Redevelopment

River District tour held

2011-04-23T02:08:56Z

The American Institute of Architects' Central Valley chapter this week led a panel discussion and tour in the River District, described by some as one of the region’s hottest areas.

The roughly 773-acre River District, previously known as the Richards Boulevard area, sits north of downtown in an area bounded by the Sacramento and American rivers, the historic railyards and parcels along North 16th Street. More than 200 property owners hold title to about 400 parcels located there.

The discussion featured Township 9 developer Steve Goodwin, Sacramento Economic Development Department Senior Project Manager Rachel Hazelwood, Community Development Department Senior Urban Designer Greg Taylor and California Lottery Deputy Director Terry Murphy.

The panelists discussed the history, development and future of an area recently called one of the region's hottest districts.

"This year, you're going to see so much development going on in this area," said Goodwin, president of the River District board of directors. "It's taken a lot of time. It's taken a lot of effort. I think the city's going to be proud of what we've accomplished in terms of planning for the future of this area."

The size of the River District is about the same size as a chunk of north Portland from the Pearl District to University Park. The 5.77-miles length of waterfront in the district surpasses one of San Francisco's most popular in the area of the Embarcadero, Taylor said.

The River District currently has about 386 residential units. Within 25 years, that could grow to 8,144 units, Hazelwood said.

"It's going to be a future hot spot," said event organizer Carla Collins of MatriScope Engineering. Collins chairs the Young Leaders Group Committee for the Urban Land Institute Sacramento.

Those attending the event then broke into groups to tour three new landmark projects under construction: the new Lottery campus and the Greyhound bus terminal, and to learn about landscape architecture plans at the site of the future Township 9. Planners, designers and builders met groups at each site to lead tours.

Township 9

The 65-acre Township 9 site will feature a six-acre riverfront park and a linear parkway on North Seventh Street.

The park will include an outdoor amphitheater and plants that recreate natural habitat for wildlife. The linear parkway will contain a fountain and watercourse that ends in a retainment pond. A road running along the existing levee and the park will make the American River in that area more accessible to the public. Construction on the project's first building is expected to start this year, said Jeff Townsend with Jacobs Engineering.

California State Lottery Building and Campus

Newly transplanted palm trees and other plants currently dominate a 10,500-square-foot outdoor plaza at the new California State Lottery Building on North 10th St. But the plaza will also include water features and retail.

The greenery contrasts with the modern glass curtain exterior covering the main building. The campus includes a prominent, glass-enclosed drawing room and a pavilion for Lottery Commission hearings and public meetings.

The new headquarters will include environmentally friendly features such as solar panels and drought-tolerant, low-maintenance vegetation on some roofs. Inside, offices were placed at the core of the building, and worker cubicles were placed near windows to maximize natural light, said Curtis Owyang with LPAS Architecture & Design.

Greyhound Terminal

The temporary Greyhound bus terminal on Richards Boulevard is a pre-engineered metal building being constructed for $5 million with the idea that it can be reused for another purpose or dismantled and moved after it's no longer needed in Sacramento. The building is expected to be used as a terminal for 10 - 15 years.

Inside, the roughly 10,000-square-foot terminal has three sections: a 4,000-square-foot main lobby; an administration area with ticketing and baggage services; and an area with food service and restrooms.

Buses will line up behind the building, which will have a landscaped front entrance for passengers but no public parking lot. Parking may be added later. A soft opening may be held in July, said Craig Stradley of Mogavero Notestine Associates.

Design Dialogue: Evolving riverfront

2010-05-27T05:44:35Z

The Urban Design Alliance's Design Dialogue made two things clear Wednesday night: A consensus is growing, at least among planners, that the time has come to turn the waterfront into a regional destination, but that won't be a quick, easy task for either side of the Sacramento River.

Attitudes toward the riverfront have begun to change. It's only been in the last 10 to 15 years that the community has begun to see the waterfront as a desirable place to be, said Rachel Hazelwood, a senior planner with the city of Sacramento.

But a fairly negative image of the rivers still presents one of the biggest challenges to change. While the confluence of the Sacramento and American rivers is one of the area's defining features, many long-time Sacramentans still see the waterways and adjacent land as little more than polluted industrial resources and the source of flooding, said panelists and guests.

