Sunday, March 07, 2010

626 I Street Rehabilitation Project

This 12-story mixed-use building at 626 I Street will soon start receiving a needed renovation in an effort to bring the property up to current market standards making it ready for occupancy by extremely low income elderly persons. Constructed in 1975 for the Housing Authority, the first three floors are office/commercial, while floors four through 12 provided 108 housing units for elderly and/or disabled families. Over the years, reduced federal funding and insufficient annual public housing capital funds delayed the renovation of major systems including roof, plumbing, electrical and asbestos abatement.













On Tuesday the 9th, Sacramento City Council will vote to fund this project with $19.4 million in grants to modernize the vacate building. Most of the funding will come from the Federal Government, as part of the American Recovery and Reinvestment Act of 2009 (ARRA). In June of 2009, the Housing Authority was awarded $4.6 million for the renovation of units. In addition, the Housing Authority received Council approval to seek funding for the 626 I Street project through a competitive ARRA Capital Funds Recovery Competition (CFRC) Grant. The ARRA competitive grant required a 25 percent match of non-public housing funds. In September 2009, the Housing Authority was awarded the maximum grant of $10 million for the substantial rehabilitation of the 626 I Street Project. The Housing Authority of the City of Sacramento was the only entity in California to be awarded funds through this grant and the awarded amount constitutes 20 percent of the national funding allocation.













The scope of work will include roof repair, window and window wall system replacement, water penetration prevention measures, building sealants, replacement of utility infrastructure (water, sewer, storm drain, and natural gas), and new electrical and mechanical systems. The project when completed will consist of 108 units for occupancy by extremely low income elderly persons in September 2012. No start date for renovations has been given yet.

Friday, March 05, 2010

R Street Improvements



This May construction will begin on the first phase of a four-phase revitalization of R Street in downtown. Phase one of construction is to implement parking restrictions along R Street at an estimated cost of $4,362.00. When finished, this project will improve the streetscape with new roadways and sidewalks along R Street between 10th Street and 13th Street. Based on a request from CADA and feedback from property owners and businesses, parking restrictions will be implemented prior to the start of construction allowing the City to move forward with Phase I of the project and minimize the impacts to neighboring businesses, property owners and customers. The project consists of replacing the asphalt and concrete roadway section, placing raised pedestrian walkways and valley gutters, installing industrial looking street lighting, and providing 90 degree and parallel parking along R Street.

In response to a-request from CADA on behalf of the businesses and property owners, a letter outlining the proposed regulations and soliciting comments was sent to the businesses and property owners that would be impacted by the changes. Of the 57 businesses and property owners in the impacted area, 46 (81 %) responded. 34 (74%) of the respondents voted in favor of the proposed changes and 12 (26%) voted against.

Thursday, March 04, 2010

Concepts submitted for K Street

The City of Sacramento has received four proposals to develop portions of the 700 and 800 blocks of K Street that are owned by the city. Each proposal will be assessed by committee of both city staff and private parties starting on March 15th and after the initial review more details about the proposals will be released to the public.

The four teams interested in developing K Street are the Rubicon Partners, developer of The Citizen hotel, David S. Taylor Interests Inc. and CIM Group, Bridge Housing, an affordable developer from San Francisco, and D&S Development, an infill developer that has done projects around Sacramento, most recently at 14th and R streets. All developers have a history of development in the Sacramento area.

Friday, February 26, 2010

Funds for the La Valentina Project



Next Tuesday the City Council will defund $1 million towards the La Valentina project in State Housing Trust Funds and then allocate $1 million in City Housing Trust Fund funds as a loan to the 12th Street Partners, L.P. (Developer) for construction and permanent financing of the project. 12th Street Partners, L.P. will also be receiving loans from Redevelopment Agency of the City of Sacramento and the City Council in the amounts of $7,035,000 to assist in funding the costs of construction and permanent financing of the project. The total cost to build the proposal is estimated at $30 million.



The proposed La Valentina project will consist of a mixed-use, transit-oriented development. Located on two adjacent sites separated by D Street along the east side of the 12th Street corridor adjacent to the Alkali Flat/La Valentina Light Rail Station.The proposal will include a 1,300 square foot cafe, 5,000 square feet of commercial/retail space, a 2,000 square foot community room, a property management office, a play area for resident children, and parking on the ground floor. There will be 63 affordable rental units located on the second, third, and fourth floors. Over the past 18 years, the City of Sacramento and three different development teams have unsuccessfully attempted to revitalize the La Valentina site. Construction should begin in this year.

Friday, February 19, 2010

Good & Bad

Let’s start with the good. CIM Group Inc. in partner with David Taylor plan to submit a development proposal for the empty 700 - 800 blocks of K Street which are city-owned, according to Taylor Interests and the city. With Sacramento CIM investments in the hundreds of millions of dollars, they could also be the only company with any desire to buy Westfield’s Downtown Plaza and transforming it into a more urban-orientated shopping center. Currently CIM’s Sacramento investments include 800 J Street, the 26-story “Park Plaza” office building across from Cesar Chavez Park, a partnerships in Sheraton Grand Hotel, Cosmopolitan Theater, and new nightclubs and restaurants on K Street. Currently both CIM and Taylor have partnered up with Gerry Kamilos in an arena proposal for the Railyards which seems to have strong interest by both the NBA and the City. CIM has also been chosen to lead development for the former “Towers” site on Capitol Mall and has committed $165 million to the project but is currently waiting for market conditions to improve before moving forward.

The bad news is the Hard Rock CafĂ© in Downtown Plaza that opened in 1997 is going to close at the end of March when its lease expires. It’s being reported that this is happening as a cost cutting measure but it was just last week a new Hard Rock Cafe opened up in Seattle.

As much as I am not a fan of how the 800 J Street building looks from the street, it has become a great success with its ground floor retail occupied and nearly all the apartment units above rented out. If you look at CIM history of “urban renaissance” development, it looks as though they have both the experience and deep pockets that Sacramento needs to develop downtowns retail and housing.

Tuesday, February 09, 2010

Sutter Medical Center – Update



Later this month the next milestone in the expansion of the Sutter Medical Center in midtown will be the switchover from the existing Energy Center off of 29th Street to the new Energy Center in the basement of Sutter Capitol Pavilion on 28th Street. Demolition of the existing Energy Center is slated to begin later this month with steel expected to rise up for the Anderson Lucchetti Center site later this year.

Thursday, January 28, 2010

The Arena Summit

Today Federal officials were in Sacramento for a regional meeting to discuss ways in how to advancing development for a new sports complex.

