Newest articles on The Sacramento Press tagged as "redevelopment"

SACRAMENTO OFFICIALS BEGIN POST-REDEVELOPMENT TRANSITION

2012-02-07T20:13:55Z

Agency Will Continue Focus on Core Competencies of Affordable Housing, Community Revitalization, and Job Creation

Sacramento, CA | Officials of the Sacramento Housing and Redevelopment Agency (SHRA) have transferred assets and debts formerly held by the Redevelopment Agency to the City of Sacramento and the County of Sacramento as of February 1, the date on which all redevelopment agencies in California ceased to exist under AB 1X26, the Dissolution Act.

“We’re not going to pity ourselves over the unfortunate demise of redevelopment because there is still a great need for the things that redevelopment was able to accomplish,” said La Shelle Dozier, SHRA Executive Director. “We’re still here and we’re still in the business of serving people in need of affordable housing, and creating jobs to help grow Sacramento’s economy. We’re going to channel our energy and expertise into finding another way to keep renewing and rebuilding Sacramento’s communities so that they can thrive.”

The City Council and the Board of Supervisors each elected to serve as the Successor Agency for their respective redevelopment agencies and they are now responsible for paying the enforceable obligations of the former RDAs. SHRA will not administer the wind down activities of the City or County Successor Agencies but will provide supportive services during the transition.

SHRA has managed and administered housing and non-housing redevelopment on behalf of the City and County for nearly 40 years. As Successor Agencies, the City and County only elected to administer the non-housing functions of winding down the RDAs. Under the legislation, the City and County Housing Authorities will serve as the Successor Housing Agencies responsible for the housing assets and functions performed by the former RDAs. SHRA will continue to manage funded housing related activities on behalf of the Successor Housing Agencies including housing projects that were approved prior to June 29, 2011 when the Governor signed the Dissolution Act.

www.shra.org

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Disclosure: Angela Jones is the Public Information Officer for SHRA.

No turning back: Redevelopment transition begins

2012-02-01T05:45:11Z

The City Council unanimously agreed Tuesday to take over responsibilities for the non-housing functions of the city’s former redevelopment agency – but chose not to take over its housing assets and project management functions.

The city – as “successor agency” to the now-defunct Sacramento Housing and Redevelopment Agency – will be responsible for winding down more than $787 million of outstanding obligations over the remaining life of prior redevelopment projects, which varies by project from a few years to nearly three decades.

The city Housing Authority will take over the housing assets and functions – including $81.7 million in assets and managing $80.6 million in outstanding loans receivable.

The Sacramento Housing and Redevelopment Agency will provide administrative and staffing services for projects currently managed by SHRA during a transition period that extends to June 30.

“This is very complicated, and it’s not going to be an easy process,” SHRA Executive Director La Shelle Dozier, told council members Tuesday.

Melissa Corker is a staff reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

HUD AWARDS $300K CHOICE NEIGHBORHOODS PLANNING GRANT TO SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

2012-01-23T23:07:20Z

SACRAMENTO, CA | U.S. Department of Housing and Urban Development (HUD) Regional Administrator Ophelia Basgal joined Congresswoman Doris Matsui in Sacramento announced on January 10 that Sacramento Housing and Redevelopment Agency will receive a $300,000 Choice Neighborhoods Planning Grant. Sacramento is one of 13 cities nationwide receiving this funding to begin grassroots efforts to revitalize the Twin Rivers Community Housing, a distressed public housing development at 321 Eliza Street, and transform the Sacramento River District-Railyards neighborhood.

“All across the country, local planners are serious about rolling up their sleeves to transform distressed neighborhoods into choice neighborhoods,” said Ophelia Basgal. “This community can now begin the comprehensive planning needed to turn the distressed housing at Twin Rivers Community Housing in the River District-Railyards area – a long-neglected neighborhood – into a viable and sustainable mixed-income community that supports positive outcome for families.”

Building on nearly 20 years of success through HUD’s HOPE VI Program, Choice Neighborhoods links housing improvements with a wider variety of public services including schools, public transit, and employment opportunities. The program is a centerpiece of the Obama Administration’s interagency Neighborhood Revitalization Initiative, a collaboration between HUD and the Departments of Education, Justice, Treasury and Health and Human Services. With support from the White House Domestic Policy Council and White House Office of Urban Affairs, the interagency partnership supports local solutions for sustainable, mixed-income neighborhoods with the affordable housing, safe streets, and good schools all families need.

“With this funding, SHRA, the City of Sacramento and its partners will be able to put their full effort into creating a blueprint to provide critical social services, cradle to college education opportunities, and affordable housing in the River District,” said Congresswoman Doris Matsui. “The Choice Neighborhood planning grant will truly help transform and revitalize the River District.”

Sacramento is the only grant recipient west of the Mississippi.

“I am extremely pleased that HUD has selected Sacramento County to receive this very important grant,” said La Shelle Dozier, executive director of the Sacramento Housing and Redevelopment Agency. “Working with our partners, this award will help us find ways to make our obsolete public housing community a more viable asset for the surrounding neighborhood as well as the low income families that we are serving.”

Key partners in Sacramento's planning effort are California Endowment, California State University – Sacramento, City of Sacramento, River District Property and Business Improvement District, Sacramento Area Council of Governments, Sacramento Employment and Training Agency, Sacramento Steps Forward, Twin Rivers Unified School District, and UC-Davis Center for Regional Change.

As a result of partnerships like these, the Obama Administration is making it easier for local leaders who are working to redevelop neighborhoods to also access support for cradle-to-career educational programs through the Education Department’s Promise Neighborhoods initiative, public safety strategies through the Justice Department, and community health center improvements through the Department of Health and Human Services.

HUD received 71 submissions for FY 2011 Choice Neighborhoods Planning Grants from communities across the U.S. Successful applicants demonstrated their intent to transform neighborhoods while leveraging outside investments and other federal dollars to plan for high-quality public schools, outstanding education and early learning programs, public assets, public transportation, and improved access to jobs and well-functioning services. HUD is focused on directing resources to address three core goals – housing, people and neighborhoods.

The communities awarded the planning grants announced today will build the capacity needed to undertake a successful neighborhood transformation and create a choice neighborhood. These grants enable communities to create a comprehensive Transformation Plan, or road map over the next 18 months to transform distressed public and/or assisted housing within a distressed community. This Federal support provides a significant incentive for the local community to take critical steps to create viable neighborhood transformation.

Congress approved the Choice Neighborhoods Initiative with the passage of HUD’s FY 2010 budget, and in FY 2011 authorized HUD to use $65 million to provide competitive grants to assist in the transformation, rehabilitation and preservation of public housing and privately owned HUD-assisted housing. Congress recently appropriated $120 million for Fiscal Year 2012. Choice Neighborhoods builds on the successes and lessons of HUD’s HOPE VI program and widens the traditional pool of eligible applicants beyond public housing authorities to include local governments, nonprofit organizations, and for-profit developers (who apply jointly with a public entity).

Sacramento’s application can be viewed at http://www.shra.org/Housing/PublicHousingProgram/
ChoiceNeighborhoodsInitiative.aspx.

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Disclosure: Angela Jones is the Public Information Officer for Sacramento Housing and Redevelopment Agency. www.shra.org

HUD AWARDS SACRAMENTO HOUSING AUTHORITY HIGH PERFORMER DESIGNATION FOR PROPERTY MANAGEMENT PRACTICES

2012-01-23T22:51:56Z

SACRAMENTO, CA | For the first time in its history, the Housing Authority of the City of Sacramento has received a High Performer designation on the Public Housing Assessment System Score Report from the U. S. Department of Housing and Urban Development. The Housing Authority received a PHAS total score of 90 out of 100. The assessment period covered the fiscal year ending December 31, 2010.

“This is a great accomplishment for the Housing Authority,” said La Shelle Dozier, Executive Director of Sacramento Housing and Redevelopment Agency, a Joint Powers Agency which includes the Housing Authority. “We redoubled our efforts to improve our performance in all of the scoring categories and this time we’ve been rewarded for our hard work.”

The PHAS Indicators score in several categories including physical, financial, management and resident satisfaction. The City Housing Authority owns and maintains over 2,200 housing units, including two large housing communities that are more than 50 years old.

“A large percentage of our housing inventory is obsolete and maintaining these units is a huge challenge, particularly with the budget constraints that we are all experiencing,” said Nick Chhotu, Assistant Director of Public Housing for the Housing Authority. “I really want to thank our Housing Authority staff for overcoming the challenges and helping us earn this important award.”

The High Performer designation means that the Housing Authority will be eligible to apply for certain grants and to receive a higher allocation of capital funds.

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Disclosure: Angela Jones is the Public Information Officer for Sacramento Housing and Redevelopment Agency. www.shra.org

Redevelopment agencies lose in the courts

2012-01-05T03:54:12Z

In what has been called a David versus Goliath victory, the California Supreme Court ruled Thursday in favor of Gov. Jerry Brown’s plan to disband redevelopment agencies in California, and opponents of redevelopment in Sacramento wasted no time to celebrate the success.

“After years of opposition to redevelopment activities, the abuse of government power and confiscation of property for private use, our day finally came,” Moe Mohanna, a local real estate developer, said Tuesday.

The California Supreme Court ruled Thursday to uphold the redevelopment “elimination” bill, but struck down the bill that would have allowed agencies to make “continuation payments” to stay in business.

The two bills were passed as part of the 2011 state budget and caused a flurry of activity for redevelopment agencies across the state.

The California Redevelopment Association and the League of California Cities quickly challenged the new laws in court.

Meanwhile, redevelopment agencies got to work coming to terms with the possibility that they would have to either “opt in” to a new program – which would require annual payments in the millions of dollars – or submit to having their agencies phased out permanently.

In Sacramento, the City Council and the county Board of Supervisors chose to keep the Sacramento Housing and Revelopment Agency active by agreeing to the required “continuation payments” outlined in the legislation.

If the court had upheld both bills, the SHRA would be preparing to make the first of those payments due in 2012 – an estimated $22 million total – to keep the SHRA going.

The ruling to uphold the elimination bill, however, is more than a game-changer for redevelopment agencies – it’s a game-ender.

“We’re shocked,” La Shelle Dozier, executive director for the Sacramento Housing and Redevelopment Agency said Wednesday. “Obviously this is not the outcome that the agency was hoping for.”

Dozier said the SHRA sees the court ruling as one of the “worst possible scenarios” – and one the legislature never intended.

“There was never any anticipation that over 400 agencies would have to unwind over night,” Dozier said. “It was anticipated that some (agencies) would opt to dissolve, but some would opt to continue activities – which is what we had opted to do.

“I think the severing of the two bills in the court was a huge blow to redevelopment agencies,” Dozier said.

Sacramento projects stalled by the legislation while the courts were sorting things out now come to a screeching halt – including the affordable housing portion of the 65-acre Township 9 project and the remaining phases of the Paso Del Nuevo housing project.

“The issue is that, even if the deadline (to dissolve) is extended (by the legislature), there will be a stay on redevelopment activities,” Dozier said. “I don’t anticipate that they will allow us to move forward on any projects while they are figuring out a new redevelopment plan for the state.”

Now that the decision has been handed down, redevelopment agencies will start the process of dissolving – but leaders at the the California Redevelopment Association (CRA) and League of California Cities said Thursday they aren’t finished fighting yet.

The (California Redevelopment Association) and the league vowed to work with state legislators immediately to develop legislation to revive redevelopment, Kathy Fairbanks, California Redevelopment Association representative, said in a press release Thursday.

Opponents of redevelopment agencies see the court ruling as a step in the right direction for the state and for Sacramento, Mohanna said.

“Our neighborhoods, our schools, our police department and many other governmental agencies will now have more funds to provide essential services for our community,” Mohanna said, “rather than a few select private developers that play the game with redevelopment money.”

Melissa Corker is a staff reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

2011: The year at City Hall

2011-12-30T06:20:29Z

Sacramento City Council members had their hands full this year – from balancing the budget to redrawing district lines to a citizen uprising that found its way to the doors of City Hall.

Here’s the city government year in review.

CITY MANAGER DRAMA
The year started off with interim city manager Gus Vina not being promoted to the open city manager spot. Vina replaced previous city manager Ray Kerrige when Kerrige resigned in February 2010.

Vina resigned two months later – just a few weeks before the budget was due to the City Council. He later became the city manager of Encinitas.

The City Council was criticized for making decisions about the city manager position in closed sessions before voting not to promote Vina and instead open a national search.

City Council members stalled the search for City Manager saying they wanted to define the qualities they were looking for in the next person to fill the job. Two weeks later, they announced the qualities and the search continued.

The door was open for a new city manager, and while the nationwide search was ongoing, what Sacramento ended up with was not one but two interim city managers: Bill Edgar and Betty Masuoka.

Edgar and Masuoka followed through with the budget plan and presented it to the City Council on time.

As the city got closer to finding its next city manager, Mayor Kevin Johnson expressed disappointment about the search process, saying he felt “the pool of candidates wasn’t as deep” as he would have liked.

By August, Sacramento had a new city manager – John Shirey, former head of the California Redevelopment Association.

Shirey’s three-year contract included a $258,000 base salary – a 16 percent increase in salary over the previous city manager – making him the highest-paid in city history and the first to receive a labor contract.

BUDGET BLOWUPS
The budget process was complete by the time Shirey took his seat at the dais alongside City Council members.

The 2011 budget brought more challenges to face, including a $39 million budget gap.

After months of discussions and negotiations with unions, advocacy groups, public comment and hours-long council meetings, a budget was finally passed.

The new budget included severe cuts to fire and police personnel and city employees – as well as the closure of community centers and public pools.

REDISTRICTING: MAPS AND MAYHEM
As if there wasn’t enough going on in City Hall with the annual budget process, 2011 brought redistricting – a redrawing of council districts that happens every 10 years.

This time, the mayor and City Council appointed a Citizens Advisory Redistricting Committee to do the heavy lifting of vetting a variety of proposed district maps.

After months of review and discussion, the committee presented a group of four maps for the council to consider. From there, the discussions and map revisions really took off.

One unexpected twist to the redistricting drama came when one map was revealed to have been anonymously submitted by advisory committee member Steve Hansen.

Discussions heated up further when two council members – Steve Cohn and Sandy Sheedy – submitted their own map for the council to consider.

A week later, Cohn submitted yet another map, a hybrid version of Cohn and Sheedy’s previous submissions, this time called “Neighborhoods 2.0.”

A boundary dispute between council districts 5 and 6 over which district would contain the UC Davis Medical Center and Sacramento High School created a huge outcry from residents.

In the end, after six months and a grand total of 45 map versions, a final map was selected and approved by City Council, and new district lines went into effect on Oct. 6.

REDEVELOPMENT
With the passing of the state budget in July came big changes for the way redevelopment agencies are allowed to work in California.

Cities throughout the state are given an option to “buy in” to a new redevelopment plan – which would require large annual payments to the state from local agencies. Sacramento decided to go along with the plan and keep the Sacramento Housing and Redevelopment Agency alive.

Other cities wouldn’t go down without a fight, and a lawsuit was filed against the state by the California Redevelopment Association. While the case was pending, the court issued a temporary reprieve so cities did not have to make the required “opt-in” payments until a decision was made.

Some redevelopment projects that were moved ahead in 2011 in Sacramento included a revamp of K Street, the La Valentina project and housing projects in the south area of the city.

OCCUPY SACRAMENTO: CITIZENS TAKE A STAND
What started on Wall Street in New York as a citizens’ uprising against corporate greed in America became a nationwide statement of discontent from coast to coast.

When the first Occupy Sacramento protesters stepped into Cesar Chavez Plaza on Oct. 6, it was unclear how long they would stay – or what their message was going to be.

Quickly, the calm protest of Sacramentans showing solidarity with other Occupy movements was stunted by a city park curfew ordinance that prevented protesters from remaining in the park overnight.

Protesters were arrested – more than 100 in October alone – and the uprising was strengthened by a common goal: get the city to make an exception to the rule.

Over the next 10 weeks, large numbers of Occupy protesters spoke at the public forum of City Council meetings to ask the city manager and City Council to allow the group to remain in the park to continue to exercise its First Amendment rights.

Protesters who had been arrested – including war veteran mom Cindy Sheehan – had their day in court, and charges were dropped against many.

Meanwhile, attorneys for the Occupy group filed suit in federal court against the city claiming First Amendment violations, and some Occupiers moved the protest to the lawns at City Hall.

As the year came to a close, the number of Occupiers dwindled at Cesar Chavez Plaza, but the movement was not disbanded completely. A lawsuit is still pending in federal court, according to attorney Mark Merin, one of the representing attorneys.

Despite the ups and downs at City Hall this year, more change and drama is expected in 2012. Between elections and yet another budget – and the ever-present discontent bubbling just under the surface from events in 2011 – the new year is bound to be worth watching.

Melissa Corker is a staff reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

Sacramento Housing and Redevelopment Agency selected to receive $150,000 Community Challenge Planning Grant from HUD

2011-11-22T22:46:41Z

Sacramento, CA | The U.S. Department of Housing and Urban Development today announced that Sacramento Housing and Redevelopment Agency is a recipient of a $150,000 Community Challenge Planning Grant from the Office of Sustainable Housing and Communities. The Agency will administer the grant on behalf of the Housing Authority of the County of Sacramento and is one of only two grantees in the state of California. The highly competitive 2011 Sustainable Communities grants totaled $97 million. Only 27 communities and organizations will receive the Community Challenge grants.

The goal of the Sustainable Communities grants is to help communities improve their economic competitiveness by connecting housing with good jobs, quality schools, and transportation. HUD’s Community Challenge Grants are intended to reform and reduce barriers to achieving affordable, economically vital and sustainable communities.

“On behalf of the Sacramento County Housing Authority and our partners, SHRA is pleased to be selected to receive this important award,” said SHRA Executive Director La Shelle Dozier. “This grant will greatly assist our efforts to strategically position Sacramento for the economic turnaround and to leverage other public/private investment that will help create the quality of life benefits of affordable housing, livable neighborhoods, and healthy lifestyles that our residents need and deserve.”

The grant awarded to SHRA will be used to successfully design a Transit Oriented Development Loan Fund in partnership with a broad range of community interests. The new program will partner with nonprofit and for-profit developers, capitalize on historically low land values, and address the current lack of available credit to acquire land for affordable housing. The fund will provide financing for strategic property acquisition in current and future transit corridors and to preserve and expand affordable housing opportunities in proximity to public transit. The commitments made through the TOD Loan Fund will ultimately leverage other public and private investment into the local housing market. The TOD Loan Fund will build upon local planning and policy initiatives that promote equitable TODs, help secure scarce developable properties near transit and position Sacramento for equitable development and inclusive TOD communities when the market returns.

Additionally, the grant will address a key component of successful TOD neighborhoods which is local jobs and neighborhood services by evaluating the opportunity for creating a food distribution hub near a TOD neighborhood. In addition to providing jobs for local residents, the food hub will also provide access to local fresh fruit and vegetables in urban neighborhoods currently lacking full service grocery stores.

Core partners include California Endowment, Clearinghouse CDFI, Community Alliance with Family Farmers, Sacramento Area Council of Governments, Sacramento Food Bank and Family Services, Teichert Construction, U.S. Dept. of Agriculture, Valley Vision, Sierra Health Foundation, Sacramento Area Commerce and Trade Organization, Merchants Bank, Housing California and Farmers Bank, Five Star Bank.

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Movement: A photo essay of the Sacramento Valley Station

2011-11-06T21:45:57Z

It’s as if the ghosts of all those who have traveled through these halls before us can still be heard... I find myself yet again walking through empty rooms that echo not only my footsteps, but the seeming sounds of the past

The Sacramento Valley Station finds itself as a hub of transportation for the Sacramento area. Currently serving as an intermodal complex, the facility includes Amtrak, light rail, regional bus services and taxi amenities.

The public portions of the building are those that many are familiar with such as the main hall, or passenger waiting area, where customers purchase tickets or pass through to the facilities outside to the north. Outside are the bus berths, passenger tunnel and platforms, areas for taxis, and of course the rail lines themselves.

What the public doesn’t see are the dilapidated and crumbling rooms, once used as restaurants and offices. Light rich rooms, these areas have moods all to themselves. A large main hall that was used as a restaurant area reverberates densely as the building creaks and moans. Smaller offices are calm and quiet in their desolation.

They all sit empty, unusable due to their lack of upkeep, failure to meet building codes and absence of basics, such as elevators, restrooms and heating and cooling systems.

The building, constructed in 1926, marked the terminus of the first Transcontinental Railroad. Over the years, neglect of the facilities took its toll on the aging walls. The materials, though of quality, have simply outlived their life span.

The building itself qualifies as a historic property under the National Historic Preservation Act and is listed in historic registers, including the California Register of Historical Resources and National Register of Historic Places, among others.

More recently the City has put forth a federal grant application, with hopes of receiving approximately 28 million dollars of leverage money. The funds will go towards revitalizing the entire facility, to make use of the 53,000 square feet of space not being used and rehabilitating the historic features.

In the meantime, the City is now retrofitting the station to meet current standards for earthquake safety, as well as adding upgrades for people with disabilities, using an already granted sum of $11 million in federal and state monies.

Disclosure: Carlos Eliason is a photographer/videographer and designer working in the Sacramento area. He is also a creative media intern for the City of Sacramento.

Alleyways of Sacramento receive names, part four

2011-11-05T04:31:15Z

On Tuesday, Wednesday and Thursday, The Sacramento Press profiled the alleys in the central city that were formally named on Oct. 11 by an ordinance approved by the City Council. Below is the final installment of the new alley names.

Rice Alley

Curt Pow, the 36-year-old owner of Elixir Bar and Grill, has his business situated on the corner of Rice Alley and 10th Street.

“I’m okay with Rice Alley,” he said, adding that the Asian theme fits into much of the area’s culture.

While Pow said that he believes the names won’t directly help his business, he doesn’t think they will hurt it, either.

“What our area needs right now is retail business,” he said. “The city should allocate more effort for helping businesses rather than naming the alleys.”

Solons Alley

Jeff Standley, a 28-year-old sales associate at the Constantly Growing speciality hydroponic shop located along Solons Alley, said that the naming may help out with bringing more foot traffic into the alleys and then into the stores.

“Generally, people are looking for a main street,” he said. “If you can designate (the alleys) a little better, I assume it will be better for directions.”

Standley said that a name like “Sutter’s Alley” would have been more recognizable and memorable to local residents and that maybe the city should have named it that instead of Solons.

Tomato Alley

Uptown Alley

Dana Nolan, 56, was walking through her neighborhood on the south side of downtown Sacramento near Uptown Alley. She said she wondered why they named the alley “Uptown” since it is so far south.

She added that the names should have been more historically relevant.

“I think it would sort of get a sense of the neighborhood character,” she said. "I can go over to the cemetery and pick seven names just off the top of my head.”

Nolan also said that it adds too many names to a city that has streets with more than one name, like Capitol Avenue and Power Inn Road.

“It’s bad enough that you have to remember that there are three names for M Street,” she said, referring to Capitol Avenue, which becomes Folsom Boulevard.

Victorian Alley

Victoria Grant, 32, and her husband, George, 31, live along Victorian Alley. Victoria Grant is a nurse, and George Grant is in the military on active duty.

Victoria Grant said that naming the alleys would make it easier for people to identify where they are.

But George Grant said that he was less than enthusiastic about the naming.

“It’s just an alley,” he said.

Victoria Grant said that she liked that her name was very similar to the alley’s.

What do you think of the city's names for the alleys? Leave your thoughts in the conversation below.

John G. Hernandez contributed to this story.

Alleyways of Sacramento receive names, part three

2011-11-04T05:17:27Z

On Oct. 11, the City Council approved an ordinance that officially named the alleys of the central city. On Tuesday and Wednesday, The Sacramento Press highlighted many of these alleys, including their new names and what residents and business owners think of them. More alleyways are included below.

Leistal Alley

Cohn said Leistal Alley is an alley that the city has put resources into renovating.

With a lighted walkway and an upscale pavement job, co-owner of Old Soul Coffee Jason Griest said he hopes that all of the other alleys will soon be similarly renovated.

“We see a lot more foot traffic in the alley now that they’ve renovated it,” the 36-year-old Midtown resident said.

Griest said that he thought a better name for the alley would have been “Old Soul Alley” as an homage to the coffee shop that gives the alley its character and charm.

Matsui Alley

Bombay Bar and Grill is located on Matsui Alley and 21st Street, and Manager Amit Kumar, 35, said that the naming will make it easier for customers to find restaurants located along the alleys.

Kumar also said that naming the alley after someone prominent will help it stand out from some of the other alleys.

Neighbors Alley

Opera Alley

The 17th Street. Commons housing complex is located on Opera Alley.

Louise and David Thompson, two seniors who live near Opera Alley, run the Interfaith Experience, a community outreach group that seeks to unite different churches in the area.

Louise Thompson said that she thinks naming the alleys is a great idea that was long overdue.

But Louise Thompson said that she believes that the city should have looked more into the history and character of the alleys to find the most suitable names for each one.

“There are all kinds of dramas that happen within these alleys,” she said. “If we were to really concentrate on the particular landscapes that create these alleys, then we could be recording history and giving (the alleys) a sense of place.”

David Thompson said that he agreed with his wife.

“There is always history that gets eroded and lost, and naming (the alleys) accordingly would keep that history alive,” he said.

He added that he thinks it would be a good idea to call Opera Alley “Commons Alley,” because of the housing complex.

Powerhouse Alley

Powerhouse Alley runs south of P Street and next to the Fremont Community Garden.

Brandon Louie, a 30-year-old community organizer who lives in Boulevard Park, said that naming the alleys is a good first step in utilizing the space that the alleys provide.