"We've turned our backs on the rivers in the past," said Beth Tincher, a city senior project manager focusing on waterfront redevelopment projects. "It's time to embrace them."

Tincher and Hazelwood were among four presenters at the Design Dialogue entitled "On The Riverfront: Exploring Sacramento’s Evolving Riverfront." More than 30 people attended the event at the American Institute of Architects Sacramento chapter office at 1400 S St.

In the 19th century, rivers were the freeways. The city was built on the Sacramento River during the Gold Rush, leading the waterfront to become the region's economic hub, said William Burg, an author of local history books and vice president of the Sacramento County Historical Society.

The river's character changed by 1930 due to industry and pollution. Wealthier residents fled east and immigrants took up residence in segregated neighborhoods, he said.

Those uses have had a strong impact on the riverfront. Development projects and other efforts to more fully utilize the rivers and transform them into a destination for locals and tourists are under way in Sacramento and West Sacramento. The two cities are working under a joint vision outlined in the Sacramento Riverfront Master Plan, last updated in 2005.

Plans have been developed for increasing "connectivity" to and across the water, building new waterfront neighborhoods, building parkways along the river and reducing I-5 freeway congestion. West Sacramento has been building "private" or universal streets that will allow bikes, pedestrians and emergency vehicles to access the river, while also serving as a location for farmers' markets and other activities when needed.

Current projects include the Docks Area and Riverfront Promenade and Powerhouse Science Center in Sacramento and development of the Bridge District in West Sacramento.

Decisions made by business and land owners long ago have left challenges for creating "vibrant neighborhoods" today. Many projects that have already been planned could take three to 20 years to complete, Tincher said.

Contamination and complex property ownership are just two of the obstacles. Challenges also arise from the many federal, state and local regulations concerning the environment, flooding, wildlife, vegetation, limitations on building near levees, redevelopment in historic areas and more. Private developers are very hesitant to take on projects with such challenges, panelists said.

Public improvements will be slow because of the regulatory environment and the lack of public funding, said Katy Jacobson, a senior project manager for West Sacramento.

"We see this rising organically over long periods of time," she said.

Photos by Eric Whalen. Suzanne Hurt is a staff reporter covering business and development for The Sacramento Press.

Retro Lodge owners face challenge

2010-04-16T02:57:41Z

The owners of the office complex called Retro Lodge are continuing bank negotiations in an effort to prevent the property's sale.

The $2.5 million loan balance is now several months past due, which led Bank of America to schedule trustee sales at least twice this month. But developer Heller Pacific and partners haven't given up on trying to get a loan extension after converting a former downtown Travelodge into one of the city's most creative adaptive-reuse projects, a block away from Sacramento City Hall.

The bank agreed to postpone a sale scheduled for Thursday while the partners are deep in talks with them. The project, which received no public subsidies, began taking tenants in 2008 just as the decline in the local real estate market quickly worsened, said Heller Pacific President Michael Heller Jr.

"We put every ounce of our passion into that project," Heller said. "Sometimes in life you face things beyond your control: One is an unusually challenging economy where it's hard to find tenants; two is a big bank that calls the shots."

The idea behind the 49-office complex was to create a kind of incubator for small business owners who want to have space downtown but without the usual long-term, high-priced leases. Office sizes range from 300 to 700 square feet, at $595 to $1,595 per month, said Andy Eckstrom, project manager for Heller Pacific.

The property's two buildings, which are named Astro and Elroy after The Jetsons cartoon characters, retain their mid-20th century modern design. With its lush fan palms, multi-story balconies and outdoor seating areas, Retro Lodge invokes a Palm Springs motel-turned-funky office building vibe.

The pioneering concept has gained traction. Retro Lodge is 57 percent leased with 28 tenants. While not the figure the owners want, that's more than double the number at the same time last year.

Tenants like Terrence Aguas and David Nybo credit the casual vibe, the layout and leasing staff with helping to make the concept work. Both have found plenty of networking opportunities just by keeping their doors open, hanging out on the balcony to handle a business call and being friendly with neighbors.

Aguas, who is a senior mortgage banker, and his partner, real estate broker Amir Cackovic, moved into Retro Lodge five months ago after starting a sustainability-focused company, American Green Realty.