Officials meet with Mayor Kevin Johnson’s Sacramento First Task Force who was assigned the job of evaluating seven proposals for a new sports and entertainment center to replace Arco Arena in North Natomas. The 12-member task force meet with officials from the U.S. Department of Housing and Urban Development, Environmental Protection Agency and Department of Transportation. The meeting is expected to explore ways the federal government might support a public-private partnership for a new sports complex.

Wednesday, January 20, 2010

"The Sacramento Convergence" Land-Swap Arena Deal

This is the most complex proposal of the seven and also appears to have the most supporters. With the NBA and Maloofs liking it, this could be the plan that moves to the next phase. In short, this deal involves selling Cal Expo land for redevelopment that would help finance a new arena, the old Arco site would become the new location for the state fairgrounds using Arco Arena as an exhibit hall, and the Railyards site would become Sacramento’s new entertainment sports complex.

I see a few sticking points before this plan can happen. First, will the State agree in selling Cal Expo to help pay for Sacramento’s new entertainment complex? Will the $68 million loan the Kings owe the city be forgiven? How will a new state-of-the-art fairground in Natomas be paid for if all the money from selling Cal-Expo goes to building the new sports complex in the railyards? This whole thing is vary complicated. The numbers also don’t add up when the cost to build a new fairground is also included into the over all development costs. The sale of land only pays for a percentage of the new arena in the railyards and not a new fairground to be built in Natomas.

Remolding of the current fairgrounds is the most cost effective way to upgrade dated Cal Expo, not building a new one at more that twice the cost. We all know that this is not what this whole proposal is all about, it’s about building a new arena for the city. It appears to me at this point, the movers and shakers of this deal aren’t even thinking about this part of the equation right now, but it will have to be addressed at some point.

Tuesday, January 19, 2010

The New Cal Expo 2015



Doug Tatara is the creator of the “Sacramento 2015” or “The New Cal Expo” which would build a new arena, theme park and express monorail between downtown and Cal Expo. Doug’s concept includes building a working theme park/entertainment mall which would be a celebration of California. The Sate Fair would be relocated to the racetrack property and both facilities would operate concurrently. This proposal has a unique financing program called Corporate Sponsors Equity Marketing Program that could raise $500 million by asking the top 100 advertisers in the country who spend $300 million annually on advertising and ask them to join a new entity that will own the arena. To participate they must contribute $20 million for a 20 years prepaid marketing commitment. Doug believes that if 25 corporate sponsors see the value in this venture, $500 million could be raised.



I’m like the financial creativity Doug brings with his proposal but I still dislike this location for a new arena unless they upgrade and widen the Capitol City Freeway. I have never understood why the east bound lanes before leaving downtown are at four lanes but then reduced to two lanes after Exposition Blvd. For an area that supposes to accommodate thousands of visitors a day during the State Fair, this strange freeway orientation seems to spell trouble year round and even more so when large events are be hosted at Cal Expo. I’m also certain the McKinley East Sacramento Neighborhood Association will fight this proposal tooth and nail.

Sunday, January 17, 2010

Natomas ESC Arena Proposal



The Natomas ESC Partners have a vision to build a new arena to the north of the old Arco Arena with the intent to using both facilities and doubling the 200 annual events currently held at Arco Arena. The development team would enter into a public-private partnership with the City of Sacramento in order to gain control of the 100-acre City owned property. There would be a ground lease (“site lease”) between a newly created corporation and the City. The level of revenue sharing and operational control of the new complex would be subject to negotiations between the City and the owner of the facilities. Upon termination of the site lease all improvements would revert back to the land owner, the City of Sacramento. Natomas NSC Partners will be working with design and architectural firms such as NBBJ who designed the Staple Center in Los Angeles as well as Nachl & Lewis architects that brought Sacramento the US Federal Courthouse on “I” Street.



The proposed entertainment and Sports Complex would also include a high-rise hotel, green tech Research Park and an interwoven greenbelt. Their financing plan includes naming rights, pouring rights, private investment, seat-preference bonds, advertising rights and the sale of luxury suites. They will also be looking for access to low-cost, tax-exempt financing which they say they have adequate experience in for areas such as landmark projects like this. If this proposal was chosen by September of this year they believe a Sacramento Entertainment and Sports Complex would be constructed and operational for the 2014 NBA Basketball Season.

This location (they say) is the least expensive site to develop amongst those other plans under consideration, although they did not name a price. I see the parking as an issue with a majority of it on the south side of Arco Arena, it just seem odd compared to other suburban stadiums and arenas and people won’t like that. I also see the entire green park space as a problem on two counts. One, the cost in maintaining so much green acreage when the city gets the facilities and land back after the lease is terminated. Our city is already struggling to keep the parks we have in good shape, this additional work load would really stretch resources. Two, the addition green park space would need to be watered and put even more of a strain on a city that’s been suffering from drought fatigue for years. Don’t get me wrong, I love parks and everything they bring to a community but I think this one is too big. I believe three or four smaller parks spread through the area would make a bigger impact on near by residential communities.

Saturday, January 16, 2010

Sacramento Intermodal Transportation Facility Event and Art Center



Thomas Enterprises, Inc. has a proposal of a Sacramento Intermodal Transportation Facility (“SITF”) that would make our city proud. To be located just behind the RR Depot after the tracks are moved north, this would be a $500 project that would have key design aspects including visual references to the history of the project site and its significance as the western terminus of the Transcontinental Railroad. Similar architectural design elements would be integrated into the complex like the existing historic Depot, REA building, and Central Shops Historic District. The Arts Center along with the elevated Pedestrian Bridge will serve to link the historic districts and downtown Sacramento as a unique, historic, point of destination with a clear sense of purpose and place for visitors and residents. A parking structure for 1,200 parking spaces would be attached to the SITF building with the intent to distribute parking for the Event Center within a 15 minute stroll, using downtown’s existing 12,000 public and private spaces within that radius.



Their financing strategy includes a public-private partnership (“PPP”) comprised of the City of Sacramento, Thomas together with other partners. The PPP will include the operators of the Community Event Center and the Community Art Center as well as other developers and public entities. It is anticipated that the Sacramento Intermodal Transportation Facility including the Events Center and Arts Center, will be publicly owned. The land to build the SITF is already owned as a PPP and does not require any acquisition costs or significant infrastructure costs.



Friday, January 15, 2010

The Core Arena Proposal



This concept is one of my favorites and turns what is now four blocks of a dying mall into an entrainment complex with a shopping mall wrapping it on three sides. I really like the rendering above of the arenas glass walls traveling up its wall opening it up to people on the street. The roof top gardens are also a special feature that would be unique that everyone could enjoy.



