Waterfront Idea Makers

Waterfront idea makers competition, Perkins Eastman

There is currently an open competition to professional design firms and the public to submit ideas on how the city can help shape the Old Sacramento waterfront with new ideas. Winners will receive an award and the city will consider all ideas and select projects to implement. You can vote for your favorite entry till March 20^th.

It’s always strange to me when a professional design firm takes a creative license to change more than just the area of focus. Perkins Eastman does this horribly by adding eight or so building around Old Sacramento by destroying others in addition to other things not in the scope of work. Several of the concepts have fun ideas to build on, but many ideas involve busting up waterfront boardwalk the city just spent $7.7 million replacing to be ADA compliant. I’m also not loving the ideas of developing the open park space that is still in Old Sacramento.  Overall, I hope the city gets some good ideas to bring more the area. It was not that long ago the city did a similar competition for the Capitol Mall, I wonder if anything will even come of that?

Go here to vote: http://www.cityofsacramento.org/WIM

Waterfront idea makers competition, Stantec

New I Street bridge

The "Solar Arch" is one of several concepts designed by T.Y. Lin International

The new I Street bridge that will connect Sacramento Rail Yards with Sacramento is currently working on the first phase with the architect from T.Y. Lin International whom designed the eastern half of the Bay Bridge. The projected cost of the bridge was originally about $70 million, but this cost nearly doubled after a consultation with the Sacramento Coast Guard. The coast guard requires a gap of 272 feet for barges to pass through when the bridge lifts up. This gap is 100 feet wider than the current bridge, but this modification has doubled the projected cost.

The federal government is paying for 88 percent of the bridge costs. Additionally, the city is seeking two grants: a $22 million grant from the U.S. Department of Transportation and a $7 million grant from the Sacramento Area Council of Governments. This will still leave an estimated $3 to 4 million for the city to pay.

The city hopes to begin construction in 2020 and have the bridge completed by 2023.

theaggie & sactownmag

CA High-Speed Rail - Never Built

Sacramento High-speed Rail Station - conceptual illustrations 2008

Yesterday Governor Gavin Nuwsom pulled the plug on California’s High-Speed Rail but the Central Valley segment from Bakersfield to Merced (110 miles) would be completed. Thus far, California has spent $5.4 billion on what is considered the easy stretch of the CA train. In 2008 we were also told that private money would come beating down the door once the project got underway, but you can imagine that the current expectation of private investment in the train is now nothing more than a pipe dream.

We can mark this failed project as Never Built, Merced to Bakersfield is more of a monument to mismanagement and foolish ideas.

A little history, the California High-Speed Rail Authority (CHSRA) in 1996  was established to begin formal planning in preparation for a ballot measure in 1998 or 2000. In 2008 voters approved a $10 billion bond to begin funding the project with construction beginning in 2016. Since 2008 the project has been plagued by delays and cost overruns. The cost to build phase one from San Francisco to Los Angeles has exploded from what we were told it cost in 2008 of about $39 billion, in 2012 it went up to $68 billion and to the most current projection is estimated at $100 billion.

The biggest scam in this project was how it was marketed and sold to the voters with no realistic funding source for the remainder of the project beyond Bakersfield to Merced. It was also a bait and switch teasing both Sacramento and San Diego with future extensions just to obtain votes. What we have now is billions of dollars wasted that could have been used productively elsewhere.

The Food Factory

A rendering of The Food Factory, which is projected to open by 2020

Alkali Flat looks to be in the planning stages for a commercial kitchen and food business incubator. Comstock Magazine reports that the project has been in the works for three years with a target opening date of 2020. The 35,000 sf industrial block at 1425 C Street in downtown Sacramento.

The block is not currently outfitted for food and beverage manufacturing. Its mentioned in the article that millions of dollars in big improvements would be needed as well as a big tenant with money and concrete plans to pay for building the kitchen, safety features and other big improvements.

The Food Factory would also host events for the public that features members products as well as music and other entertainment.