“I think giving the alleys an identity gives us more of an incentive to clean them up,” he said.

But Louie said that he doesn’t want the naming to be just a symbolic gesture and that it is important that Sacramentans take action to redevelop them soon.

Louie said that it would be hard to come up with a better name than “Powerhouse.”

“Maybe The People’s Alley,” he said. “Something a bit more communal.”

Quill Alley

Quill Alley is perhaps one of the busiest alleys in Sacramento, as it is home to the 16th Street light rail station, where many people come into Sacramento from the suburbs.

Ray Thompson, a state worker from Land Park, said that his main concern was that the names be in order alphabetically.

When asked about the name “Quill,” the 48-year-old said that he would have tried another name that better kept up with the history of Sacramento.

“Quill is more like pens or writing,” he said. “I probably would have named it something to do with rail or industry.”

What do you think of the city's names for the alleys? Leave your thoughts in the conversation below.

John G. Hernandez contributed to this story.

Central city alleys receive names, part two

2011-11-03T03:41:34Z

On Oct. 11, Steve Cohn’s 5-year-old idea to give the alleys of Sacramento their own formal names was finalized, giving them what many residents describe as a new sense of character.

In a continuation of Tuesday’s article, The Sacramento Press has highlighted many local businesses along the alleys and spoke to residents regarding their thoughts on the alleys’ new names.

Fat Alley

Khalid Khan’s liquor store, called Don’s Bottle Shop, is located on Fat Alley and 16th Street. Khan, 60, said that naming the alleys won’t do his business any good.

“I don’t have control over what (the city) wants to do,” he said.

He emphasized that the city should be more focused on finding more direct ways to promote local businesses, and that naming the alleys is a distraction from more important issues.

Government Alley

Sacramento is the capital city of California, and Cohn said that Government Alley’s name is an acknowledgement of the city’s importance in state politics.

Midtown attorney Jan Kaworsky said that while he believes that the effort to name the alleys is worthwhile, he would have chosen different names.

“I probably would have named Government Alley ‘Anti-Government Alley,’ ” he said.

Historic Alley

As the alleys progress further south into Midtown, businesses begin becoming more prevalent on their corners. Old Soul at Weatherstone, one of Sacramento’s popular coffee bars, is located on the corner of Historic Alley along 21st Street.

Jeramy Robinson, 25, is a manager at the coffee bar and lives right by Historic Alley.

“There’s a lot of activity that would benefit from having a name for this alleyway,” he said, referring to the many homes and businesses within the vicinity.

He said that the name “Historic” is very fitting for the alley, especially since Old Soul at Weatherstone is located in the building that housed Sacramento’s first cafe.

Although supportive of the idea, Robinson voiced some concerns about the alley naming.

“It’s a new idea on the grid system,” he said. “It might confuse people that aren’t necessarily familiar with (it).”

When asked what he would have named the alley, Robinson said that he would have given it a name that relates even more closely to Old Soul at Weatherstone.

Improv Alley

Jazz Alley

Jazz Alley spans several busy areas in Sacramento, cutting through the hearts of Downtown and Midtown. Off of 10th Street is Broadacre Coffee, a new coffee bar owned by Justin Kerr, Jacob Elia, Lucas Elia and Andrew Lopez.

Kerr and Elia, 21 and 23, said they think that while the idea to name the alleys had good motives, the names that were chosen are lackluster and uninteresting.

“I think they could have come up with a better name than Jazz Alley,” Kerr said. “I know the process took a long time, but the names are kind of generic.”

Kerr said jokingly that a more appropriate name for Jazz Alley would have been “Java Alley” because of their store’s location.

Elia said that he can see how naming the alleys would aid police in responding to emergencies more quickly.

“If you can say, ‘I’m on Jazz Alley and 10th St.,’ now they know you’re not just somewhere (in between) Ninth and 10th (streets),” he said.

Kayak Alley

Bernice Gamino works at Harv’s Carwash, located on 19th Street and Kayak Alley. The 28-year-old resident of Natomas said that she isn’t confident that naming the alleys will produce positive results.

“I think it might confuse people,” she said. “A lot of people don’t even know that they (named) them, and the names are weird.”

She suggested that naming the alleys after things all Sacramentans would recognize would have been better.

“I would have named it Kings Alley,” she said. “It’s the first thing I think of when I think of ‘K’ and Sacramento.”

Watch for tomorrow’s story that will include more of the alleys.

What do you think of the city's names for the alleys? Leave your thoughts in the conversation below.

John G. Hernandez contributed to this story.

Central city alleys receive names

2011-11-02T06:04:54Z

After initially being proposed five years ago, City Councilman Steve Cohn’s idea to name Sacramento alleys has finally been put into action. On Oct.11, the City Council approved a list of new names for the alleys.

Cohn said that the alleys need names to help residents identify them more easily.

“Instead of saying ‘the alley between L and Capitol,’ you could just say the name of the alley,” he said.

The process for naming the alleys took so long, Cohn said, because it is very complicated.

“It took a while because we had to do a lot of outreach,” he said. "It's part of the rules and regulations for naming streets."

Cohn said that approval was needed from various administrative agencies like the Department of Transportation, the Sacramento Police Department and the U.S. Postal Service. Permission from these agencies was needed to coordinate and integrate the new names without creating duplication or confusion.

All of the alley names begin with the letter of the street they are directly south of. However, there was often disagreement on what words should be used for the naming.

“My original proposal was names of international cities, and some (residents) liked that, but others didn’t,” Cohn said.

To reconcile the differences, he said that city staff asked local neighborhood and business associations, such as the Downtown Sacramento Partnership, what kind of names they would like to see by holding public events throughout 2008 and 2009. Names relating to Sacramento's history and culture were often popular, like Democracy and Jazz.

The proposal was also delayed several times during the past five years.

"It was put on the shelf from time to time," Cohn said. "There wasn't a lot of people working full-time on it."

Cohn said that street signs will not be put up on the alleys anytime soon, especially with their $300 price tag.

“Little by little, as the economy improves and our budget improves, we may go back and appropriate the money,” he said.

The alleys are located in between B and W streets, and many stretch between Third and 30th streets. The first letter in each alley’s name is the same as the street that it is directly south of.

The Sacramento Press high-lighted some of the alleys below.

Blues Alley

Blues Alley is located in the northern part of the city that lies near many industrial buildings and residences.

Saleh Tyebjee, 26, is an engineer who lives in the downtown area. He said that although naming the alleys gives them some much-needed character, the names will ultimately make it more difficult for people to navigate on the grid system.

“It’s one of the nice things about living on the grid,” he said. “You always know where you are. (Naming the alleys) makes it a little more difficult to find your way around.”

Tyebjee said that if he could have named the alley, he would have called it “Grant Alley” because the alley runs right up to Grant Park.

Chinatown Alley

South of Blues Alley is Chinatown Alley, which runs through some of Sacramento’s oldest neighborhoods.

Jeff Laible lives off of Chinatown Alley. The 52-year-old installation mechanic said that he believes naming the alleys will actually help people navigate better throughout the central city.

“It’s not just the alley between C and D,” he said. “If you say ‘Chinatown Alley,’ you know which one it is.”

Laible said that he has no preference when it comes to names for the alleys, as long as everyone actually knows the alleys’ names.

Democracy Alley

Eggplant Alley

Forty-seven-year-old promoter and resident of Eggplant Alley Jerry Perry said that he had trouble understanding how the name “Eggplant” was decided on.

“I cannot believe that they couldn’t find something more relevant historically than the word ‘eggplant,’ ” he said. “(It) sounds like some 1920s cartoon character lives here.”

Perry said that he has lots of ideas for the alley that he thinks would have been more suitable, like “Excellent Alley.”

“I think it would have been more exciting if they had found more historical Sacramento characters,” he said. “A lot of the names they chose are weak.”

The rest of the alleys will be showcased throughout the course of this week.

What do you think of the city's names for the alleys? Leave your thoughts in the conversation below.

John G. Hernandez contributed to this story and created the video.

Gang violence drops due to city’s new efforts, officials say

2011-11-01T03:30:52Z

Gang violence took what officials described as a drastic drop since July 2010, attributing the drop to Mayor Kevin Johnson’s gang-prevention programs initiated in June of 2010 and again after last December’s fatal barbershop shooting.

Since implementing some of the measures, Lt. Bill Champion of the Sacramento Police Department said that the results have been effective. The number of gang-related firearm assaults has dropped by 60 percent, and the overall rate fell by 39 percent. In addition, there has been a 75 percent drop in homicide rates, and a 100 percent drop in non-fatal shootings.

Community leaders gathered at City Hall Monday morning to discuss the mayor’s plan. Speakers, including Johnson and Khaalid Muttaqi, the head of the mayor’s gang-prevention task force, updated citizens on the new plan, explaining the problems they seek to solve, the methodology of their approach, and the results thus far.

“We asked the community what needs to happen,” Muttaqi said. “The community is obviously engaged.”

Champion spoke about the Sacramento Safe Community Partnership, known more commonly as Ceasefire, a program started by the Police Department to combat gang and gun violence in ways that are different and more effective than in the past.

“A traditional law enforcement response … has been to send a lot of officers into an area with gun violence or gang violence, and you have zero tolerance,” Champion said, adding that this kind of police crackdown not only stops the gangs, but builds distrust between the local community and the police.

“You end up enforcing the rules on the people that are crying out for help,” he said.

He said that Ceasefire is changing the the traditional methods by concentrating its efforts on finding out specifically who is causing the violence. The two primary gangs of the Mack Road commercial corridor, one of the worst areas in Sacramento for gang activity, were found to responsible for a majority of gun violence in the area.

Instead of waiting for a crime to occur, Champion said, the police identify prime suspects and have their probation officers reach out to them, asking them to attend community meetings. Faith-based organizations, health groups and community members are present, asking the gang member to not resort to violence. Champion said that this process is called an intervention, as labled in the graph.

“We have the community tell (the gang members), ‘The violence needs to stop,’ and now it’s very personal because we’re sitting there looking at them,” Champion said.

Muttaqi said that another important element of the task force is to provide alternatives to the gang members, such as educational opportunities, work training programs and other positive and productive options.

Leading the way for community-based efforts is the newly-planned Men’s Leadership Academy being put in place by the Sacramento City Unified School District and the Sacramento Violence Intervention Program, which is run by The Effort, a Sacramento-based health care provider that reaches out to lower income neighborhoods.

Adrian Williams of SCUSD said that the Men’s Leadership Academy is a 4-year program for high school students that is similar to programs such as AVID, a program for advanced high school students that has a class during the school day and additional responsibilities for the students to complete.

He said that a small number of students will be admitted to the program, where they will be closely mentored by teachers who are popular among the students. They will be taken on field trips to top colleges and be given opportunities that will move them away from gang life, such as being required to dress nicely on occasion. The program will begin in the spring.

SVIP is bringing services to struggling communities that were previously unavailable, said Melisa Bayne, who is in charge of the program. By providing services like counseling, addiction help and other medical services, Bayne said that the SVIP has seen drastic improvements in former gang members whom they reached out to.

Berry Accius, a 34-year-old teen mentor who lives in Natomas, attended the meeting and said that while he thought the effort was great, it was very important that people continue to come up with new ideas to combat gang violence.

“We need leaders who really identify with the kids,” he said. “You really need to engage them so they understand that people care about them.”

Muttaqi said that this is only the beginning of the mayor’s push for gang prevention, and that these ideas will continue to be implemented.

“We’re optimistic, and we hope it will continue,” Champion said.

Kim Mack jumps into City Council race with both feet

2011-10-27T01:11:41Z

Kim Mack said she decided to run for City Council District 2 because she saw a need that hasn’t been filled in her North Sacramento community: responsive leadership.

That isn’t necessarily a dig at the current council member for the district, Mack said Tuesday – it’s a statement of purpose.

Mack, 49, has a long career in government service under her belt, including campaign experience as a field organizer for Barack Obama’s 2008 presidential campaign where she was responsible for campaign activities from Bakersfield to the Oregon border.

Mack also worked on local campaigns including Ami Bera's recent run for the 3rd Congressional District and Richard Pan’s successful run for Assembly.

“I believe deeply in grassroots organizing and grassroots activism,” Mack said. “Working on those campaigns proved to me that I was right to believe in that. It showed me that with a little bit of leadership, we can achieve a lot.”

Now, Mack said, it’s her turn to jump into the political arena with both feet.

Although Mack was born in Sacramento, she moved with her parents to Redding as a teen. Mack moved back to Sacramento in 1992 and has lived in District 2 for 13 of the last 19 years.

Vince Mack, Kim’s husband of six years, is a middle school science teacher at Norwood Junior High school who has been teaching in the district for 23 years.

Incumbent Sandy Sheedy will face off against Mack and former Midtown Business Association Executive Director Rob Kerth in the coming City Council election – and more candidates may still enter the field.

“There’s a lot of people that see a vulnerability on Sheedy’s part,” Mack said. “She has not done a lot for the whole of the district. The majority of the district feels neglected, and now there is a resurgence in city activism.”

Mack said grassroots activism is her specialty, and she intends to engage fully in the district to bring people together to discuss community problems and deal with them.

“I am giving full-time focus to my campaign,” Mack said, “and I will be a full-time council person.”

Mack said she thinks it’s important to not be distracted as a council member, so she doesn’t plan to hold another job or serve on other boards or commissions during her time in office, if she wins the election.

“She really knows her community,” said Kimberly Durson, a legal clerk in Grass Valley and a former co-worker during the Obama campaign. “She is emotionally invested in Sacramento and in her neighbors.”

District 2 has large populations of Russian, Laotian, Hmong and African-American families, among others, Mack said.

With so much diversity in a single district, Mack said she feels it is “the responsibility of a leader to create understanding between people in all parts of the community.”

Mack said she wants to go into the community, connect with community leaders and get their input on how they see diverse cultures coming together.

“I want to have an understanding of each culture myself to become a pathway for bringing people together,” Mack said. “I’m not going to presume to know everything about everything.”

Mack said she has strong feelings about some of the policy issues that Sacramento has struggled with recently, including regulating medical marijuana dispensaries, redevelopment, and the recent Occupy Sacramento movement that has been active in Cesar Chavez Plaza for more than three weeks.

“I support the Occupy Sacramento movement,” Mack said. “General citizens need to be given the same consideration as banks have been given.”

However, Mack said she would like to see the movement have “a little more direction,” and for protesters to articulate exactly what they want to accomplish.

“The momentum (the movement) has gained warms my heart,” Mack said, “but now let’s use this strength to make something happen – let’s have a clearer end goal.”

Durson said setting goals and meeting them are Mack’s specialty.

“She is a really good organizer,” Durso said. “She runs a clean campaign – never disorganized or hard to understand what she’s trying to convey.”

Durson said Mack’s ability to work well under pressure will be an asset to her during the upcoming election.

“(Mack) digs in and works through challenges,” Durson said. “She’s been through hard times – her son in the military was deployed to Afghanistan, and she struggled with that. Some things are mind over heart, and she puts her head down and works hard to get through tough situations.”

When it comes to medical marijuana, Mack said she supports the voters’ decision to make it legal in California – as long as decisions about locations of dispensaries are well thought out.

“I support the law, but let’s be smart about it, and let’s be safe about it,” Mack said. “Industrial areas? Fine. Near schools and homes? No. We can be smart about how we approach it.”

Samantha Corbin, a friend who worked with Mack on local campaigns for Ami Bera for Congress and Dr. Richard Pan for Assembly, said Mack is “unique” in her commitment to finding “real solutions to real community problems.”

“She has a skill for helping voters find and tell their stories that makes her a perfect candidate for local office,” Corbin said. “She is a true community advocate.”

Mack said her fundamental priority – outside of restoring pride and empowering the community – is restoring city police and fire departments.

“Public safety is the top priority of municipalities,” Mack said. “I can tell you with 99.9 percent accuracy that I will never vote to lay off police officers and fire personnel.”

“Ordinary people doing extraordinary things.” Mack said that’s her favorite Obama quote – and it is exactly what she sees as the future of District 2.

“It might take more than four years; it might take more than eight years,” Mack said, “but you will see noticeable difference with me in office because there will be someone in the community, working for the community. Good or bad, I‘m not afraid to walk on those streets.”

Melissa Corker is a staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

Seventh annual Suits and Slippers raises money for children's center

2011-09-15T04:58:31Z

Nearly 300 people arrived at Arden Mall’s Market Square at 7:30 a.m. dressed in their business suits and slippers. They had come to enjoy a plethora of breakfast cereals for the seventh annual Suits and Slippers event hosted by the Roberts Family Development Center. Guests were provided with bowls of cereal along with Starbucks coffee, muffins, bananas, yogurt and orange juice.

People marvelled over creative cereal sculptures and enjoyed their breakfasts as Derrell Roberts, co-founder and CEO of the RFDC, mingled with the crowd.

“It’s made people think of the center as a place for kids to grow,” Roberts said, referring to how the event has impacted the RFDC.

Roberts said that the RFDC provides family-oriented services to more than 200 students in economically disadvantaged neighborhoods, including ones in North Sacramento, downtown and the River District. They provide everything from after-school tutoring for schoolkids to parenting workshops for adults.

Three school districts, Twin Rivers, Robla and Sacramento City Unified, also work with the RFDC. “We work with (these) three districts very closely,” Roberts said.

People walked around talking with each other and participating in the silent auction, which sold everything from collector comic books to signed sports jerseys. The floor was an array of brightly colored shoes and shapes, with everything from bright pink cats to large racecars appearing on people’s slippers.

Few people were aware that judges were secretly walking among them, looking to find three pairs of slippers to award as the most worn, most creative and the best-looking animal slippers.

The RFDC Youth Choir performed “Uma Familia” as people settled into their seats with their breakfasts.

“Since 2005, this event has netted the RFDC over $350,000,” said Debbie Hammond, who along with Hayes Bernard won last year’s cereal-eating contest and served as MCs at this year’s event.

Roberts said that even more money has been raised indirectly because of the event.

“(Suits and Slippers) has raised another half million dollars in terms of relationships that have developed with the people who have attended,” he said.

But Roberts also said that he believes Suits and Slippers has done much more for the center than just raise money. It has brought visibility, which he said is what the center needs most right now.

Roberts credited the creation of Suits and Slippers to Sharon Gerber, president and founder of Six Degreez, Inc., an event planning firm.

Gerber said she got the idea seven years ago from a restaurant in Los Angeles called “Cereality” that served cereal for every meal of the day. She adapted the idea to fit a fundraising event and pitched it to Roberts, who thought it was great.

Through her many connections, Gerber was able to secure use of the Arden Mall’s Market Square and was able to get General Mills to donate all of the cereal. The milk was donated by Crystal Cream, and Raley’s provided the rest of the food. These donors have been consistent over the years.

The cereal-eating contest has been a staple for several years. The contest involves prominent Sacramentans racing to be the first one to finish a bowl of cereal – milk and all. The winners get their pictures placed on boxes of Wheaties.

“It’s really fun because you’ve got pretty important people in town with milk dribbling down their chins,” Gerber said.

After the Youth Choir performed a rendition of Alicia Keys’ “No One”, the cereal eating contest was ready to begin.

This year’s contest had many of the Sacramento area’s most visible people vying for their place at the top. For the girls, Annale Penny of Fox 40 won the contest with Kix as her choice of cereal, while Leroy Tripette from Intel took first place for the boys, eating Cookie Crisp.

After the cereal-eating contest, the winners of the best slippers awards were announced. Michael Smith was recognized for having the best animal slippers. His slippers were rabbits that could bite down on things. Paula Swayne won most creative with her purple and mop-like slippers, while Patty Cota’s long-loved slip-on slippers earned her the award for most worn. These three winners will also be put on a box of Wheaties.

The cereal sculpture contest was the event everyone had been waiting for. Introduced last year, the contest required contestants to build sculptures made mostly out of cereal. The theme this year was the 10th anniversary of the RFDC.

In third place, “The Loving Garden” by Joy Gee.

In second place, “Mended Hearts” by Arabella Grayson.

In the end, Daphne Burgess won First place with “Stay Faithful and Stay Focused.” Burgess also won last year’s contest.

The RFDC also awarded companies and individuals who have had a significant impact on the center. Recipients included the Friedman Family, General Mills, Jack and Jill of America, City Councilman Rob Fong, and Kathy Henry, a devoted volunteer at the center.

The future of Suits and Slippers is uncertain.

“Sometimes I think events run their course,” Gerber said.

“Every year since the fifth year, we’ve said, ‘We’re not gonna do it. This is the last (one),’ ” Roberts added.

But Gerber did not rule out continuing the tradition for at least another year, saying that it is something that has yet to be decided.

Photo tour of K Street's 700 block

2011-08-31T05:02:25Z

The massive redevelopment project on the 700 block of K Street will be submitted to the city’s building department for approval in October, and if approved, work could begin as early as the end of this year.

“We’re looking to break ground in (February or March) of 2012, but it might be sooner,” said Ali Youssefi of CFY Development.

The approximately $47.7 million project is a collaboration between D&S Development, Inc., and CFY Development. It will be a mixed-use project with apartments, retail spaces, restaurant/bar spaces and an approximately 15,000-square-foot live music venue.

“We really want this to be a catalyst for the rest of the area,” said Bay Miry of D&S Development.

For more information on the project, its funding and how it got to where it is, click here.

Both Youssefi and Miry said they don’t want to think of the project in terms of what it compares to in other cities.

“This isn’t Polk Street in San Francisco, or some place in Portland, or the gaslight district in San Diego” Youssefi said. “Sacramento is sort of creating its own identity. We want this to be a place people use as an example.”

Miry agreed, adding, “We want this to be K Street.”

The project area stretches all along K street and 180 feet back along Seventh and Eighth streets to the alley. The 90 feet fronting K Street will maintain a similar footprint, but the rearward 90 feet will be demolished, and mid-rise apartment buildings with two levels of parking will be built.

“There’s going to be a courtyard between the new construction and the historic buildings,” Youssefi said, adding that the courtyard will be landscaped and serve as a space where people living in both the all-new buildings and the apartments incorporated into the original buildings will be able to go.

Part of the project involves thinking beyond the ground-to-ceiling spaces and making creative use of rooftops and basements.

Outdoor seating will be a big part of the restaurants on the block, with one slated to make use of a patio that extends 10 to 15 feet into the sidewalk.

The city plans to bring cars back to K Street by November, but the 700 block will still remain free of vehicular traffic.

“We’re going to get a lot of visibility when cars come back,” Youssefi said. “K Street was a big business district until they closed it off to cars, and that was really a failed experiment.”

Miry said other projects in the area are contributing to its return from being a blighted area.

“The project over on the 1000 block (composed of Dive Bar, Pizza Rock and District 30) is one aspect, and the moving of the Greyhound station (from nearby L Street to Richards Boulevard) has really helped, too,” Miry said.

“We’re down here every day, so we really notice the difference,” Youssefi agreed.

The estimated build time for the project is just under two years, he said.

The project is receiving redevelopment funds from the Sacramento Housing and Redevelopment Agency, which is currently a controversial subject. On the statewide level, redevelopment agencies are fighting for their existence, but Youssefi said the 700 block of K Street has already secured the funding and will be built.

“This project could be one of the last of its kind,” he said.

The end goal, according to Miry and Youssefi, is to return K Street to its former status as one of the vibrant sectors downtown and bring mixed-use retail, restaurant, entertainment and residential entities to downtown.

Sixty percent of the project is dedicated as affordable housing. The other 40 percent will be market-rate housing.

“It’s going to bring a good mix of workforce housing as well as apartments that are as nice as any downtown,” Miry said.

Youssefi said there is one overarching reason the project excites him.

“I grew up in Sacramento,” he said. “To be a part of this project, which will be a catalyst for revitalizing downtown, that’s exciting”

Brandon Darnell is a staff reporter for The Sacramento Press. Follow him on Twitter @Brandon_Darnell.

Editorial Note: A correction has been made to this story after it was published.

SHRA prepares obligation payment schedule

2011-08-30T04:40:34Z

At first glance, it seems that the Sacramento Housing and Redevelopment Agency may be writing some big checks over the next few months – an estimated $111 million – but the payment schedule going before City Council Tuesday is not as simple as it appears.

In a recent case challenging new state redevelopment laws, the California Supreme court directed all redevelopment agencies to compile a list of their financial obligations along with a schedule for making payments and submit them to the state.

The payment schedules, called Enforceable Obligation Payment Schedules (EOPS), totals up the “relative obligations” of redevelopment projects and outlines a payment schedule through the end of the year, Don Cavier, SHRA director of finance, said Monday.

Relative obligations, Cavier said, includes not only loans and bonds on all projects, but also any lease payments, third-party contracts and administrative costs associated with the projects.

“All of the costs, large or small, are factored in,” Cavier said.

For SHRA, the total amount of obligations to be paid over the next five months is “conservatively estimated” to be about $111 million, according to Cavier.

This isn’t new debt, however. It’s a “snapshot” of what the agency is already obligated to pay for redevelopment projects that are either completed or well under way, Cavier said.

Cavier and his staff arrived at the numbers after weeks of combing through the general ledger, invoices, service contracts, loan information and contracts with third parties to compile the detailed information.

“It was a tedious process,” said La Shelle Dozier, SHRA executive director. “Staff from all departments were involved because we wanted to make sure we were being as accurate as we could.”

On Aug. 9, the Sacramento City Council opted in to the Voluntary Alternative Redevelopment Program, making SHRA liable for “continuation” payments to the state to stay in business.

SHRA is not obligated, though, to any of the elimination bill (AB1x26) requirements – or so they thought.

The EOPS requirement was only found in AB1X26, and was intended to make it easier for the entities that would eventually take over eliminated agencies to know how much money still had to be paid for agency projects.

“The EOPS shows what would have to be paid (and when), if we were dissolving the agency,” Dozier said, “but, we aren’t doing that.”