I believe the developer expects to spend around $500 million to build this all-around handsome center but something tells me it would be closer to $700 million after the land is bought from Westfield and demolition costs are included. I don’t remember hearing where financing would come from but that doe’s not mean it was not discussed during the busy night. If anybody can fill me in please post a comment.

This is the kind of facility that would really draw people to the area and I hope it can be pushed forward in the development process. The proposal was presented by Ali Mackani with the support of Lionakis and and The Makers Lab.

Thursday, January 14, 2010

Arena Sports and Entertainment Concepts



Tonight’s arena presentations at City Hall were inspiring. Of the seven original proposals submitted to City Hall last month, three stood out in my mind as having potential to take the next step if funding can be found. Because there were so many renderings to post and I’m short on time for the next couple days, I’ll post one or two of the proposals a day till I get them all up. Tripp Development was the only proposal that did not display any visuals or hand out any info on their proposal. They did make a seven minute presentation talking about the cities goals and ideas to obtain financing, but that was about it.

I’ll start with one that was called the Sacramento Riverfront Entertainment and Sports Complex by M & M Group who was energized with both renderings and ideas to gain financing to move forward. I personally think this one is a no-go since the city just approved another Dock's development at the site and the developer still has three years to start construction before their permits expire. The M & M Group ideas also include an electric Trolley that runs from Front Street up R Street to 19th Street as well as a RT Entertainment Trolley line that swings up Broadway and over to midtown and then back to the proposed arena. Although some parking will be built next to the structure, most parking and will rely on people to park at already existing parking structures downtown and then take the Trolley to the arena. I love the idea of an arena on the river but I just don’t feel it with this one. Here’s a link to learn more about the proposal and their financing ideas estimated at $750 million http://www.arenaontheriver.com/ .





Saturday, January 09, 2010

Arena Proposals Open House

This Thursday the 14th the Sacramento Arena Task Force will showcase all seven of the arena proposals in the lobby of City Hall at 915 I Street. Each developer will make a short presentation starting a 5 pm with developers afterward taking questions from the public.

Last week I got to see one of the proposals by Ali Mackani and Team and I was impressed with the amount of detail and time spent to make the proposal feasible. The idea of remaking the east end of the mall into a arena/shopping center with roof top gardens was an innovative way to improve the four block area. The open house will be from 5 to 7 pm this Thursday.

Wednesday, January 06, 2010

Sacramento River Crossing Study

The new City of Sacramento General Plan includes additional Sacramento River crossings without specifying the location or number of crossings or the transportation modes served by new crossings. The cost of the study will be $260,000 with both The City of Sacramento and the City of West Sacramento sharing the costs for the planning study with West Sacramento contributing $60,000 to that total. The study is expected to be completed in one year, starting in January and ending in December 2010.

The study will include:
• A transparent and proactive public outreach process;
• A purpose and need statement which is grounded in the community values stated in the two cities' General Plan policies and expressed by stakeholders;
• Development of alternatives to include build and no-build scenarios that consider various bridge cross sections types (i.e. types of travel modes that are served), various locations, and number of crossings;
• Planning level analysis of opportunities, constraints, land use implications, impact assessments, travel demand modeling, and costs estimates to inform the process.

http://sacramento.granicus.com/AgendaViewer.php?view_id=8&event_id=80

Wednesday, December 30, 2009

New Arena Proposals



The Mayor made a call out in November for prospective developers to turn in their ideas for a new Sacramento arena by December 24th and seven proposals were received. Of the seven ideas by developers, one over-view site plan was released and in my opinion we can go nowhere but up from here. Above is a plan by Tripp Development/Cachet Realty Group, Inc. and it looks as though it might have been whipped together in a matter of minutes before hustling it down to City Hall.

The Tripp Development plan includes The Towers as if there is still a chance they will be built… but they died three years ago. I also wonder why this rending which was done with a ball point pen also includes a deck over I-5 when just a few months ago the city cancelled pursuing that idea after more than ten years of study. My last thought on this rendering is that it looks as though it was an after thought and hardly something of any merit, I can't imagine any of the others presenting their ideas in this same format. It was only a few weeks ago The Capitol Creative Collective in partnership with The Downtown Sacramento Partnership hosted their first Idea Fair on vision for future downtown development. I think the Mayor should also talk to these guys to see what they come up with… all of whom will also pitch their ideas for free.

In the end it’s all about where the moneys going to come from to pay for the new arena. In the last ten year nearly all but one of the seven proposals submitted to the Mayor have been proposed before. Their is one new site proposal for the The Docks area which doe’s not make any sense when just a few weeks ago the City Council approved both the plan and EIR for the Docks to be developed.

Here is a list of the seven new arena proposals as described by the Sacramento Press.

Thomas Enterprises, Inc. and Team, Sacramento Railyards

The offering proposes to build on years of planning by the city of Sacramento and combines regional mass transit, large-scale community events, arts and entertainment venues in the city's downtown and region.

The Kamilos Company and Team, Sacramento Railyards

The proposed entertainment and sports complex will be located on the city-owned property, south of the newly aligned railroad tracks, within the Railyards Specific Plan.

Tripp Development and Team, Westfield Downtown Plaza

The development location is at the northeast corner of the intersection of Third and L streets, on the site currently owned by the city and developed as a multi-level parking facility.

M&M Group, led by Matt Haines and Team, Sacramento Docks Area

The Docks Area is located in Downtown Sacramento, adjacent to the central business district defined on the north by Capitol Mall, on the east by the I-5 freeway, on the south by Broadway and on the west by the Sacramento River. Immediately north is the Historic Old Sacramento District.

Doug Tatara, Cal Expo

This proposal includes a theme park and arena at the Cal Expo Fairgrounds location.

Natomas ESC Partners and Team, Natomas

The site proposed is the city-owned 100-acre property adjacent to and north of the existing Arco Arena and just south of Del Paso Road, minutes from Downtown Sacramento and five miles from Sacramento International Airport.

Ali Mackani and Team, Westfield Downtown Plaza

(The proposal is) centrally located in the heart of Sacramento’s downtown on the current site of Westfield Plaza’s east end. The plan proposes an extensive retail experience, dining options and a public park.

Monday, December 21, 2009

Sacramento Skyline Sunsets









These were taken in September from the roof of the L Street Lofts at L & 18th Street. Please click to enlarge

Thursday, December 17, 2009

City Council approves Docks plan



The Sacramento City Council on Tuesday approved both the plan and EIR for the Docks to be developed next to the Sacramento river as well as the rezoning of 29 acres to general commercial from heavy industrial.

The specific plan for the Docks includes:

• 1,000 residential units;
• 200,000 square feet of office;
• 43,000 square feet of retail.

