More Piles at The Towers...

Steel & Piles...

The Towers

My Cow Town...

In about three weeks a new magazine will be hitting the streets of Sacramento... SacTown Magazine. Be sure to pick one up for the great articles and to see more of my photos.

http://www.sactownmag.com/

Maydestone Revival

Central City Opinion reports that the old Maydestone Apartments at 15th and J are getting a rehad. Awesome!!!


(Picture taken from http://www.fromthecapitol.com/)





















I have always thought this was a very cool looking building with a lot of character and really hoped someone would renovate it back to livable conditions.

From Skyscraperpage.com, Sacdelicious reports that the building is in escrow, and the partners are turning the building into 32 residential units. They expect the project to be done in about 6 1/2 months. Given the age and schematics, there will be no ground floor retail, which I figured would be the case just by looking at the building.

I'm just glad the project is housing and not a little office project. 32 units equals another ~50 people living and spending money in downtown....slowly but surely... slowly but surely.

Considering it's so close to a lot of the downtown nightlife and office buildings, I think they will have no problem leasing, as long as the rents are reasonable.

Thanks again to Central City Opinion and Sacdelicious!!!

500 Capitol Mall Ready to Breakground Soon?

500 Capitol Mall
25 story office tower
467,942 sf office
27,124 sf retail
Developer: Tskakopoulos Investments
Architect: Ed Kado
Estimated Completion: 2008
















Looks like Capitol Mall will probably be adding it's 5 new highrise in the near future. 500 Capitol Mall looks like might breaking ground soon.

The current building which housed the old Wells Fargo offices is fenced off and demo of the building is expected soon.

(Thanks to Mike for the photo)


You might remember this project as the old Parthenon project that drew strong criticism from everyone. I'm glad to hear they are keeping the roof top restaurant concept though. From the plans I have seen, the ground floor retail will look similar to how the retail is set up on the Wells Fargo Center for Il Fornio and the Wells Fargo branch, up against the street, versus a huge setback like 300 Capitol Mall.

What is unique about this building is that it will be built on spec. Meaning no tenants have signed on. I guess it helps when you can bankroll the project yourself like Tsakopoulos can.

Final approvals from design review and planning commission are expected by the end of the year or shortly after.

Joie de Vivre Update

I was able to attend a community meeting last week for the Joie de Vivre hotel planned (interior demo is occurring as I write) at the Cal Western Life Building at 926 J Street.

His vision of a boutique hotel is one it that needs to be a reflection of the community and how it's citizens feel about it for it to be successful. That was what the meeting was about. To pick everyones brains on the subject.

The room was full of people from young and old, straight and gay, married and single, hipsters and hippies, different ethnicities, and different economic backgrounds, all with opinions of what the hotel should be like.

We were all asked to think of 5 words to describe Sacramento and the hotel.
My words were:
1) Unexpected/surprising -People are surprised to see what Sacramento is about after being here for a little while compared to what their perception was.
2) Lush -Trees, Greenery, Rivers, Parkways
3) Diverse - We are one most diverse cities in the US
4) Influential -Being the state capitol, politics and influence play a role in our city
5) Aspiring -For what Sacramento aspires to be

I personally wanted to stay away from the really old feeling words like historic, timeless, traditional and the such.

In the end, my group choose words that reflected the past and the hopeful future of Sacramento. Unexpected/Surprising, Lush, Aspiring, Influential, and Timeless.

While most people were on the same page other common words I heard most were welcoming, friendly and eclectic.

One part of the meeting that I found very interesting was when Chip asked everyone to tell him what percent of the hotel between the historic and timeless, and chic and modern they would like to see. The first lady who responded said 90% historic and timeless, 10% chic and modern, which I thought would be the common consensuses from most people in the room..to my surprise the responce from the crowd was a big "No!!"

Almost everyone wanted to see this become something different from what Sacramento currently has, or is accustom to seeing. People wanted to see more like 10% "old" and 90% chic and modern, which I am very much in favor of. He mentioned that in the other meetings, people also felt this way. Which I was a little surprised at, but very glad to hear.

Maybe it's that I go to so many of these community meetings and a majority of people that go are the older generation Sacramentians that usually want to keep the historic, traditional and timeless parts of Sacramento alive and aren't so much into seeing the cosmopolitan side of Sacramento (regardless of how small it is, but is growing fast)

I am all for keeping the history of Sacramento, but I think a lot of times people are too consumed by it and try to portray it too often in everything we do. There are only so many things that can pay homage to the Gold Rush, Railroads, and Capitol. It gets boring and old after a while. Time to mix it up a bit.