According to the SHRA, If all of the outstanding redevelopment obligations had to be paid at once, the total would be approximately $923 million.

It doesn’t have to be paid all at once, though, Cavier said.

“Some capital projects are paid when they are competed, other projects have bonds associated with them (which) go on for many years,” Cavier said. “Not all of it is on a set payment schedule.”

Attorneys disagreed about whether the court’s direction applied to agencies that opted in to VARP before the stay was issued by the court, said Lillian Henegar, director of policy and outreach for the California Redevelopment Association.

Until the court says one way or the other though, Dozier said, the SHRA is going to “err on the side of caution” by following the court’s direction.

“We’d rather have it completed and find out we didn’t need to do it,” Dozier said.

According to the provisions of the state legislation, SHRA is obligated to an initial continuation payment to the state of $18.3 million, with the first half due Jan. 15 – the day the court is expected to hand down its decision on the legal challenge.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her @MelissaCorker.

Maydestone building nears completion

2011-08-24T00:39:08Z

With three weeks until the historic Maydestone apartment building opens for an art show downtown, the fences have come down, the façade has been painted and several units have been staged as residences even as final work is completed.

The $7 million affordable housing project at the corner of 15th and J streets received $6.1 million in loans from the Sacramento Housing and Redevelopment Agency.

Presentation Development, LLC – set up by D&S Development, Inc. – contributed $900,000, according to Bay Miry of D&S Development.

“We’re trying to design it more like a European residential unit,” Miry said. “(Europeans) like to live where there’s a lot of interaction with people, and they don’t need cars to get around.”

The historic building was built in 1910, and Miry said a lot of the redevelopment funding was made possible by its restoration with a mind to preserving the historical characteristics of it – features such as the detailed exterior, mostly original floorplan and preservation of historical elements throughout the project.

Original built-in storage units and beds that slide into walls were left intact, and the staged rooms give an impression of how tenants might live in the space, Miry said.

In addition to historical aspects being left intact, Miry said numerous modern features were added, including a camera system for the front door with screens in each room for security when buzzing people in, energy-efficient heating and air conditioning units, energy-efficient solar water heating equipment and an elevator that uses energy from its movements to pump power back into the building’s electrical system.

Solar panels on the roof also shade air conditioning equipment and help provide electricity for the common area lighting.

“This isn’t your standard affordable housing project,” Miry said.

The 32 units range in size from 300 to 700 square feet, and rents will be between $700 and $1,500, Miry said.

The target income range for tenants is $30,000 to $60,000, Miry said.

“It’s perfect for workforce housing, artists, empty nesters and other people who want to live downtown.”

The building will be ready by mid-September, and leases are projected to start on Oct. 1.

Part of the reason redevelopment funding was spent on the project, Miry said, was due to the fact that the city has funded a lot of low-income housing through the SHRA over the past decade, and moderate-income-level housing is being added to create more of a balance in the area.

Miry said about 120 construction jobs were created for the project, and supplies were bought locally whenever possible.

There is no off-street parking for the building, but Miry said the project is designed to be walkable, and permit parking is available on the street.

A property manager will be on-site all day every day, and a basement area gives residents access to a common area, pool table, furniture, storage units that can be rented and a small fitness center that will have a few treadmills and free weights setups.

An art show is scheduled for Sept. 10, which will feature local artists and will take up the first two floors of the building.

“We’ve been working on this for about a year,” Miry said. “We’re happy with the way it’s turning out.”

A worker on another project nearby walking by the building on Tuesday afternoon said he is impressed with the work that has been done.

“I like it a lot,” said Lance Linville of Sacramento. “They’ve done a really good job, and it’s good for Sac.”

To see how the building looked when it began, click here.

To see how it looked at the midpoint of the project, click here.

Brandon Darnell is a staff reporter for The Sacramento Press. Follow him on Twitter @Brandon_Darnell.

River District shares 2010 annual review

2011-08-20T00:54:15Z

With nearly $450 million invested in development projects so far, the River District is moving ever closer to realizing its potential for being a valuable transit, business and community hub for the Sacramento region.

Business leaders, City Council members and members of the River District association gathered Thursday to hear the latest progress report on development efforts for 750 acres along a 2.5-mile stretch of riverfront that is currently residence to industrial, retail and office uses and about 400 homes.

The event, hosted by the River District board of directors and attended by more than 80 people, was an opportunity to learn about recently completed development projects and get news about upcoming projects.

“A lot of things have been completed and a lot of things continue to progress,” said Patty Kleinknecht, executive director for the River District association.

Kleinknecht pointed out numerous completed projects in the area including the new CHP headquarters at North 7th Street, the California Lottery headquarters that moved to its current 10th Street location in July and the new Greyhound facility which opened on Richards Boulevard the same month.

Development plans for the River District for the next 25 years include more than 8,000 residential units and nearly 4 million square feet of office space, along with light industrial space, retail and wholesale space and more than 3,000 hotel rooms.

“We’re trying to create a multi-use, transit-oriented area so people can live, work and play here,” Kleinknecht said. “We’re actually building this area to make the Sacramento city center stronger.”

Thursday’s event was held inside the warehouse of Party Concierge, an event staging and supply company that is known for producing larger-than-life props for conferences, weddings, and corporate parties.

“(Tonight) is a celebration of progress,” Kleinknecht said. “What better place to have the event than at a River District business for parties?”

Steve Goodwin, president of the River District association said the theme of the evening was “building, investing in, connecting and celebrating the River District,” and he has had positive feedback on area projects so far.

“There is a momentum going,” Goodwin said. “The things we’re building – the Green Line, Township 9, Powerhouse Science Center – all of these are good investments in our economy.”

Goodwin said the River District owes its success to “collaboration and to partnerships” and praised the diversity of business interests represented in the district.

“From almonds, automobiles and antiques to water, windshields and warehouses,” Goodwin said, “our businesses support our district and Sacramento’s economy and they will continue to do so as these projects continue.”

The River District Specific Plan is guided by the city’s 2030 General Plan and provides a tangible guide for issues such as street layout, zoning and land use.

River District representatives expect the next few stages will be completed quickly, although there is still work to do.

“Township 9 is underway and we’ll keep making progress on it,” Kleinknecht said, “and, of course, the Richards/I-5 interchange and the Regional Transit Green Line are under construction.”

The RT Green Line may be open as early as February 2012, Kleinknecht said, and the improvement project at the Richards/I-5 interchange should be finished in 12 to18 months.

Kleinknecht added that, just about the time when the Richards/I-5 interchange finishes, an upgrade to the Sacramento water treatment facility will be ready to begin.

Councilwoman Angelique Ashby was on hand Thursday to tout the latest achievements of development efforts in the River District – and to introduce the crowd to the man who may very well be their next City Council representative: Steve Cohn.

If the City Council finalizes the redistricting map that was approved on Aug. 9, the River District would be included in District 3, which Cohn represents.

“I’m always looking for a reason to cheer and point at Sacramento and say, ‘See! We’re doing it right.’ ” Ashby said. “The River District gives me plenty of reason to do that.”

Cohn said the River District has “great potential” and he would be honored to represent the district on City Council.

“The whole council thinks of the River District as important,” Cohn said. “It’s not just one council district – it’s important to the whole city.”

River District Specific Plan information is available here.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

Editorial Note: A correction has been made to one of the photo captions. The photo with Angelique Ashby is with John Nicolaus not John Nicodemus.

Natomas town hall meeting encourages new ideas for old arena

2011-08-12T05:12:46Z

A new children’s hospital, a high-tech business center and a television-film-video game industry complex were some of the ideas Natomas residents discussed Thursday as potential re-uses for the current arena site – if the arena is relocated.

More than 80 residents and business owners met at a town hall meeting hosted by Assemblyman Dr. Richard Pan and City Councilwoman Angelique Ashby for an hour-long discussion and question-and-answer session about the arena’s future.

Attendees expressed ideas and concerns about what the city should do with what has been a hub of sports and entertainment activity for more than 20 years.

Power Balance Pavillion (formerly Arco Arena) has been home to the Sacramento Kings since 1988, but the future of the site has come into question recently as talk of a new arena has begun to escalate throughout the region.

Mayor Kevin Johnson initiated the “Think Big Sacramento” committee to find ways to revitalize Sacramento – and keep the Sacramento Kings NBA team from relocating – by building a new sports and entertainment complex in downtown.

Thursday’s town hall meeting in Natomas focused on both re-use ideas and the impact on area residents who would be directly affected if the current site goes unused.

Celia Hernandez, a South Natomas resident who commented at the meeting, said she valued the chance to talk directly with Ashby and Pan about where Natomas is heading.

“There are a lot of citizens who have a stake in the community,” Hernandez said. “To be able to come to (Ashby and Pan) and bring our opinions and perspectives goes a long way with us.”

Hernandez said that health care is a priority for a lot of residents in Natomas, and having a hospital in the area would have a positive impact on the residents.

“Our community has grown considerably,” Hernandez said, “and when you’re talking about this many residents, we need (a hospital). It’s irresponsible to not have one.”

Some in the audience favored a high-tech center to encourage large-scale technology companies like Google and Intel to make Natomas their new hub, bringing stable employment opportunities to the community.

Ashby and Pan are co-chairs of a Think Big Sacramento subcommittee dedicated to coming up with a designated re-use plan for the current Natomas site.

They hope to “identify a strong economic engine for the Natomas area that will not only strengthen Natomas, but the entire Sacramento region,” according to a recent press release from Ashby’s office.

“The goal of (the) subcommittee is to work concurrent to the larger committee’s efforts in addressing regional impacts associated with building a new arena,” Ashby said in the press release.

One of the larger concerns of audience members Thursday was how to bring jobs and economic vitality to Natomas at a time when the region is suffering from a stunted economy and declining home values.

Residents were also eager to emphasize their desire for Natomas to “not be left behind” as the rest of the city focuses on a new sports complex downtown, Pan noted after the meeting.

“Not only do they want to be listened to, they want action,” Pan said.

Ashby said she appreciated the tremendous interest that Natomas residents showed in the future of their neighborhoods.

“They came up with great ideas,” Ashby said. “They are open, and they’re willing to work for it. I know I can count on them.”

As the Think Big Sacramento committee continues to pursue financing options for a new arena and sports complex, Ashby and Pan and the 14-member subcommittee will follow up on ideas for re-use of the site that audience members brought to light Thursday, Ashby said.

“We will definitely come up with a new use for the (old arena) site,” Ashby said. “That is going to happen.”

Pan said he anticipates there will be additional town hall meetings in Natomas in the future, but no specific date for another meeting has been set.

The next meeting of the Think Big Sacramento committee is Aug. 25, and the committee will conclude its first 100 days with a summary report on financing possibilities to the City Council on Sept. 6.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

Court agrees to hear redevelopment case, issues temporary stay

2011-08-11T23:47:16Z

The future of state redevelopment agencies is in the hands of the courts now, but in the meantime, a partial stay has been issued giving those agencies a reprieve from making required payments to the state to keep redevelopment going.

The California Supreme Court agreed to hear a petition filed in July challenging the constitutionality of recent legislation eliminating redevelopment agencies unless they pay the state to continue operating, it was announced Thursday.

The announcement comes on the heels of a new Sacramento city ordinance establishing an agreement to make the required payments to the state to maintain redevelopment activity. The ordinance states, however, that the payments would be made “under protest” until the Supreme Court case is resolved.

AB1x26 and AB1x27, the two state bills under fire in the courts, were passed as part of the budget process. If the bills survive the court challenge, it is anticipated they will save the state $1.7 billion in spending obligations for K-12 education.

If the legislation is ruled unconstitutional, however, the state would not receive those funds from cities, and the state budget would be immediately impacted.

Chris McKenzie, executive director for the League of California Cities, said in a press release Thursday that the league is pleased the court has accepted the case and is moving it forward on an expedited basis.

“The redevelopment bills are unconstitutional,” McKenzie said in the statement. “We look forward to presenting our case to the Court very soon. We’re confident the State Supreme Court will ultimately strike down this unconstitutional legislation that ignores the voters’ will and that will destroy local economies.”

The primary plaintiffs in the case, the League of California Cities and the California Redevelopment Association, filed the petition on the grounds that the legislation violates a November 2010 proposition (Prop 22) prohibiting the state from “borrowing or taking” funds used for redevelopment or local government projects and services.

If the court allows AB1x26 and AB1x27 to stand, redevelopment agencies throughout the state will be faced with the possibility of being dissolved if the cities and counties they serve cannot afford to pay the state to keep them going.

According to the press release, the court established a briefing schedule to hear arguments on the case as soon as possible.

A final decision from the court is expected before Jan. 15, 2012, the date when redevelopment agencies are required to make their first payment.

Powerhouse Science Center breaks ground

2011-08-11T22:37:11Z

The Powerhouse Science Center project officially broke ground this morning, commemorating its push forward with the unfurling of a large 30 x 10 foot banner, which adorned the front of the former PG&E power station building. In attendance were some 60 citizens, dignitaries, funding partners, Powerhouse Science Center staff and City staff. Speakers at the event included Mayor Kevin Johnson, Congressmember Doris Matsui, Senator Darrell Steinberg's District Director, Susan McKee, and Michele Wong, the Interim Executive Director for the project.

A $7 million check was presented to the project, generated by Proposition 84's "Nature Education Facilities" grant. The funds will be used to partially spur construction, which is anticipated to start this fall. With an expected completion date of 2013, the project will include a number of amenities, including a large domed planetarium, science exhibits, gift shops and cafe, and an open park area.

More information can be found at the Powerhouse Science Center website.

Disclosure: Carlos Eliason is a photographer/videographer and designer working in the Sacramento area. He is also a creative media intern for the City of Sacramento.

City decides to keep redevelopment agency alive

2011-08-11T00:54:39Z

Redevelopment in Sacramento will continue, but it will cost the city more than $20 million.

The City Council unanimously approved an ordinance Tuesday that allows the city to make an initial $18.3 million payment to the state in order to maintain the Sacramento Housing and Redevelopment Agency.

The ordinance – an emergency measure that takes effect immediately – authorizes the city to participate in the “Voluntary Alternative Redevelopment Program” (VARP) under a new state law (ABx27) enacted in July.

Participation in the program allows redevelopment agency activity to continue as long as continuation payments are made to the state each year.

La Shelle Dozier, SHRA executive director, said that in order for Sacramento to stay in the redevelopment game it must make an initial $21.8 million payment – $18.3 million from the city and estimated $3.5 million from the county – paid in two installments in 2012, plus $4.2 million from the city and $839,000 from the county annually thereafter.

According to the new state law, if the city and county didn’t create an ordinance to opt into the VARP and make the VARP payments, the redevelopment agency would be dissolved as of Oct. 1.

“Every project we have generates jobs in the region,” Dozier said. “In these economic times, that will have a huge impact.”

The city will make the required payments to the state to prevent “the total loss of benefits provided by the Agency to the taxpayers, property owners and residents of the city,” according to a report from city and SHRA staff.

On July 18, the League of California Cities (LOCC) and the California Redevelopment Association (CRA) filed a petition in the California Supreme Court challenging the constitutionality of the new redevelopment agency laws.

New Sacramento City Manager John Shirey said on Aug. 4 that he will be doing double duty as both city manager and taking part in the lawsuit against the state, of which he was a part as executive director of the CRA.

While the legal challenge makes its way through the courts, the City Council isn’t waiving any legal rights by enacting the ordinance. If the challenge from LOCC and CRA is successful, the City Council can repeal the ordinance.

The VARP payments will be made “under protest,” the ordinance states, and the city will have the right to recover payments (plus interest) if the courts determine the new redevelopment laws are unconstitutional or illegal.

Craig Powell, president of local political watchdog group Eye on Sacramento, addressed the City Council Tuesday with concerns that continuing SHRA will have a negative impact on the city’s general fund.

“What would the general fund receive on an annual basis if the redevelopment agency went away?” Powell asked. “You would not be doing your job if you did not know what you’re giving up in the way of cash to the general fund by making this payment to keep the RDA alive.”

Powell criticized the SHRA as a “debt-creating machine,” saying the agency has run up $1 billion worth of debt.

Powell said in an interview Wednesday that, if the agency is dissolved, that debt would be paid down and income for the city coffers would increase – to the tune of approximately $15 million annually after 10 years, according to Eye on Sacramento estimations.

Powell said that funding from property tax revenues currently going to redevelopment agency activities could be restored to the general fund “for badly needed police, fire, parks and other general services.”

Interim City Manager Bill Edgar and Dozier responded to the criticism Tuesday night by noting the ordinance to continue redevelopment agency activity does not require the City Council to pledge any general fund revenues to make the VARP payments.

Any payments required under ABx27 will be funded solely from SHRA funds or assets transferred to the city, Dozier said.

Additionally, SHRA will suspend tax increment allocation to the Low and Moderate Income Housing Fund (LMIHF) for 2011-12 to help make the initial VARP payment.

“There is a cost to the city, however, in the way of delaying projects,” Dozier said. “Less redevelopment equates to less jobs.”

In 2010, SHRA invested more than $25 million in 76 redevelopment projects, according to the staff report. Of those projects, 18 were completed in that year, resulting in 530 temporary and permanent jobs.

Dozier said it was necessary to enact the VARP ordinance right away because, otherwise, SHRA’s redevelopment activities would be suspended and the agency would be dissolved as of Oct. 1.

Without adoption of the ordinance, projects such as the La Valentina development project, the 65th Street bus transfer relocation, Township 9 affordable housing component, and 800 K Block and 731 K St. enhancements would be immediately impacted, according to the staff and agency report.

The next step for SHRA, Dozier said, is to file an appeal to the state regarding the payment.

“Since the agency has seen a steep decline in our tax increment revenue,” Dozier said, “we can file an appeal and that may lower our (payment) obligation.”

Dozier said SHRA staff is reviewing its annual project budget so it can determine the exact amount the city will need to put forth for the continuation payment.

SHRA will report back to the City Council in November with that amount as well as the amount of project defunding necessary.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

Big things underway at Sacramento Railyards

2011-08-03T19:31:40Z

The Railyards is currently abuzz with activity. I recently had the chance take a short tour of the construction as part of my work with the City and it is a sight to behold. Seeing the massive excavation of dirt is am impressive far cry from what the site looked like only two months earlier, when construction started in May. The progress of the 245 plot of land is a welcome sight.

The earth directly in front of the main shop buildings, north of the Sacramento Amtrak Station, takes a large dip, perhaps twenty feet deep now. Before, this area was a flat expanse of dusty land, reaching to the rail station. Excavators pepper the site, clambering around their newly built depths of soil. Steam leaves the ground where crews have placed lye to evaporate moisture, making the soil more stable. Workers shovel clods of earth in their respective holes. The energy on-site is well into a positive nature.

More information about the Railyards project can be found at the City of Sacramento's Intermodal Transportation Facility webpage.

Disclosure: Carlos Eliason is a photographer, videographer, and designer working in Sacramento, CA. More photographs can be seen at www.flickr.com/photos/carloseliason

Sacramento Housing and Redevelopment Agency Receives National Award for Its Successful Reorganization of Electronic Waiting List Applications

2011-07-29T22:00:34Z

Sacramento Housing and Redevelopment Agency (SHRA) has been named a 2011 recipient of the prestigious National Association of Housing and Redevelopment Officials (NAHRO) Merit Award for its efforts to reorganize electronic database waiting lists for the Sacramento region. SHRA received the award for the Access Code for Wait List in Administrative Innovation category. The award recognizes outstanding achievement in housing and community development programs throughout the nation.

“I am very proud of this unique model that the Sacramento Public Housing Authority has developed for our applicants,” said SHRA Executive Director La Shelle Dozier. “This process has created greater efficiency and better service in the way we help place families into housing where they choose to live.”

SHRA officials say because families went to the housing site to obtain an access code, those who applied were more likely to become residents. This means less staff resources were necessary. Almost twice as many families became residents with the access codes than before the access codes were implemented.

“We are extremely pleased with the way applicants respond to this electronic application process,” said MaryLiz Paulson, SHRA Assistant Director. “Using computers and Internet technology has turned out to be a highly preferred and practical way for applicants to quickly and easily complete the first steps to get placed on the wait list and subsequently into a safe, affordable place to live.”

The award was presented at NAHRO’s National Conference in Louisville, KY.

Disclosure: Angela Jones is the Public Information Officer for Sacramento Housing and Redevelopment Agency.

A former power station, sitting empty and waiting

2011-07-19T18:49:43Z

If you’ve ever you’ve wondered what that old abandoned building off the west side of I-5, just north of downtown Sacramento is, wonder no more. If you aren’t familiar with it, the City now owns the former PG&E Powerhouse, built in 1912 and vacated sometime in the early 60’s.

Currently it sits empty, an eyesore for most that travel along Jibboom Street between the I Street Bridge, and Richards Boulevard. Most recently, it was nominated to be a part of the National Register of Historic Places.

I recently had a somewhat exclusive chance to photograph the inside of the building for the Economic Development Department. The building is being converted into a science, space and technology museum that is set to attract tourists to the area. The $50 million project should be completed by 2013.

Inside, the building is desolate, save for a few scraps of leftover metal, some supporting structures for large apparatuses, and plenty of pigeons. I was amazed at how graceful the aging structure felt. A calm quiet surrounded me. I observed a strange and distinct change from the hum and drum of nearby I-5.

Although these photographs appear as brightly lit renditions of the scene inside, the actual experience was much different. There was enough light to navigate around, but as for the small details seen in these photographs, few could be found by my eyes in real life.

PG&E Powerhouse from carlos eliason on Vimeo.

More information is available at the Powerhouse Science Center website.

Disclosure: Carlos Eliason is a photographer, videographer, and designer working in Sacramento, CA. More photographs can be seen at www.flickr.com/photos/carloseliason

Lawsuit challenges new redevelopment legislation

2011-07-19T00:54:53Z

The League of California Cities and the California Redevelopment Association filed a petition in the California Supreme Court Monday challenging the constitutionality of recent legislation affecting redevelopment agencies in the state.

Assembly Bills AB1x26 and 27 were signed into law along with the state budget in June. According to the petition, both violate Proposition 22, a constitutional amendment passed by California voters in November 2010.

“AB1x26 eliminates redevelopment agencies,” Kathy Fairbanks, California Redevelopment Association representative, said in a press release.

“AB1x27 allows agencies to continue to exist (albeit on life support) if they agree to pay their share of $1.7 billion this year and $400 million annually in perpetuity,” she said.

The lawsuit requests a stay to prevent the legislation from going into effect until the court can rule on the merits of the case.

According to the petition, Proposition 22 was passed by voters to “prohibit State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending, or otherwise taking or interfering with” revenue dedicated to local government.

Chris McKenzie, executive director of the League of California Cities, said Gov. Jerry Brown and the Legislature have “blatantly ignored the voters.”

“We must now go to the Supreme Court to uphold the voters’ will and the Constitution by overturning this unconstitutional legislation,” McKenzie added.

John Shirey, executive director of theCalifornia Redevelopment Association, said, “Since the budget bills passed, many redevelopment agencies have notified us that they cannot afford the ransom payment and will cease to exist. This legislation is a job killer and an opportunity killer for many local communities in need.”

Cities have until Oct. 1 to notify the state that they are going to make the required payments to continue their redevelopment activities, according to the terms of AB1x27.

The petition filed on Monday asks the Supreme Court to make an initial ruling on the request for stay by Aug. 15.

Melissa Corker is a Staff Reporter with The Sacramento Press. Follow her on Twitter @MelissaCorker.

Redevelopment 101: A bucket half full

2011-07-16T00:54:37Z

There is a lot of talk about changes to redevelopment agencies in the state and the impact those changes will have on development projects in Sacramento.

To get a better idea of how redevelopment agencies work from a fiscal point of view, Sacramento Press has put together a “redevelopment primer” to make it easier to understand where the money comes from, where it goes and how the city benefits from redevelopment funding – and how it doesn’t.

“It all starts with property taxes, guaranteed school funding from Proposition 98, and state redevelopment law,” said Peter Detwiler, a consultant with the state Senate Governance & Finance Committee.

FIRST, WHAT IS A REDEVELOPMENT AGENCY?
Cities and counties set up redevelopment agencies to eliminate blight by paying for public and private improvements and economic development.

According to a report from the state Legislative Analysts Office, the use of redevelopment has improved many areas through the revitalization of downtown and historic districts and improvements in public infrastructure.

This creates economic growth, provides affordable housing and adds value to properties and neighborhoods, increasing property taxes and bringing revenue to cities, counties, special districts and schools.

HOW IS IT FUNDED?
Property taxes don’t just fund schools – they also provide revenue for cities, counties and special districts, such as water districts, utility districts or waste disposal.

When property values rise in a redevelopment area, so do the property taxes collected. The distribution of that money is calculated using formulas established by state law, and it is not divided equally.

As soon as a redevelopment agency is formed, the distribution changes. Instead of the increased property tax amount flowing out in its usual proportions to cities, counties, schools, and special districts, their shares are fixed, and redevelopment takes the rest – the growth – off the top.

That “growth” is the incremental tax increase, and it is the prime source of funding for redevelopment agencies.

HOW DOES IT SPEND MONEY?
When a redevelopment agency forms a development project, it leverages the projected amount of tax increment it will receive with bonds to finance the project.

Eric Rasmusson, a Sacramento lobbyist who specializes in housing issues, said to “think of a redevelopment bond as kind of a mortgage.”

A mortgage is secured by a house. On a home loan, the bank gives money up front on the risk that the value of the house will go up – and that the homeowner will make the required payments.

“A redevelopment bond is secured by the expected tax increment (revenue from property value increases) that a project will earn over the next 40 years,” Rasmusson said, “and the bond money finances the project.”