Adoption of the plan allows for a shovel-ready site when the market for development improves.

Tuesday, December 15, 2009

Westfield to step aside from Downtown Plaza

This has got to be the Mayor's biggest achievement of his first year in office but it's far from anything but talk at this point. Till a buyer is found who will pay Westfield asking price and also wants to dump millions of dollars into transforming the mall into something better, it will be many years till anything positive happens there. Congratulation Kevin, I hope you can make this work.



The following was posted on Mayor Johnson's website:

One interesting challenge of my job in Sacramento’s weak mayor system is dealing with high-level people from around the world. Frankly, it can be helpful when world-class executives overlook the fact that Sacramento has a weak-mayor government. Sometimes, it’s best not to dwell on our city’s weakness. A case in point is my dealings with Westfield, the world’s largest retail mall operator.

For years, the relationship between Westfield and City Hall could be summed up with one word: Disagreeable.

No more. I am proud to say I have developed a positive, special relationship with Westfield. I can meet with top executives and talk business on a level playing field.

This shows how personality can triumph over charter limitations.

The relationship with Westfield is crucial because Westfield controls a key part of our city – the Downtown Plaza shopping center, exclusive of Macy’s.

As Westfield’s position in the mall struggles, downtown also struggles.

My talks with Westfield executives were crisp, efficient, always respectful and professional. That’s how Westfield operates.

Simply, I asked Westfield to step aside from the Downtown Plaza if the company wasn’t in position to invest at a significant level. Obviously, I don’t want our city held hostage.

To its credit, Westfield agreed.

The next steps will be critical. Months ago, I assembled a team of city experts to create a new vision for the K Street corridor, including the Downtown Plaza.

Our team listened to public testimony and came up with an inspiring vision that includes reconnecting the downtown grid from the Sacramento River to the Convention Center.

Westfield shared some of the vision, but had concerns. Obviously, our dream is expensive. But we are not talking about wallpaper and light fixtures. We are talking about a re-imagined downtown: a huge project creating economic development and thousands of jobs.

Again, Westfield stepped up and said they respect Sacramento enough to cooperate in a sale or search for new investment.

Now it’s up to me to find the right investment and development groups to buy Westfield’s positions in Downtown Plaza.

These deals can be very complicated. We have a long way to go.

But the victory here is that the city and Westfield are approaching the future as partners, even if we agree to part ways. Westfield wants downtown to prosper even if the company leaves Sacramento.

That’s what relationships are all about.

Thursday, December 03, 2009

8th & K Street Hotel Proposal Update

A revised proposal by USA Hospitality, Inc. and their equity partners Consus Asset Management and Industrial General has been submitted for building a Marriott Renaissance Hotel at the corner of 8th & K Street. The new proposal includes a decrease in the number of hotel rooms from 409 to 300, and a decrease in the number of parking spaces from 372 to 350 while adding 100 condominiums on top of the parking garage as a second phase of the project. The total cost to build the project went up from $137 million to $162 million along with the needed city subsidy to build from $31.5 million to $33 million. The developer has asked that the city give them the land which is city-owned for free, and to forgive taxes on the hotel for the first few years of its operation as part of their needed subsidy deal.

The property has been tied up for 14 months in an "Exclusive Right to Negotiate" with USA Hospitality, Inc., but on December 8th the city staff will recommend releasing the Request for Qualifications for the 700 and 800 blocks of K Street with a due date of February 12, 2010. It’s anticipated that the city staff could return to the Redevelopment Agency by early April with several other proposals for the 8th & K Street site. In that time USA Hospitality must do three things.

1) Obtain stronger financial commitments from all equity financial partners.
2) Developer conduct an assessment of the Bel-Vue to determine the costs associated with preserving the façade.
3) Complete negotiated business terms for inclusion in Disposition and Development Agreement.

I still don’t see the value in the city giving away $33 million in land and future taxes when just two blocks up the street at 10th and K Street Toni Giannoni is asking for $10 million to build a 165-room hotel that better fits our market. Toni also has an excellent record of finishing projects downtown where there are more development regulations that can tie up a proposal. In the case of the 8th and K Street design, the developer has a half block to work with, so instead of a massive parking garage the parking should be spread out over the entire half block above the lobby and ground floor retail but below the hotel rooms like has been done with ten other high-rises in downtown. If the city can nudge the developer to do this sort of design instead, the proposal would actually be shorter but the curb appearance would be far nicer. We don’t need another 6 story car garage at the corner of 8th & L Street; car garages have a history of deadening side walk activity for entire blocks and devaluing distinctive corners in our city. I hope both our City Council and planners consider the consequences, there is no need to repeat mistakes of the past again.



City owned parking garage across from city hall at 10th & I Street

Monday, November 30, 2009

Yee Fow Center



As part of the Sacramento Railyards to commemorate Chinese heritage a privately-funded Cultural Center is currently being planned to provide cultural exhibits, performances, banquets, and a world-class trade facility. The development of the Yee Fow Center of History, Culture and Trade would also include residential, museum, library, educational class rooms, retail, and offices for trade oriented companies/associations, fitness center, and Chinese Garden.



The Trade Center includes a Residential tower of an approximate 40 stories with 360,000sf, Chinese Garden landscape of 1.38 acres, podium with office space of 93,000sf, history and culture center 100,000sf, retail 63,000sf. A “Feasibility Study” to determine the framework defining revenue, operating expenses, capital cost, and anticipated attendance still needs to begin. Stantec Design Firm did these renderings back in 2008.

More information on the Yee Fow Center




Thursday, November 19, 2009

Dim Lights at 500 Capitol Mall


For some reason the exterior lights of 500 Capitol Mall just aren’t as bright as they were advertised three years ago when it was approved to build by the city. Unless you standing right in front of the tower, the dim lights that are on it can hardly be seen and a big disappointment compared to the night rendering (shown above) making it really glow like the Wells Fargo Center on Capitol Mall. I have contacted the leasing company of the tower several times asking if the exterior lighting was going to be improve only to be told they would get back to me but never did. I was really hoping that this building would add more dramatic lighting to Capitol Mall like other new high-rises on the Mall. Unfortunately, I think this will be the best were going to see from this tower and it will join the many other high-rises downtown that have also failed to light-up as advertised like the Federal Courthouse and EPA tower on “I” Street. Aesthetics like lighting are so important now that our cities tiring to push forward a makeover of Capitol Mall from the riverfront to 9th Street, let’s hope some lighting improvements can be made in an effort to revamp the Malls future.

