Thursday, October 30, 2008

Retail Tennants for 14th and R Project

I think most people have heard Burgers and Brew (Crepeville owners and one location in Davis) is opening in the 14th and R project, but joining them will be Magpie Caterers.

They will be opening a specialty market, cafe, & kitchen. They'll be offering gourmet deli sandwiches, salads, pastas, special ingredient mixes, constantly changing produce and such, catering services, take home ready made gourmet dinners, dressings, etc. I've heard it described as a David Berkley type of place.

My hope is the market aspect will carry products found at places like Taylor's and Corti Brothers with a great meat, cheese and wine selection.

This really is turning out to be a cool project....

No Target for Downtown Plaza

It looks as though the Downtown Plaza has received yet another blow. The once proposed Target store that was going to add another anchor to the mall has pulled its plans. Last time I counted there were more than a dozen empty store fronts in the mall, so this news about Target is not a big surprise. Westfield Corp. is also planning on spending $60 millions in giving the mall a facelift next year, but from what I have seen from their plans, the “upgrades” won’t do much but shifting things around and put up a giant LED screen. Target has also withdrawn its plans to rebuild a new store at its Broadway and Riverside location… I was even more sad to hear about this.

Wednesday, October 22, 2008

Crocker Expansion Goes Vertical

· Construction crews began to install more than 1,400 tons of steel to form the frame of the New Crocker on Oct. 17th.
· 175 truckloads of steel will arrive at the Crocker
· The size and weight of the heavy duty steel beams are unique for this project due to the load capacity of the building
· Structure will be built from bottom to top and south to north
· Ninety percent of the $100 million campaign goal has been raised, as of October 16, 2008

· Since breaking ground in July 2006, the majority of construction has occurred below ground
· The steel superstructure will be a visual sign of the historic change occurring at the Crocker
· With a $100 million campaign goal and 125,000-sq-ft expansion, this is the largest cultural initiative in Sacramento 's history
· A world-class museum will boost the cultural development of the city

Tuesday, October 07, 2008

City Settles with Mohanna

Quick summary since they didn't give much info during the annoucement at the council meeting. I'm sure there will be an article in the Bee or Business Journal seen with more details. (Added below)

-The city approved a settlement with Mohanna for 18.6 Million to buy all his property on the 700 and 800 block.

-The 800 block is going under an ERN for 9-months for a 400-room hotel on K Street and a mixed-use project on L Street with US Hospitalites Inc (Bob Leach who built the new La Rivage on the river).

- There was something mentioned how Leach would have to buy the land at the 800 block for $150 a square foot assuming things actually happen.

- Comment from Fong (paraphrasing): 'Joe (Zieden), if you are watching, time to get to work'

In these economic times, I just hope the 700 block can get going in a short amount of time. With lending still tough to come by and retailers I'm sure not jumping at the idea of opening a new store in an area with bad track record, I'm worried.

The good news for the 800 block is Leach spent 8 or 9 years trying to build the La Rivage, so at least we know he can stick with something 'till the bitter end..which it might take given the long path to this point.

Speaking of hotels, I know that they tend to overall do well in DT, but it seems like there are a lot of them out there right now being proposed. Leach at 800 K, Taylor, Saca, The Marshall, the one at 13th and The Citizen is now coming on-line. I could see one, maybe two, but not all five in the near to intermediate term.


Sacramento council OKs settlement to allow K Street development
By Mary Lynne Vellinga -

The Sacramento City Council approved a settlement Tuesday with property owner Moe Mohanna that will break the logjam on the K Street Mall and allow redevelopment on the bleak stretch of the 700 and 800 blocks just outside Downtown Plaza.

In order to settle an eminent domain lawsuit filed by the city, Mohanna agreed to sell all nine of his properties in the two blocks to the Sacramento Housing and Redevelopment Agency for $18.6 million.

The storefronts in the 700 block will go to developer Joe Zeiden, who plans to convert them into a retail row anchored by his Z Gallerie Furniture store

The redevelopment agency has agreed to negotiate with hotel developer Bob Leach on the 800 block. Leach plans to build a 400-room hotel -- possibly a Hilton -- along K Street and a mixed-use project along the L Street side of the properties.

Mohanna will remain as a limited partner in the hotel project. If it goes forward, the partners will have to purchase the 800 block properties back from the redevelopment agency.

City council members approved the deal unanimously in closed session.

"We think this is a fair deal for the city, and we really get to put a lot of litigation behind us," Mayor Heather Fargo told reporters after the council action.

The often-combative Mohanna, who has battled the city for months, was subdued when he appeared before reporters.

"We all have to learn to let go," he said. "In this case, it's better to let go."
He said the $18.6 million from the city's redevelopment coffers won't go to him, but to pay off banks and other investors.

Saturday, October 04, 2008

The Docks

Last week legislation was signed by Gov. Arnold Schwarzenegger to allow the mixed-use Docks Area proposal to move forward. The governor signed AB 2026, which would allow the State Department of Parks and Recreation to sell or exchange with the city of Sacramento three Docks project parcels and one further north in property adjacent to the Downtown Railyards Redevelopment Area. Sacramento legislator Assemblyman Dave Jones (D), had tried for three years to the get the parcels transferred, but that move had been vetoed by Schwarzenegger over technical disagreements concerning whether an analysis under the California Environmental Quality Act was warranted before the land could change hands. The legislation, authored by Mike Villines (R) of Clovis contained language by Jones to also allow:

• The Parks Department can enter into an agreement with a non-profit to develop and run a children’s museum in Old Sacramento.

• The state can sell or lease the National Guard Armory in East Sacramento to the Sacramento Catholic Diocese for expansion of St. Francis High School. The Diocese has been working on a deal for more than a decade to expand.

Option A1

Option A1

Option A2

Option B

Last month the Design Commission approved the proposal which now means it will need approval by the City Council to move forward. The proposal is a mixed-use project including 1,100 new homes and 500,000 square feet of office and retail on the Sacramento riverfront. There are currently three land options being considered for the 29.3-acre property site.

Thursday, October 02, 2008

New State Lottery Headquarters Building

The California State Lottery has proposed building a new Headquarters Building on North 10th Street near Richards Boulevard at its current location. The plan is to demolished an existing building to make room for a new 6-story, +/- 150,000 s.f. office building that will house all of the Lottery’s offices and operations.

The master plan would also include two more 6-story buildings at roughly 165,000 square feet each and a 6-stories 1,189 stall parking structure. The project passed the Design Commission last month.