The bondholder loans on the risk that a development project will, in fact, raise property values and revenue – and that the agency will make the required payments.

When a redevelopment area experiences growth and the redevelopment agency collects revenue from that growth, the agency then uses those funds to pay the debt on bonds and to finance more projects.

WHAT IS THE CONNECTION TO SCHOOL FUNDING?
Schools are funded by property taxes. When Californians passed Proposition 98 in 1988, they established a constitutional obligation for the state to fund schools to a certain level.

Proposition 98 spending for schools is determined by a formula outlined in the state constitution, and it equals approximately 45 percent of the state general fund revenues each year.

Let’s think of school funding as a big steel bucket.

Imagine two faucets over the bucket. One faucet is “property tax,” the other is “state general fund,” and water (money) flows from those faucets into the bucket.

Since schools are primarily funded by property taxes, the property tax spigot is turned on first.

“School districts get, on average, about 52 cents of every property tax dollar, based on state formulas,” Detwiler said.

Property taxes are based on home and land value, and California has been suffering from a severely impaired housing market, so the property tax spigot doesn’t always fill the bucket to the top, he said.

When that happens, the state general fund spigot takes over to fill the bucket to the constitutionally guaranteed level. The less property taxes there are to fill the bucket, the more the state general fund has to make up.

Last year, the state general fund spigot poured out $3.2 billion for school funding in California.

At the same time, the state budget included cuts to everything from health and human services to transportation and parks.

WHAT FUNDING PROBLEMS DO REDEVELOPMENT AGENCIES CREATE?
If redevelopment agencies are collecting the incremental growth from increased property values in a redevelopment area, that money is not going to cities, counties, special districts – or schools.

Think of it as a hole in the bottom of our school funding bucket: Schools get some of the property taxes for a redevelopment area, but not as much as they would receive if their allocation level wasn’t frozen by the redevelopment agency.

Redevelopment agencies may help create growth, but they do not share the revenue from that growth.

IS THAT ALL?
Not quite.

A recent study showed that increases in property tax revenues are not solely due to redevelopment agencies.

“When redevelopment agencies do good things, property values rise,” Detwiler said. “But some of that was going to rise anyway.”

The study, conducted by the Public Policy Institute of California, concluded that about half of the growth from property value increases was going to happen anyway, and half is attributable to redevelopment agencies.

“It’s fair to say, then,” Detwiler said, “that the unearned half of revenue being captured by redevelopment agencies (from property value growth) should really belong to schools.”

Since the state is obligated to make sure the school funding bucket is full, it is in effect subsidizing redevelopment agencies for the unearned portion of revenue.

The question the governor asked Californians with the new budget was, “Can the state general fund afford this size of subsidy to redevelopment?”

The governor’s answer was “no.”

HOW DO WE PATCH THE HOLE?
The new state budget included legislation that eliminates redevelopment agencies in an effort to save the state nearly $1.7 billion dollars in “backfill” school funding obligations.

Under the new laws, redevelopment agencies can elect to remain in business by paying “continuation payments” that fund K-12 schools – reducing the amount of “water” flowing from the state general fund spigot.

Those continuation payments, however, must come from the city or county that has authority over the redevelopment agency. That means, if a city cannot afford the payments, it cannot afford its redevelopment agency.

Between a property tax spigot that runs low in a bad economy, and a state general fund spigot that is running dry, redevelopment agencies may be too big of a hole in the bucket.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her @MelissaCorker.

State budget brings good news and bad news for Sacramento

2011-07-14T01:39:44Z

The new California state budget reduced spending by $15 billion and potentially includes an additional $2.5 billion in cuts – but it’s not all bad news for Sacramento.

Some of the impacts of the state budget on Sacramento were outlined at the City Council meeting Tuesday, most notably problems stemming from changes to redevelopment, realignment and motor vehicle license fees.

“The best thing I can say is that it was an on-time budget,” said David Jones, lobbyist for the city of Sacramento.

The budget was balanced using $4 billion in projected revenue increases, Jones said, and about 40 percent of that is “just hopeful thinking and subject to litigation or challenges.”

That’s good news for the city, Jones said, because some increases in the budget would result in significant revenue loss for the city if they remain in place.

One aspect of the state budget that will have a deep impact on the city is the restructuring of redevelopment agencies.

According to Jones and Leyne Milstein, city finance director, redevelopment funds from tax increment funding through the state bring approximately $3.5 million to the city and county each year.

Under the state’s new Voluntary Alternative Redevelopment Program, the Sacramento Housing and Redevelopment Agency (SHRA) will have to come up with an initial $22 million “continuation payment” to continue its operations, or it will be dissolved.

If that happens, said La Shelle Dozier, executive director of SHRA, numerous Sacramento redevelopment projects in the works will be stalled unless alternate financing is identified, and some projects would never come to fruition.

Jones said the California Redevelopment Association is filing a lawsuit to stop the new redevelopment agency legislation but, until that litigation is resolved, redevelopment agency activities in Sacramento are on “uncertain ground.”

Another item in the state budget that will impact the city comes from the realignment of public safety programs from the state to local governments.

Senate Bill 89 (SB89) diverts 100 percent of motor vehicle license fee revenues from cities to counties, using it to fund public safety activities that have been realigned from the state to the counties.

Until last year, Sacramento received approximately $1.7 million from vehicle license fee revenues annually.

“Realignment is one of the major features of the governor’s budget,” Jones said. “There will definitely be an impact (to local government) down the line.”

The governor’s realignment strategy involves shifting low-level offenders from state institutions to county institutions and local government programs.

“We’re going to see offenders crowded out of from our county jail and possibly onto the streets,” Jones said.

Other realigned programs, according to the governor’s budget summary, include local public safety programs, mental health, substance abuse, foster care, child welfare services and adult protective services.

“The measure passed in the very last hours of budget talks,” Milstein said. “If this legislation stays on the books, it will be a real hit to the city.”

The state budget isn’t all bad news, though, said Jones.

The Community Oriented Policing Services public safety grant has been approved, Jones said, and that means $763,000 in funding to the city.

Assembly Bill 678 (AB678), which provides reimbursement to local fire departments for emergency medical transport, is progressing through the Legislature and may be out of committee and onto the governor’s desk by the end of August, Jones said.

Additionally, transit agency funding has reached a higher funding level this year – the second-highest in its history.

“We’ve seen better-than-anticipated sales tax from the first quarter,” Milstein said, “So we’re keeping an eye on it, and it looks like a positive trend. Then we can adjust for it later in the year.”

Read the governor’s budget summary here.
Read the text of SB89 here.
Read the text of AB678 here.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

No longer a ‘pedestrian mall,’ K Street prepares for cars

2011-07-12T02:39:31Z

On Tuesday evening, the City Council will consider revising a local ordinance that will bring the city one step closer to seeing cars on K Street for the first time in more than 45 years.

The revised ordinance will change a city code that has been in place since the early 1960s that defined the five blocks of K Street between Eighth to 12th streets as a “pedestrian mall,” closing it to vehicular traffic.

“It was something that was happening in a lot of places back then,” said Denise Malvetti, department manager at the city’s Economic Development Department. “Cities were trying to replicate the suburban experience, and they created a lot of these pedestrian malls. It was a failed experiment, though.”

Roughly 150 cities in the U.S. installed pedestrian malls in the 1960s, Malvetti said, and now about half of those have converted back to allow street traffic.

“We’ve been working on getting cars back on K Street since late 2008,” Malvetti said. “We’ve put a lot of consideration into this project, and we did a lot of outreach to the community.”

Business owners were outspoken in saying that returning cars to K Street is vital to increasing retail activity in the area, Malvetti said, but they won’t see an instant change.

“It will likely be an incremental increase over time,” Malvetti said.

City Council recently approved numerous projects intended to revitalize the J-K-L corridor, and K Street in particular, in order to stimulate economic activity in the area and bring people back to what was once a hub of activity in the city, Malvetti said.

The “Cars on K Street” project was part of a $2.7 million construction and design project approved by City Council in April 2010.

The purpose of the project, according to a staff report, is to “increase access and visibility to businesses, promote a safe environment, stimulate additional economic activity, and improve (traffic) circulation.”

“Sacramento needs to be more pedestrian-friendly,” said Councilman Steve Cohn, “but the way that part of K Street is laid out, it wasn’t working as a pedestrian-only street.”

Cohn said returning cars to K Street makes sense because it will help with traffic flow and make it easier for people to get to the businesses along that part of K Street.

In order to allow for the reintroduction of cars on K Street from Eighth to 12th streets, the city code must be amended to remove the definition of “pedestrian mall” currently applied to those five street blocks.

According to provisions in the city charter, the council must first pass the revised ordinance for publication, and then it can finalize the approval at the following City Council meeting.

This is one of the last steps before construction can begin, Malvetti said. The Department of Transportation will bring a construction contract to City Council next week for approval, and then groundbreaking can begin within the first week of August.

Design plans for the “Cars on K Street” project include creating new crossing signals at 11th and K streets, wheelchair access at intersections and the addition of edge treatments (possibly planters or street furniture) to provide a buffer between the roadway and sidewalks to increase pedestrian safety and make the blocks more visually appealing.

“Our goal is to have cars back on K Street in early November,” Malvetti said. “It’s one more step in the revitalization of K Street.”

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

Sacramento redevelopment future in jeopardy

2011-07-09T01:21:03Z

The future of development and affordable housing projects in Sacramento is starting to look pretty grim. Gov. Jerry Brown signed the state budget into law June 29, putting two new bills into effect that significantly impact redevelopment agencies: ABx26 and ABx27.

“There is no good news in any of this,” said La Shelle Dozier, executive director for the Sacramento Housing and Redevelopment Agency (SHRA). “It’s very detrimental, given the fact that we have an economy that’s struggling.”

The two bills go hand-in-hand. ABx26 says redevelopment agencies can opt to discontinue redevelopment activities and be dissolved.

ABx27 says that if redevelopment agencies pay a first-year lump sum payment and then commit to annual “continuation payments,” they will be allowed to continue their redevelopment activities – with additional limitations and without any tax increment funding from the state.

Tax increment funding through a redevelopment agency is one way cities and counties are able to finance redevelopment and affordable housing activities.

Over the last six years, tax-increment funding has resulted in the production of 7,329 housing units in the Sacramento area, including 3,189 units for very-low income and homeless families, Dozier said.

According to the provisions of the new legislation, redevelopment agencies have until Oct. 1 to either dissolve or make the first-year continuation payment to continue redevelopment activities.

“We are conducting an analysis of current projects to see how we would generate (our) estimated $22 million payment as well as an evaluation of projects if the agency must be dissolved,” Dozier said.

Each redevelopment agency is subject to a specific first-year and continuation payment schedule, calculated using a formula outlined in ABx26.

For SHRA, which is an authority of both the city and the county of Sacramento, the “year one” payment amount would be $22 million, Dozier said, and continuation payments are estimated to be approximately $5 million every year after that.

~~Once the SHRA governing boards have an opportunity to review the completed analysis, Dozier said, they will give the agency their recommendations on the options available.~~

Once the agency has an opportunity to review the completed analysis, Dozier said, she will give the SHRA governing boards recommendations on the options available.

“Right now, we’re in a state of limbo,” Dozier said.

At this point, several major redevelopment projects in Sacramento are currently stalled, Dozier said.

These include the 800 K Street project, a mixed-use development to help revitalize the center of downtown; the 65-acre Township 9 project, which is a $1.7 billion mixed-use urban fill development, and Veterans Village, a proposed new construction development in the Mather Redevelopment Area that would provide affordable housing for veterans.

Some projects that have already been approved, however, would not be affected by the new legislation, including the Seventh and H streets project, the La Valentina project on 12th Street, and the Hotel Berry renovation project, Dozier said.

These three projects are slated to provide, in total, nearly 250 affordable housing units and create more than 400 jobs, according to Dozier.

"(Redevelopment agencies) do great work – phenomenal work,” said Eric Rasmusson, a Sacramento lobbyist who works on local housing issues. “But we can't afford them the same way anymore. That's the message of this state budget."

By eliminating redevelopment agencies, Brown anticipates a $1.7 billion savings in cost offset to the state general fund.

“Right now, we’re prohibited from engaging in any new redevelopment activity,” Dozier said, “so we’re focusing on existing projects to keep them moving forward.

“We’re hoping for relief from the courts so that we can continue working on projects that were heading toward various stages of approval,” she added.

Kathy Fairbanks, a representative of the California Redevelopment Association (CRA), said the association plans to file a lawsuit in the next couple of weeks challenging the new legislation.

“It’s unconstitutional,” Fairbanks said. "Proposition 22 passed last November by an overwhelming majority, and it specifically prohibits the state from doing anything with local funds, including redevelopment funds.”

Fairbanks said that, if ABx26 and ABx27 are allowed to stand, it will mean redevelopment agencies that are not eliminated will be forced to abandon projects – and any resulting jobs and economic opportunity – in order to make the required continuation payments to the state.

In the lawsuit, the CRA will seek an immediate stay of the two bills. If the court grants a stay, some or all of the provisions of the bills would be suspended until the court makes a final decision. Until a stay is issued, however, the legislation will remain in force.

There are 397 active redevelopment agencies throughout California, according to the CRA website.

The elimination of redevelopment in Sacramento would have significant unintended consequences, according to the SHRA website, including “no way to monitor affordable housing developments, no funding to put more money into affordable housing projects in the future, as well as direct and indirect job losses.”

“With the economy in its current condition,” Dozier said, “this is not a time to be putting redevelopment agencies out of business.”

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.

Editorial Note: Corrections have been made to this article after it was published. The incorrect information has been struck out and the correct information has been added.

K Street redevelopment project a 'great investment for the city'

2011-06-25T03:02:16Z

The approval of the redevelopment project for the 700 block of K Street brings more than just the prospect of a revitalized block of the J-K-L corridor, it also includes financial incentives that supporters say will spur the local economy and bolster revenues for the city.

Originally, developers Bay Miry, D & S Development, and Ali Youssefi, CFY Development, proposed that the city put in $16 million of funding assistance – one half of that amount in the form of a grant, and the other half in repayable loans from a variety of redevelopment agency sources.

Since the initial proposal, however, Miry and Youssefi were able to tap into new funding sources for the project, including a federal program called New Market Tax Credits (NMTC).

With more outside funding, the amount of private investment increased and the level of public investment decreased.

The approved project now includes only $14.7 million in public funds – nearly $2 million less than originally proposed.

“From a financing standpoint, we’re pleased that the developers have made such an effort to increase their equity input,” Councilman Rob Fong said Friday. “It’s a great investment for the city.”

In addition to a decreased level of public funding for the project, the city will profit from the redevelopment project at 40 percent of whatever the cash-flow is.

This translates to a return for the city of approximately $17.4 million on a $14.7 million investment.

“That is unheard of in a private-public partnership project,” Miry said. “It’s a really good thing for the city.”

That’s not all, though, according to Miry.

The financing terms of the project include yet another added incentive to the city.

In the event the development is ever sold to new investors, the city will receive 20 percent of the profit from the sale, over and above full repayment of all loans on the original project.

“Neither of those two aspects (a high return on reduced investment and profit on future sale) were part of the initial proposal,” Miry said.

City Council members gave the green light to the K Street project on Tuesday, saying the project would be “transformative” and “invigorating” for the downtown sector.

“This long awaited project will certainly change the face of K Street,” said Maurice Chaney, communications specialist for the city’s Economic Development Department. “It will generate millions in tax revenue and support 500 permanent jobs once operational.”

“This is a win, win, win situation,” said Councilman Kevin McCarty Friday.

“It’s a win for revitalizing K Street. It’s a win for housing downtown. It’s a win for development and jobs,” McCarty said.

Read more about the 700 block project here.

New development concept for Cal Expo unveiled

2011-06-25T02:53:20Z

A new concept for the redevelopment of the California Exposition & and State Fairgrounds was unveiled Friday, which includes adding 120,000 square feet to the exhibition space and building a new 10,000 seat amphitheatre.

A consulting team led by Andy Plescia of A. Plescia & Co. outlined the concept at a meeting of the Cal Expo Board of Directors and focused on ways to breathe new life into the fairgrounds which have been in use for nearly 50 years.

The consultant group, which included Plescia, Gruen Gruen + Associates and RCH Group, formed the redevelopment concept based on a year-long feasibility study covering site conditions, property values and real estate market conditions.

Cal Expo board members requested the study after they received an initial proposal to move the fairgrounds to Arco Arena to allow the existing Cal Expo site to be privately developed to help finance an arena downtown.

“Our whole focus has to be how we take Cal Expo into the 21st century,” said Norbert Bartosik, California Exposition and State Fairgrounds general manager.

In addition to the increased exhibition space and plans for a new amphitheater, key components of the renewal concept for Cal Expo include development of 125 acres of the site for sale to investors for residential, commercial, and retail use and increasing space for parking by 35 percent.

Consultants estimate the net value of the property to be between $55 million and $60 million, after deductions for infrastructure and resolving potential flooding issues.

Financing for the project is still being discussed, but would include proceeds from the sale of the property to investors and securing funds from a variety of public and private sources.

“What we saw today was just concept,” Bartosik said, “but it’s a vision for the future and we’re going to need everybody’s help to make it happen.”

The consultant team will return to the Board in August with additional details on projected costs and revenue for the development concept. Board members said that they will consider whether or not to move forward with the proposal after that meeting.

Moving forward with K Street redevelopment plans

2011-06-23T02:02:53Z

With the approval of the 700 block project on K street, developers Bay Miry and Ali Youssefi are closer to realizing their long-awaited vision.

But that vision has changed in some unexpected ways since its initial proposal.

First, that vision “got a lot bigger,” Miry said.

When Miry and Youssefi were awarded the project in July 2010, they didn’t have access to the interior of the buildings at the project site.

“The initial proposal was very conceptual in nature,” Youssefi said. “We knew that if our team was selected we'd have the opportunity (later) to refine the project design based on a thorough inspection of all the buildings.”

Once they were handed keys in late August, they had a chance to fully explore what the building had to offer – and what they found was surprising.

“We realized that there’s tons of character and potential to not only create basement concepts, but also rooftop concepts,” Youssefi said. “Sacramento just doesn’t have nearly enough rooftop restaurants and businesses.”

The discovery allowed them to nearly double the amount of retail space offered in the plan from 37,480 to more than 64,000 square feet – and increased the total cost of the project from $35.5 million to about $47.7 million.

The housing element of the project also changed.

Initially, the plan called for 136 rental housing units, but the design underwent some architectural changes, and the overall appearance of the block was modified and the number of rental units increased by one.

The level of affordable housing also changed from all moderate-income units at the start to a mix of 60 percent low- to moderate level affordable income housing units and 40 percent units rented at market rate.

“The affordability and total number of housing units fluctuated for several months as we were refining the design of our project and evaluating different sources of financing,” Youssefi said.

(An in-depth look at affordable housing is covered here.)

A portion of the project relies on affordable housing subsidies – funding that critics have called into question.

During the discussion of the project at the City Council meeting on Tuesday, Sacramento Housing Alliance Policy Director Bob Erlenbusch said the public subsidy is being applied inappropriately.

“The current proposal … over-subsidizes the affordable units in the development,” Erlenbusch said. “It’s significantly higher than the average (for the area) and is based on unreasonably high market rents.”

Erlenbusch said, “Simply put, SHA feels that there is too much subsidy for hardly any affordability.”

The developers disagree.

“Having the units be a mix of low/moderate and market rates creates a diverse community,” Youssefi said.

It also provides apartments to “an under-served demographic – people who don't qualify for traditional low-income housing but who can't necessarily afford the market rents in downtown Sacramento,” Youssefi added.

Miry noted that the city has invested a lot of money in projects in the downtown area that target low- and very-low-income thresholds.

“To balance that out in the K Street area,” Miry said, “there was a strong desire (from Miry and Youssefi and the Economic Development group) that there be a healthy portion of market-rate housing in the block as well.”

Council members applauded the revised proposal as they completed the agreement with developers and gave their approval for the project.

“This is a very exciting project,” said Councilwoman Angelique Ashby. “This (project) is what we are trying to do: rebuild our city. Make it a special place for people to come together. (This project) provides solutions for everyone who wants to be a part of downtown.”

Where Do They Go From Here?

Now that the project has City Council approval, Miry and Youssefi turn their attention to the next two steps in the process: finalizing project financing and securing building permits.

“Everything we’ve worked on architecturally so far was the conceptual drawings package required for Planning Department approval,” Miry said. “Now we go into specific detail of how we are actually going to construct the project.”

The developers need to complete and submit final construction drawings and get them reviewed and approved by the building department before breaking ground on the project.

Miry said it will take two to three months to complete the construction drawings and another two to three months to obtain approval from the city building department.

“After that, we’re ready to go,” Miry said.

Both D & S Development and CFY Development have their own in-house contracting licenses, and will oversee the actual construction.

“We’ll be (sub-contracting) some work, but the day we have permit in hand, we’ll be able to start the demolition process,” Miry said. “If (the building department) will issue a demo permit ahead of the building permit, we’ll start even sooner.”

Ashby and Councilman Kevin McCarty underscored the importance of the 700 block project with praise for the benefits of moving the project forward.

“We’re always saying ‘jobs, jobs, jobs,’ ” McCarty said. “Well, (this project) means 400 jobs for our community. This is great.”

“It’s a true partnership between the (Sacramento Housing and Redevelopment Agency) and the business community, and a partnership with the community at large,” Ashby added.

Miry and Youssefi said a lot of people have wanted to see K Street revitalized for a long time.

“We’re confident we’ll be able to put it together by the new year timeframe,” Miry said. “We’re going to see a cool new Renaissance here on K Street pretty soon.”

Bay Miry talks about getting approval of the 700 block project from MelissaCorker on Vimeo.

Council approves K Street redevelopment proposal

2011-06-22T07:22:40Z

The proposal for redevelopment of the 700 block of K Street received the nod of approval from City Council Tuesday night, opening the way for developers to move forward with the $47.7 million project.

With close to 64,000 square feet of retail space and more than 130 housing units, the project is designed to revitalize a long-ignored section of K Street with a diverse tenant mix of restaurants, boutique shops and a live music venue.

If all goes as planned, developers expect to begin construction in late January or early February of next year.

With their unanimous vote, council members approved the environmental impact and planning commission reports, and formalized a Developer Disposition Agreement (DDA), which spells out the terms of the redevelopment deal with the city.

Bay Miry, senior associate at D & S Development, one of the project’s development companies, said they anticipate the project will create approximately 300-400 construction jobs during the building phase, and another 400-500 permanent jobs from the 14 retail spaces being built into the development.

“We’re very excited and thankful for (the) council’s approval,” said Ali Youssefi of CFY Development, the other half of the 700 block development team. “Now it’s all about completing the plans, getting to construction and getting to the day when we can go out and enjoy the finished product.”

The next steps for Youssefi and Miry will be securing the remaining financing elements, including a conventional loan and a federal grant for redevelopment of blighted neighborhoods in distressed areas.

“We’re hoping that this will put us where we consider to be very solid ground,” said Beth Tincher, a senior project manager with the city's Economic Development Department.

Tincher described working with city planning and building officials on the project at every step as a “collaborative effort to ensure the success of the project.”

“They have indicated their willingness to work with us and help us to keep to the schedule we’ve outlined,” Tincher said.

The development team initially requested $16 million in existing city redevelopment assistance funds to go along with developers’ private investment of $1.5 million in cash equity and $18 million in conventional debt to develop the 700 block, Miry said.

As the project was being negotiated, however, the deal was revised so the city would contribute only $14.5 million, and developers increased the private investment of debt and equity to a total of $33 million.

The development team anticipates about 200 residents “living, working and playing” in the K Street area from the 137 apartments planned for the project, Miry said.

The developers anticipate the project will bring about 6,000 patrons to K Street every week.

Additionally, developers estimate about $1.6 million in annual sales tax revenue generated from the project, and another $330,000 annually in property tax.

“We really feel this project will encourage development in the surrounding underdeveloped, vacant, blighted parcels,” Miry said. “It’s a home run for the city, for sure.”

Shady Lady Saloon owners to open restaurant in Galt

2011-05-17T00:34:28Z

The owners of downtown’s Shady Lady Saloon are set to open a new restaurant in Galt in two weeks featuring a blend of traditional American food mixed with lean California cuisine in a restored building from the Civil War era.

Co-owner Alex Origoni said the restaurant – called Brewster’s in a nod to one of the early tenants – will feature food ranging from $8.50 entree salads to a $22 filet mignon, with sandwiches starting in the $9 range.

“The history of (the building) is really what attracted us. Much like the building Shady Lady is in, it’s a registered historic landmark, and it just gives so much character to the project,” Origoni said.

Origoni, who owns Shady Lady Saloon with Jason Boggs and Garret Van Vleck, said the trio worked together in various Sacramento restaurants before opening the saloon two years ago. Initially hesitant to expand to Galt, he said that once they saw the building, they were sold.

“We saw it as a blank canvas,” Origoni said, adding that the shell of the building is original, but the rest of it was essentially empty, allowing them to incorporate high ceilings, honeycomb tin paneling on the second-floor roof characteristic of the 1860s and some modern touches as well.

The 7,000-square-foot building was purchased more than a year ago by Sacramento’s D & S Development, Inc., said co-owner Bay Miry.

Miry said one unique feature of the restaurant is a glass floor near the downstairs bar and entry area that overlooks a wine cellar.

“The cellar will be lit, so people will be able to look down and see that area,” Miry said. “There’s also a really cool glass elevator that leads up to a lounge area on the second floor. They have a solid menu that’s going to be a lot of moderate price-range comfort food.”

Before its recent renovation, it had been vacant for about 20 years.

D & S Development is no stranger to the Shady Lady Saloon’s owners, having worked together at the 1409 R St. location as well as plans to work together on K Street in Sacramento.

