The View

From atop the Hyatt, you can see far and wide.

To enlarge, please click on photo.

Rubicon’s “The AuthentiCity” Proposal

With this proposal, Rubicon Partners went all the way with a bold plan that includes both high density housing and civic amenities center. Their plan is to develop both the 700 & 800 blocks of K Street in four phases. The first and second phase are on the 700 block called Merchants Square and includes 400 residential units, 2000 seat entertainment venue, 125,000 sf. of ground floor retail, grocery store, and an activated alley. Phase one would begin immediately if this proposal were chosen.

Phase three would include a California World and Agricultural Center focusing on agriculturally oriented office tenants in a 250,000 sf. office tower. This block would also include a year-round Marketplace called “The Boqueria” where culinary products and education would be on display. Phase four would include a 150 condominium and 375 hotel rooms in a single tower.

The Rubicon Partners proposal is about three times as big as any of the other proposals and has lots of clever components that make it stand out above the others. Having the project phased in of over many years is also a smart move by the developer, this leaves the developer some wiggle room in case the economy doe’s not rebound like some are predicting. My biggest question about this proposal is, can Sacramento support something this large? After watching many other condo/hotel/office projects fail to get off the ground during our last economic boom when financing was much easier to come by, how will this fair any better? Above all, can Sacramento support something of this size? I know Sacramento deserve a world class project like this, but is it something enough people will want to buy into? In the last 2 ½ years The L Street lofts have only sold about 30 of its 92 units and it’s in a vary desirable mid-town location. In comparison, who does the developer think will want to buy 150 high end luxury condos on K Street? Who exactly do they see filling up another 250,000 sf of office tower? What stores will open up to fill 125,000 sf of retail across the street from the dying Downtown Plaza?

I could go on and on but I think you understand where I’m going with this. Unless there are guarantees made that this whole proposal would be build, (and we all know that can’t happen) I just don’t see how the Sacramento market can support this. What if only phases one and two get built but the hole in the ground at 8th & K gets abandon because expectations far exceed what the market can support? I would love to see this happen, but unless their proposal comes with lots people to buy condos, rent office space and retailers on a waiting list to be part of the project, it looks to be to far-fetched for me.

David S. Taylor Interests, Inc. 700 & 800 K Street Proposal

This proposal redevelops both the 700 and 800 blocks of K Street. All structures on the 700 block would be renovated for mixed-use retail with the addition of retail kiosk. The 800 block on the corner of 8th & L Street would include remodeling the Bel-Vue Hotel and opening it up for low income residents. A combination of new construction at the corner of 8th & L Street that would also extend into the renovated Bel-Vue would add an additional 54 housing units with retail at the ground level. The north corner of K & 8th Street would include a new four level building that includes mixed-use retail and 66 market rate housing units. Taylor’s plan also includes renovating both the Kress building and Montgomery Ward building for an additional 45 additional housing units; however, they have not been able to establish a viable financial model for this larger vision. Their goal is to join the Kress and Montgomery Ward buildings with the new building at 800 K Street to form a block of housing, retail and tenant parking. The ground floors of Kress and Montgomery Wards as well the K Street and 8th Street frontages of the new construction would be continuous retail except for residential entries on 8th and 9th Streets.

David Taylor has an incredible track record of getting projects done in Sacramento when others can’t quite make it happen. Although I’m not always a fan of how they look aesthetically, his ability to follow through as promised can not be over looked. Because not all the rendering for the proposal are available, I can’t say yet weather I will like it or not. From the looks the one rendering that is available, it appears to look similar to “800 J” which was completed just a few years ago. I hope (if chosen) this K Street proposal looks better than “800 J” which lacks any architectural personality. The buildings function is exactly what downtown needs, but it’s unfriendly cheap looking street appearance is not what K Street needs. By the looks of the vague rending provided, it appears vary similar to the monstrosity on J Street.