Chip had what I thought was a good idea for the hotel (I'm sure he has been thinking about this for a while already). He wants to do a combination of both, which would include when you first arrive at the hotel you get a sense of history and timelessness from the building itself, but when you step inside, something more chic, modern and surprising with the lobby, entryway and restaurant, then as you move to the rooms from the elevator and hallway, slowly go back to traditional.

His reasoning seemed to be Sacramento has that older, timeless feel to it on the outside, but inside people are much more sophisticated, cultured, and modern than what they may be perceived as, but deep on the inside, there is still that sense of tradition. Pretty accurate in my mind.

One feature that I think will be absolutely amazing is the outdoor patio will be open on the 6th floor facing the Capitol Dome. If you drive down J Street you can see it when you look up at the building. As the area cleans up a bit more, I can imagine the most amazing wedding ceremonies at Caesar Chavez Park followed by a reception on the 6,000 square foot patio over looking the Capitol. This will be the spot for receptions in the future.

We were also asked about what we would like to see with the restaurant. Everyone was very adamant about a non-chain. They assured us it would not be a chain.

Since this hotel is supposed to be a reflection of the community, my recommendation was to look at a local restaurateurs such as Biba or Rick Mahan at Waterboy who have been part of the community for a while now. They seemed to want to do a play on all the fresh local produce we have access to here in California. While that sounds fine and dandy, it unfortunately also screamed more California or American cuisine to me.

One lady had an excellent recommendation to have the restaurants wine list include Delta wineries in addition to the usual Napa and Sonoma wines.

All I can say is I can't wait to walk through that lobby for the first time. I think this is going to be a real landmark project in Sacramento. Expected opening is Spring 2008

Rising Construction Costs Hitting Home

We all know construction costs have risen over the last couple of years due to the supply being eaten up by China and high fuel prices. These rising costs are affecting projects all over the country, including Sacramento.

The important infill project The East End Gateway project at 16th and O (others two sites are 16th and P and 16th and N), which was under construction and undergoing demo and site prep has been delayed due to construction bids that have put Loftworks 10% over budget.









The two sites are going to consist of 21 loft condo units for sale, 32 apartment, 8 for sale townhomes and about 23K in retail space. This is an excellent, excellent infill project that I have been excited about for years now.

The good news is material prices are expected to come down over with oil prices moving sharply down recently.

Loftworks is taking some time to do some value engineering to see where they can cut some costs. I try and attend the next CADA meeting on Oct 27th when an updated is expected and will report back.

My feeling is this will still happen, but it will just be delayed a bit. If they can get started back up again before the rainy season starts, we could see these two buildings done by very late 2007, early 2008. Originally, the timeline was Oct 2007.

Summer of 2006

The first casualty....

The Sacramento Business Journal reported this week that DR Horton has canceled plans for Library Lofts and Jibboom Street Towers.

While I am not surprised the Jibbom Street Tower was canceled, I am a little surprised about Library Lofts. I thought this one was as good as gold considering the financial power of DR Horton and the counties desire to get rid of the building.

My thinking is that with the slow down of the market and Horton being a corporation, they have shareholder to answer to and taking a risk on a project that may not produce the great returns was not in the cards right now. Remember, these weren’t going to be luxury units, so the prices would be lower, and risk probably be higher with the raise in materials.

We all knew this was coming at some point. There was no way that all the condo towers proposed would get built. This one hurts since these units, while not "affordable" were going to be built targeting a much more moderate household income, which we all know is needed amongest all the higher end product on the market right now.

The key is to still get as much mixed use housing built during this boom as possbile. In the last couple of years there have been about 550 units completed, and about 1500 under consruction, in addition to over 600 hotel room, including one of my favorite projects, Joie de Vivre at 926 J Street. That could be a huge jump in people in and around downtown in the next couple of years.

To me, the most important projects to see get built aren't the biggest ones, but the ones that will create the most synergy with what is already built and under construction, like Cathedral Square Tower, The Metropolitan, 700 K Street, 800 K Street, 10th and K, Crystal Ice, and the other two East End Gateway sites.

Speaking of synergy, will some developer PLEASE buy the surface parking lot at 16th and J and build housing or a small hotel on it!! The folks at Loftworks would have been smart to pick up that property when they first rehaded the Elliot Building. After what has happen on that corner, I'm sure the owner is holding out for a kings randsom.

There was also a note in the article that Aura has financing and is simply waiting for permits to get going. Groundbreaking should be middle to late next month.

More Arena News

I'm sure most of you have seen the news that the Maloofs have walked away from the arena talks again. I do think the Maloofs want to be here, but they also want a very good deal as well

The latest worries me. It sounds as if the Maloofs want to turn the Railyards around the arena into another Natomas. I won't vote for a deal that sacrifices the plans for the Railyards, even if it is a small portion. From what it sounds like, the Maloofs want no competitive retail or restuarants within 1000 feet. I don't like that one bit.