The scope of the project was significant, Miry said. It included seismic retrofit and structural reinforcement as well as finding a tenant for the site.

“We did about $2.5 million in renovations: hardwood floors, chandeliers, woodwork – especially in the bar. Some of the tables were made out of cedar, which is pretty unique,” he said.

Galt City Manager Jason Behrmann said he sees the restaurant and a nearby senior housing project – by Sacramento Developer CFY Development, Inc., which is partnering with D & S on K Street in Sacramento – as being catalysts for revitalizing downtown Galt.

“We’ve been doing a lot of facade restoration, and we’re trying to bring more dining options and a movie theater, and we’ve got some other improvements along the railroad like plaza and park features,” he said. “We want this to be the central place for the community like the way it once was.”

In a public/private partnership, Behrmann said Galt contributed about $1.2 million in grants and redevelopment funds.

He added that he is happy with D & S Development’s choice to bring Shady Lady Saloon owners into the space.

“We went up (to Sacramento) and took a look at their operation,” Behrmann said. “We’re certainly supportive of that.”

Origoni said he is flattered to have a role in kicking off the revitalization effort.

“It’s something we take seriously,” he said. “We hope to deliver a solid product to the town. There’s been so much interest in the community.”

Galt Chamber of Commerce Board President Rose Lavine lives across the street from the building and said she is happy to see a business going in.

“I think it’ll be awesome,” she said. “It’s never been a restaurant.”

The building previously housed a post office, then the Brewster Company Store – a general store – and finally an Odd Fellows Lodge before its 20-year vacancy.

“That’s really the only big restaurant down there (in downtown Galt),” she added.

Behrmann said he hopes the restaurant will help make historic downtown Galt a regional draw as well as a magnet for Galt residents.

Origoni said he wants people to know that Brewster’s is not a Shady Lady Saloon clone.

“Certainly our stamp is on it, in terms of the type of things that we do and the core values we have for the industry, but it’s a unique concept that is just a different animal than Shady Lady, and I hope people realize that.”

Brewster’s is located at 201 Fourth St. in Galt. For updates on exact opening date and a website for the restaurant, check the Shady Lady Saloon Facebook page.

Brandon Darnell is a staff reporter for The Sacramento Press. Follow him on Twitter @Brandon_Darnell.

Mayor helps dedicate largest private solar project in Sacramento

2011-04-13T01:01:12Z

Mayor Kevin Johnson joined public utility officials and private business developers at Depot Park Tuesday for a ceremony to dedicate the largest private solar project in the Sacramento region.

The 3-megawatt project, located in the Depot Park business complex on Florin-Perkins Road, includes an array of 12,600 solar panels and is designed to meet nearly 40 percent of the annual power needs for the 3 million-square-foot facility, according to information released by the mayor’s office.

“I believe this area has the opportunity to be the greenest region in the country and a hub for investment in clean technology,” Johnson said in his prepared statement. “Today’s dedication demonstrates that good environmental policy can be good economic policy.”

Johnson said the project – which is the result of collaboration by Depot Park, the city of Sacramento, East West Bank, SPG Solar and Chint Astronergy – has historic significance as a showcase for the reuse of a military base with a Brownfield site for renewable energy generation.

The U.S. Environmental Protection Agency defines a Brownfield site as land where any redevelopment or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.

The new solar project is an example of finding creative solutions to challenging issues and using green energy to remedy a previously contaminated Brownfield site, said Dick Fischer, president of U.S. National Leasing, owner and manager of Depot Park.

“It demonstrates how the alignment of policy creates real deals,” Johnson said. “We have a state enterprise zone and an aggressive renewable portfolio by SMUD, and we have our city sustainable goals all coming together to leverage dollars.”

The solar panel array at Depot Park is the largest green sector project within the city limits and it provides an opportunity to satisfy a growing need to diversify the local economy, Johnson told those attending the dedication.

Johnson was also joined at the dedication ceremony by Renee Taylor, president of the Sacramento Municipal Utility District (SMUD) board.

“SMUD is very committed to these kinds of projects,” Taylor said. “It’s an example of how, if we all come together to see this vision of a more sustainable future for Sacramento, that working together really is the way to do it.”

In 2007, SMUD began implementing California Senate Bill 1 (SB1), which requires utilities to set 10-year installation and budget goals proportional to the utility’s share of statewide load, which in SMUD’s case amounts to 125 megawatts (MW) of new capacity by the end of 2016.

“This one 3-megawatt project at Depot Park puts us at about 20 megawatts,” Taylor said. “We still have quite a ways to go to reach (our) goal, and we are pursuing it aggressively.”

Joel Ayala, director of the Governor’s Office of Economic Development, also took part in Tuesday’s dedication ceremony. Ayala noted that solar projects of this kind in California provide an efficient and affordable source of energy as well as jobs for Californians.

“This is a win for California,” Ayala said. “The investment that Chint Astronergy has made in California is a great achievement, and the hope is that we can develop further opportunities both here and across the state.”

Julia Burrows, managing partner at Valley Vision, a non-partisan, nonprofit organization associated with the Depot Park solar project, said Chint Astronergy, the manufacturer of the new solar panels at Depot Park, is looking at potential plant locations and company headquarters in the United States.

“We want them here,” Burrows said.

Bringing such a manufacturing plant to this location would also bring 150 to 200 jobs, Burrows said, boosting the local economy and supporting the main objectives of the mayor’s Greenwise Initiative.

The initiative, launched by mayor Johnson last May, is an effort to make Sacramento the greenest region in the country and a hub for green technology through collaborative efforts with experts and community leaders in a variety of policy areas such as waste and recycling, urban design and green building, and green and clean technology.

Johnson concluded his dedication comments with a direct invitation to Cunhui Nan, chairman of Chint Astronergy, to bring his manufacturing plant to Sacramento and Depot Park.

“Sacramento is open for business,” Johnson said. “We have the space, we have the people and we’re ready to go.”

New senior apartments break ground on Auburn Boulevard

2011-04-12T17:57:00Z

Officials from the County Redevelopment Agency (www.shra.org) and developer BRIDGE Housing Corporation broke ground today on a new 138-unit apartment complex for low income seniors in the Old Foothill Farms community at 5400 Auburn Boulevard, the site of a former Kmart retail center.

“I think this project is going to be a great synergy for the community and for this corner,” said Supervisor Susan Peters whose district includes the Old Foothill Farms community.

The development is the first project that BRIDGE Housing will build in Sacramento. President and CEO Cynthia Parker says the apartments will be a catalyst for revitalizing the area.

“This is a first step to attracting other development and that’s what we’re celebrating today,” said Parker.

In 2008, the Redevelopment Agency began acquiring parcels at this location. Since that time, SHRA worked diligently to develop a plan for the revitalization of the property that would also impact and benefit the Auburn Boulevard corridor and incorporate the needs of the community. After careful analysis, the proposed use for the site included new construction of a senior apartment complex to anchor the first phase of redevelopment of this property. The Agency assisted the project with $8.5 million in redevelopment funds.

“This is where redevelopment gets involved in breathing new life back into our older commercial corridors,” said La Shelle Dozier, SHRA Executive Director. “We depend heavily on redevelopment funds to come back into the community so we’re working hard at the state level to preserve this flexible tool that we use in creative ways to make these types of project come to fruition.”

Other project funding includes an award of 9% Low Income Housing Tax Credits from the Tax Credit Allocation Committee, construction lending from Wells Fargo Bank and equity investment from Wachovia Affordable Housing Community Development Corporation

This site which is largely comprised of the former K-Mart parking lot has been a major cause of concern for residents and frequent travelers since the store closed in 2000. The loss of jobs at the McClellan Air Force Base and the resulting change in business environment for these commercial corridors left very little hope for a successful and vibrant re-use of this property. Residents, business owners and community leaders sought out suggestions and answers to address concerns of this community.

The Foothills Farms Senior Apartments will include 138 affordable senior apartments on 4.5 acres of this site. There are a total of four buildings, three of which will be three-stories and served by elevators. The fourth building is a two-story. These buildings will be linked together with breezeways at the second story level, and will surround a main courtyard designed with gazebos, a patio area. Additional amenities for the senior residents include a clubhouse, swimming pool, bocce court and community gardens. The clubhouse will be appointed with a full kitchen, library, crafts room, and common laundry facilities.

The project is expected to be completed next summer. Prospective applicants may call (916) 484-4007 or visit http://www.bridgehousing.com/FoothillFarms for information.

800 K Street Plan at Preservation Commission

2011-03-02T02:13:31Z

This Wednesday, March 2, the City of Sacramento's Preservation Commission will review and comment on plans for the 800 block of K Street. This plan follows the February review and comment for the 700 block of K Street, (a project of D&S Development and CFY Development) by the Preservation Commission, later presented to Design and Planning Commission.

City of Sacramento Preservation Commission

Wednesday, March 2, 5:30 PM, City Council Chambers, New City Hall, 915 I Street, Sacramento

Agenda for the Preservation Commission meeting can be found here:

http://sacramento.granicus.com/AgendaViewer.php?view_id=21&event_id=144

This project, selected last summer as one of two projects for the 700 and 800 block of K Street, is presented by David Taylor Interests, Domus, CIM and Zeiden Properties. After input by the city of Sacramento, the project now includes 200 apartments (the original plan called for 110) varying in size from 450 to 1100 square feet, and 20,000 feet of retail space, on a lot of approximately 1.1 acres. Two new buildings will be constructed, at 800 K Street and 801 L Street, and the historic Bel-Vue Apartments/American Cash Apartments building will be restored and renovated. The 800 K Street building will be six stories tall, not including a basement parking level at Sacramento's original street level. The 801 L Street building will be five stories. Affordability levels will vary within the project, ranging from low and moderate income to market-rate units. Potential tenants for the ground floor retail units were not specified in the staff report.

The complete report for the 800 Block proposal can be found here:

http://sacramento.granicus.com/MetaViewer.php?view_id=21&event_id=144&meta_id=218914

This item will be received for review and comment, most likely to be followed by presentations to Design Review and Planning Commission in the coming weeks.

This month's Preservation Commission will also feature public hearings on two items: a recommendation for the Broadway Triangle project, a mixed-use project planned for Broadway between 34th and 36th Street that will include several landmark buildings in the Oak Park/Broadway historic district, and a recommendation for district signs, art, and bicycle furniture for the R Street Corridor between 10th and 13th Street.

Details about the Broadway Triangle project can be found here:

http://sacramento.granicus.com/MetaViewer.php?view_id=21&event_id=144&meta_id=218908

The R Street streetscape plan can be found here:

http://sacramento.granicus.com/MetaViewer.php?view_id=21&event_id=144&meta_id=218910

The Preservation Commission will also review a staff report regarding whether or not to recommend the California State Printing Plant on North 7th and Richards Boulevard to the City Council as a city landmark. Staff report can be found here:

http://sacramento.granicus.com/MetaViewer.php?view_id=21&event_id=144&meta_id=218912

Pictures accompanying this article were taken from the City of Sacramento staff report, linked above.

Cal Expo considers development

2011-02-17T02:10:21Z

California Exposition and State Fairgrounds officials may get a closer look next month at the feasibility of redeveloping the fairgrounds.

Consultants have spent the last two months gathering more extensive information on what it would take to redevelop the site.

A team led by Andy Plescia of A. Plescia & Co. has been meeting with city and county officials, utility providers, developers and real estate brokers to determine what development might be possible, plus costs and changes needed to support that, according to an update released late Tuesday afternoon.

"This is really drilling down in a deeper level of detail into the feasibility of a redevelopment project," Cal Expo Deputy General Manager Brian May said.

The consultants – A. Plescia & Co., Gruen Gruen + Associates and RCH Group – are building on a preliminary development plan analysis released in September.

Cal Expo board members requested the analysis in response to a development team's proposal to move the fairgrounds to Arco Arena so the existing Cal Expo site could be privately developed to help finance an arena downtown. The Cal Expo board voted against the proposa l from developers Gerry Kamilos and David Taylor.

The consultants recommended Cal Expo officials sell part of the fairgrounds land to finance new or updated fair facilities at the site.

They're scheduled to present updated information for the "Cal Expo Renewal Project" at the next Cal Expo board meeting, which will be held in March or April. The board is expected to decide whether and how to move forward with redeveloping the fairgrounds over the next two or three months. The consultants are also working on ways to finance redevelopment.

If the board decides to push ahead with redevelopment, the next steps would include marketing the land and soliciting offers on a national level, conducting environmental reviews and entering a sales agreement with the buyer, May said.

Suzanne Hurt is a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.

Big plans for River District

2011-02-16T06:21:01Z

Major changes are in store for the city’s River District, as the Sacramento City Council approved a set of future development plans Tuesday night.

The planning documents set a path for development of the area over the next 25 years, according to a report from city staff. The city’s plans for the River District, a 773-acre swath between the Sacramento Railyards and the American River, focus on ramping up residential, commercial, office and hotel development and moving away from industrial development.

Council members approved the plans in a 8-0 vote. Mayor Kevin Johnson did not attend the City Council meeting because he was out of town, said Johnson spokesman Joaquin McPeek.

The city wants to remodel the River District area into a “transit-oriented mixed use urban environment,” according to the Feb. 15 city staff report. The refashioned district would feature 8,144 homes, 3.9 million square feet of office space, 854,000 square feet of retail and wholesale, 1.4 million square feet of light industrial and thousands of hotel units, according to the report.

The plans would be a major change from the district’s current developments, which are mostly industrial.

City Councilwoman Angelique Ashby praised city staff’s development plans for the River District, noting that planned projects for the area would involve redevelopment funding. Gov. Jerry Brown has proposed disbanding redevelopment agencies and using redevelopment money on other local services. The city hopes to use $25 million in redevelopment funds on the River District in the future.

“One thing I do want to point out is that this is a really great example of why cities need to have control of ... redevelopment dollars,” Ashby said. “These are exactly the types of gems and pearls we’re trying to bring into our cities.”

Infrastructure upgrades, public resources and administrative costs for the River District remodel over the next 25 years will cost an estimated $323 million, according to the report. Fees paid by developers would cover $180 million of the amount.

If Brown throws out redevelopment agencies, work on the plans will slow, said Rachel Hazlewood, a senior project manager for the city’s Economic Development Department.

In addition to development, the city is also designating nine sites in the area as historical landmarks and setting up a North 16th Street Historic District. Sites that will be identified as historical landmarks include the PG&E Sacramento River Power Station at 400 Jibboom St. and Fire Station No. 14 at 1341 N. C St.

Read the city staff report here.

View River District Landmarks in a larger map

Kathleen Haley is a staff reporter for The Sacramento Press.

Only YOU can prevent local mysteries

2011-02-07T19:53:39Z

How? By contributing to local history!

While researching my recent article on the Capitol Area Plan and the Ron Mandella Community Garden, I noticed how widely the facts varied from source to source, and how many facts were just plain missing. And even though this is a story that is relatively recent in living memory, the most frequent answer given in every interview I conducted was: “I don’t remember.”

If you have any information about any version of the Capitol Area Plan, the relationship between the Capitol Area Plan and the West End redevelopment project, the history of the Ron Mandella Community Garden (also known as the Terra Firma Garden and the adjacent garden known until the mid-1980s as the Southside Garden) or any aspect of the block bordered by 14th, 15th, P and Q streets and the use of eminent domain, please consider sharing it in a comment to my article, or donating it to the Ron Mandella Community Garden archives at CSUS.

PART 2 - This Land is Your Land, This Land is My Land: Looking Back at 50 Years of the Capitol Area Plan

2011-01-31T23:13:54Z

(Read Part 1 here, or click on the green Storyline tab)

When CADA issued a Request for Proposals to private developers in 2000, the subsequent fight between RMCG advocates and CADA ended in 2004 with the RMCG’s destruction and two new gardens, one built as part of Fremont Mews and one built near Southside Park. A full account of the final protracted battle—especially regarding the lawsuits, the soil remediation issue, and the garden advocates’ organizing strategies—is still lacking, but the contested details of those years are not covered here. Instead, two of CADA’s tactics during this period are reconsidered in light of the evidence presented thus far: one, their presentation of the block’s 1997 housing designation as historically consistent and absolutely immutable, and two, their slippery use of the term “public.”

Not long after issuing the RFP, CADA disseminated a brochure entitled “Striking a Balance: CADA and the Mandella Gardens,” which stated:

“For a quarter century the State of California has owned Site 13…the land has been designated on the Capitol Area land use plan for residential use. CADA is proposing that the site be developed consistent with this long-established Plan…urban open space will be retained and housing and potential mixed use development can occur just as always intended.”

The CAP is perfectly capable of shifting buildings and uses from one site to another—and it has done so countless times. The 1997 introduction explicitly stated, “variances in these designations have continuously occurred throughout the plan implementation.” And the planned uses for block 286 have morphed almost as often as the gardens were threatened. The 1960 CAP created the true blight in the first place by razing the existing housing in order to give state workers a view of Fremont Park on their lunch break. Various configurations of parking, office buildings, ownership housing, rental housing, and retail (remember the grocery store proposal?) have been revised multiple times over the past fifty years. In Traci Sinclair’s 2000 Sacramento News & Review article about the RMCG, CADA Development Director Tom Kigar stated, “This site has always been seen as a residential site.” Besides being ironic, since the block was obviously seen as residential before the state destroyed the homes, this statement is also not true, as evidenced by five decades of assorted proposed uses.

The frequent redesignations could be seen as evidence of the CAP’s agility in meeting changing conditions, and indeed, the 1977 and 1997 CAPs boast endlessly about their flexibility. But all that shifting also shows that nothing prohibited the CAP from reclassifying any block—what never shifted was the designation of a mere half-block to permanent garden space. Why? Mark Francis’s article quoted several CADA officials as saying, “‘I do not see state authorities going for permanent gardens; it is a highly valuable piece of property’…‘the moment can still happen when the space will have to be developed’ as a result of rising real estate values.” The white-hot real estate market of the early 2000s was the tipping point for the RMCG’s demise, though at the time, CADA rarely mentioned housing demand, instead emphasizing downtown’s need for affordable housing. Of course no one is opposed to affordable housing, but it is not mutually exclusive with a half-block of affordable food.

CADA also used the term public disingenuously in different ways. In “Striking a Balance,” CADA claimed that it was “as good stewards of public land that we pursue the responsible intended use of this land.” Such a claim omits how the state forced the block to become public land in the first place. And as shown, by definition the agency would not pursue anything but housing development—it does not exist to provide holistic stewardship of all possible public land uses. Moreover, pro-development arguments at the time painted the gardeners as selfishly clinging to taxpayers’ land for the sake of a private playground. Yet CADA’s solution to the problem of a group supposedly claiming exclusive rights to public land, as a “good steward” of that public land, was to sell the site to a private developer so it could be turned into private housing.

“Striking a Balance” also claimed that CADA was requiring “nearly one-half acre of public open space be a component” of the RFP responses, and CADA has made much of the so-called replacement gardens that are now managed by the city. It is true that many people prefer the new gardens, and many more people have no opinion at all. But the Fremont Community Garden and the new Southside Community Garden do not actually replace the RMCG, nor are they truly public. Obviously, the OSCG has never been replaced (except by parking, until the CAP once again shifted its use), and the RMCG’s scores of fruit trees have never been replaced. Most significantly, the RMCG was genuinely public. The fence was unlocked from dawn until dusk seven days a week, there were ample community beds, and there were community events and celebrations regularly.

Neither the Fremont Community Garden nor the new Southside Community Garden is open to the public. Anyone may apply to rent a plot, but that is equivalent to other membership-based private buildings (e.g., fitness centers), not equivalent to public institutions (e.g., libraries). If community gardens are defined as strictly places where plants are grown, than the RMCG has been replaced, square foot for square foot. But if community gardens are defined as by-the-public-for-the-public communities, then the loss is unquantifiable. It can be rebuilt, but not replaced.

The impossibility of replacement raises a difficult question. Each version of the CAP has claimed its flexibility permitted responsiveness to changing conditions. Soon after the Fremont Mews was built, conditions did in fact change: the housing market tanked, and green chic and the recession have raised community gardens’ cachet again. But those particular community gardens on that particular block, those gardens that were on our land and were open to all of us, are gone forever. Was it worth it? It’s a question to keep in mind for all future development projects, especially in view of the CAP’s legacy for downtown.

The 1960 CAP’s authors did not care that its implementation would destroy the community on block 286, because they did not see a community worthy of continued existence—they only saw a chunk of real estate that could be captured, renamed and rebuilt to serve the state’s purposes and the city’s image. The community then challenged the state’s imposition of its will on the neighborhood by salvaging the wreckage of their “monumental seat of government” and developing it into productive green space for everybody.

The 1977 CAP positioned itself as righting the wrongs of the 1960 CAP—although it certainly was not planning to give the original residents their homes back—but both versions never questioned their legitimacy in imposing the state’s vision, however virtuous, without the community’s consent or approval. The 1977 CAP declared, “There must be a ‘Capitol Community’ espirit which grows out of the physical environment,” but refused to acknowledge the community which had organically grown out of, and in spirited response to, the state’s annihilation of the physical environment.

The 1997 CAP continued the legacy of ignoring the community-created development and presenting the state’s capricious whims—allegedly validated by selectively solicited public opinion and urban planning trends—as the only way to develop a vibrant, viable downtown. Shielded by the threadbare histories of Capitol Area redevelopment, CADA obscured the issue of public space to justify state-led development.

Ultimately, the state has always justified the CAP through its self-defined mandate. The 1977 CAP author argued “the plan couldn’t fulfill its mandate without using [block 286] for housing.” CADA repeatedly cited its legislative mandate in their quest to destroy the gardens. The CAP’s legacy is the state’s unwavering indifference to the community it purported to develop, all the while insisting that it was dutifully pursuing the public good. The people constitute the public, however, not the state. For the past fifty years, the people’s mandate has yet to be fulfilled in any version of the CAP.

If you have more information about block 286’s history since 1950, please consider sharing it in the comments or donating it to the Ron Mandella Community Garden Archives at CSUS.

Thanks to Judge Lloyd Connelly, Mark Francis, Tom Kigar, Bill Maynard, Judy Michalowski, Evan Tucker, and Barry Wasserman for their assistance with researching this article.

Special thanks to the staff and volunteers at: The Center for Sacramento History, the State Library, the State Archives, and the Sacramento Special Collections and University Archives at CSUS.

Dedicated to my mom, Nancy Fish (7/13/1950-1/18/2011).

1966 Meeting Minutes of the State Public Works Board

California State Archives: DOF - Exec. Office Records - Deputy Director (1965-1966) R157.40

Jordon Condemnation

California State Archives: State Land Deeds 62-759

Bozaich Condemnation

California State Archives: State Land Deeds 62-179

"Striking a Balance" Brochure

CADA brochure, CADA Public Relations 2000-2003, Box 4, MSS 2005/06, Ron Mandella Community Garden records, Department of Special Collections and University Archives, The Library, California State University, Sacramento.

PART 1 - This Land is Your Land, This Land is My Land: Looking Back at 50 Years of the Capitol Area Plan

2011-01-31T23:12:09Z

Fifty years ago last month, the California State Legislature adopted the first version of the Capitol Area Plan (CAP). Revised in 1977 and again in 1997, this document’s incarnations have ordered the acquisition and arrangement of the state’s central city properties in the Capitol Area, a state-defined zone encompassing a sizeable swath of downtown.

The story of Sacramento’s downtown development is convoluted, but the CAP is a key thread throughout that story. To mark its golden anniversary, this retrospective focuses on how the plan affected a specific block: the one enclosed by 14th, 15th, P and Q streets. Once the site of the Ron Mandella and Southside Community Gardens, identified as block 286 in the original plan and known as site 13 during its most notorious period, its contentious history is as misunderstood as the CAP itself.

The first CAP’s local context was the staggering number of Capitol-centric studies and proposals floated throughout the 1940s and 1950s. Like most U.S. urban cores during the 1950s, downtown Sacramento had a tax base seeping out to the suburbs and a residential population that didn’t match televised examples of desirable neighborhoods. Even though the full story of U.S. postwar development is much more complex, for the purpose of putting the CAP in national context, the most important part to know is that massive federal funding incentivized local projects claiming to solve so-called blight. As historian Rebecca Solnit put it, “Blight was the magical word of the era of urban renewal, a word whose invocation justified the destruction of housing, communities and neighborhoods in many American cities.” In the subsidy-soaked wake of the 1945 California Redevelopment Act and the 1949 Federal Housing Act, the Sacramento City Council declared a sixty-block slice of downtown blighted in 1950.

The blight designation galvanized the West End redevelopment, a city-spearheaded project that displaced of thousands of people. The Public Administration Service’s summary of the project, published the year demolition began, gave the principal reason for the human displacement and physical destruction: “the improvements wrought by downtown redevelopment will make the entrance from the West one befitting a city that has a major place among the capital cities of the nation.” (The above photo of Taylor’s Drugstore, taken on the first day of demolishment, is one example of the community’s reaction to the improvements).

The West End was only one facet of the city’s makeover, though, because the state had a stake in downtown’s image too. In 1959 the State Legislature formed a commission charged with producing a master plan for developing “future State buildings in the Capitol area of the City of Sacramento.” The Commission assembled consultants in July of 1960, and they published the California State Capitol Plan (the CAP’s initial title) on December 12, 1960.

The proposed Beaux-Arts state worker supercampus hewed to the vision of Pat Brown’s grandiose California Master Plan. In order to replace the low-income (and multi-ethnic) neighborhoods bordering Capitol Park with interlocking satellite campuses and superblocks, the CAP recommended that the State buy 42 blighted blocks south and east of the Capitol and demolish the existing buildings. The document candidly laid out the state’s intent to leverage both the federal subsidies and the political support for redevelopment, not to improve slum conditions, but to install a postcard-perfect setting for Capitol Park.