Kaiser Buys Railyard Property

Proposed Kaiser Hospital Tower in the Railyards

Nearly 2 ½ years after Kaiser submitted plans to the Planning and Design Commission to build a hospital in the railyards, Kaiser has announced the purchase of 18 acres for $33 million. Entitlements began in 2015, hopefully construction will begin soon now that the land has been obtained. The first phase of the will cost $749.5 million. Plans call for the 14-story hospital to include 420 beds as well as a large medical office. No date has been set for when construction will begin. Below is a map showing the current building height map, it appears most of the land is unrestricted.

Railyards building height map

 

Budget Blown For Streetcar Project

Proposed Streetcars running along Capitol Mall

This is a dream the city has been working on for two decades, but the dollar amount the city had anticipated to build street cars in Sacramento were far from reality after the bids came in. The SacBee has reported that the lowest bid was $184 million by Teichert Construction, which was $76 million more than the city budgeted for. City leaders appeared to be shocked by the setback. Sacramento City Councilman Steve Hansen said “a dramatic setback for the project” and “The team has to step back and rethink this. As it’s currently conceived, the project cannot go forward”. Two other bids came in at $190 million and $206 million.

The West Sacramento Mayor Christopher Cabaldon said “It is premature to characterize this as the death of the project,” he said, “but this is the most significant challenge we have faced from day one.” The SacBee also reports that Congress several years ago committed to fund up to half of the project, but the Federal Transit Administration has not yet agreed to sign a grant agreement, noting last year that Sacramento had not taken necessary steps, such as finalizing construction contracts. Local leaders had hoped that signing a construction contract would put them in position to finally obtain federal matching funds for the project.

Every year this project does not start construction the cost to build rises. The line would operate on rails in streets for 4.4 miles between West Sacramento and downtown Sacramento, crossing the Tower Bridge. At this moment, it will cost $41,818,181 million per mile.

Wanna hear something funny? Three years ago, after receiving $30 million in State funding for the project Steve Hansen said “After 20 years of working on this, that’s the final piece of money we need to go build it”.

Colliers Sacramento Office Snapshot: Q4 2018

Colliers International has reviewed the numbers and last years Sacramento office market ended on a positive note. Net absorption is at its highest level since 2005 with seven straight positive quarters, and vacancy at its lowest level in 16.5 years. Downtown also absorbed 100,000sf during the fourth quarter and more than 329,000sf throughout 2018. Asking rates Per Square Footage have also risen at an average of 4.4% year over year. If new construction is going to occur downtown, the asking rate will have to rise to at least $3.10 PSF (according to Sacramento Business Journal 2015 article) or the cost to build won’t pencil out.

So with all this good news, will the need for more office space downtown and rising rates be enough so that the proposed 301 Tower on Capitol Mall can pre-lease 50% of the tower so that construction can begin? That’s approximately 368,500 SF of the 737,000 SF proposed tower. Anything is possible; I hope they have some leads for those who are interested.

Convention Center Complex - C3 Project

Memorial Auditorium 2018 renovation to cost $18 million

The first phase of the project began in early June 2018 with the renovation of the Memorial Auditorium at a cost of $16 million adding seating, acoustic enhancements and other audio/visual upgrades. Renovations will enhance the patron’s experience and allow the Auditorium to host all scheduled performing arts events during the renovation of the Sacramento Community Center Theater, which begins Summer 2019.

Convention Center expansion to cost $196 million

The demolition of the Convention Center Administration Offices (Panatoni Building) at the corner of 15th and K Streets will began December 2018. This is a $196 million renovation/expansion of the Convention Center adding meeting rooms, exhibit halls and more lobby and kitchen space.

Community Center Theater renovation to cost $85 million

The Community Center Theater and the Convention Center will close for construction in Summer 2019 and re-open in Fall 2020. During this time, all shows scheduled at the Community Center Theater will be relocated to the Memorial Auditorium, which will have completed its renovation. Meanwhile, conventions and conferences temporarily will be hosted in various venues throughout the city, but downtown hotels will continue to host overnight visitors. At an estimated cost of $85 million, the renovation of the Community Center Theater will enhance the theater’s aesthetic appeal, improve its lobby and make the venue more accessible to disabled patrons.