Now they plan to do their outdoor advertising with Nybo, their next-door neighbor, and to use their other next-door neighbor's branding and website design services. They were drawn by the "energy of the place" and the community they found at Retro Lodge, Aguas said.

"We help each other out. We bounce ideas off each other; we partner up together and look out for each other," he said. "It's inspiring."

Shared kitchens and conference rooms, as well as the opening of a Naked Lounge coffee house in one of the buildings, provide other common areas where tenants gather.

Retro Lodge offers a more open alternative to traditional shared office buildings, where everyone works behind closed doors, said Nybo, who's leased office space for his company, Primero Outdoor Media, since shortly after Retro Lodge opened.

"You work with your door open and people walk by your office every day," he said. "It's pretty special. There's so much interaction among the neighbors here."

But the property hasn't worked for everyone. Marty DeAnda, who owns the small record label Dig Music and manages singer/songwriter Jackie Greene, relocated to the Urban Hive in October because he needed to be in an area where clients could park more easily. He also said there were too few tenants in the Elroy to interact with.

"I have respect for those folks. For me, the people were professional and wonderful," said DeAnda, who leased space at Retro Lodge for a year. (But) "The parking was difficult in that part of town."

The dates for a possible sale have been extended once again because of the "continuing efforts to make this thing work," Heller said.

"It's a great community," he said. "Right now, what we need is more tenants."

Photos by Suzanne Hurt, a staff reporter covering business and development for The Sacramento Press.

SHRA temporarily closes, moves

2009-12-18T06:14:29Z

Most Sacramento Housing and Redevelopment Agency departments will be closed and most employees will be off for the rest of the holidays, beginning Friday, while the agency moves to a new downtown location.

The two-week closure is needed partly because cash-strapped California is requiring the agency to pay $25 million to state schools in 2010 and 2011, said La Shelle Dozier, SHRA executive director.

In July, the state passed a budget directing city and county redevelopment agencies to pay $2.05 billion in redevelopment funds to the Supplemental Education Reimbursement Augmentation Fund to help address state budget shortfalls.

The agency's Public Housing operations — the Housing Choice Voucher and Conventional Housing programs — will remain open. The rest of its departments will be closed from Friday until Jan. 5. At that time, about 130 employees currently working at five different locations will begin working in the agency's new headquarters, 801 12th St., said agency spokesperson Angela Jones.

"The movers are in our offices right now," she said Thursday afternoon.

SHRA is a city/county joint powers authority created to develop affordable housing, serve as the local housing authority and oversee commercial and residential redevelopment.

Most of the agency's staff and departments, including executive and administrative offices, have been located on three floors of a mixed-use building at 630 I St. since at least the early 1980s, she said. The building also contains senior housing in Riverview Plaza apartments. Other SHRA departments will be consolidated from locations at 1013 7th St., 320 Commerce Circle and elsewhere in the 600 block of I Street.

Housing authority staff and the Housing Choice Voucher program will remain at 701 12th St., Jones said.

In June 2008, the agency bought a $9 million, six-story building at 12th and H streets that had housed multiple tenants in about 61,000 square feet. The move was timed to take advantage of the traditional holiday slow-down.

"That kind of makes it convenient for us to get all these departments moved," said Jones.

The agency did not provide information about whether employees would be on paid leave or required to take unpaid leave, in addition to paid holidays, during this time.

Docks Area steps closer to development

2009-12-16T05:59:26Z

The Sacramento City Council took action Tuesday that will help ready the riverfront Docks Area for development.

The council's vote came at the final stage of a Docks Area planning process that began at least four years ago. The plan is to transform the under-used industrial area into a vibrant riverfront neighborhood that could add jobs and housing between the Sacramento River and I-5, said Beth Tincher, project manager of the city's Docks Area project and Riverfront Promenade.

The city's plan is to create an "architecturally designed community" of high-density mixed use including 1,000 residential units, 43,300 square feet of retail space and 200,000 square feet of office space, with the Riverfront Promenade going through the area from Old Sacramento and the Embassy Suites hotel to Miller Park.

Development will raise the area to levee height, which will strengthen the levee and allow substantial underground parking.

"I think it's an important piece of our waterfront master plan," said City Councilmember Robert Fong. "I think it keeps the ball moving forward on what we're trying to do in this down time."

