It finally looks like the city is VERY VERY close to getting redevelopment happening on the 700 block of K Street
This is such and important piece of the K Street puzzle. I am a little surprised at the price of getting this done, but honestly I don't care.
It's going to take money to get this done. Retailers are not going to pay a high rent to move onto K Street right now, bottom line. It was mentioned that the rate of return for Zeiden is very low, below 5% in some cases. He could do better with no risk putting the cash in a money market fund. Thank you for investing in Sacramento, Joe.
The timeline is the new retail should be open by Octoberish next year. Just in time for holiday shopping. How great is that going to be!
One piece of info I did enjoy hearing was that a good portion of the project will include stores that can't be found else where in Sacramento. Instead of the usual Borders or B&N, Cody's Books from Berkeley has been mentioned as one of the potential tenants. I'm really hoping for an Urban Outfitters as well.
Listening to Robbie Waters talk about K Street of the past and how forward he is looking to it getting back to the vibrancy on the 50s and 60s on K Street have me goose bumps.
From the plans, the entire south side 700 block (52K Square Feet) will be new retail, along with 731 on the north side and the kiosk that might become a sidewalk cafe. I think I heard that there will be about 12 new stores when completed.
The one thing I would have rather seen is the 35K in office space be housing, but after the long wait, I can live with it. Esp with Saca and team potential providing 600 units on the 800 block.
2007 Holiday Party on K Street Mall. Hurrah!
Related Story From Last Weeks Business Jouranl
City OKs subsidy for K Street revival
By Terri Hardy -- Bee Staff Writer
Published 12:01 am PDT Wednesday, June 14, 2006
Sacramento Mayor Heather Fargo calls the 700 block of K Street the city's "ground zero" -- one of the area's most blighted streets and crucial to its revitalization.
In a step toward its renovation, the City Council unanimously granted a developer more than $15 million in land and cash Tuesday night to transform the area. Stores are expected to open in October 2007.
"This is a key project and a key block to get done," Fargo said. "This is the entry point of downtown."
Under the deal approved Tuesday, the city will grant a development team headed by Joe Zeiden a subsidy of $11.1 million in land and $4 million in cash. The Zeiden team will spend $17.6 million.
The project includes 52,000 square feet of ground-floor retail space, 35,000 square feet of office space on the upper floors and a flagship, 10,000-square-foot Z Gallerie Store. Zeiden owns the Z Gallerie chain.
The Zeiden team has promised destination retail shops unique to the city, including Sur La Table, American Apparel and Lucky Brand Jeans.
"This has been three years in the making," Zeiden said. As part of its plan, the Zeiden team has pledged to improve the historic storefronts in keeping with federal rehabilitation standards.
Kay Knepprath, a local preservation activist, said she was pleased with the renderings for the project, including the use of a variety of facades. She called the street "one of the city's most important blocks."
Knepprath noted the plan did not call for housing, although the Zeiden team had said they would include some living space.
For more than two decades the 700 and 800 blocks of K Street have decayed. Last year, the city took a get-tough approach, giving property owners a tight deadline to produce viable development plans.
In the end, the council selected two developers for the task -- the Zeiden team for the 700 block and a team headed by developer John Saca for the 800 block.
The Saca portion envisions two 300-foot towers, with 600 units of housing and ground-floor retail. The project will take longer than the Zeiden project because it will require an environmental impact report.
Because the two groups did not want a joint venture, a city consultant concluded the major stumbling block would be land acquisition from a host of property owners. And to make the deal pencil out for both development teams, a city consultant said properties beyond K Street would need to come into play.
City financial assistance also will be necessary, officials said. In January, the city began talks to purchase eight parcels within the two blocks. To date, six have been purchased or are under contract. Eminent domain proceedings have been started on the 800 K St. property and negotiations are continuing for 704 K St.