Follow the construction time line here: http://www.cityofsacramento.org/Convention-Cultural-Services/Divisions/Convention-Center

How this is being funded:

The Sacramento City Council on Sept. 25, 2018 unanimously approved the issuance of up to $350 million in bonds to finance the renovation/expansion of the C3 Project, which includes the Convention Center, the Memorial Auditorium and the Community Center Theater. The bonds will not be repaid from the City’s general fund. Instead, they will be repaid by what’s known as the “transient occupancy tax,” or TOT. This is a 12 percent tax on hotel-room and short-term rental stays used for tourism-related projects.* In addition, local hotels have agreed to pay for the construction of the Convention Centers’ new ballroom, which will cost approximately $45-50 million.

800 K & 801 L Street Development

Looking down on 800 K Street where work is under way on the Bel-Vue

In an another amazing accomplishment, the 800 Block of K Street is actually in the early stage of development, which includes a mixed-use project and adaptive reuse and preservation of the 110 year old Bel-Vue. Currently the rehabilitation of the Bel-Vue is the main focus of work right now with structural support. The Bel-Vue was accepted to the Sacramento Historic Register in 2016. The Kings purchased the land in January for $5.6 million. No cost has been given for completing this project. 

The Bel-Vue getting structural support

801 L Street will be demolished and a mixed-use building will rise

The Bel-Vue getting structural support

The Bel-Vue getting structural support

800 K project rendering, 147 apartment, 20,000 ground floor retail



Read more here: https://www.sacbee.com/news/business/article129894014.html#storylink=cpy

700 K Street - The Harlin

This is still hard to believe, after being K Streets most run down section for over 30 years the 700 block of K Street has been reborn. Both D&S Development and CFY Development are nearly finished with rehab and creating a mixed-use project right next to the Golden 1 Center. The final total cost to date is $60.1 million which is a 25% price jump from the original $48 million. This project added 137 apartment as well as ground floor restaurants and retail.

Development in the 700 block of K Street

The city of Sacramento has donated some of the parcels and will pay about a quarter of the $60.1 million cost through loans and grants. The city contributed $2.6 million and another $13 million in public money also came from affordable housing subsidies, both do not need to be paid back. That is a lot of free stuff, both the land and dollars were giving to the developer.

Development in the 700 block of K Street looking east

The soon to be Solomon's Delicatessen on 700 block of K Street

Development in the 700 block of K Street looking west

8th Street view of the Harden apartment behind the historic store fronts on K Street

7th Street view of the Harden apartment behind the historic store fronts on K Street

7th & L Street view of the Harden apartment rising behind the former bus station

8th & K Street view of the Harden apartment behind the historic store fronts on K Street



8th Street view of the Harden apartment behind the historic store fronts on K Street

Hyatt Centric Sacramento

Marshall Hotel getting make over into Hyatt 1209 L Street, Sacramento‎

One of downtowns most rundown hotels is FINALLY getting a major upgrade. Work began in October on the 11-story Hyatt Centric Hotel at the corner of 7^th and L Street. The shell of the 117 year old Marshall Hotel will remain but behind it a new 172-room hotel will rise. This $68 million project is slated to be finished in two years. Watch for the adjutant Jade apartments to be torn down soon. 


Jade apartments to be demolished

7th street view of Jade apartments adjutant to old Marshall Hotel 

7th & L street conversion of Marshall Hotel into Hyatt Centric hotel

7th & L street conversion of Marshall Hotel into Hyatt Centric hotel

 Hyatt Centric hotel on Seventh Street in downtown Sacramento

Powerhouse Science Center

The historic PG&E power station on Jibboom Street will become the
new Powerhouse Science Center

Work on the $50 million Powerhouse Science Center project looks to be under way. Since the beginning in 2007, planning and financing have been a struggle. The center is scheduled to open in 2020 and replace the old one on Auburn Blvd. The project will include 120-seat planetarium with a hemispheric dome rising above the building’s mass in the 72,000 square-foot facility.