The point of an arena in the railyards is to create a walkable entertainment district, not another suburban arena

Put it in Natomas if that is the case. I think that is where the Maloofs want it anyways. I'd take the vision of the railyards over another suburban arena that is just 5 miles closer to downtown.

Now the question?
Do they work out a last minute deal (again) for something in Natomas to keep the Kings?
OR
Screw the Kings and build an arena in the Railyards according to the plan we want?

The problem with #2 is there is no one major tennat and the city would be stuck with the operating costs where in #1 the Maloofs would paying for them, a major tennat that is paying on average 4M a year over 30 years and 20M cash. Also, I don't think Millennia would agree to drop all the housing, hotel and retail in the area. I think the Railyards is close to dead.

I would still vote yes for the tax increase because I think the money could be spent on many good things in Sacramento up and above the facility, but I would vote no on the other measure if the above plan is what they draw up.
___________________________________________________________________

Leaders will push ballot measure with or without the Kings
By Mary Lynne Vellinga - Bee Staff Writer
Last Updated 3:33 pm PDT Wednesday, September 13, 2006

Discussions between the city and county of Sacramento and the Kings owners over the terms of building an new arena in the downtown Sacramento railyard have stalled.

The pro-arena forces were left Wednesday with the very real possibility that they may be campaigning for a new sales tax to build an arena in the railyard without the Maloofs, owners of the local NBA franchise, on board.

"We still consider them part of our team, but it is our arena, and we will decide where it goes, and the public has said loud and clear that the best place for the arena is in the railyard," said Assistant City Manager John Dangberg, who has represented the city in talks with the team.

County and city staff members had committed to producing a memorandum of understanding with detailed deal terms by Oct. 6. But even if that document never materializes, the ballot measure to raise the sales tax by a quarter cent remains on the November ballot, Dangberg said. So does a companion advisory measure asking voters if they want to spend about half the $1.2 billion in new taxes on an arena and the other half on community projects.

Disputes with the Maloofs have centered on parking, the amount of land that will be set aside for the arena, and uses immediately surrounding it, said those involved in the negotiations.

Joe Maloof said Wednesday he supports the idea of putting a new arena in the railyard, but won't go along with it if it means it will put "the franchise in jeopardy."

Unique City...

Marriott Hotel on 15th & L Street

Fins Market Coming to Downtown

This is very welcome news to the downtown and midtown food scene.

Fins Market & Grill is opening a location at 19th and S, across the street from the Safeway. Currently the site is under construction by Petrovich, but the Fins website says they will be open in Winter of this year.

I have never been to Fins, but people I know that have been there say it's outstanding.
http://www.finsmarket.com/

We really don't have many (if any) seafood places in the central city, especially ones that has a fresh market as well. From looking at the menu, they are reasonably priced. Nothing over $20, with the exception of lobster

It'll be nice to be able to go somewhere and buy FRESH seafood that is just a few blocks from my house when needed, instead of the previously frozen, farm-raised crap that Safeway tends to sell most of the time.

You can't go wrong with fresh Mahi-Mahi, Ono, Wild King Salmon, Oysters, Prawns, Ahi Tuna (Sushi Grade), and Crab. And it's not a chain!!

Considering it'll open in the Winter, how good will a batch of hot seafood cioppino sound at that time?

City Redevelopement Subsidy Choices

I think Teri Hardy read my blog and got an idea for this story.

Last week, I wrote about wanting to see what else is out there vying for redevelopment money, well here it is.

Taken from SacBee.com

















Dude, that 114M went by FAST. Where did the other 40M go?
- 28M 700 and 800 K Street
- 9.9M 926 J Street
- 475K Imax

That's only 38M.....They say 35M is left over..differance of 40M from the 114M. SOmething is missing. I know the Crocker is getting money, but I can't imagine it's 40M

Unfortunately, K Street is taking A LOT of the money, but that should come as no surprise and is WELL worth it. It needs to stay the #1 choice.

If I had to spend the money, I would have to lean toward anything with housing and K Street. So that puts me at #3, #7, #10, and the remaining amout to whatever 10th and K needs and maybe a little toward Downtown Plaza. I haven't even heard of the 900 J and K Street block project, but I'd have to rank that one pretty high since it's housing and on J and K Street

I have to imagine that The Towers will get it done without the 10M. I don't think K Street "beautification" is needed. If they just get 700, 800 and 1000 redeveloped, that'll do wonders for now.