The CAP went beyond merely organizing or consolidating existing state property. Instead, it mandated total visual consistency in the Capitol’s environs: “The principal purpose of the plan is to give California a noble and monumental seat of government. This aim cannot be accomplished unless Sacramento becomes a great capital city. Therefore, the plan looks beyond the confines of the Capitol complex, to its approaches and to the surrounding areas.” Within the blighted area, the CAP demarcated and named a second area, in effect doubly damning those neighborhoods. Targeted by both city and state for architectural sanitization, “Capitol Area” residents were left with little recourse.

The CAP recommended the State Legislature act quickly: “Because almost all of the properties now are occupied by relatively low value improvements, the land should be purchased before new development greatly increases its cost. Properties not needed for building sites, parks and plazas by 1980 are to be used for parking lots on an interim basis.” Meaning, the plan’s authors fully expected some blocks to remain vacant for up to twenty years.

Despite its inclusion in the 1950 blight decree, block 286 was still intact ten years later, comprising mostly homes built between 1880 and 1920. The 1960 CAP slated them for replacement with a cafeteria and three office buildings.

Two years after the Plan’s adoption, however, a Capitol Building and Planning Commission’s report showed that land acquisition was not proceeding as planned, and called for more aggressive methods. Under the heading “Emergency Purchases,” the report outlined the barriers to state purchase and the solution:

“Since the adoption of the Capitol plan there have been several proposals by private property owners to place expensive improvements on land which is included in the plan…Several persons have experienced difficulty in selling because of a feeling of uncertainty on the part of potential buyers once they know the property is included in the Capitol plan. The recommended solution to this problem is outright acquisition by the State through a revolving fund established for this purpose. This should be accomplished at the earliest possible date.”

The minutes of the State Public Works Board’s meetings between 1964 and 1967 prove the Board authorized and deployed eminent domain in order to seize the properties on block 286 (a simple definition of eminent domain is when the government compels the sale of private property, in order to build projects ostensibly for public benefit, such as a freeway). With the threat of eminent domain looming, most property owners sold their homes and left. A few property owners remained defiant and held on to their homes until a court issued condemnation orders in 1970, giving the parcels to the state. (The homes pictured above were among the seized properties, and were on a section of the block where the original Southside Community Garden [OSCG] later overlapped with the Ron Mandella Community Garden [RMCG]. The Center for Sacramento History has photographs of nearly every home on the block’s Q street side that the RMCG occupied).

After Reagan became governor, he cut the funding for the building phase of the CAP and leased state office space from the private sector. Both the 1977 and 1997 CAPs claim the leasing program caused the geographic dispersion of state offices. This is not true, since legislators had been complaining about scattered state facilities for decades prior and the 1960 CAP failed to make significant progress on that front. But even if the leasing program had caused state building sprawl, there’s a more salient point: several parcels on block 286 were acquired, some by eminent domain, after Reagan took office in 1967. If his administration didn’t intend to fund development, why did they continue to seize and demolish homes? Neither the 1977 nor 1997 CAPs’ summaries of the 1960 CAP mention eminent domain at all. Nor do they explain why seizure and demolition of residences continued for years after the 1960 CAP’s goals were abandoned and defunded.

Roughly around the same time, a loosely affiliated mix of local residents, college students, and state workers began cultivating the freshly bulldozed block. Various sources trace the earliest garden activity as beginning anywhere from the mid-1960s to 1975. The RMCG’s archived internal documents cite 1971. The Sacramento Bee has published a few different start dates in different articles. The EPA’s Brownfields website says the garden began in the mid-1960s, and the Fremont Community Garden’s webpage says the late 1960s. Judge Lloyd Connelly, who assisted the RMCG when he was on the Sacramento City Council and again during his California Assembly tenure, told me he could not remember when the garden started. The sparse documentation of this chapter of the gardens’ story underscores the importance of rigorous local history.

At the very least, the above photo of unidentified gardeners is dated circa 1973. It seems likely the first lease was brokered between the long-since-defunct Ecology Action Center and the Department of General Services (DGS) in 1974, formalizing the “Terrafirma Garden.” (I was unable to verify whether the OSCG splintered off from Terrafirma, or if it was always separately managed). In an arrangement typical of most 1970s-era community gardens that were started in response to the failure of urban renewal, the lease with DGS was short-term, renewable, and $1 per year.

Both community gardens had been cultivated for at least four years when the 1977 CAP was published, after DGS recommended a complete review in 1973 and Jerry Brown ordered an update in 1975. The revised CAP still focused on state building development, but with the younger Brown’s small-is-beautiful spin. Former State Architect Barry Wasserman, one of the 1977 CAP’s primary authors, described the plan as a “demonstration project” that showed how to “rebuild a part of the city that needed rebuilding in a compassionate, holistic way.”

Despite several paragraphs rhapsodizing about open space, including the possibility that “sites may offer community gardening with plots available to residents and members of the community who want to grow food and flowers,” the 1977 map divvied block 286 into three-quarters housing and one-quarter parking. Though Brown later founded a nonprofit that touted community gardening, during the time he was overhauling his father’s CAP (and living one block away from the gardens), he did not take the opportunity to permanently dedicate the block to community gardening.

I asked Wasserman how the State Architect’s office perceived the Terrafirma Garden, since it preceded the CAP’s revision. He described the garden as a “purely temporary example of what could be” (he also described the planned office buildings as “demonstration buildings,” and noted a separate “demonstration garden” was built nearby, which closed after a few years). When I asked why block 286 was designated as housing, pointing out that the plan did call for community gardens, he replied that housing “was a way to use the land in a way that most supported the principles of the plan.”

Yet the housing designation can only be seen as a subjective decision, since using the block as garden space surely supported the plan’s principles of conservation, diversity and open space (the design of the latter, the plan admonished, “should always be done with people in mind”). Furthermore, disregarding the community-developed site use in favor of state-planned parking and housing—even as a genuinely well-intentioned attempt to restore the block to its pre-1960 CAP use—violated the plan’s principle of community development.
The redesignation notwithstanding, the gardens were still thriving in 1978 when two events transferred the lease to new parties. Ron Mandella, a state worker and founding garden member (pictured here in the Center for Sacramento History image archives), was killed while defending a neighbor from an attacker, and became the namesake for the newly-formed non-profit that took over the garden’s management from the Ecology Action Center.

1978 was also the year the State Legislature created the city-state joint powers agency Capitol Area Development Authority (CADA), to take over implementation of the CAP’s residential projects from DGS. DGS was, by all accounts, as inept at property management as it was at urban design (as Judge Connelly put it, “General Services just dumps all over the city of Sacramento with their architectural standards and projects”). Wasserman summed up the new agency’s dual purpose as “designed to get the state out of the housing business and form a partnership between the state and the city to make the city whole again.” CADA’s primary role has always been to realize the CAP’s housing and retail goals.

From its inception, CADA sought to build over the gardens. When UC Davis professor Mark Francis published his 1987 “Landscape Journal” article comparing how community members and CADA officials perceived the gardens and Fremont Park, many stabs at development had already been made: “The permanency of the two gardens has remained a critical issue for the gardeners…the gardens were referred to by one official as a ‘loose bar of soap,’ since control of the site has been an ongoing issue for the development authority.” CADA succeeded in paving over the OSCG in 1987 for a parking lot, but community organizing efforts thwarted the agency’s continual attempts throughout the 1980s and 1990s to destroy the RMCG. (These attempts were not always for the sake of housing either—Prof. Francis’s article stated, “According to CADA, the site is not a prime location for a new state office building within the next five years, but could be developed for parking or other office-related uses”).

By the time the CAP was revised again in 1997, the RMCG was the oldest and largest local community garden. It had grown from being a community-developed institution to a community in its own right. In addition to long-term partnerships with dozens of community groups, the garden benefited the whole city as downtown’s second-highest oxygen producer. But even while meeting many of the 1997 CAP’s objectives, block 286 was classified as “vacant and underutilized,” and the RMCG was indirectly referred to as an “interim use.” The 1997 CAP slated the block for low density housing (which the plan defined as “less than 35 units per net acre”) and described the site as an “opportunity…to facilitate ownership housing.” The Fremont Mews apartment complex has 119 units on 2.2 acres, and none of them have ever been for sale.

Continued in Part 2.

Sidebar

2011-01-31T20:07:52Z

With his security detail watching the surroundings, Mayor Kevin Johnson answers a question about an earlier incident that involved a reported threat to his safety. To accommodate the media, the Mayor took a momentary break in a day-long series of meetings with the mayors of eight other California cities and several State officials, including Governor Jerry Brown. The "Big 10 Mayors" were in Sacramento in an attempt to keep redevelopment funds from being completely absorbed back into the State budget.

Mayors, governor to negotiate redevelopment

2011-01-27T06:27:37Z

Nine mayors representing California’s largest cities met with Gov. Jerry Brown in a closed session Wednesday to urge him not to eliminate redevelopment agency funding.

Speaking to reporters after the meeting on the West Steps of the Capitol, mayors from Sacramento, Los Angeles, San Francisco, Anaheim, Oakland, San Jose, Santa Ana, Fresno and San Diego explained their reasons for wanting to keep redevelopment agency dollars in the city budgets.

“Every one of us understand the magnitude of the budget challenges we face in the state,” said Los Angeles Mayor Antonio Villaraigosa.

He added that all mayors understand the need to shoulder their share of the budget cuts necessitated by the recession, but argued that eliminating redevelopment agencies is unfair, saying they create jobs and work as an investment to stimulate economic development.

Brown briefly addressed reporters outside his office right after the meeting.

“We’re working. We’re not in agreement yet,” he said. “We’re going to meet further. We’re going to keep talking.”

Brown has advocated for eliminating city redevelopment agencies, which are responsible for developing infill projects, such as recent work on K Street in Sacramento, in addition to other responsibilities.

Sacramento Mayor Kevin Johnson said the mayors told Brown in the meeting that “it’s a terrible idea to abolish redevelopment in cities up and down the state.”

He said Brown was open to the idea of working with city governments, adding that the governor understands the value of redevelopment.

“He said we will have to bring solutions, and that’s incumbent on us,” Johnson said.

He then mentioned successful redevelopment projects just blocks from the Capitol, including the Sheraton Hotel, in which he said an $8 million investment of redevelopment funds was able to leverage $100 million.

“(Brown) is a tenant here in a project that is only here because of redevelopment dollars,” Johnson said. “We reminded him of it, he was in good spirit ... he said, ‘You guys can be part of a working group going forward.’ ”

Johnson emphasized that California’s mayors and city governments will stand firm on the issue.

“The problem with eliminating redevelopment ... is that all of us have historical high unemployment rates,” Villaraigosa said. “This is the wrong time to move away from job creation.”

The nine mayors who spoke Wednesday on the West Steps of the Capitol agreed that spending redevelopment dollars – which come from property taxes – brings further economic growth and translates to more revenue.

San Diego Mayor Jerry Sanders said redevelopment in downtown San Diego has resulted in each dollar spent bringing back $8.50 to the city.

The argument for eliminating redevelopment and enterprise zone funding is that it will allow more state funds to be spent in areas such as public safety and education.

With that, several public safety advocacy organizations have come out in support of Brown.

California Professional Firefighters, an advocacy group for approximately 30,000 firefighters, argued that cities overstate the impact of redevelopment agencies in job creation.

According to a press release from the CPF, the number of documented jobs created across the state in the past decade was approximately 241,000.

The release also cites a Jan. 18 report by the California Legislative Analyst that contends there is “no reliable evidence that redevelopment agencies improve overall economic development in California.”

The mayors did not answer questions about the report during the press conference.

The next step in the process, according to the mayors, will be to sit down with Brown and negotiate a workable solution.

“It was a good meeting, a good start, an important opportunity for us to be at the table to engage in these discussions,” Villaraigosa said.

Brandon Darnell is a staff reporter for The Sacramento Press.

City protests Brown's redevelopment plan

2011-01-22T01:58:59Z

Gov. Jerry Brown’s proposal to slash redevelopment agencies spurred a protest and press conference at the Convention Center Friday, bringing together Sacramento leaders and about 100 officials from cities throughout the state.

Chris McKenzie, executive director of the League of California Cities, said that cities may consider suing the state if it disbands redevelopment agencies.

Brown’s office contends that local services, such as schools and public safety, could receive the funding currently used by redevelopment agencies if the agencies shut down. But city leaders in Sacramento and throughout the state argue that ending redevelopment agencies would seriously harm jobs and local development projects.

McKenzie said the governor’s proposal was ”seriously flawed” from a legal perspective.

“We would hate to have to take the state to court in order to uphold the will of the voters,” he said. “But we will do it, if we are forced to do it.”

Sacramento City Councilwoman Angelique Ashby presented figures on how Sacramento city and county would be affected if the two local governments no longer had redevelopment funds.

The city and county would lose 19,000 jobs, and $170 million in redevelopment project funds, according to Ashby and the Sacramento Housing and Redevelopment Agency.

A loss of $1.3 billion in economic activity would also be incurred, Ashby said. Affordable housing projects would lose millions of dollars, she said, and the city and county would lose $129 million in state funds that were leveraged with redevelopment funds.

Ashby pointed out that the Boys and Girls Club in Alkali Flat and the McClellan Business Park in Sacramento County are redevelopment projects.

Sacramento City Councilman Steve Cohn, who also appeared at the press conference, said, “I understand what a tough job the governor and the Legislature have in balancing the state budget, but it is bad policy to cut the very programs that generate revenues for local and state government.”

In an effort to short circuit a possible state decision to cut redevelopment agencies, many California cities have acted to safeguard their redevelopment funds over the past several days, according to multiple media outlets.

The city of Sacramento has not taken any action to bypass possible state action on redevelopment, but Mayor Kevin Johnson said at his weekly press conference on Tuesday that the city should consider doing so.

Brown’s administration continues to voice its support of the proposal to throw out redevelopment agencies. It is time “for everyone to act as Californians first to address the state budget deficit,” said H.D. Palmer, a spokesman for the California Department of Finance.

He asserted that the governor’s proposal is “legally sound.”

In the first year of Brown’s proposal, $1.7 billion would help repair the state’s general fund, and the remaining $200 million would go toward local governments, according to Palmer and the text of Brown’s proposal.

In the second year of the plan, $1.9 billion would go to local entities, Palmer said.

Meanwhile, local players in Sacramento, such as the Downtown Sacramento Partnership, are worried that the proposal could stymie development close to home.

Michael Ault, the partnership’s executive director, said at the press conference that redevelopment funding has benefited Central City projects, such as the IMAX Theatre and the Citizen Hotel.

“We know first-hand the impacts that redevelopment has played in the progress in the Central City,” Ault said.

Mark Hedlund, a spokesman for California Senate President Darrell Steinberg, told The Sacramento Press that Steinberg doesn’t want to act on the governor’s proposal immediately, but the idea of stopping redevelopment funding is not off the table.

“He’s not going to pursue an immediate freeze on redevelopment activities,” Hedlund said.

Kathleen Haley is a staff reporter for The Sacramento Press.

City leaders back redevelopment agency

2011-01-19T06:28:47Z

Mayor Kevin Johnson and Sacramento City Council members on Tuesday discussed their opposition to Gov. Jerry Brown’s proposal to de-fund local redevelopment agencies.

Johnson said at his weekly press conference on Tuesday morning that Brown’s proposal could interfere with $108 million in local redevelopment funds that have not yet been spent on projects. He said he wanted to examine the option of fast-tracking redevelopment projects in light of Brown’s proposal.

“At the end of the day, we’re going to fight like crazy to try to prevent redevelopment agencies from being cut,” Johnson said. “We’ve got to salvage and preserve the dollars that we do have by almost any means necessary.”

Council members and Johnson discussed the issue at Tuesday night’s City Council meeting.

“I think we should do all that we can from a City Council perspective to protect the redevelopment dollars,” Ashby said.

The council members discussed the issue after hearing a presentation on state issues from the city’s lobbyist, David Jones.

“We don’t have any details on the (redevelopment) proposal,” Jones said outside the City Council meeting. “But we know ... that to entirely eliminate redevelopment would be devastating to this community and others.”

Meanwhile, Brown spokeswoman Elizabeth Ashford said redevelopment funds could be used for other purposes. “We hope that the redevelopment agencies rushing through billions in taxpayer dollars are going to use these funds to create jobs now,” according to an e-mailed statement from Ashford. “These scarce dollars, which could be used to protect police, firefighters and teachers, should not be banked away for special projects.”

Kathleen Haley is a staff reporter for The Sacramento Press.

K Street's 700 block to get entertainment, housing

2011-01-06T05:44:56Z

A redevelopment project being considered by the city could help cement K Street Mall's future as an entertainment district.

The proposal that went before the city's Preservation Commission Wednesday night would build a live music club with a roof terrace in the historic Banking Hall building at 700 K St., anchoring a key block across from Westfield Downtown Plaza and St. Rose of Lima Park.

The plan by D & S Development, Inc., and CFY Development Inc. – led by David Miry and his son, Bay Miry, and Cyrus Youssefi and his son, Ali Youssefi – also proposes four restaurants with bars for the south side of the block, along with 153 new apartments and a nearly 29,000-square-foot, two-level parking garage. The project would add new housing stock and full-time residents to the troubled mall, which is nearly deserted nights and weekends.

"Our intention with this development is to celebrate the buildings that have for years held an exciting place in the history of downtown Sacramento," Ali Youssefi told the commission.

Youssefi's and Bay Miry's fathers taught them to respect old structures and their character. The two young developers and the project's architect, Bob Kuchman, have spent nearly every day of the last six months discovering the charms of the block's historic buildings, Miry said.

"We have so many historic buildings around Sacramento that really need love," he said.

Most of the housing would be contained in a five-story apartment building with a 91-space parking garage on the bottom. The building would occupy space created by demolishing the back half of some existing 160-foot-deep retail spaces.

That would mean the 19th-Century alley façades would be eliminated, although developers discussed reusing the bricks to possibly reconstruct some of the façade on the ground-level or in a rooftop garden courtyard. Other apartments would be built over ground-floor restaurant and retail space.

The plan calls for 63,780 square feet of retail including the restaurants and bars – nearly double what was originally proposed. Developers would create extra space by incorporating basements for retail use. There would be sidewalk kiosks, operated by vendors, on the block and housing would include rooftop gardens.

City staff said they support the way the project would restore historic brick and wood storefronts and incorporate most of the existing buildings facing K Street. They also like the way the area would be invigorated by the music club in an adaptive reuse of the corner landmark building that once held a Men's Wearhouse.

"They've shown sensitivity to the historic nature and pedestrian scale of the area," said Beth Tincher, a senior project manager with the city's Economic Development Department. "They have created a great vision for the 700 block."

The club would be big enough to hold 500 people. Its roof terrace would be 3,225 square feet. Developers plan to use some space from the neighboring Joe Sun building at 704 K St. for the club.

The developers would preserve the landmark Morelia building at 716 K St. for use as a bakery or coffee shop.

The historic Galleria building at 712 K St. could contain a salon and the former Tower Records at 726 K St. – also a potential historic landmark – would get a restored mural and be used for retail. The old Texas Mexican restaurant at 1114 Eighth St. will be demolished for the project, Bay Miry said.

On Wednesday night, city staff asked Preservation Commission members to review the proposal and discuss concerns that would need to be considered during project review in the next few months.

Several commissioners expressed concern over demolition of alley façades, the loss of hollow sidewalks and construction of a flat, industrial-looking alley wall on the apartment building.

Commissioner Fred Turner encouraged developers to do a survey of the historic resources and see what's regulated, including interiors, and to use information from a survey the city funded last year.

Developers will work with city staff to decide how much of the alley façade will be taken apart, how much will be reconstructed and where, Kuchman said.

The city requested proposals to develop the blighted 700 and 800 blocks of K Street in early 2010. The Sacramento City Council chose two teams – one led by D & S Development, Inc., and CFY Development, Inc., and the other by Sacramento developer David Taylor – to revitalize the blocks.

D&S Development, Inc., and CFY Development Inc. originally turned in a proposal to build a four-story building with 136 units of "affordable" alley-front housing over podium parking. They also wanted to create 37,480 square feet of retail space by reducing the size of 160-foot-deep retail spaces and devoting the 66-feet-deep leftover space to housing.

The current project application was submitted to the city Dec. 10. Developers are working through the entitlement process and creating a financing plan. The city and its Redevelopment Agency must prepare an environmental review of the plan and evaluate the project's feasibility. Funds must still be secured for the project, Tincher said.

The D&S team was requesting $16 million in RDA funds and would invest $1.5 million in cash equity and $18 million in conventional debt to develop the 700 block, Bay Miry said shortly before the team was chosen last July. At that time, he estimated their project could start six months after being chosen, once entitlements and permits were obtained.

City staff expect to bring the project before the commission and the City Council for final action in May and June.

Developers hope to start construction near the end of the year, Cyrus Youssefi said.

Suzanne Hurt is a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.

SHRA EXECUTIVE DIRECTOR HONORED AS NCBW BUSINESS WOMAN OF THE YEAR

2010-11-25T00:16:58Z

La Shelle Dozier, Executive Director of the Sacramento Housing and Redevelopment Agency has been named Business Woman of the Year by the Sacramento chapter of the National Coalition of 100 Black Women.

“I am truly humbled to be chosen for this wonderful award,” said Ms. Dozier. “I feel privileged to be in a position that allows me to make a positive difference for people who are most in need of help to better their lives. I could not have achieved this honor without the support of my wonderful family and the dedication of those with whom I am fortunate to work with SHRA.”

Ms. Dozier oversees redevelopment and community development strategies in the City and County of Sacramento, and the provision of housing for more than 50,000 low income residents. She administers a $269 million budget and a workforce of 291 employees.

According to the NCBW, the awards luncheon has been the philanthropic arm of the Sacramento Chapter since the event debuted in 2001. The event supports educational programs, public service campaigns and scholarships.

More than 100 nominees were considered for Women of Excellence awards in two special categories: Business/Business Woman of the Year and a Lifetime Achievement Award. The luncheon brings together business and community leaders who gather to celebrate the accomplishments of their colleagues and was attended by nearly 600 participants.

Tapestri Square resumes, Crystal Creamery stalled

2010-10-21T00:36:15Z

In a sign of uncertain economic times, a developer building in Sacramento is moving forward slowly with one housing project while another remains stalled.

Kevin Noell of San Diego-based Metro Nova Development has jump-started construction of four more brownstone-style homes at Tapestri Square, T and 20th streets, by offering reduced prices and more amenities.

But work remains on-hold to develop his other Sacramento project – the old Crystal Cream & Butter Co. site, located downtown at 1013 D St., into a mixed-use redevelopment dubbed the Creamery.

Tapestri Square plans call for 58 energy-efficient, single-family detached homes built to resemble urban row houses on an entire block. Fourteen were built between 2008 and May 2009. Work was stopped from lack of sales. Two remain vacant, and two others are used as models.

Construction began this week on a street-facing unit. Two months ago, work resumed on the first home being built on the site's centerpiece courtyard after two sets of buyers signed contracts. Work will begin on another two in three or four weeks, Noell said.

"In today's economy, no one's staffed enough to start five homes at one time," he said. "We literally start them sequentially, one at a time."

The homes have large private patios, garages and open floor plans. Now, 1,320-square-foot models with two bedrooms and two bathrooms are listed at $385,000, rather than the $450,000 original price. The 2,125-square-foot models with three bedrooms and 2.5 bathrooms have dropped from $700,000 to $595,000. The 2,700-square-foot homes with four bedrooms and 3.5 bathrooms have been reduced from $845,000 to $795,000, Noell said.

But Noell has no current plans to begin building at the 8.25-acre former Crystal Cream dairy, at least two city blocks between D Street and railroad tracks, and 10th and 11th streets. Construction had been expected to start in fall 2008.

There, the plan is to build 217 townhomes or loft-style "workforce housing" units, 90,000 square feet of office space and possibly 20,000 square feet of neighborhood-serving retail. The retail space would most likely contain a sandwich shop and coffee vendor. A green grocery selling fresh produce is another retailer Noell said he'd like to set up there.

Noell said he'll wait until the oversupply of vacant new and existing homes in the suburbs has been reduced. Until then he can't get the financing and too much uncertainty still exists, he said.

The earliest he could imagine construction starting there would be June 2011. The first homes would be available a year from now, in fall 2011. But that's unlikely, he said.

"I keep thinking we're not that far away," he said. "I couldn't tell you today when that will be."

Tex Mex opens, Texas Mexican closes

2010-10-08T03:13:50Z

Tex Mex Bar and Grill has opened in Midtown, while a continued loss of business led the long-time original to close downtown.

Owner Mike Keolanui said he's focusing on his newest restaurant, Tex Mex Bar and Grill, and opening two more in Davis and Roseville after "furlough Fridays" and the recession doomed Texas Mexican Restaurant.

He’d initially planned to open Tex Mex as a sophisticated sister restaurant to the establishment that operated just off K Street Mall for 19 years. But Keolanui closed Texas Mexican quietly a month ago, without even posting a note on the door, after losing too much money.

"It was really sad," he said. "The furloughs were killing me. I just couldn't survive."

He’d taken over ownership of the restaurant at 1114 Eighth St. from his now-ex-wife, Griselda Barajas, and her parents Rosa and Victor Barajas in 2007 just as the recession began. Keolanui got the place reopened after it closed during an eminent domain battle between the property owner, Mohammed "Moe" Mohanna, and the city.

Nearly 75 percent of the steadfast downtown restaurant’s clientele were state workers. Despite many empty storefronts on nearby K Street, the restaurant did alright until furloughs began, he said.