Wednesday, November 18, 2009

Downtown prepares for Carnival of Lights

This holiday season, the Carnival of Lights will delight visitors with a dazzling display of lights throughout the Central City from the waterfront through Midtown starting the week of Thanksgiving through January 3. The collaborative effort will feature architectural lighting, holiday décor, and holiday events including the Theatre of Lights in Old Sacramento and the Carnival at St. Rose at 7th & K streets.

“Downtown has always been a center for holiday activity. This year we’re taking it up a notch with the Carnival of Lights,” said DSP Executive Director Michael Ault. “Downtown, Old Sacramento and Midtown are partnering up to create a festive pedestrian experience that connects local events with nearby businesses, restaurants, theaters and other cultural attractions.”

Downtown landmarks including the Memorial Auditorium, Community Center Theatre, Elks Building, Hyatt Regency Hotel, Sheraton Grand Hotel, and Citizen Hotel will be aglow with colorful lighting as part of the cooperative program. The DSP, in collaboration with SMUD and the City of Sacramento, will illuminate K Street with LED twinkle lights and street poll decorations on J, K and L streets and Capitol Mall. The DSP is also partnering with private property owners and downtown businesses to participate in the holiday festivities by lighting their buildings.

Theatre of Lights
The Carnival of Lights will kick off in Old Sacramento the night before Thanksgiving with the annual Old Sacramento Tree Lighting and the Theatre of Lights, produced by the Old Sacramento Business Association. The Theatre of Lights will bring history to life through a narrated show of lights, sounds and visual effects. The light show will take visitors back to a time when the beloved poem The Night Before Christmas was first introduced in Sacramento in 1857. The first Tree Lighting of the season and Theatre of Lights inaugural night will take place on November 25 at 6 pm in Old Sacramento at Front and K streets. Two 10-minute light shows will run every Thursday through Sunday at 6:30 pm and 8:00 pm through January 3. For more information, visit www.oldsactheatreoflights.com.

Carnival at St. Rose
The Carnival at St. Rose is a 5-week holiday event that will transform 7th and K streets into a festive winter carnival. The event will take place in lieu of the ice rink this holiday season due to conflicts in construction schedules with the K Street Streetscape project and renovation of St. Rose of Lima Park.

Open daily November 27 through January 3 from noon until 8:00 pm, the Carnival at St. Rose will feature a ferris wheel, classic carnival and arcade games, and food vendors. In the spirit of the season, the carnival will also incorporate live entertainment, a gingerbread house chef challenge, a craft fair, and charity events. Admission to the event for a two-hour session is $6 for children and seniors and $7 for adults. Private parties and group discounts are available with advance reservations.

The Carnival at St. Rose is produced by the DSP and is expected to draw visitors from all over the region. The event is presented by the Westfield Downtown Plaza and sponsored by the University of San Francisco – Sacramento Campus, UC Davis Children’s Hospital, KCRA 3, My58, Johnny Rockets and the Holiday Inn Capitol Plaza.

For more information, visit www.downtownsac.org/carnival.

Friday, November 13, 2009

Allowing Bicycles on Portions of K Street

Next week the City Council going to remove restrictions of bicycle riding on portions of the K Street Pedestrian Mall in an effort to make a better connection for bicycles between Old Sacramento and the K Street Mall. I think this will be a good thing because this poor stretch of road needs to increase activity in an effort to bring more people back onto the street. Bicycles still would not be allowed on the sidewalk areas but only the areas between the yellow detectable warning strips.

Saturday, November 07, 2009

Capitol Mall Redevelopment Plan

The City of Sacramento looking into creating a stronger more vibrant connection from the Sacramento River to the Capitol by increasing activity on the Mall. The Cities currently looking into holding a design competition for the development from the riverfront to 9th Street where the Mall would become a major attraction for both residents and tourists by the year 2015. The variety of festivals and activities that regularly occur in its beautiful public spaces would draw hundreds of thousands of people annually. The magnificent public art and public works projects that connect the waterfront to the Capitol will be featured on web sites and in magazines around the world. The freeway will no longer feel like a dividing line. Instead, a tree-lined concourse with water features will lead people to and from the riverfront to enjoy the magnificent gateway to California's Capital. Key strategies the vision for the short term (1 to 3 years): · Create more events, more festivals to draw people to the Mall. · Focus on "moveable pieces",e.g. 1-5 bridge, Mall median, Lot X (southwest corner of 3rd and Capitol Mall). · Leverage existing transportation funds to get something done now that supports the long term vision. · Deploy circulator buses to enable people to move freely and easily from Capitol Mall to Downtown Plaza, K Street, Old Sacramento, the Railyards, mid-town, R Street, and West Sacramento. The Mid-term plan (3 to 5 years): · Encourage the development of select numbers of retail establishments. · Develop the CaIPERS site (northwest corner of 3rd and Capitol). · Connect Capitol Mall to the river, metaphorically, physically in all aspects. · Design highly visible, world-class gathering points for tourists and residents along the Mall. · Develop more public transit solutions to enable people to circulate from Capitol Mall to Downtown Plaza, K Street, Old Sacramento, the Railyards, mid-town, R Street, and West Sacramento. Next week on the 10th the City Council will adopt a resolution to be in partnership with the American Institute of Architects and stakeholders to develop a program and hold a design competition for a comprehensive Capitol Mall Plan from the riverfront to Capitol Mall, and the development of a project level design for a specific location. November 10th 2009 City Council Resolution Capitol Mall – Circa 1950

Saturday, October 31, 2009

10th & K Street Hotel Project

It looks as though Toni Giannoni will continue to pursue building a 165-room hotel in downtown Sacramento at the corner of K & 10th Street even though the 8th & K hotel proposal is still moving forward. It’s anticipated to be an urban style Marriot designed by the renowned hotel designer Marc Hornberger who has also designed the W hotels in San Francisco. This hotel concept includes a pool, approximately 8,000 square feet of meeting space, and downstairs bar and lobby area with grab and go food service, as well as ground floor retail along K Street. The proposed Courtyard by Marriot would be a 12-story, upscale, select service hotel with a sophisticated urban design.

The development team is the 10th and K Street Hotel Investors, LLC, which is a partnership of local developers with a strong track record of development in Sacramento. The partnership includes Brian Larson who was part of the development team for the Citizen Hotel, Jim Brennan who recently completed the office condominium project at 1001 K Street, and Toni Giannoni who has a long development history in Sacramento including Meridian Plaza and the recently completed Marriott Residence Inn at 15 th and L Streets.

The total development cost is estimated to be $43 million. In today's capital market this project can expect to attract an estimated $22 million in conventional financing and $11 million in equity investment, leaving a development gap of $10 million. City staff has begun researching public funding options to assist in the development of this project.