Mainstream theaters do bring a lot of people, but I still want to see live theater at 10th and K. Maybe there a way to incorporate both into 10th and K? I could do without the Paragary "flagship" restaurant

The UPN studios could be cool and would "only" cost 1M. If it's the building I am think of accross from the old Marilyn's building, I have always thought that building would a great Sacramento MOMA down the road.

The Docks area waterfont park sounds awesome and would LOVE to see it, but I think it's one of those projects that is quite a few years off and can be included in the 2009 funds. Plus, spending all 35M on it probably wouldn't be the best idea.

___________________________________________________________________

Tough subsidy choices for city
Requests for help on projects dwarf the $35 million available.
By Terri Hardy -- Bee Staff Writer

From hotels to condos to rehabbing Sacramento's Downtown Plaza, a flood of proposed development projects are pouring into the city.

These major projects also come with requests for city subsidies totaling more than $116 million, and more proposals are expected. The problem: The city's downtown redevelopment fund has only about $35 million remaining.

"We don't have enough money to cover projects on our wish list, at least right now," said Mayor Heather Fargo.

Last week, the owner of the Downtown Plaza unveiled its plans to renovate the mall, but said it will need some $20 million in city help. With that request and others coming, the city will do what it can to help, but some serious analysis is necessary, said Assistant City Manager John Dangberg. "Tough choices will be made," he said.

The shrinking redevelopment pot may mean projects are delayed, pared down, or canceled altogether, Dangberg said. Over the next few months, the city's Economic Development Department will evaluate the proposals, looking at their proposed use and benefits to the city before making recommendations to the City Council.

"What cannot be funded can't be funded," Dangberg said. "Either they'll find other ways to move forward, or they might drop off."

In 2005, the city approved a $114 million bond to fund projects in the 104-block downtown redevelopment area. The bond is to be repaid through anticipated growth in property taxes, or "tax increment" within the redevelopment area.

The council already has approved money for a host of projects, including $28 million to assemble land and allow the development of the struggling 700 and 800 blocks of K Street and nearly $9.9 million to transform a historic office building at 926 J St. into a Joie de Vivre boutique hotel/restaurant.

The city hopes in 2009 it will be able to issue another bond and collect an additional $20 million to $60 million.

Meanwhile, Dangberg and his staff are trying to think creatively about the most cost-effective use of the funds. One idea involves re-evaluating a controversial idea to bring a movie theater complex to the old Woolworth's building at 10th and K streets, Dangberg said.

Developer David Taylor's team has proposed turning that building into a small live theater and restaurant with a $6.7 million city subsidy. That project was expected to bring in 200,000 visitors a year -- a low number in comparison with other uses such as movie theaters.
In the past, however, a proposal to place an art movie house at that location was rejected as too politically sensitive after community members complained it would put the Tower and Crest theaters out of business.

The new idea might hinge on the theaters staying away from art films and focusing instead on first-run movies.

Taylor said Monday he's agreed to a city request to take a quick look at the feasibility of the movie theater project. However, he doesn't want to imperil his current idea, which could be completed in 16 to 18 months.

"For me, the really important thing is to do something positive at that location and bring in an extra 200,000 people who aren't there now," Taylor said.

The deal might make more sense now that Downtown Plaza owner Westfield Corp. Inc., has submitted its $20 million subsidy request to the city. Much of that money was needed, Westfield officials said, because the city wanted them to put its proposed expanded theater complex atop the Hard Rock Cafe at Seventh and K streets and bring more foot traffic to the struggling K Street mall.

If theaters were on 10th and K streets, it's possible that the costly move wouldn't be necessary.

The city's goal is to create such a thriving downtown that subsidies will no longer be necessary. Dangberg said the downtown is already seeing more of that as it flourishes.

Michael Ault, executive director for the Downtown Sacramento Partnership, agrees.

"The city used to have to seed everything, now restaurants are doing it on their own, and office buildings no longer get subsidies," Ault said.

Projects on a larger scale, and projects with housing are now likeliest to get help, Ault said.

Last week, the Downtown Sacramento Partnership board voted on a priority list of downtown redevelopment spending. The board agreed that Downtown Plaza was a top-ranking request, because downtown's success hinges on the mall. And though no firm plan has been proposed to move the Greyhound bus station and costs are unknown, the partnership board agreed that, too, must be at the top of the city's list.

Fargo said she knows that city assistance can often make or break a development. She said all the 2005 bond projects approved to this point couldn't have been done without the additional dollars.

Developer Lloyd Harvego said his plans to build ground floor retail and upstairs apartments at the site of the former Orleans Hotel in Old Sacramento won't materialize without city assistance.

The $6 million is crucial, Harvego said, since the return on the rentals will be lower than the downtown market.

"Rental rates are lower, but construction costs are not lower," Harvego said. "Without city tax increment, this project simply wouldn't get done."'