D & S Development Promenade on K Street Proposal

This proposals modest in size and flash but doable as a project that brings everything downtown needs to get more activities in the area. The Promenade brings retail using the original historic fabric of existing K Street on the 700 block, adds additional sidewalk seating and bicycle parking, adding kiosks to partially separate the pedestrian and light rail tracks to bring the vitality of the retail out into the street.

In an effort to develop a retail atmosphere, the developer plans to remove the inefficient rear 66-feet of long narrow retail spaces at mid-block. The remaining, shallower, 94-foot deep retail spaces will be rent to specialty retail shops. Within the rear 66-foot space carved from the inefficient portion of the existing structures, garage accessed from the alley will be created with a new secured bicycle and motorcycle area and parking for 92 vehicle. Above the parking will be four levels of high-density housing with a portion of the retail structures in the center of the block to create a green roof. Most dwelling units will be between 480 and 1200 square-feet with a total of 136 housing units and 37,480 sq. ft. of retail space

Bridge Housing Corp. K Street Proposal

Bridges proposing a multi block, mixed use, mixed income residential concept that encompass three new buildings, a renovated Bel-Vue building plus the adaptive re-use of the adjoining Kress Building. The proposal would introduce over 360 units of “green” housing, 33,000 square feet of street facing retail, 48,000 square feet of professional office, 34,000 square feet of terraced open space to the Downtown Area. All new construction will be LEED Silver or Green Point equivalent incorporating sustainable and healthy building materials, solar panels, energy conserving lighting and glazing systems. If this proposal is chosen, construction for phase one would begin in March of 2011 and finished in Fall of 2014. Phase two would begin construction in Spring 2014 and completed in 2016.

This is a well thought out proposal with parking tucked into the structures hidden from street view. I also like that renovations are planned to both the Bel-Vue and Kress Buildings, these are structures that need to be preserved so that Sacramento doe’s not lose some of these unique historical buildings to further deterioration.

K Street Projects Revealed

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Rubicon’s “The AuthentiCity” Proposal
Both details and rendering have emerged on several proposals put forth to develop both the 700 and 800 blocks of K Street with Sacramento’s Rubicon Partners showing the most ambitious proposal of them all. The Rubicon’s proposal includes building 400 mixed-income residential units and 150 luxury condos, 2,000-seat entertainment setting, grocery store, a 35,000-square-foot farmers’ market, 375-unit hotel and 125,000 square feet of retail spread over two blocks. The developer named this proposal “The AuthentiCity”. This has got to be boldest of the four proposals with a team that has experience doing projects including The Citizen Hotel as well as both 2110 L Street and 1801 L Street which are high-density mixed-use.

700-800 K Street, LLC
David S. Taylor Inc. has proposed a mixed retail-office development for the 700 block of K Street for about 50,000 square feet of retail and 57,000 square feet of office with the storefront façades retained. Taylor’s proposing 54 low- to moderate-income residential units by joining new construction to the existing Bel-Vue apartment building, and 66 market-rate units in a new four-level building with a rooftop courtyard garden. The team, which includes CIM Group, Domus Development and Zeiden Properties, is proposing a total of about 23,000 square feet of retail on the 800 block as well. This projects probably more doable than the Rubicon’s proposal judging by the rending but it’s a safe bet that having David Taylor take on this troubled area means it will get done. Their experience includes Sheraton Grand and 800 J Lofts here in Sacramento.

Mixed Use Development – 700 and 800 Blocks of K and L Streets
Bridge Housing Corp. of San Francisco along with Saca Development and Bagatelos Development, LLC has proposed building 360 “green” housing units, 33,000 sq. ft. of street facing retail, 48,000 sq. ft. of office space, and 34,000 sq. ft. of terraced open space and courtyards on all three development opportunity sites. Bridge Housing has lots of experience but none to speak of in Sacramento.