On Tuesday November 3rd, the city will authorize city staff to evaluate several options to fund the gap of $10 million with the posibility of a Transit Occupancy Tax (TOT) fund or to also use the Recovery Zone Facilities Bonds made available by the American Recovery and Reinvestment Act of 2009. The bonds allow for lower financing rates, but require some sort of financial backing from the City or the Agency. City staff is working with the City Treasurer, the Budget Office, and the City Manager to investigate the possibility of utilizing this unique bonding opportunity.

Another option is a HUD 108 loan for approximately $4.7 million combined with a second loan for the remaining $5.3 million. City staff would also investigate potential resources within the City and Agency that could be utilized as capital for the second loan.

In either financing scenario, the City or Agency issued bonds or loans would be repaid or the payments pledged would secure the developer's financing.

If the City Council approves the recommendations to move forward, this will allow city staff to further investigate the financial feasibility of the hotel project so that more formal business terms can be presented at a later date. With this authorization, the developers would expend funds to further refine the hotel concept and result in moving the proposed project forward.

Thursday, October 29, 2009

Powerhouse Science Center - Help Needed!

It's been a while since I've posted, but I wanted to post an article from Sacrament Press regarding the Powerhouse Science Center proposed for the old PG&E building on the riverfront.

I'd like to encourage anyone who has an interest in this project t0 toss a few bucks their way to help the Powerhouse Science Center continue forward. I donated $25 and hope others will do the same.

This would be a great project for our area for both residence and visitors.

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Science museum seeks seed money
by Suzanne Hurt, published on October 27, 2009 at 8:51PM

The Powerhouse Science Center is looking for a few good founding partners.

The Discovery Museum is trying to recruit private investors who can provide seed money to help build a $50 million "iconic" riverfront science and space museum hoped to rival some of the nation's biggest science museums.

The new, expanded museum is being developed to provide adventurous, hands-on science and math education to boost kids' interest in the subjects and to help draw high-tech companies — while launching the kind of serious waterfront development that's been talked about for at least three decades, museum supporters said Tuesday.

The four-acre campus would contain a museum built in the long-vacant Pacific Gas & Electric power station, a planetarium, river-view restaurants, conference center and small amphitheater within Robert T. Matsui Waterfront Park, north of Old Sacramento.

The project could be one of the best investments for the future of the city, region and beyond, said Sacramento County Supervisor Roger Dickinson.

"This center can become the place where our very youngest Sacramentans get excited and enthused about math and science," he said.

A capital campaign stalled by the recession has pushed an opening date to fall 2013.

At a breakfast presentation Tuesday morning, Discovery Museum Board President Michele Wong asked investors, including developers and representatives from banks and high-tech companies, to each contribute $25,000 as founding partners "to keep this project going forward."

The campaign needs $600,000 in cash within the next three months to stay on schedule and continue pursuing $30 million from federal, state and local public funding sources, she said.

"We started a traditional capital campaign three years ago. Then the floor fell out of the economy, and we realized a traditional campaign wouldn't work," she said.

The museum will resume its pursuit of $20 million in private investments after the economy improves, Wong said. Construction is expected to begin late next year and be completed in about three years.

Studies have shown that science centers like these raise students' math and science scores. Sacramento teachers have told staff that museum field trips increased their students' interest and hard work in the subjects for the rest of the year. Former students returned to say the Discovery Museum influenced them to go into science in college and careers, said Catherine Gray, director of the museum's Challenger Learning Center.

The Challenger Learning Center, designed with NASA, uses space flight to encourage students to study and use math, science, language arts and technology. Six weeks of learning in the classroom is rewarded and reinforced with a "mission" involving "mission control" and a simulated rocket.

"It's really great to see how they change from being a kid to an astronaut with a job to do," Gray said. "They have no idea they're doing their schoolwork for the morning."

The Discovery Museum, 3615 Auburn Blvd., focuses largely on school groups, whose students make up 50,000 out of 80,000 annual visitors. The 4,000-square-foot museum, which has room for one major exhibit at a time, isn't open to anyone but students every morning, and only three groups can be accommodated at a time.

While the Discovery Museum offers programs and attractions for families and adults, the size of the four-story Powerhouse Science Center will enable the museum to triple the number of visitors each year. The center will have exhibits on the human body, the world and space.

Another building will house restaurants and an education center where traveling exhibits from museums like the Smithsonian Institution will be displayed. A conference center is planned to serve as a gathering place for teachers and people working in science and technology.

"We know there's a lot more we could be doing, but we lack the space to do it," Wong said.

The new museum will house a three-story rocket where boilers and turbines were once housed in the old power station's atrium. The rocket commemorates Aerojet's role in the U.S. space program.

"That's really Sacramento's connection to the moon," said Beth Callahan, the museum's development and marketing director.

The 150-seat planetarium will be twice the size of the existing planetarium and the building will contain a larger Challenger Center. The new basement will contain an expanded, indoor archaeological dig site, replacing an outdoor site. The dig site will consist of four dirt pits, each three feet deep, where students will dig for remnants of Native American civilizations, the Gold Rush era, Chinese camps and the turn of the century.

A staff archaeologist will teach students how to do soil sampling and use the scientific method to uncover artifacts donated by other museums. Back at school, students will give oral presentations on the artifacts, she said.

"It's so important that we can give these kids practical knowledge," said Stacey McKinley, who chairs the museum's government committee. "They really have to put their hands in it. Then they'll believe in it and fight for it."

Wednesday, October 28, 2009

Waterfront Activities



Take in the natural beauty of the Sacramento River while enjoying some of Sacramento's great restaurants.

Delta King's Pilot House Restaurant
1000 Front Street / 441-4440Situated on the third deck of the historic Delta King riverboat, the Pilothouse provides spectacular views, with seating indoors or out. Here, you will savor local California farm-fresh cuisine.

Joe's Crab Shack
1210 Front Street / 553-4249If you're looking for a casual, fun Sacramento River dining experience, Joe's Crab Shack will fit the bill. With buckets of crab and dancing servers, you're sure to have a good time at Joe's. Indoor and outdoor seating available.

Rio City Café
1110 Front Street / 442-8226Rio City Café, situated in historic Old Sacramento overlooking the Sacramento River, offers California Cuisine with influences from all over the world and extra emphasis on the southwest. Indoor and outdoor dining available.

Tower Bridge Bistro
100 Capitol Mall / 326-5050Located inside the Embassy Suites Hotel adjacent to Old Sacramento, the Tower Bridge Bistro offers California-Tuscan cuisine in a scenic setting. Both Indoor and patio seating are available.

