Redevelopment

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.

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.

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.

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.