Saturday, March 31, 2012

East End Gateway Construction

East End Gateway 2

The contractor will be installing three levels of concrete blocks on top of the footings for East End Gateway 2.  They will also be installing steel reinforcement bar, underslab electrical conduit and plumbing and pouring the concrete slab.
In addition, the contractor will be laying-out and digging the footings that will form the perimeter of the slab for East End Gateway 3. Once the contractor digs out the footings, they will be installing steel reinforcement bar and sleeves to accommodate electrical and plumbing, pouring the concrete footings and installing the first three levels of concrete blocks on top of the footings.

Estimated Development Costs: $25,838,000.  84 market rate one and two bedroom apartment units, ground floor retail/commercial space and 93 parking spaces. Location: SW and NW corner of 16th and O Streets. Developer: Ravel Rasmussen Properties and Separovich/Domich Real Estate; Architect: Stantec Architecture
East End Gateway 2

East End Gateway 3

East End Gateway 2 & 3 foundation work

East End Gateway 2 & 3 rendering

Friday, March 23, 2012

Sustainable Regional Growth Plans

In November, the Sacramento Area Council of Governments released its long awaited draft Sustainable Communities Strategy (SCS) -- a plan for guiding regional growth intended to reduce the region's greenhouse gas emissions while accommodating nearly 900,000 more residents by 2035. SACOG's SCS is one of four such plans being drafted by the state's largest metro regions in order to company with Senate Bill 375, the 2008 law that seeks to reduce greenhouse gas emissions through the promotion of more compact development and alternative transportation methods. While SCS's in other regions have drawn criticism, the California Planning & Development Report reports that SACOG's SCS has been widely praised for preserving farmland and encouraging greater density in urban centers. The SCS is expected to be adopted by SACOG's board in April.

Please read more about SCS Blueprint Plan here: Sacramento Region SCS Builds on Tradition of Blueprint Planning  & SB 375 Is Now Law -- But What Will It Do?

Monday, March 12, 2012

Arena Debacle?

It looks as if U.S. Rep. Doris Matsui might derail the proposed new arena in the railyards shortly after Sacramento Mayor Johnson declared that the city is "on the verge of doing something very special." Her statement was made on where the proposed arena is planned and where  the intermodal transportation center (ITC) was also originally supposed to be built.  
In a SacBee Editorial: Don't build a big barrier inrailyardMatsui draws attention to how the current arena plan might not work. Before the arena plans came to be, for ten years ITC was in the planning stages with both renderings and site plans released in the last two years. This current arena effort would toss out all those dollars spent and years planning the ITC.  After reading the article, Matsui draws concern by emphasizing that the aim should be to create a well-integrated center of architectural and functional significance that has a strong sense of place. I heard that statement to infer that the new arena would greatly reduce the functionality of the transportation center using the current plans, thus putting Federal Funds in jeopardy to fund the ITC.
The article also refers to the Rose Center of the Urban Land Institute suggestion to place a public plaza in the corridor from the depot to the Central Shops with the arena as far west as possible on the site and transportation facilities as far east as possible. The editorial brings up some good points and the comments are informing.

Wednesday, March 07, 2012

City Council agrees to Arena Financing Plan

In a 7-2 vote, the council approved a nonbinding "term sheet" with the Sacramento Kings, AEG and the development firm slated to build the project. By approving the plan, the council has set into motion a series of critical votes in the coming months. Those votes must occur under a tight timeline, as the city works toward breaking ground on the arena by next summer to open the facility for the 2015-16 NBA season.

Now the Kings and AEG will begin work on a memorandum of understanding on revenue sharing and arena expenses. That agreement is scheduled to be completed by April 15. In addition, the city has looked at leasing parking assets to a private firm in exchange for an upfront payment that would go toward the arena. In recent weeks, city officials have floated another idea: to create a municipal finance authority that would allow the city to maintain control of its parking operations. Under that plan, the city would issue bonds to fund the arena project and pay that debt back through parking revenue
Last night’s vote by the council also approved the spending of $850,000from the city's parking fund to hire a team of consultants to help in the pre-development process.

Friday, March 02, 2012

Framework for New Arena

In addition to this new rendering for the proposed arena in the railyards, the city has released the financial term sheet detailing the huge finical commitment the city will be making to lease the city’s parking operations for 50-years.
City Public Commitment: $255.5 million
·         $230 million parking monetization
·         $18.5 million from land sales. (Estimated total value of land salesis$30.7million;however, the City has used conservative assumptions. So only $18.5 million is budgeted for the ESC in order to address variability of market conditions and to account for expenses associated with sale of the land.)
·         $5 million Sheraton MOPA (for predevelopment costs under a public-private partnership)
·         $1.5 million parking infrastructure fund(for predevelopment costs)
Capital Campaign (e.g., bricks, other) $3 million
Sacramento Kings $73.25 million
Anschutz Entertainment Group (AEG) $58.75 million

TOTAL $390.5million
The new arena plan includes a 30-year commitment from the Kings to stay in Sacramento, and a 30-year operating lease with AEG. All non-Kings events will be charged a Facility Fee of $1 per ticket. There will also be a tiered revenue-sharing plan that gives the city 15 percent of the first $10 million net operating profit from the facility, and 30 percent of the next $5 million of profit. The city would get 50 percent of all net profit after that.
The ICON-Taylor team has guaranteed to deliver a completed arena by September 2015 – in time for the start of the 2015-16 basketball season – and cost overrun protection, assuring the city of a $391 million final price tag. Taylor would build a $25 million adjacent garage with a combination of private funds and profits from a previous city/Taylor redevelopment project.
The nonbinding  term sheet must be approved by the City Council this Tuesday for the project to go forward in addition to spend $850,000 from the city's parking fund to move ahead on preliminary steps in the process.
City officials say the parties would need to commit by April 3 to spending a combined $13 million on engineering, environmental and other costs.
The documents show for the first time how the city would backfill the $9 million a year the general fund would lose once the city completes its plan to extract upfront cash from its parking operations.

It should also be mentioned that this project is going to use the city's MOPA funds, proceeds from the sale of the Sheraton that were supposed to be use for David Taylor's 800 K Street project. With SHRA dissolved and MOPA funds spent on the arena, K Street might have an abandon dirt lot for years to come.
To read the term sheet for the Sacramento Entertainment and Sports Complex, click here.