The building will be redeveloped as part of a project to breathe new life into the 700 block of K Street. But construction won't begin until late 2011 or early 2012, said Maurice Chaney, spokesman for the city's Economic Development Department.

The building’s redevelopment had no impact on the closing, but Keolanui said he just couldn't hang on until it happens.

Keolanui suggested state furlough days be moved to Mondays to help central city businesses that are continuing to lose revenue from the absence of state workers. Mondays are already slow for many businesses, so furloughs on that day wouldn't hurt so much, he said.

Following more than $350,000 in renovations and some delays, Tex Mex had a soft opening last Friday at 2326 J St. The restaurant with six flat-screen TVs and a custom, recycled-glass bar that glows is now serving Texas-style cuisine with a Latin twist.

The menu includes a skirt steak house specialty, fried oyster nachos and Mama Rosa's Chicken Soup made with roast chicken, rice and avocado, as well as tacos, burritos, salads and enchiladas.

The bar was made from recycled brown beer bottles and blue Skyy Vodka bottles. The bar glows at night and heats up in the winter. Nearly $12,000 worth of lights change color behind the bar back. A tequila tower featuring 60 different brands of tequila will be installed soon.

Additional work on bathrooms will start next week. The exterior, including a sidewalk patio, will be redone.

“I had to get open. It’s been too damn long,” he said.

Hours now are 11 a.m. - 11 p.m. daily. In two weeks, hours expand to 6 a.m. - midnight and the restaurant will serve breakfast after a popular breakfast spot, Cornerstone Restaurant, closed down next door. A grand opening will be held in about a month.

Keolanui will expand the Tex Mex Bar and Grill "mini-chain" to Davis and Roseville. He's still deciding between two buildings in Davis but expects to sign a lease next week. He's also negotiating on a space in Roseville. He expects the Davis restaurant to be open by February and the Roseville restaurant next summer.

He and Griselda Barajas said they remain close friends and support each other’s careers. She was just a teen when her parents opened their first restaurant, Atlantes Mexican Restaurant, on 12th Street. They ran several others in Sacramento before Texas Mexican. She now owns and operates Griselda's Catering and Tex Mex @ the Capitol.

While sad that Texas Mexican could no longer make it, Barajas said she's happy he's opened Tex Mex. He's continuing to serve many of her mother's recipes and employ many of their long-time employees, she said.

"He is so passionate about it," she said. "He's someone I know that can continue with the family recipes and the traditions."

Food photo provided by Tex Mex Bar and Grill. Other photos by Suzanne Hurt, a staff reporter covering business and development at The Sacramento Press.

DWB from Downtown: A new community

2010-07-14T08:47:51Z

Right on.

Tuesday night's vote for the more balanced proposal for K Street redevelopment was very good news, and not just for those of us who supported the winning team. Our city moved decisively forward tonight, and congratulations are due to all who participated in the process, from city staff to city council, from members of the community who spoke at Tuesday's meeting to those who have participated in the many Conversations on the subject on The Sacramento Press.

The Conversations here about the K Street process have been wonderfully civil, constructive, and deeply informative. The community cared about this issue, and engaged with each other on it. There was a sense that, no matter which development team you backed, the goal was mutual: To fix Sactown's problem promenade.

The synergy of community, media and government worked today in a way I don't think I've ever seen here. Watching it has been encouraging.

And now, that synergistic engagement must continue for this project to work. People must be held accountable, from the developers and contractors to the city's many inspectors and bureaucrats. Let's do this well. This project must be completed the way it was proposed - or even better. Bay Miry, Cyrus Youssefi, Joe Zeiden and David Taylor have won, but now the onus is on them to deliver. They seem likely to do so, which is why they were chosen. But as they know better than we, they have a lot of work ahead. Expectations are rising. So is the need for success.

Let's watch them do this together, through The Sacramento Press. Let's continue to tell this story in all its details together, each of us contributing what he or she has learned. And let's show those who say we must depend solely on professional journalists that the hardworking community contributors and pro journalists who participate here can tell this story not just as well as the pros, but better. Together.

I believe that we already have. Many contributors to The Sacramento Press played a crucial part in affecting this vote. The readers and conversationalists on SacPress had the most complete, most in-depth coverage of more aspects of this debate than any other news source in town. And Tuesday night, it mattered.

I'd like to give special appreciation to SP staff writer Suzanne Hurt for her finely-detailed stories on the business and development aspects and to her colleague Kathleen Haley for the scrutiny she gives city hall and the political process every day.

And then there is community contributor William Burg. Special thanks to this trained historian with a love of Sacramento, who quickly grasped the spirit and possibility of what Sacramento Press can be, and used it particularly well to help lead the conversation on this complex topic.

And he was not alone. It was a group effort.

As we build our community with rebar and stucco and steel and glass and bricks, we are giving ourselves more ways to enjoy the great life that is singularly available in urban Sacramento. But we are also building a community online, at The Sacramento Press, in which we can talk to each other, share information, disagree occasionally, and move forward toward greater understanding - in mutual respect.

Building a community online, as well as on the streets, we reinforce both. Onward!

Council to choose K Street developers

2010-07-13T02:13:00Z

The Sacramento City Council is set to vote Tuesday night on the developers who will tackle the blighted K Street Mall.

The question before the council is whether to support the recommendation of Mayor Kevin Johnson's ad hoc committee to go with the biggest proposal, which has a "Boqueria" public market as its centerpiece, or to back two other proposals to redevelop the troubled 700 and 800 blocks of K Street on $40 million in city-owned land.

Only one selection committee had been identified in the city's request for qualifications. Last month, that committee recommended the 700 block be redeveloped by D & S Development and CFY Development, with their Promenade on K project estimated at $35.5 million. The committee also recommended the 800 block be redeveloped for an estimated $46 million by Sacramento developer David Taylor and Z Gallerie owner Joe Zeiden. Downtown Sacramento Partnership endorsed those selections.

Johnson's committee, which included City Council members Steve Cohn, Rob Fong and Ray Tretheway, on Thursday announced its preference for the $210 million project by the Sacramento Alliance Team, led by Rubicon Partners, St. Anton Partners and Preferred Capital Advisors. The ad hoc committee was formed to study the proposals in more depth and bring the council members more detail than what they would get at a council meeting, Cohn said.

"The ad hoc commitee of the council went with the more exciting proposal that seemed to have more promise to turn around not just that portion of K Street, but also to rejuvenate downtown with a unique concept," Cohn said. "I think the screening committee was going for the safety of what they thought could get done."

The council will have a challenge making a selection and providing direction to staff and developers Tuesday night, he said.

"It's going to be incumbent on the council to give guidance on tight time frames, and if this thing's not financeable, that we don't let too much time go by before figuring out if it can't be done," he said. "If it can't, then we'll need to fall back to one of the other two that were recommended."

The City Council was initially scheduled to make its selection in May.

The nine-member council must choose between three out of four teams that submitted proposals in March. At least two of those teams have been intensely lobbying the City Council, city staff and the community in the days and weeks prior to the vote.

The D & S and CFY development team — led by D & S partners David Miry and Steve Lebastchi, Miry's son Bay, CFY owner Cyrus Youssefi and his son Ali Youssefi — has sent more than 500 e-mailed petition signatures to the City Council.

On Saturday, they held an online petition drive at Shady Lady, at 1409 R St. So many signatures flooded City Council e-mail boxes that they closed down their project’s website Monday at the city’s request, Miry said.

Representatives from the Sacramento Old City Association, the Environmental Council of Sacramento and local construction trade unions have thrown their support behind the project and are expected at the council meeting. At least eight local business owners with ideas for the 700 block's spaces have voiced support as well, he said.

The D&S team is requesting $16 million in existing city Redevelopment Assistance funds and would invest $1.5 million in cash equity and $18 million in conventional debt to develop the 700 block, Miry said.

That team was "surprised" when the mayor appointed an ad hoc committee to take a second look at the proposals, said D & S official Bay Miry.

"It certainly caught us off guard," he said. "We thought it was a slam dunk once we received the recommendation of the selection committee."

The Mayor's office did not return a phone call seeking comment.

The Rubicon team — the same developers behind the creation of the Citizen Hotel — on Monday provided last-minute information to council members and city staff on numbers contained in the city staff report posted Thursday. Two weeks ago, they held a reception to present the community with more details about their proposal. Representatives from organizations including the California State Board of Food and Agriculture and the California Travel and Tourism Commission have thrown their support behind the team, and individuals have e-mailed through the team's website.

That team's proposal would require $99 million in public subsidies, according to the city staff report, which also identified an $80 million funding gap.

However, the team said the funding gap is $50 million, but sources to fill that gap have been identified as coming from private investment by the food and agriculture industry, state funds and federal funds, and a $13.5 million parking bond. No money would come from the city's general fund, said Project Director J-E Paino of Rubicon Partners.

"The size of the gap is smaller than it appears," he said. "Funding has not been obtained, but funding sources have been identified. We know where we're going to go to get them. But we can't go get them until we get control of the land."

The team would invest more than $122 million in private debt and equity into the project, which calls for $19.6 million in RDA funds. Paino said they expect another $19.5 million to come from project-generated tax increment funds, permits and fees, according to information provided to the city.

The team also proposed a $25 million parking bond, according to the city staff report, which said the city can't undertake that debt. Paino said Monday the team withdrew a request for a $12 million parking bond for the 700 block.

Taylor could not be reached for comment.

Supporters of the development teams are expected to turn out at Tuesday night's council meeting.

SOCA supports the selection committee's recommendations partly because the teams would preserve the historic buildings on the 700 and 800 blocks, including Bel-Vue Apartments, rather than just their facades, said SOCA Board Member Kay Knepprath, past president.

"Both of those proposals are realistic and can happen soon," she said. "We are concerned that the city choose developers who have adequate financing and can make it happen."

The council's dilemma really stems from the existence of such strong proposals, Cohn said.

"What's reflected that you have three out of the four teams being recommended is that we really had excellent proposals," Cohn said. "It's a good problem to have in that it's a tough choice."

Suzanne Hurt is a staff reporter covering business and development for The Sacramento Press.

"Promenade on K" plan at Shady Lady

2010-07-09T14:56:29Z

On Saturday, July 10, D&S Development will host an event with information about the "Promenade on K," their proposed project for700 block of K Street. The event will take place at the Shady Lady, 1409 R Street, from 6 PM-8 PM. Complimentary food samplings from local retailers will be provided. The Shady Lady is one of several local businesses interested in joining the K Street project. They propose a mid-sized music venue to fill a much-needed niche in the local live entertainment scene, along with multiple restaurants and bars within the venue. This, along with other local businesses, will provide the retail component, while D&S provides mixed-income housing above and behind the retail stores.

According to Bay Miry of D&S, "The focus of our proposal is for it to be a balance between boldnessand doability. The proposal consists of 136 workforce apartments above unique predominantly locally operated retail. All while historically preserving the existing buildings. Think our 14&R project but albeit on a grander scale. Evidence of equity and financing has been given to the City. The amount of subsidy our proposal requests per unit is significantly lower when compared apples to apples with the other proposals. All ground floor retail tenants have already been identified!"

On Tuesday July 13, the Sacramento City Council will assign an Exclusive Right to Negotiate for the K Street project. The city's selection committee chose the D&S project and David Taylor's 700/800K, LLC, to share the project. An ad-hoc committee of City Council members chose the Rubicon Partners project. The City Council meeting will select a proposal for further work by city staff, an important step towards revitalizing K Street.

D&S has also set up a website where the public can show their support for the project to the city council, mayor, and city manager: www.700block.com

Saturday July 10, 6-8 PM

The Shady Lady, 1409 K Street

Arena plan moving forward

2010-07-09T02:56:13Z

A few more details have emerged as part of an arena and land-swap plan currently being considered by city and state fair officials.

A plan laid out by developers Gerry Kamilos and David Taylor calls for mixed-use private development of city-owned railyards land and the current state fairgrounds site. That development would help finance a $400 million sports and entertainment complex downtown and new fairgrounds in North Natomas, according to documents the city released late last week.

The "Sacramento Convergence" development team, which includes Macquarie Capital, would invest $600 to $700 million in private equity and debt in the project. The developers also propose other funding mechanisms, Kamilos said Thursday.

"The city and the state are not in a position to invest anything into these properties," he said. "The idea is to have the private sector come in and provide the capital to increase the value of those properties that both the city and state would benefit from."

Financing is proposed to come from land sales, parking fees, lease revenue, special districts to collect sales and property taxes from the properties, and bond proceeds generated by setting up tax increment districts, refinance districts and bond districts, Kamilos said.

"All the elements have been done before," he said. "It's just been in different configurations."

The team proposes to build a new Sacramento Kings arena that would anchor a railyards complex containing 500,000 to 600,000 square feet of retail, office and hotel space; 100 to 150 residential units; at least one parking garage with 2,200 to 3,000 spaces; and possibly an urban entertainment facility designed by former Disney executives.

As proposed, the 19,000-seat arena would measure roughly 375 feet by 475 feet and be 140 feet high, encompassing 750,000 to 800,000 square feet. The Kings or another professional basketball team would be the lead tenant. The plan is being worked out with the National Basketball Association and the Kings' owners, the Maloof family, who would sign a 30-year lease for the new arena.

"The updated numbers reflect quite a bit of analysis that's been done to date," Kamilos said. "But we still have quite a bit of technical work to do to solidify all the numbers."

The building would be equipped to host concerts, circuses and other events, including professional hockey games.

The Kamilos group is asking the city to donate 9.5 acres of railyards land for the project. The arena and parking structure, which would be shared with a future regional transportation center, would be built on city land in a public-private partnership with the city. But the remainder of the development at the site would be private.

The land is located between the Sacramento Valley Station and Thomas Enterprises' Railyards development. The historic train depot would be linked to the arena with an outdoor plaza serving as a gateway to the arena.

The plan also calls for the sale of 350-acre Cal Expo and swapping that site for one at the Arco Arena site, along with private, mixed-use development of the current state fairgrounds, which would need the approval of the California Exposition and State Fair board.

The developers are proposing to sell or auction the Cal Expo land. That land would be expected to be developed concurrently with an arena and new fairgrounds. However, the state fair would be held at the current site until new facilities were operational, developers said.

One possible concept for the Cal Expo site's development would include 4,900 residential units on 260 acres, a mixed-use retail and residential area containing 210 units and 340,000 square feet of retail on 35 acres. The concept includes 1 million square feet of office space in buildings averaging three stories on another 35 acres, and 20 acres for recreation and elementary school needs, according to the plan.

Money generated by land sales would be used to help pay off debt.

State legislation would be needed to approve the sale of the state fairgrounds for private development. Draft legislation is being created by a team including representatives from the developers, NBA, Maloofs, city, state and Cal Expo and would be presented to the state legislature before Aug. 31, Kamilos said.

The project would benefit the city and state by using private investment for the costly entitlement process that would enable the two sites to be developed, Kamilos said.

"By partnering with the private sector, the public sector entities will actually gain more than if they disposed of the properties as they are in today's market,” he said.

The information provided in the developer's official proposal and the complex plan has just enough detail to help the city and developers make sure the concept works and see if the primary stakeholders, the NBA and Cal Expo officials, are also on board, said Betty Masuoka, a former assistant city manager temporarily managing the project for the city.

A project parameters agreement is now being created for the next phase of work, where the developers and city staff nail down revenue sources, site plans and environmental and technical concerns.

"I think it's important people understand we're moving forward and we're making progress," she said. "It's not being put on a back burner."

Suzanne Hurt is a staff reporter covering business and development for The Sacramento Press.

Mayor's team chooses K Street developers

2010-07-08T22:32:11Z

An ad hoc committee led by Sacramento Mayor Kevin Johnson is backing the developers of the Citizen Hotel to redevelop the 700 and 800 blocks of K Street Mall with a huge public market as the centerpiece.

The committee, made up of four City Council members - Steve Cohn, Rob Fong, Ray Tretheway and Johnson - is recommending that the Sacramento Alliance Team led by Rubicon Partners, St. Anton Partners and Preferred Capital Advisors be given the project to revamp city-owned property on those blocks, according to a city staff report released Thursday afternoon.

The City Council is set to vote on the matter Tuesday.

Last month, a special committee set up by the city recommended two other teams to handle the redevelopment. The Downtown Sacramento Partnership endorsed those selections. Since then, intense lobbying and social media network tools have been used by teams vying for the work.

The project being recommended by the ad hoc committee would center around a 35,000-square-foot public market, tentatively called the California Boqueria, that would showcase the state's food and wine at the corner of Eighth and K streets. The team also proposed an adjacent office building for agricultural tenants such as produce associations and statewide groups. They’re proposing 213 artist live/work units and 60,000 square feet of retail on the 700 block.

The team includes Kipp Blewett and Pete Thompson of Rubicon, Grange Executive Chef Michael Tuohy, Steve Eggert and Pete Geremia of St. Anton Partners, and Dan Corfee and Craig Zarro of Preferred Capital Advisors.

Four teams presented proposals in February. A committee set up by the city had recommended D & S Development, Inc., and CFY Development, Inc., to redevelop the 700 block and a group led by Sacramento developer David Taylor and Z Gallerie owner Joe Zeiden to take on the 800 block. The fourth team was made up of Bridge Housing, Saca Development and Bagatelos Development LLC.

Housing and Redevelopment Agency partnership renovates foreclosed home with NSP funds

2010-07-08T21:31:43Z

The first foreclosed home purchased by the Sacramento Housing and Redevelopment Agency is under renovation and will soon be for sale and occupancy at an affordable price under a partnership program that SHRA developed using the federal Neighborhood Stabilization Program. The home is located at 3525 34th Street in Oak Park.

SHRA has partnered with NeighborWorks Homeownership Sacramento as a volume builder under the Property Recycling Program. The PRP works with governmental, non-profit and for-profit partners to provide access to properties and funding to remove the blight of foreclosures through redevelopment activities, acquisition and rental of affordable housing, and acquisition and rehabilitation of single family homes for sale throughout Sacramento. The PRP is complimentary to the other programs funded under the NSP, all of which seek to reduce the impacts of foreclosures.

“This partnership program is a huge a win-win effort for Sacramento’s neighborhoods ravaged by foreclosure, vacant properties and parcels, and investors who have no connection to the community,” said SHRA Executive Director La Shelle Dozier. “We’re working with organizations whose mission mirrors our own which is to invest in areas where the market alone cannot ensure change and to provide affordable housing opportunities that help hard-working, deserving families realize the American dream.”

SHRA officials say that over the next year, the Agency will be collaborating with NeighborWorks Sacramento to renovate and resell approximately 30 homes like this first home which the Agency purchased from Wells Fargo through the National Stabilization Community Trust. The NCST is designed to facilitate the transfer of foreclosed and abandoned properties
from financial institutions nationwide to local governments to promote productive property reuse and neighborhood stability.

“Under the NCST, Wells Fargo also provided an investment of $750,000 to NeighborWorks which leveraged other funds to buy the property,” said Chris Pahule, Assistant Director of Housing and Community Development. “With this partnership strategy, modest income families will have great opportunities to buy quality, energy efficient homes.”

SHRA is administering $3 million in NSP funds allocated to the PRP. To date, 59 properties have been acquired and six are under construction. The Agency estimates the program will address 100 properties over the next five years.

Railyards foreclosure process started

2010-06-16T03:22:59Z

A large national real estate investment company took the first step toward foreclosing on Sacramento's railyards Tuesday.

Inland American Real Estate Trust recorded a notice of default against S. Thomas Enterprises of Sacramento, LLC, after the developer missed its April 30 deadline to pay $185 million in loans used to buy the 244-acre property in 2006.

The effort to redevelop the former Union Pacific railyards is the biggest infill project currently underway in the country. The city is considering plans to build a new arena there.

With its parent company headquartered in a Chicago suburb, Inland is reported to be the nation's eighth largest real estate owner.

"Inland American has made its best effort to work with Thomas Enterprises, Inc., the developer of the Sacramento Railyards project, to address the current default status of the loans on the property," Inland spokesman Matt Tramel said in a prepared statement.

Infrastructure work, which has already started, is not expected to be impacted, according to Thomas Enterprises and Inland officials.

The two sides have been negotiating on an extension of the loan for months. They have not been able to agree on a new deadline, interest rates or fees, said Thomas Enterprises Vice President Suheil Totah, standing at the edge of the railyards Tuesday afternoon.

He declined to discuss specifics that led the lender to record the default notice with the Sacramento County Clerk/Recorder's Office, which has set the foreclosure process in motion.

Inland officials would not comment on whether negotiations would continue with Thomas. They did restate their intentions to not walk away from the railyards redevelopment project to city officials, who are trying to get Inland, state and federal officials together in the same room to discuss the situation.

“I have been in contact with top executives at Inland and they are fully committed to the railyards," Mayor Kevin Johnson said Tuesday in a prepared statement. "I look forward to working with our partners on the state and federal levels to make sure this project stays on track.”

Totah said the investment company has indicated its willingness to continue the relationship with Thomas, rather than pushing the Atlanta-based development company to find a new investor.

"The lender has expressed its interest in seeing things continue and is committed to this project," Totah said. "We hope to reach agreement on those final terms as soon as possible."

Thomas Enterprises now has 120 days to repay the loan or win an extension, or it will face foreclosure. Stan Thomas, the company's founder, and others at the Atlanta headquarters expect to resume those negotiations shortly. No date has been set, though.

"We expect things will be resolved within that time frame," Totah said.

Photo by Suzanne Hurt, a staff reporter for The Sacramento Press.

Art Moderne building needs home

2010-06-08T03:20:42Z

The Capitol Area Development Authority is hunting down a new home for a historic fourplex in an effort to save the Art Moderne building from a wrecking ball.

The stucco apartment building known as Capitol Gardens was built at 1517 N St. in 1949 by Sacramento architect and engineer Jacob Loyth. In fall 2011, construction will begin on the site at the northwest corner of 16th and N streets on a $43 million, nine-floor building with 117 condos.

CADA is trying to find a way to relocate the building's historic four front units to reduce the cumulative loss of historic resources and impact on a potential historic district, as directed by an environmental report for construction on the site.

The agency is facing relocation challenges involving the building's size and obstacles created by freeways and light-rail lines.

"So far, we haven't gotten a taker who's actually got a site that's appropriate," said Marc de la Vergne, CADA’s capitol area development manager.

CADA is willing to give the building away and provide $60,000 to move the building in order to preserve it. The apartments are expected to be occupied until summer 2011.

The building is 40 feet wide by 40 feet long — the exact dimensions of a standard city lot. The structure needs to be moved to a location where two lots are combined, unless a zoning administrator were willing to waive the requirement that buildings be smaller than the lots they sit on, de la Vergne said.

At 23 feet, the building is also too tall to fit under light-rail lines, such as those that run down R Street, and raised freeways running along the east and south sides of the city. The top of the structure would reach 26 feet when loaded onto a flatbed truck.

CADA staff identified several central city lots that could hold the building, but none of the property owners have been interested. The owner of a lot at 15th and W streets considered it until learning the building would have to be cut in half horizontally to fit it under light-rail lines.

The site's developers, Em Johnson Interest of San Francisco and Nehemiah Community Reinvestment Fund Holdings of Sacramento, are working with other people in town to find a new location, he said.

The building is among several constructed in the 1930s and 1940s in an area southeast of Capitol Park that has been discussed as a potential historic apartment district. The area contains Moderne and Revival apartment buildings.

A 2002 evaluation determined the building may be eligible for the Sacramento Register of Historic and Cultural Resources, as well as the California Register of Historic Resources — established to help identify and protect historical and archaeological assets.

"CADA has been really concerned to find a way to move it and get it saved, rather than end up demolishing it," said Karen Jacques, who restores historic buildings and sits on the city's Preservation Commission. "CADA has had a really good history with trying — and often being very succesful — with saving historic buildings."

Photos by Suzanne Hurt, a staff reporter for The Sacramento Press.

Docks promenade first phase opens

2010-06-03T15:25:54Z

The city celebrated an important reconnection to the Sacramento River Wednesday with the grand opening of the Docks Riverfront Promenade.

More than 100 people — from cyclists and dog walkers to the city staff and contractors who made it happen — converged on the sunny, tree-lined promenade overlooking the green river to mark the completion of the parkway's $5.4 million first phase.

Many rode a California State Railroad Museum train along its relocated track from Old Sacramento to the new Pioneer Landing Park, where the celebration began. The promenade and park, with its landscaped public plaza and giant water sculpture, were built to stimulate redevelopment of an old industrial brownfield area and to connect downtown to the river.

The waterfront along the Sacramento and American rivers are among the city's best assets, yet they've "sat dormant" for too long, said Mayor Kevin Johnson.

"We want to be a city known for our riverfront development," he said. "This is a significant first step."

Speeches and a ribbon-cutting were followed by Johnson high-fiving City Councilmember Ray Tretheway, whose district includes Old Sacramento and parts of the riverfront. The two politicians came together for the grand opening despite Johnson's recent endorsement of Tretheway's opponent in next week's City Council elections, which has put a strain on their relationship.

"We have our rivers. We have our promenade. We have our train. We have our reconnection to the waterfront," Tretheway said. "Congratulations, Sacramento."

The $15 million Riverfront Promenade will be a linear, mile-long parkway featuring a paved path connecting Old Sacramento and Miller Park. The start of a roughly 20-foot concrete path inlaid with brick has been built between the river and new railroad museum train tracks to replace a section of existing pedestrian- and bike-friendly path that was 10- to 12-feet wide.

The 14-acre parkway is expected to be completed by 2013 or 2014. Two blocks of parkway were constructed about 10 years ago from Tower Bridge to O Street when Embassy Suites Sacramento was built.

Ground was broken on the promenade's first phase in February 2009. That phase, which includes 1,200 feet of parkway from O Street to R Street and the triangular park at the R Street extension and bike/pedestrian bridge, was finished a couple weeks ago. Problems with weather and construction delays postponed the completion, which had been expected by the end of 2009.

