Today the Hotel Berry will have a ceremonial kick-off for long-overdue upgrades that actually began last December. According to Bob Shallit, next month workers begin updating 105 single-occupancy rooms, with a target completion date of next February. Initial work includes seismic retrofits, asbestos removal and some interior demolition.
The remodel will cost $24.8 million and will be paid for by local redevelopment financing, federal grants and a loan from U.S. Bank. Jamboree Housing Corp. acquired the 82-year-old building last year and intends to preserve the building's original exterior. That includes touching up a huge mural – promoting a one-time eatery called "Original Mac's – on the building's north side. Rents will run from $382 to $573 per month, depending on income level.
It will take 40 years of rental payments to pay the 25 million without interest. How is that a good ROI?
ReplyDeleteIt looks as if only $5.5 million is to be paid back.
ReplyDeleteThe financing for the project comes from $13.6 million in tax credit equity, $10.1 million in permanent financing from Sacramento Housing and Redevelopment Agency and $500,000 in federal weatherization funds. U.S. Bank provided $5.5 million in construction financing.
I knew someone who lived there for a while and said the place was infested by rats. But I think it is a good way to spend money because look at how much they spend on prisons. And this has historical significance.
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