The Capitol Area Development Authority began an environmental review this week for a $43 million, mixed-use building proposed for the East End Gateway.

While a consultant began the environmental analysis of the project's final design, developers Em Johnson Interest of San Francisco and Nehemiah Community Reinvestment Fund Holdings of Sacramento have begun working with the authority to draft a development agreement for the project at the northwest corner of 16th and N streets.

CADA ended its partnership with the first developer, Lambert Development, after that company's proposal was deemed too high-end for Sacramento and progress wasn't made fast enough, said Marc de la Vergne, the authority's development manager for the Capitol area. Building plans have gone through three variations since the authority chose new developers for the project in April.

On Oct. 30, CADA's board accepted the new design, which calls for 117 condos, 5,200 square feet of ground-floor retail space and 136 parking spaces in a two-and-a-half story parking garage. The authority conducted an environmental analysis for Lambert's 15-story design in 2008. Another analysis is required for the new, smaller design.

The eight-story building will be constructed near a commercial office district occupied mostly by state agency buildings and on the fringe of residential neighborhoods with smaller-scale buildings. Architects designed the building in a contemporary architectural style intended to blend with both, said developer Michael Johnson, who owns Em Johnson Interest.

"What we were trying to achieve was an understated elegance with this building," he said.

The building was designed to meet the goals of the city of Sacramento's 2030 General Plan Update, which includes mixed-use high-rise development with access to public transit in the Central Business District.

The exterior will be a combination of glass, beige stone tiles and durable silver cement panels.

The location on a prominent corner inspired a corner of glass-walled condos and a stark vertical blade.

"That is intended to denote a real punctuation for that corner," Johnson said.

The building sports an unusual, multilevel design dictated by its location on a dividing line established in the Capitol View Protection Act, de la Vergne said.

An L-shaped portion facing N and 16th streets and containing the retail and most of the condos will be the highest. The building will contain 22 penthouse lofts that range from 900 to 1,300 square feet, with main floors starting on the eighth story and ninth-level mezzanines reached via stairs in each unit. The highest part of the building will top at 106 feet, well below the 150-foot maximum established by the act for that area. Other portions can't exceed 80 feet.

Plans went from 98 residential units to 110, and 6,000 square feet of retail to almost 5,000. Seven condos were added in the final design when developers realized they could be added on top of the garage, de la Vergne said.

The project also meets the 2030 General Plan's goal of integrating parking into the building. Cars will access the garage through the alley.

Residential units are the most profitable part of the project. But retail also is important because 16th Street is a key transportation corridor in downtown Sacramento. Retail also will help "activate" the street, de la Vergne said.

Five condos open onto the plaza. Most units are platform lofts with raised bedroom areas overlooking living rooms. One-bedroom, 660-square-foot condos are expected to sell for $325,000 and two-bedroom, 975-square-foot condos would start at $399,000.

Other highlights include a private third-story landscaped plaza in the center of the building. Condos over the garage will have roofs covered with no-maintenance grass so tower homeowners will look down on green, Johnson said.

The proposal has gone through the city of Sacramento's Planning and Design Review commissions as well as the necessary state agencies.

The environmental analysis is expected to be completed by Feb. 1. CADA's board is expected to take action on the environmental report at its March meeting, de la Vergne said.

Excavation of soil that contains lead-based paint from previous housing on the site is expected to start in May 2011. The authority would first like to relocate four Art Deco-style units that were built there in the early 1940s. An additional 10 units of that structure will be demolished before excavation begins, de la Vergne said. Construction is expected to be completed in early 2012.

Suzanne Hurt is a staff reporter for The Sacramento Press.