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 I...plus The Citizen is now coming on-line. I could see one, maybe two, but not all five in the near to intermediate term.
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Sacramento council OKs settlement to allow K Street development
By Mary Lynne Vellinga - mlvellinga@sacbee.com
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.
What a huge price to pay in getting Mo off K Street. I'm sure they over paid by millions too.
ReplyDeleteWell, of all the proposals for that area the only one I have faith in seeing happen is David Taylors. I believe he has followed through on every proposal he's made in this city.
In June Zieden meet with city officials to buy him out, did that happen?
The city bought Zieden's property so he wouldn't incur carrying costs.
ReplyDeleteI sure hope he's still plans to push forward on his plan though.
You figure it will take at least a 12-18months before the rehab could be completed, so hopefully we can start to see the beginning of the economy turning around.
Very fine......
ReplyDelete