Promenade on K Street
Sacramento’s D&S Development competing for just one of the parcels and has a concept of 136 housing units in a four-story building known as “Promenade on K Street”. The proposal recommends removing the rear portion of the long narrow retail space to create 37,480 sq. ft. of more desirable retail space. The space created along the alley would become a four-story residential building over podium parking to provide for 136 new affordable housing units. The development team has received Letters of Intent from several retail and entertainment tenants. D&S Development experience includes Old Sac iLofts, Globe Mills, and the Historic Maydestone Apartments set to begin construction in Summer 2010. D&S Development has also lined up financing with Umpqua Bank and Wells Fargo Bank.

The teams will present their projects to a five-member panel Thursday the 25th which could lead to a recommendation to the City Council on a preferred choice by May. The winner could be awarded millions of dollars in redevelopment funds to bring its project to fruition.

More info about the proposals here

Bicycles on K Street

Next week the City Council will remove bicycle riding restrictions on portions of the K Street Pedestrian Mall from 12th Street to 7th Street. This will allow bicycle traffic throughout K Street with the exception of Westfield Downtown Plaza. Allowing bicycles on K Street will provide a safer environment for slower, more casual riders than the faster J and L Streets.

A stakeholder group was assembled who discussed at length the safety concerns associated with this project. The stakeholder group consisted of representatives from Regional Transit, the Police Department, a representative from the Disabilities Advisory Commission (DAC), Sacramento Area Bicycle Advocates and Economic Development. The stakeholder group identified several safety concerns when mixing light rail, bicycle and pedestrian traffic.

• The light rail tracks are a potential fall hazard for cyclists.
• Potential pedestrian/bicycle conflicts.
• Lack of signalized intersections for bicycle crossing.

Arena Proposals Down to Three

Today the Sacramento Arena Task Force announced their favorite three choices to build Sacramento a new sports and entertainment arena. Developer Gerry Kamilos appears to have the strongest proposal which involves having the Cal Expo fair grounds move to Arco Arena in North Natomas, then selling the property to private developers, using the proceeds of that sale to help build the arena. However, Kamilos plan lacks any explanation on how a new Cal Expo would be paid for with the sale of the old Cal Expo land being used to build a new arena. This should be a question the City Council should press Gerry Kamilos on, where’s the estimated $100 million + going to come from to rebuild the State Fair grounds?

The two other proposals also chosen by the panel were the Thomas Enterprise Railyards project and a plan by developer Ali Mackani to build an arena with shopping, dining and a public park at the site of Westfield Downtown Plaza. An oral report will be made to the City Council on Tuesday the 16th.

Restoration of Historic Mayes Jewelers' Street Clock

This Tuesday the City Council will recommend the preservation and restoration of the Fred Mayes Jewelers' Street Clock at the corner of 10th and J Street. With the efforts of both Greig Best (an interested citizen), the City's Historic Places Grant Program, Council Member Tretheway's office, and the Redevelopment Agency, funds will be designated to restore this City designated Landmark. Its ownership will also be formally transferred to the City through the Department of Transportation since the street clock is located within the public right-of-way.

The clock will be restored to the style as modified while at its' original K Street location by Tom Monk (the neon ring addition) before the clock was moved to its current location in front of the former Fred Mayes Jewelers store on J Street and then designated as a City historic Landmark. Mr.Best of the National Association of Watch and Clock Collectors have committed to assist in the project and to install the new timepiece (the"movement"). The Department of Transportation will contract for the clock removal and repair work, and will extend an electrical line so that the clock face and neon lights can be illuminated at night.

It’s estimated that the removal, repair and reinstallation of the Clock could be completed in the amount of $24,000. The restoration of the clock would be funded with $12,000 from the Historic Places Grant Program, $6,000 Community Development Block Grant (CDBG) funds (per recommendation from Council Member Tretheway, District 1), and $6,000 from Merged Downtown Redevelopment Project tax increment funds (from funds allocated for J,K, and L Street Enhancements). The Clock was originally manufactured in Seattle, likely in the early 1900s and was once owned by a former Mayor of Sacramento, Tom Monk, and was located in front of 1009 K Street near the current site of the Crest Theater.

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.

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.

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.

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.

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 Café 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.

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.

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.

"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.

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.

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.

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.