Substantial increase in the number of national and international visitors to Alameda and surrounding areas, resulting in greater hotel room stays, and increased shopping and dining at local businesses.
- Associated increases in TOT and sales tax revenues to the City’s General Fund.
- Increased regional exposure of the Downtown Alameda, West Alameda, Harbor Bay, Alameda Point, Alameda Landing, South Shore Center, and Marina Village areas as destinations to play, work and shop.
Summary Report
The state requires a multi-step process when an economic development subsidy is given.
• First, the City Council must hold a public hearing to present a Summary Report, which outlines the terms of the subsidy and the benefits to the community.
• After the initial public hearing, the Summary Report is published and noticed on the City website for the public to review and provide comments.
• Prior to the subsidy being disbursed and during the subsidy period, a second Public hearing will be held to identify and address public comments on the Summary Report. This second public hearing is scheduled for June 16, 2026.
ALTERNATIVES
• Adopt a resolution authorizing the Interim City Manager to execute a TOT Sharing Agreement with the Roots.
• Postpone the public hearing until a future City Council meeting.
• Do not adopt a resolution authorizing the Interim City Manager to execute a TOT Sharing agreement with the Roots.
FINANCIAL IMPACT
The $150,000 pledged through the TOT Sharing Agreement will be derived from the incremental increase in TOT generated from the event, assuming that occupancies and corresponding TOT would not exceed average occupancy rates but for the presence of this event. Therefore, there is no negative fiscal impact to the City from this allocation as the City will continue to receive its baseline TOT. In addition, there is the possibility of an additional economic benefit to the City in the form of increased spending at restaurants and shops, as well as increased visibility of the amenities offered in Alameda.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The City’s economic development activities are based on the Economic Development Strategic Plan and continue to support and move forward the strategies.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378, and therefore, no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Hold a Public Hearing on April 21, 2026 regarding the Economic Development subsidy to be provided to the Oakland Roots & Soul: and Adopt a resolution authorizing the Interim City Manager to execute a TOT Sharing Agreement with the Oakland Roots & Soul in an amount not-to-exceed $150,000 in support of their sponsorship of the Australia men’s World Cup team at their Alameda training facility during the World Cup Tournament in Summer, 2026.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Dwayne Dalman, Economic Development Division Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Summary Report
2. TOT Sharing Agreement