The historic PG&E power station on Jibboom Street will become the
new Powerhouse Science Center

Rendering of new Power House Science Center

 

The Bank Culinary Palace

The Bank - 629 J Street - built in 1912

The historic Mills Bank building at Seventh and J streets has been transformed into fast-casual kitchens.  The 30,000 square foot building will have seven kitchens, several private event rooms, and 68 self-serve beer and cider taps. The main floor has stayed original including golden ceilings, light fixtures and in the basement circular vault doors to the taproom.  The tenant include the Poke Bros., Chocolate Fish Coffee, Mama Kim’s, Preservation & Co., Station 8, Platypus Pizza and street taqueria. Today The Bank opens to the public, I’m looking forward to the experience.

Tower 301 @ 301 Capitol Mall

Proposed Tower 301 mixed-use high-rise at 301 Capitol Mall, Sacramento CA

The Sacramento Business Journal reporting that CalPERS along with developer CIM are submitting plans for their 33-story mixed use tower for 301 Capitol Mall.  This means the developer is pursuing entitlements while also pushing a marking campaign to attract possible tenants. It’s noted in the article that the project would not be built unless an anchor tenant is found. Big projects like this traditionally need to lease 50% of the building before financing is released for construction, in this case 368,500 SF will need to be leased of the 737,000 SF proposed tower.

Proposed Tower 301 mixed-use high-rise
at 301 Capitol Mall, Sacramento CA

 

 

 

 

 

 

 

 

 

 

Developer CIM made some modifications from the previously released version; one hundred apartments that were originally on the top floors of the high-rise are now down at the second through fourth floors facing L Street to the north. The apartment would also be smaller in square footage and more affordable than is typical is such a project.

This proposal does not stand out to me. It is a tall vertical glass box with no distinguishing features. Yeah, it better than a hole in the ground or nothing, but I thought $550 million would create something more. It would not have to be tall, just unique and something that gives people a sense of place verses just another high-rise like the one we see here. Something tells me the market will flush this proposal out also, CalPERS has waited to long to get this going and the market will creator as we have seen before. How likely is it they will pre-lease over 350,000 SF?

Proposed Tower 301 mixed-use high-rise at 301 Capitol Mall, Sacramento CA

Colliers 3Q 2018 Sacramento Multifamily

Colliers International Q3 Sacramento Multifamily Forecast Report

Colliers Internationals Sacramento report showed record sales volume and elevated occupancy. But even with thousands of new units being delivered and in development, construction is still well below pre-2009 when an average of 2,500 units a year were delivered from 2005 to 2008.  Occupancy in the central city has declined 150 basis points over the last 12 months to 94 percent. 285 new units have been completed in Downtown and Midtown since October 2017.

On page 7 of the report Colliers goes into detail of all the residential developments the city can look forward to. The forecast looks good, hopefully developers will continue to be bullish in 2019.

http://www.colliers-sacramento.com/MarketReports/2018_Q3_Multifamily_FINAL.pdf

Natural Resources Building @ 8th & P Streets

Piles are being drilled into the ground at the P Street Natural Resources Building. It’s impressive to visit the work site, the entire block is in use for either preparation or construction of the tower. While there taking the photos, I spoke to someone working on the project asking where tower crane or cranes were going to be placed. The answer surprised me, I was told no tower cranes would be used to build this tower, but one giant mobile crane because the proposed tower was not designed to built with a tower crane. Strange to hear, but that’s how it was explained to me.

OxBlue webcam the Natural Resources Building
construction site at 8th & P Streets

The OxBlue cameras are currently the best was to view the towers progress, but I snapped a few photos anyway. 

Corner P & 7th Streets of Natural Resources Building construction

Corner P & 7th Streets of Natural Resources Building construction

7th Streets view of piles waiting to be drilled
into the foundation of Natural Resources Building

Seen from O Street of Natural Resources Building construction

Seen from O Street of Natural Resources Building construction

From 8th Street of Natural Resources Building construction

From 8th Street of Natural Resources Building construction drilling piles

From 8th & P Streets of Natural Resources Building construction

View from 15th & R Streets of where Natural Resources Building
will rise in the skyline