Though it seems like an Onion story at first glance, downtown Sacramento's first ever mermaid tank may soon be constructed. Developers now await $8.6 million in funds from the City of Sacramento for the proposed construction of a pizza joint ("Pizza Rock"), a nightclub ("Frisky Rhythm") and a bar with a live mermaid tank ("Dive Bar").

Tuesday, the City Council will hear arguments supporting and opposing the project, brought about when the City of Sacramento sold its interests in the Sheraton Hotel to local developer David Taylor, of David Taylor Interests Inc., promising to set aside some of the proceeds for future David Taylor Interests construction projects like this one. Taylor was approached by San Francisco nightclub owner George Karpaty, who was interested in real estate in Sacramento and who owns the popular Union Square club, Ruby Skye, to work together on the three entertainment venues.

According to Ellen Warner, partner of David Taylor Interests, Inc., Karpaty has told them he's spent over 40 nights over the course of several months visiting establishments in Sacramento to see the types of venues already in place and determine what Sacramento may have a niche for.

The three proposed venues are independent ventures, not chains, and as a compromise to the opponents, each venue will have its own liquor license. According to the Report to the Redevelopment Agency and City Council of the City of Sacramento, Frisky Rhythm, whose name will most likely be changed, will cater to the 30 and over crowd, playing rock, rhythm and blues; Pizza Rock will feature pizza throwing by eight time world champion and chef Tony Gemignani; and Dive Bar will play vintage jazz and ratpack vocals.

From projects such as the US Bank Tower, City Hall, and the Cosmopolitan, David Taylor Interests has brought $325 million in private dollars to Sacramento over the past 25 years, Warner cites.

"Our only business is to promote Sacramento," Warner said, also adding that the project would create 100 jobs for the construction and another 100 jobs once the venues were open.

"We respectfully disagree with the idea that it's not possible to attract more people to downtown. It's an embarrassment for our city that [K Street] has been vacant" for so long, Warner added.

Michael Ault, executive director of the Dowtown Sacramento Partnership, cited in an email interview that a survey was conducted of 5,020 Sacramento-area residents to test whether or not a concentrated district of active urban entertainment would bring new customers. The survey found that 72 percent of respondents would indeed patronize Downtown more if there were more restaurants and entertainment venues to choose from and that 84 percent wanted to see more restaurant and entertainment venues Downtown.

Ault also added that “there are 761,213 people between the ages of 30 and 59 within thirty miles of downtown, making the potential customer base over 550,000 (there are an additional 271,105 between the ages of 20-29).”

Another concern that Ault addressed was the 100,000 downtown office workers who work near K street. He said that these workers “support all businesses downtown and as long as K Street remains blighted, we run the risk of reducing our existing customer base and there by hurting all businesses,” one such agency moved in 2007, as reported in Bob Shallit's column the Bee in 2007 when the Office of Statewide Health Planning and Development moved from K Street to R Street because its employees were "fed up with crime and blight."

Business owners and those who live near the project's proposed location at 1016-1022 K Street are torn because in this economy they would like to see the seedy K Street area revitalized. The proposed construction might attract more people to the area, however many fear that it could put other downtown restaurants, clubs and bars out of business.

"It's an issue of timing. This time the economy is so bad, that [other businesses on K Street] worry that they're not going to make it," said Rob Kerth, executive director of the Midtown Business Association and former City Councilmember. He said that about 80 percent of local hospitality businesses are against the construction.

In fact, local business owner Mason Wong of Mason's Restaurant, Ma Jong's Asian Diner, and The Park Ultra Lounge has headed the project's opposition along with members of the Midtown Business Association. At the time of press, there were 355 signatures on the petition against the construction project. Sacramento residents, business owners and employees will protest the construction before the City Council meeting on Tuesday at 5 p.m. outside City Hall.

Matt Haines, owner of the Bistro 33 restaurants in Midtown and Downtown is also opposed to the project. "They've spent $25 million on one corner, 10th and K," he said.

"How is a pizza restaurant going to draw people from out of town? The city is becoming one of our competitors. We're battling day-to-day, it's very hard times. We've been adjusting hours and letting people go. I wish they'd take that money and put it in housing down there," Haines added.

"I don't think a bar, restaurant or nightclub is going to remake K Street; the goal needs to be housing," added Kerth.

According to Ellen Warner of David Taylor Interests, Inc., construction could begin as soon as April if the project is approved. 

It should be a very packed house at the City Council meeting on Tuesday night. 

A follow-up article will be written after the City Council meeting to report the results.

This article was written in collaboration by Jonathan Mendick and Colleen Belcher.