Riverfront Bike Trails

Located at the confluence of the Sacramento and American Rivers, Downtown Sacramento provides bicycle access to the riverfront. Cyclists can access the northbound/southbound bike trail along the Sacramento River via O Street or in Old Sacramento on Front Street between L and I streets. The southbound trail will lead you to the Miller Park. The Northbound trail will lead you towards Richards Boulevard, Discovery Park and the 23-mile American River Parkway that stretches from downtown to Folsom.

Sacramento Region 511
American River Parkway

Boating

On a summer day in Sacramento, one of the best places to be is on the water. From personal watercrafts to guided boat tours and charters, the scenic Sacramento River has what you need for a little fun in the sun.

Miller Park
This city park is located right on the Sacramento River, just south of Downtown. The park includes picnic areas shaded by large oak trees, boat trailer parking, a boat ramp and dock. For more information call 808-5200 or visit the City of Sacramento website here.

Riverwalk

In cooperation with the City of West Sacramento across the river, the City of Sacramento is working to expand access to Sacramento's namesake river. Currently on the Sacramento side, visitors can walk along the waterfront from O Street to I Street through Old Sacramento. On the West Sacramento side, visitors can catch some of the best views of the downtown skyline by visiting Waterfront Park between the Tower Bridge and the I Street Bridge.

Information provided by Downtown Sacramento Partnership

Monday, October 19, 2009

Community Theater Renovation



The Sacramento Community Theater has been in use for 35 years and has not upgraded since it’s opening in 1974. The Theater still hosts world-class events but a renovation is needed by adding additional restrooms, concessions, lobby space, and infrastructure to meet the needed of and expectations of today’s audiences and clients. On Tuesday the 20th, the City Council/Financing Authority will accept the current Community Center Theater Renovation Project conceptual design and issue a Request for Qualifications for architectural services to complete the design work. A contract for construction could begin as early as June 2011 and continue work through the summer. The Theater will remain open for each theatrical season (Sept. through June) but closed during the summer months with heavy construction taking place spreading construction over multiple years through the summer of 2014.



The Theater will be financed using bonds from future bonds issued by the City of Sacramento Financing Authority. Bond repayments will come from a $3.00 per ticket where approximately $1 million will go toward the bond payment of $3.7 million annually and the remaining $2.7 million coming from Transient Occupancy Tax and Convention Center User Fee proceeds.

The current renovation will re-configure some existing spaces and add approximately 15,000 new square feet to the building. The total costs of the project are estimated at $40 million with $34 million towards construction and $6 million for design costs.

Friday, October 16, 2009

Architects chosen for new Sacramento courthouse

Friday, October 16, 2009
Published in the Sacramento Business Journal

Nacht & Lewis Architects and HOK have been chosen to design a new courthouse in Sacramento, the Judicial Council of California’s Administrative Office of the Courts announced Friday.

The $500 million project is scheduled to start in 2012, though no location has been set.

The new courthouse would take pressure off the overcrowded Gordon D. Schaber Courthouse on 9th Street in downtown Sacramento. The plans call for building 35 courtrooms in the new facility. Twenty-six of the 44 criminal courtrooms at the existing courthouse would be relocated to the new facility.

The new courthouse will be funded under Senate Bill 1407, which was passed by the Legislature last year and established a lease-revenue bond fund of up to $5 billion to rebuild courthouses in California.

Nacht & Lewis was founded in Sacramento in 1922 by Leonard Starks. The company’s portfolio includes the U.S. Federal Courthouse in Sacramento and the Sacramento County Jail.

HOK is an international design firm founded in 1955 by George Hellmuth, Gyo Obata and George Kassabaum.

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It would appear that we might see a nice looking tower with both N&L and HOK working on this one. Sacramento's Federal Courthouse is a nice addition to our skyline, but I don't understand why they chose to ignore the northern side facing the Railyards but make the southern side stunning with the curved glass and interesting detail near the top of the tower. Sacramento architecture in the last ten years has focused on making the southern facing side of a high-rise striking while forgetting to give the same treatment to the northern side. I was once told “It is a fallacy to assume that good design has to be expensive” and in this case there is no excuse for not making this building impressive.

Thursday, October 15, 2009

Midtown development back to square one

Published Thursday, Oct. 15, 2009
Sacramento Bee - Bob Shallit

Another planned midtown condo and rental project has hit a now-familiar snag: no financing.

Last summer, a partnership headed by Sacramento architect/developer David Mogavero was selected by the Capitol Area Development Authority to build a complex at 16th and P streets. The project's innovative features included a dorm-like rental annex and a hydraulic-stack parking system.

But the partnership "came up against a brick wall" in terms of getting capital, Mogavero says.

Now, CADA's board is asking Mogavero's group and two other developers who were project finalists to revise their proposals and try to find financing.

"We're saying, 'Let's start over and let all three get a shot at it,' " says Tom Kigar, CADA's development director.

The three including D&S Development and SKK Developments have until Dec. 20 to submit new plans and get commitments from lenders.

Kigar says CADA's preference is still to have a for-sale housing component in the project. But he says the group's board is being flexible.

"If somebody comes up with rentals that would be converted to ownership later, that would be acceptable," he says.

Bay Miry, a representative for D&S, says flexibility could help. But it may not be enough, given the dismal financing climate.

"Every bank we talk to says they haven't made a construction loan in a year and a half," he says.

Friday, October 09, 2009

Downtown Plaza Visioning Meeting

Monday, October 19, 2009
5:30 – 7:00 p.m.
Cosmopolitan Cabaret Theatre
1000 K Street (10th & K Streets)

Mayor Johnson has embarked on an effort to reposition the Downtown Plaza as a sustainable regional center and further capitalize on Downtown's strengths. He wants to hear priorities from community stakeholders about the future of the Plaza and the surrounding J, K, and L streets. The result will be a vision to help guide the area's future development.

You are encouraged to attend the community meeting to learn more about the process and share your valued opinions for the future of Downtown Sacramento!

If you have any questions or want to learn more about this process, contact R.E. Graswich, Special Assistant to the Mayor, at rgraswich@cityofsacramento.org.

Tuesday, October 06, 2009

K Street Streetscape Progress



The K Street Streetscape Improvement project is one of the key components in returning K Street Mall back to a lively and inviting pedestrian street. Today I walked by St. Rose of Lima Park section and saw a lot of progress in the renovation. One part I’m thrilled to see is that Sacramento has final embraced some in-ground water fountains that people will able to play in during the summer as well as just watch the fun display of water dancing. The master plan also calls for the RT platform station on K Street to be moved around the corner to 7th street in an effort to move loiters off K Street. These phase one improvements of St. Rose of Lima Park and K Street between 7th & 8th Streets will cost around $4 million and be paid for by Merged Downtown Redevelopment tax increment funds.