The council unanimously voted to accept city staff recommendations setting up the Docks Specific Plan, certifying the environmental impact report and adopting a monitoring mitigation plan for the teardrop-shaped area between Pioneer Bridge and Old Sacramento.

The council also agreed to rezone 27.5 acres of heavy industrial land and 1.77 acres of light industrial land as general commercial land.

Industrial users have included companies such as PG&E, SMUD and the state of California, which has collected discharge there from its heating and cooling system for state buildings.

The actions were taken to ready the site for development that meets the city's smart-growth goals and 2030 General Plan goals for urban infill redevelopment and enhancing both waterfront property and gateways into the city.

The plan calls for retail facing the river, several types of residential buildings including mid-rise and high-rise buildings and townhouses, as well as office towers on the south end. Buildings would be two to 24 stories.

The roof of Pioneer Reservoir, which the City Council decided to keep last month, will be turned into green space, said developer Jim Stickley of Wallace Roberts & Todd.

The development team was chosen for its experience in developing difficult sites and brownfields after redeveloping San Francisco's Ferry Building.

Upon questions from City Councilmember Kevin McCarty, Stickley explained that one to three levels of parking will be built at what is currently ground level. The developers will build on top of that and add backfill to raise the site to levee height and bolster the levee.

"The key to making it function well is to lift development to levee level, including the streets," Stickley said.

Under the plan, retail will be concentrated on a riverfront lane. Parking garages will be built for residents and on-street parking would be intended for visitors. Rain water would be funneled to gardens before the remainder goes into the city storm water system, he said.

Staff noted in a report to the council that transportation, air quality and "hydrology" will undergo significant impacts that cannot be mitigated. Mitigation measures have been identified for other issues.

Paul Hammond, director of the California State Railroad Museum director, requested that the city and developers provide notification to potential property owners about noise and vibration that will occur from trains operating along the western edge of the area.

Development will begin on the north end of the area to provide a link to Old Sacramento and create a destination in the early phases, Stickley said.

The council's vote has helped to create a "shovel-ready site" when the economy allows the developer to move forward with phase one, Tincher said.

Suzanne Hurt is a staff reporter for The Sacramento Press.

Science & space center extension granted

2009-07-29T03:31:37Z

Sacramento took another step toward turning the historic Pacific Gas & Electric power station into a $50 million riverfront science and space museum Tuesday.

The Sacramento City Council authorized continued negotiations on a proposal by the Sacramento Museum of History, Science and Technology -- also known as the Discovery Museum -- and Carson Development Co. to build a museum expansion north of Old Sacramento. The council also gave the developers more time to get through the environmental review process.

The four-acre Powerhouse Science Center site would contain a museum, planetarium, river-view restaurants, conference center, small amphitheater and open park space next to the American River bike trail and Robert T. Matsui Waterfront Park.

The "world-class" project is needed to provide a science and technology learning center for future generations and a "family-oriented" attraction on the waterfront, said City Councilman Ray Tretheway.

On Tuesday, the council unanimously approved a second extension to the Sacramento Museum of History, Science and Technology's exclusive right to negotiate on redeveloping the 1911 PG&E steam generation power station on Jibboom Street in the River District.

The extension was needed primarily to give developers more time to provide environmental impact statements required under the California Environmental Quality Act, said Rachel Hazlewood, a senior project manager for the city. The site's location next to a levee creates "complex" challenges for developers, who must then satisfy several regulatory agencies, she said.

The council also agreed to allow City Manager Ray Kerridge to transfer $200,000 in River District redevelopment tax increment funds to be used as matching funds for fundraising.

The Discovery Museum is seeking $10 million in federal funds, $10 million in city/county funds and $10 million from the state, plus money from foundations and private donations. The museum's fundraisers have collected $1.2 million so far, said Michele Wong, museum board president.

Under the development proposal, the museum and other amenities would be built by late 2010 or early 2011. The power station's ornate Beaux Arts shell would be preserved to house a science, space and technology museum with interactive displays and programs for children and adults.

The Discovery Museum has seen its visitor numbers grow, but its programs are currently geared to school groups up to eighth grade.

The developer plans to seek at least silver-level Leadership in Energy and Environmental Design certification from the U.S. Green Building Council. The site would be built to include solar technology, wind and water power generators, recycled building materials and more.

