As if this was real news, the Sacramento Bee is teasing the idea that the former site of two 53-story towers at Third Street and Capitol Mall could be the site of a mixed-use tower. The state Board of Equalization has meet with CIM Group who manages the site for CalPERS about relocating to a new tower that could be built at the Third & Capitol site. CIM officials showed conceptual drawings of a mixed-use project to BOE that would include condominium units on the upper floors, office space in the middle and retail on the ground floor. The preliminary plans call for a tower in the 20- to 30-story range.
The Bee then goes on to report that for this deal to work for BOE, the BOE wants the developer of the new site to assume the bond debt on the agency’s current headquarters, debt to ease the burden on the state. The debt would probably total around $20 million or $30 million by the time the Capitol Mall tower gets built and the agency is ready to move.
Therefore, this whole discussion seems crazy be begin with. How can the CIM Group stay in business if they are taking on other people’s debt? It’s safe to say unless the State gives CIM something really unique that has value in return for the debt. this deal won’t go anywhere. I have been in contact with CalPERS for 8 years, and their plans for the site have not changed. Their biggest problem is they can’t find long-term tenants for the proposal to make it feasible. If BOC wants to try another proposed tower in downtown, they should call the Vanir Tower Group who has been teasing that they could build their tower taller because of unexpected interest, but no paper work has been filled with the Planning Dept. to show this is true.