At this point, I would really like to see the city focus on getting housing built downtown which I believe will spur other developments like a grocery stores and other retail that the area is also lacking. To do this the City Council could make a new provision when handing out subsides, and that only projects that include housing can be eligible for city subsidies. Also, asking for subsidies has become a common request by developers these days. This could start the ball rolling (even if it’s in small numbers) to get more people living here. These streetscape improvements should do wonders in how the street looks and I look forward to being able to sit back and watch the dancing water while new life returns to K Street.

Sunday, October 04, 2009

Rezoning the Docks Properties



The proposed Docks project nested between Interstate 5 and the Sacramento River, will be heard by the City Planning Commission on the 8th for a motion to pass the rezoning for future urban development consistent with the 2030 General Plan. City Staff will also recommend that Option B to be chosen in how the 29 acres are developed which including 1,000 residential units, 200,000 square feet of office space, and 43,300 square feet of retail space. A formal recommendation for Option B will be made the City Planning Commission next month and then the City Council for approval in December. Option B was determined to be the most cost effective plan to retain Pioneer Reservoir and build the park over the reconstructed roof. The plan proposes constructing a parking facilities underground and elevate the finished floor of the buildings to be level with the existing levee, so the natural feature of the Sacramento River will be visible to the tenants in the future buildings and to area visitors.



Wednesday, September 30, 2009

Railyards Infrastructure Update



Good news arrived in September with federal clearance for the Intermodal project and the receipt of State infrastructure dollars allowing construction to proceed on a number of Railyards projects. State funding dollars from three separate State of California Proposition 1C infrastructure programs for the construction of two major downtown streets, 5th Street and Railyards Boulevard. They also received their first disbursement of funding for the abatement work on the historic central shops. With these funds, these projects are moving forward full speed ahead. In addition, the Intermodal team reached a major milestone by securing federal environmental clearance allowing the project to move ahead into final design. Regional Transit's planned extension of the "Green Line" announcing the ground breaking event early October. The "Green Line" will extend light rail north through the Railyards to the River District serving future residents and businesses in these areas. All of these projects will produce a tremendous amount of construction activity at the Railyards and create more jobs for the region.

http://www.sacramentorailyards.com/home/home.htm

Thursday, September 17, 2009

Developer buying Marshall Hotel


2009 Presidio Co., proposal

Bob Shallit reporting today that the Marshall Hotel at 7th & L St. has a buyer and plans to build a 14 story "W"-style boutique hotel in the future. The plan is to get all needed entitlements lined up so that it will be shovel-ready when the times right to start building. As seen in the posted renderings above, the plans call for retaining two exterior sides of the 98-year-old, five-story Marshall building and incorporating them into a stepped, 14-story structure.

2007 Grand Heritage Group proposal

I love the idea of combining the old building with a new structure so that the project becomes feasible to build, but these renderings make the tower addition look tacky without even tiring to blend the old and new structure. The developer Presidio Co., need to take a queue from the previous Grand Heritage Group proposal of 2007 who proposed a similar concept but did a much nicer job designing the tower addition. The 2007 proposal fell through because of the credit crunch, but their execution to blend old with new was excellent.

Tuesday, September 15, 2009

East End Gateway Redesign



On Wednesday the 16th, CADA will go before the Planning and Design Review Committee to request a review and comment in the form of advisory knowing they are exempt from having to do so. This 9 story, 110 unit project with approximately 5,000 square feet of ground floor retail has had some minor changes with the balconies being reduced and some variation in color, finish, and materials to break up the appearance of the cement composite panels.

It’s great more housing will soon be built but I think this final design looks blah lacking innovation with little to no character so as not to offend those on the street. It’s to bad the previous 15 story residential tower approved by the Design Commission was scraped by CADA last year.

Saturday, September 12, 2009

Downtown/Midtown Sacramento Skyline




Please click to enlarge. This panoramic photo was taken last Wednesday from the roof of the L Street Lofts; 180 degree view looking west.

Friday, September 04, 2009

City officials tell K Street hotel developer to show them the money

The clock’s ticking for Bob Leach and his development firm USA Hospitality Inc. Leach has until the end of November to present Sacramento officials with a viable financing package to build a 23-story hotel and a parking garage on city-owned property on 8th Street, between K and L streets.

And just to add some pressure to the $136 million project, the city is working on a concurrent request for proposals for other developers to submit plans for what they can do with the land, which will be released at the end of November if Leach’s plan doesn’t work out.

In addition to racing the deadline to tie up financing, the city also wants Leach to tie in the façade of the adjoining Bel-Vue Apartments — a 99-year-old structure — into his parking garage.

Printed in this weeks Sacramento Business Journal

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Well is this a surprise? It appears to me that the city is not thrilled with Bob Leach's proposal and is open to other plans in how this land can be used. I'm sure a hand full of developers are getting lined up for a $31 million subsidy. I'm also certain they will do a better job of using the Bel-Vue facade than attaching it to a parking garage. Good luck Bob.

Wednesday, August 26, 2009

Status Report: 800 K/L Proposal




Last night the Sacramento City Council discussed the future of the proposed 23 story hotel and parking garage at 8th & K/L St. by developer Bob Leach/USA Hospitality. The last time Mr. Leach was to appear before the Council two weeks ago, he asked for a delay because his proposal was going to be slammed over the financing for the proposal. This time he came back to the council offering 40% of cash flow instead of 10% over 10 years and asking for 50% of the Transient Occupancy Tax rebate over 14 years instead of 100% over 10 years. USA Hospitality’s now asking for $31.5 million subsidy from the city in an effort to make this project feasible. After a few council members made their opinions known about keeping the façade of the Bel-Vue by incorporating it into the hotel project, the council agreed to a 90 day extension to see if USA Hospitality can pull things together and make this project work.

It looks as though the 90 day extension may have ended Tony Giannoni hopes to also build a 165-room hotel at 10th & K Street. A spokesman on behalf of Mr. Giannoni told the council that if they gave a 90 day extension to the 8th & K St. hotel proposal, they would see that as a sign to drop their project because the market could not support both projects. If after 90 days the USA Hospitality’s bid gets rejected by the council and the other proposal at 10th & K has already withdrawn their plans… we could be left with no new hotels on K Street.

This project still has to go through the Design Review Commission and Planning Commission as a part of the entitlement process. If this current design with the separate parking garage manages to be approved by both the Planning Commission and Design Review Commission, it will demonstrate in my opinion that neither the Commissions or the City Council really understand their roll in helping both designers and developers comprehend the rich context of this unique place in our city.