"It's a great project that will really benefit the Sacramento region," Hazlewood said. "And hopefully, create a whole new generation of scientists for Sacramento."

Suzanne Hurt is a staff reporter for The Sacramento Press. She can be reached at 916-804-2856 or suzanne@sacramentopress.com.

Redevelopment group to sue state over budget

2009-07-28T03:42:07Z

The Sacramento-based California Redevelopment Association is preparing to sue the state over a "devastating" $2.05 billion in redevelopment funds that state leaders want to be redirected to schools.

On Friday, the California State Legislature passed a budget that includes a provision ordering city and county redevelopment agencies to transfer $1.7 billion in property tax revenues in fiscal year 2009/10 and $350 million in 2010/11, said state Legislative Analyst Mac Taylor. The budget was crafted to close a $24 billion to $26 billion hole in the state's finances.

The order would siphon at least $20 million away from the Sacramento Housing and Redevelopment Agency, a joint powers authority that manages community redevelopment and affordable housing for the city and county. The money is set aside for investments in housing, infrastructure and other redevelopment.

Major redevelopment projects such as The Railyards, Township 9, Curtis Park Village -- as well as smaller projects -- could lose funding under the plan, sources said.

"I don't think it's an exaggeration to say this is devastating," said California Redevelopment Association (CRA) Executive Director John Shirey. "Most agencies will be shutting down for the year. They will not be taking on any new projects."

However, the provision won't become legally binding until 90 days after Gov. Arnold Schwarzenegger signs the budget into law, which is expected Tuesday. The budget was passed by a simple majority, rather than a two-thirds majority required to approve tax increases. Vetoes are still possible in the meantime.

CRA has submitted a formal request that the order be vetoed. But Shirey said he doesn't expect the governor to veto the provision after Schwarzenegger made a similar proposal last year.

Last fall, CRA successfully sued the state to stop it from taking $700 million in redevelopment funds. Taking those funds was found to be unconstitutional. The California Constitution outlines that property tax increment must be used by redevelopment agencies to finance redevelopment projects.

Under the budget plan, the city of Sacramento is expected to lose $16.9 million and the county $2.8 million, totaling $19.7 million for both, according to the CRA, which broke down the figures to estimate what each redevelopment agency's responsibility would be.

Sacramento County officials estimate the county would lose $17 million in low- and moderate-income housing funds, plus $8 million in investment funds.

Some major local projects could lose Proposition 1C funding if redevelopment money is redirected, said city spokeswoman Wendy Klock-Johnson. In 2006, voters passed Prop. 1C to help finance infrastructure for infill redevelopment that contains affordable housing.

Last month, the city won $55.8 million in Prop. 1C funds from the California Department of Housing and Community Development. That money was earmarked for four projects: the Railyards, Township 9, Curtis Park Village and Capitol Lofts.

However, Sacramento must provide matching funds to get the Prop. 1C grant money. The city was using its redevelopment funds as the matching funds, she said.

If the state takes city redevelopment funds, the city may not have the money to provide matching funds. So projects could lose the Prop. 1C grant money funding, Klock-Johnson said.

The state’s move to take redevelopment funds from Sacramento “jeopardizes our ability to stay in that [Prop. 1C] program,” she said.

In addition, the local economy would be hurt by the loss of jobs. Based on the number of construction sector jobs lost in California last year, CRA believes the entire state would lose 164,000 jobs the first year and 34,000 the second year if redevelopment agencies lose these funds. The Sacramento region has been hit especially hard by the loss of such jobs.

"It's as if the Legislature had set out to pass legislation to slow down California's economy," Shirey said. "If they had done that, this is the bill they would have come up with."

The budget provision orders the money to be sent to schools in redevelopment areas because the funding must be linked to redevelopment, Taylor said.

CRA legal advisers don't believe that link can withstand the legal challenge they expect to file within 45 to 60 says, Shirey said.

"The people who told the Legislature last year it was legal to take redevelopment money, which was later found to be unconstitutional, are the same people saying it is legal this time," Shirey said.

The Sacramento Housing and Redevelopment Agency could not be reached for comment.

Staff reporter Kathleen Haley contributed to this report.

Suzanne Hurt is a staff reporter for The Sacramento Press. She can be reached at 916-804-2856 or suzanne@sacramentopress.com.