I heard about this yesterday when a buddy went to the site and he asked why the site looks cleared. They said they are stopping construction for a month. Skysraperpage.com has been talking about this since yesterday and the Bee has reported it today
No doubt construction cost increases are playing a big factor in this, along with a contractor switch from Turner to Bovis and the slowing housing market.
A project of this size would be a monster for almost all other cites in the US, let alone Sacramento. Considering the break neck pace since it was proposed just a little over two years ago to where it is at now, this is probably a good time to slow down a bit and get this squared away with financing instead of pushing forward without everything completely nailed down.
Next couple months will be very telling.
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Construction on downtown towers halted
By Mary Lynne Vellinga and Jon Ortiz - Bee Staff Writers
Published 7:43 pm PST Thursday, January 11, 2007
Construction has stopped on downtown Sacramento's most ambitious development project ever - two 53-story condominium and hotel towers planned for the foot of Capitol Mall.
In a sign of developer John Saca's ongoing financial struggle to build his skyscrapers, several contractors filed liens against him in the past week for unpaid bills totaling $7.3 million for such items as architectural work and pile driving.
Hit with millions of dollars in cost overruns, Saca is seeking additional financing. Without it, he likely won't be able to close on his $375 million construction loan from Deutsche Bank.
Eric Rasmusson, a spokesman for Saca, called the work stoppage "a short temporary regroup" while the developer tries to reconstruct a workable budget and secure his construction financing.
Saca is seeking a greater infusion of cash from the California Public Employees' Retirement System, which had already agreed to invest $100 million in the project. The pension fund hasn't said yes yet.
As to whether the pension fund would put in more money, Ted Eliopoulos, who joined the giant state pension fund this week as its new head of real estate investment, said, "We'll evaluate it and complete our due diligence."
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9 comments:
Saca has basically given up and gone back to selling toasters and irons...he's up to his neck in debt and is selling off their "empire"...
and boy is the old man Saca "pissed"
but don't despair...this is a good site for a new Prison...and would fit right into the "state worker" neighborhood
You know, you could move if you're so put out by the city you live in. A person as brilliant and above everything as you should be able to find work anywhere.
get real,
the question really is, since just about everybody has a lien on this guy, just who has Saca actually paid?
the reason he hired a relatively unknown firm (they're retail guys) as Architects...everybody else wanted to actually get paid for their work...appears these Saca Architects/Engineers fronted work for him (suckers)...
next stop?
Argentina or Panama,
they need toaster too!!
Maybe he'll have to sell off some of his other planned high-rise sites to cover his expenses...like the one currently occupied by landmark historic buildings! (crosses fingers) That way everyone wins: we get a tower and a chance to save a downtown jewel!
You may want to take a look at the work they have done in Asia before claiming they are just "retail guys"
wburg - If you are referring to Bel-Vue, I'll agree that has some historic value, but please don't tell me you are referring to the Biltmore.
which "jewel" are you referring to? i don't know of any historic landmarks that could be saved... i believe all of the buildings currently occupying future/potential Saca developments failed to meet such criteria.
"I heard about this yesterday when a buddy went to the site and he asked why the site looks cleared. They said they are stopping construction for a month."
That was me buddy, and it was two days ago ;)
Anyway, this is not the first time this has happen. I learned today that Petco Park in San Diego was also put on hold for several months when money ran out and eventually found private funds to finish the job.
Wow. $7.3 million in liens. I have never heard of so much in liens being filed on one project in Sacramento. What's up? Is the guy broke? Why doesn't he pay them what he owes them?
LivingInUrbanSac - can you lend him the money to get him out of this "hole" he has dug?
The Bel-Vue Apartments, on the corner of 8th and L across from the Hotel Berry, are a listed historic structure, and were inhabited until Saca evicted the residents when he submitted the application to demolish the building, along with the entire quarter-block area.
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