Pioneer Landing was built as the entry point to the as-yet undeveloped Docks Area with the hope that both promenade and park will spur adjacent retail development, said Beth Tincher, project manager of the Docks Area project and promenade.

Wednesday morning, the plaza's signature piece — a 17-foot tall, galvanized steel water feature designed by renowned Bay Area artist Ned Kahn — threw out mist and water droplets. The hanging "cloud vessel" functional art piece and three nearby landscaped berms are shaped like boat hulls to play up the city's connection to its riverfront. The water feature will provide visitors with a way to cool off on Sacramento's 100-degree days.

The steel sculpture is expected to be lit for the first time Wednesday night. LED lights outlining the piece will be visible to drivers on neighboring I-5.

Seating areas are scattered throughout the one-third[-]acre park. Four modernistic concrete chaise lounges and two small wooden stools offer views of the river. Two traditional benches, concrete benches with handrails to help seniors and discourage skateboarding, and circular concrete benches around the plaza provide more places for visitors to relax. Concrete and steel overlooks provide views of the river at extensions of O and R streets.

Landscaping includes yellow day lilies, white fortnight lilies, rosemary and New Zealand flax, as well as native California oaks, red maples and crepe myrtles.

"The idea behind the landscaping was to provide primarily drought-tolerant, low-maintenance (species with) seasonal interest," said Jarvis Payne, a landscape architect with Walker Macy, which designed and built the first phase. His colleagues, Christopher Miller and Mike Zilis, joined him at the grand opening after the trio oversaw the project for Walker Macy.

The first phase was paid for with money from State Proposition 40, State Proposition 1B street improvement funds, redevelopment tax increment financing and development impact fees from parks, Tincher said.

The city has already applied for nearly $5 million in Proposition 84 grant funding from the state to finance most of the promenade's second phase. The city has also set aside $450,000 for that phase, Tincher said. That section will be built from R to T streets.

Walker Macy is completing design drawings now. The city expects to learn whether it has won the grant — and how much — this fall, and construction could start by next spring, Tincher said.

The third phase, which would also cost about $5 million, would complete the promenade from the freeway crossing at Pioneer Bridge to Miller Park. That phase is expected to start in 2013 if funding is available, she added.

An estimated $14 million in infrastructure for the Docks Area had been expected to begin between mid-2011 and the start of 2012. The start of infrastructure work is expected to be postponed while the city seeks funding.

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

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.

Council certifies Curtis Park Village report

2010-04-02T06:33:49Z

An overflow crowd packed Sacramento City Hall Thursday night for a public hearing on the environmental impact report for the proposed Curtis Park Village development.

With a unanimous vote, the City Council certified the report following four hours of testimony, staff reports and council discussion on the expected impact of developer Paul Petrovich's $211 million plan to construct housing and businesses on an old Western Pacific railyard near Sacramento City College.

More than 400 people filled the council chamber and an upstairs overflow room. Saying they don't oppose the infill project, some nearby residents sought to postpone a decision by asking for an environmental impact report (EIR) they consider to be inadequate to be recirculated and revised.

"We've been accused of being emotional about this issue. And we are," said Gary Weinberg, a Sixth Avenue resident. "We are because we live in a neighborhood that we adore, and we want it to stay that way."

Petrovich has proposed turning 72 acres of vacant, toxic land into a development containing 527 homes and apartments, 259,000 square feet of retail and office space, and a 6.8-acre park between the college, Curtis Park and Land Park. On Friday, the California Department of Toxic Substances Control halted Petrovich's remediation efforts at the site until the council's vote.

In an 11th-hour surprise just before the vote, City Council member Lauren Hammond unveiled a five-point compromise she helped hammer out in recent days to address issues raised by neighbors.

"The plan before us tonight reflects a lot of hard work on the part of the residents, as well as the developer," said Hammond, whose district includes the site. "In the end, it will be worth it."

Petrovich said he has spent $25 million cleaning up 150,000 tons of contaminants at the site. He asked the council to certify the EIR so he can take the next step — working with DTSC to determine how to handle the remaining 350,000 tons that has since been discovered. At the meeting, he said he hopes to fit all remaining toxins under a mixed-use commercial area. But some may need to go under hardscape or a containment cell in the park, he added.

Residents who belong to the Sierra Curtis Neighborhood Association remain opposed to the latter. Hammond identified that as the only sticking point.

"We strongly believe there should be no toxins under the park," said Rosanna Herber, the group's president. Other concerns were submitted to the council in a 28-page letter. She challenged Mayor Kevin Johnson to ask federal and state agencies for funds to remove toxins that would otherwise be encapsulated in the park.

Hammond said the decision about whether the park can be used to contain the contaminants is out of the council's hands.

"That decision rests with the Department of Toxic Substance Control. That is state law," she said.

However, Council Member Bonnie Pannell said she will not support a containment cell in the park. Following applause from residents, Pannell led a discussion with staff until she was assured the council would consider that issue at a later date.

The site is being cleaned to commercial and mixed-use standards in some areas, and residential in others, said Jennifer Hageman, a senior planner.

A majority in the crowd identified themselves as Curtis Park residents. Early in the hearing, about half the people in council chambers stood in support Petrovich. He identified them as people who live or work or want jobs in the neighborhood. Some wore "YIMBY" or "Yes In My Backyard" buttons.

Petrovich also asked the council to consider the project's economic impact via impact and building permit fees, public improvements, property taxes and jobs.

"This will provide $1 billion in stimulus funds to this local economy," he said.

Members of the neighborhood group say the plan is too suburban for the area. They've said they would prefer commercial space being decreased to 150,000 square feet in the hope that would reduce traffic and the possibility of a strip mall being built there.

Petrovich said he now plans to use 10 building styles found in the original Curtis Park blueprint from the 1930s and 1940s, as well as traditional duplexes and four-plexes, to "knit this together" with existing neighborhoods.

The project fits nearby uses and the neighborhood, as well as the city's General Plan for 2030, said Heather Forest, an associate planner with the city's Community Development Department. In a report to the council, staff also said the project is "pedestrian-friendly" and was designed to decrease use of cars through its walkability and its location near public transit.

"We've got a great project before us," said Mayor Kevin Johnson.

Petrovich asked the council to consider adopting CEQA findings and other matters at another meeting. City staff asked the council to postpone a decision on zoning changes.

Despite all the compromises, Hammond said she feared a lawsuit may be filed in the future.

"Somebody is going to sue us: Either the neighbors, or Paul," she said. "But I think this is as close as we're gonna go."

City considering K Street developers

2010-03-23T06:04:32Z

Not everyone can agree on what the future K Street should look like when it comes to putting hammer to nail.

Four development teams vying for work and the chance to make their mark on this key piece of downtown real estate have at least one thing in common: they all recognize the possibility of using federal low-income housing tax credits and historic tax credits to create a mixed-use neighborhood integrating the street's historic architecture.

"That's a major opportunity," said Sacramento developer David Taylor, a team leader for the group 700-800 K Street, LLC, at a presentation hearing scheduled by the city of Sacramento Monday night. "It's a major headache as well."

Each team wants to build housing, retail and office space. But plan details and team philosophies differ.

For instance, Rubicon Partners Inc., St. Anton Partners and Preferred Capital Advisors want to build a neighborhood around a 35,000-square-foot farmer's market, 2,000-seat entertainment venue, a 22,000-square-foot grocery store and an artisan alley with artists' apartments over their ground-floor work spaces. The plan calls for 100,000 square feet of retail — far larger than the three other plans.

"We're looking for a game-changer on K Street," said Kipp Blewett, co-founder of Rubicon Partners and chairman of the Downtown Sacramento Partnership. The team believes the project will draw people downtown again after other plans have failed.

The farmer's market and sizeable entertainment venue would not be located far from a mixed-use redevelopment under way in the railyards downtown, where the city appears likely to build a future sports and entertainment arena. Thomas Enterprises is in the midst of a $5 million cleanup of the railyards' historic "Central Shops" and restoration of a 56,000-square-foot historic building that will house an open-air public market at the heart of the 244-acre development.

The K Street development team members see themselves as supporters, rather than competitors with Thomas or the arena developer. However, this team's farmer's market could be built within three to five years, while Thomas' might not be built for seven to 10, Blewett said.

"We're ready to go on K Street," he added. "We're ready to go now."

Thomas Enterprises could not be reached for comment.

Another team — Bridge Housing, Saca Development and Bagatelos Development LLC — wants to build "sustainable" market rate and low-income housing that blend into one another, interspersed with 34,000 square feet of open-space terraces and courtyards. The plan would incorporate such things as photovoltaic roof canopies and healthy building materials.

The team is excited about integrating new housing and existing historical properties, including the Bel-Vue Apartments, to create "more of a neighborhood," said Brad Wiblin, vice president of Bridge Housing.

"We're in a situation which really calls for a change in dynamics on the ground," he added.

Following models that have worked in San Diego and Old Pasadena, Taylor's group — which includes Z Gallerie owner Joe Zeiden — wants to start with retail and finish construction within two years, constructing a mixed-use project that is needed in this economy while allowing room for future growth.

Zeiden helped revive Old Pasadena by building one of his stores there, before there was housing. That started the district's redevelopment, said Zieiden. He now plans to move his store out of Westfield Downtown Plaza and onto the 700 block of K Street in an effort to kick-start a similar revival in Sacramento.

"I've been doing this for 30 years now. I've seen what works. I've seen what doesn't," he said. "I think the street has amazing potential."

D&S Development, Inc., and CFY Development Inc. — led by Cyrus Youssefi — want to reduce the size of 160-foot-deep retail spaces on the 700 block of K Street and use the 66-foot-deep leftover space to create alley-fronting housing and a garage.

They envision a flower shop, restaurants and sidewalk cafes and vendors' sidewalk kiosks in a block of mainly restored historic storefront. They also plan to restore the mural on the original Tower Records storefront and commission other murals from local artists. The goal is to draw retail energy out of storefronts and create the kind of vitality found on Santa Monica's Third Street Promenade or Berkeley's Fourth Street, said architect Bob Kuchman.

"We're really trying to reinvigorate the street and create a real energy out here," he said.

The city will hold development team interviews March 25 at a time and location not yet disclosed. The Sacramento City Council is expected to choose a development team by mid-May. For more information about the proposals, click on this link.

4 Proposals for K Street

2010-03-21T19:25:18Z

On Monday, March 22, the city of Sacramento will host presentations by the four development groups interested in building a project on the 700 and 800 blocks of K Street. This meeting will be held at Old City Hall, 915 I Street, in the 2nd floor hearing room, at 5:30 PM.

The four groups who responded to the Request for Qualifications (RFQ) include:

* Bridge Housing, Saca Development and Bagatelos Development

They propose 360 units of housing, a renovated Bel-Vue, 48,000 square feet of office not on Agency property, and 33,000 square feet of retail.

* David Taylor, CIM Development, Domus, and Zeiden Properties

They propose 110 housing units, including a renovated Bel-Vue, 60,000 square feet of retail and 57,000 square feet of office.

* CFY Development and D&S Development

Their project for the 700 blocks includes retaining the facades on the 700 block, building new units to the alley including 136 residential units and 37,000 feet of retail space.

* Rubicon Partners, St. Anton Partners, and Preferred Capitol Advisors (Sacramento Alliance Team)

This proposal requires the entirety of the 700 and 800 blocks, including properties not under Agency control, to create 400 residential units, a 2000 seat entertainment venue, 175,000 square feet of retail including a grocery and farmer's market, 150 high-end luxury condos, and a 375 room four-star hotel.

This presentation will allow the public to learn more about the development groups and the proposals. More information about the proposals can be found here:

www.cityofsacramento.org/econdev/news/documents/700800LK_RFQ_Update.pdf

This meeting will be followed by interviews between the developers and a city-appointed selection committee (at this time, the makeup of the selection committee is unknown to this writer, but the city created the committee on March 15) on March 25. The City Council is expected to decide on a development proposal in April or May of this year.

To learn more, come to the meeting and meet the developers and city staff, who will present the four project proposals.

Monday March 22, 5:30 PM-7:00 PM

Old City Hall (915 I Street)

2nd Floor Hearing Room

Disclosure: William Burg is a board member of the Sacramento Old City Association (SOCA)

Council unanimously agrees to begin arena talks with Kamilos

2010-03-17T05:18:54Z

In a win for Mayor Kevin Johnson and his arena task force, the City Council agreed to start talks with Sacramento developer Gerry Kamilos on a plan to build a new sports and entertainment center in the downtown railyards and develop two other sites.

The City Council’s approval to begin talks with the Kamilos Group was unanimous. While an agreement between the city and Kamilos was not completed Tuesday, the council moved closer to a decision to work with Kamilos.

In Kamilos’ multi-layered plan, the downtown railyards would be the location of a new sports and entertainment center. The plan also calls for the creation of a new state fairgrounds at Arco Arena and nearby property.

Kamilos’ team, which includes developer David Taylor, further plans to purchase the state-owned Cal Expo State Fairgrounds. The development team will would then build a mixed-use development at that location.

The NBA and the Maloofs family, which owns the Sacramento Kings, support Kamilos’ proposal.

Johnson said he would like to see the project to focus on environmentally sound elements so that it could be a “world-class showcase” for a green development.

Meanwhile, Councilwoman Sandy Sheedy said that consultants who work with the city on this project should be paid by the developers, not the city. The city needs to be “very, very careful” if it puts any public funds or public land toward the project, she said.

While Councilman Ray Tretheway voted in favor of starting work with Kamilos, he raised concerns about Natomas. He said he wanted to know how the arena’s move to downtown from Natomas would affect Natomas’ businesses.

The City Council tasked staffers with several assignments Tuesday night. Council members decided that city staffers should start working with the Kamilos group and create benchmarks for the negotiations. The City Council also asked staff to study the financial aspects of linking the Kamilos downtown arena project to a downtown intermodal center.

Council members agreed that Johnson could appoint members of a City Council ad hoc committee to work on the effort.

Staff was also asked to inform the council of progress on creating a six-month agreement with Kamilos, as well as the project’s scope, benchmarks and funding sources. The council asked for that information to be presented within 30 days.

Further, staffers will work on a plan to gain feedback from stakeholders and community groups, Johnson said.

The Kamilos plan will need state legislation to advance. Staff will work on that issue with the development team, the council’s ad hoc committee and additional involved parties, according to the council’s decision.

Kathleen Haley is a staff reporter for The Sacramento Press.

Railyard shops cleanup, preservation underway

2009-11-11T06:25:04Z

Piles are growing at the city's old railyard.

Inside the long-abandoned Southern Pacific railroad shops, there are piles of metal, wood, debris and contaminated junk. Up on roofs, white-suited, specially trained abatement workers are pulling up roofing material and roofing adhesive containing asbestos. Outside one of the shops lies a makeshift salvage yard.

Georgia developer Thomas Enterprises and a contractor, Allied Environmental of Placerville, are three months into a $5 million cleanup of the historic "Central Shops," which will form the centerpiece of a 244-acre mixed-used district dubbed the Railyards.

The developers envision the shops as the cultural heart of a district that will include the future a regional transportation center and retail, office and residential use. The centerpiece will be an open-air market and adjacent plaza. There also has been talk of a $500 million arena/entertainment center, a performing arts center and even a new $500 million county courthouse.

During a tour of the shops Tuesday, Railyards Development Director Richard Rich said workers are setting aside everything connected to Sacramento's railroad history to be recycled and used in the district.

"We want to save every single piece of this," Rich said as he pointed to old metal lockers and train parts inside the former Paint Shop. "Part of our job is to retell the story of the railyards as we rebuild this and bring it back."

Very little remains from the 1930s or earlier, when the shops were the center of the locomotive industry on the West Coast and that industry drove the city, he said. For more railyard photos, go here.

The railroad company took most items of value long ago. Then, squatters and vandals carried off everything they could.

Still, workers have already dug up tons of gnarled, rusted iron during soil remediation. Rich said he would like to hire an artist to create a large sculpture from the salvaged iron. The sculpture would go in the future Market Plaza.

"That's a dream at this point," Rich said. "I don't know where we'd find the money."

Hundreds of heavy locomotive drive wheels and axles were found on the site, which lies next to the Sacramento Valley Station train depot. California State Parks gathered up most of them, and two drive wheels left with the developers may become sculptures. Thomas Enterprises is talking with the parks department about placing drive wheel sculptures at intersections throughout the district.

"I would like every single intersection that we do to have some calling card of rail history there," Rich said.

Central Pacific established the Sacramento railyard during the steam locomotive era. The company, which later became Southern Pacific, built the first shop in 1868 — before Sacramento gained fame as the western start of the first transcontinental railroad with the driving of the last spike on May 10, 1869.

In the 1930s, Southern Pacific slowly began abandoning the railyards. Rail traffic was down because of the Depression.

The company set up maintenance shops for newer diesel locomotives in more rural areas as Sacramento grew, and the shops began falling into disrepair. The shops officially closed in 1999, four years after Union Pacific bought Southern Pacific.

Now, eight Central Shops — seven brick and one metal — are all that remain of what was once at least 243 buildings. The developers are giving the metal Boiler Shop and the Erecting Shop, the largest and grandest, to state parks for its future Railroad Technology Museum. State parks will handle abatement of those.

The buildings' exteriors will be preserved following the Secretary of the Interior's guidelines for rehabbing historic buildings. Abatement work, Phase 1 of shop restoration, is expected to be completed by March.

On Tuesday, 50 workers worked on various abatement projects including removing the badly peeling lead-based interior paint, junk contaminated with heavy metals and polychlorinated biphenyl or PCB, and asbestos sheetrock, floor tiles and pipe insulation. They're also removing extensive graffiti.

"Our job now is to clean these buildings so we can start to do the major work on the renovation," Rich said.

British Environmental Resources Management is providing construction management. The company initially was hired by Southern Pacific and has done all cleanup at the site for 20 years.

"Our primary challenge was to make sure we could abide by California environmental laws to take toxics out but not damage these historic buildings," Rich said. "It's something we have to watch very carefully."

Workers can't remove all the lead-based paint without damaging historic interior bricks. So remaining paint will be encapsulated in new paint, in a process created by the city's environmental office, he said.

The Railyards are the country's largest infill project. Most of the six shops are expected to be filled by restaurants, clubs, retail shops and small museums. Organizations have expressed interest in setting up museums for model railroads, carousels and blacksmithing in the 3,800-square-foot Blacksmith Shop.

The 56,000-square-foot Paint Shop will house an open-air market with Central Valley products including produce, cheese, wine, meat and fish -- similar to San Francisco's Ferry Building. It will be near the extended 5th Street.

An open space next to it, once a turntable that moved locomotives and train cars to the Paint Shop, will be turned into Market Plaza. Plans call for landscaping, water features, public art and a small outdoor performance area.

"That plaza is going to be the cultural living room of this region," Rich said.

On the other side of the plaza, clubs, restaurants and shops are expected to open in the Planing Mill, Car Shop and Machine Shop, where locomotives, passenger cars and flat cars once were built. The first building constructed on the site was a machine shop in 1868. Upper floors could contain art lofts and archive space.

Small shops and restaurants could go into the "Tower of Jewels," a three-story brick craphouse built in 1878. The plaster facade is peeling off the brick building, so the mortar on that and the rest of the brick buildings will be repointed.

The shops are expected to be ready for tenants in two or three years. The city has committed to building a 2,000-space parking garage east of the market. The garage will serve the regional transportation center and the Central Shops, said Suheil Totah, Thomas Enterprises vice president.

The county is considering the site for a new courthouse, said Totah, adding that Thomas Enterprises likes the idea of the city building an arena there as well.

Rich said he expects all electrical cables at the site will be underground. He said he hopes to use a line of old above-ground electrical poles to hold a 30-foot-high, 300-foot-long lighted landmark "Sacramento Railyards" sign.

That's just one of the efforts to preserve as much as possible. Restoring the historic buildings that once played such a large role in Sacramento is the key, Totah and Rich said.

"It would actually be cheaper to knock them down and rebuild them. But there's an ambiance you can't get with a new building," Rich said. "So they're priceless in that way."

Photos by Eric Whalen. Suzanne Hurt is a staff reporter for The Sacramento Press.

A 10-Step Plan To Fix K Street, Or: The Legend of the Skyscraper Fairy

2009-10-12T03:55:54Z

As a Sacramento resident keenly interested in the history of K Street from the gold rush to the present, I have read many opinions regarding the best ways to fix the ongoing problems of K Street. Some have been proposed recently, ideas that I view with a mixture of amusement and horror. Most involve returning to the mistakes of the past while clearly avoiding its successes. In order to take the best from the past while avoiding some of its mistakes, I have selected some favorites. I can take credit for none of them, as they are all ideas that have been suggested at other times and places, but they seem like the best of the lot to me. This ten-point plan varies in scope from the very simple and inexpensive to the rather complex and expensive, some are short-term solutions while others are longer-term solutions for better times, but all of them are practical. I can provide more detail about most of these points if requested.

1. Accept that the Skyscraper Fairy does not exist.

Many landlords along K Street have no apparent interest in maintaining or improving their properties. Some are convinced that as long as they own the land, the magical Skyscraper Fairy will give them uncountable millions for the land where their decaying buildings sit, and will replace them with shiny new skyscrapers. Thus, they have little interest in maintaining or tenanting their buildings. The result is under-utilized or vacant buildings whose facades continue to crumble. Despite the Downtown Partnership’s efforts to power-wash streets and alleys, buildings allowed to fall into disrepair, inhabited only by bats and squatters, make our historic buildings into eyesores. Ideally, the city’s code enforcement division would issue stiff fines to property owners who allow their buildings to fall into disrepair, in order to prevent demolition by neglect. Unfortunately, the city of Sacramento is also one of the guilty parties, and one of the strongest believers in the Skyscraper Fairy. City-owned properties currently sit vacant, awaiting their own savior in the form of a deep-pocketed developer who will brush aside the old building and provide badly-needed money to build something else. Given K Street’s current state, this is unlikely—the only propositions so far are dependent on generous subsidies from the city of Sacramento. Until both the city and K Street property owners can be dispelled of their belief in the magical skyscraper fairy, their properties will continue to rot.

2. It’s time to leave the shopping mall in the past.

K Street was a bustling place until the 1950s, when most of Sacramento’s population moved out of the central city, the residential neighborhoods adjacent to downtown Sacramento were demolished, and the city streetcar system was replaced by highways and automobiles. Suburban malls were closer to the new suburban neighborhoods and had plentiful parking, while K Street was far away and none of the stores had parking lots. The K Street pedestrian mall of the 1960s and 1970s was a desperate move to woo suburban shoppers by simulating a suburban mall, including demolition of nearby buildings to provide parking. But the suburban malls were still more convenient, and their parking lots bigger and more obvious, so K Street’s rebirth as a mall of the 1970s failed. A 1990s re-vamp that enclosed the section from 4th to 7th Street has become another failure, due to its failure to move beyond the idea of a suburban mall downtown.

A new generation of city planners has noted that shopping centers of the 2000s look a lot like old downtowns, with stores that copy historic styles and a mixture of pedestrian paths and driveways. These planners have decided that this is the future of K Street, and call for a return of cars to K Street so they can pretend K Street is a new suburban "power center," the 2010s equivalent of a shopping mall. But those suburban “power centers” are still closer to suburban shoppers, and their parking lots are still bigger. If K Street is simply opened to cars and its facades remodeled to emulate new suburban shopping centers in North Natomas, how can the result be any different from the last two attempts to disguise downtown Sacramento as a suburban mall?

3. Cars, no. Bikes, yes.

The simplest change to energize K Street will cost very little: permit bicycle riding on K Street. Bike riding is already on the rise, and the freedom to bike on K Street would turn it into the main cycling corridor of the central city, free from the vehicular mayhem of J and L Street. Provide a few bike racks so bike riders can stop and shop as well as ride through, and the numbers strolling past store windows will dramatically increase.

4. Shrink light rail to streetcar size.

Until the 1940s, K Street had transit in all sizes. On K Street itself, streetcars ran from the heart of downtown to Midtown, Southside and nearby suburbs like Land Park, Oak Park and East Sacramento. These cars were small, typically 30-40 feet long, about the size of a modern bus, and operated at speeds up to 25-30 miles per hour. Like a bus, they worked reasonably well with traffic, but because they had fixed rails they had a smoother ride and a predictable path, making them more comfortable for riders. Trains ran every ten minutes during the day, and “owl” runs carried late-night travelers all night.

On the corner of 8th and K Street, interurban trains ran in both directions. Passengers from Woodland, Chico, Stockton and even Oakland could hop on the train and get off on K Street. These trains were bigger, 60-80 feet long, and operated in trains as long as 6-8 cars. They were taller and wider than streetcars, and could reach 60-70 miles per hour going flat-out through the countryside. They ran on 8th Street because K Street was far too busy to handle the big trains.

Today, modern Light Rail trains are more like the interurbans than streetcars. With 80 foot long bodies and operating in four-car trains, they are not well-suited to playing the role of a streetcar. By through-routing Blue Line trains north via the upcoming 7th Street extension and connecting to North 12th Street via Richards Boulevard, light rail trains could bring passengers from Folsom, Rancho Cordova, South Sacramento and North Highlands to K Street without crowding pedestrians off the street.

Meanwhile, the streetcars can return to K Street. Some of Sacramento’s historic streetcars exist in unrestored condition in private collections, but modern streetcars offer amenities like air conditioning and ADA-accessible low-floor entryways. They can run on the existing K Street tracks while leaving more room for pedestrians and bikes. Using existing light rail lines and sharing their tracks, these streetcars can link nearby neighborhoods and connect with light rail. Extending streetcar lines into existing neighborhoods and new development areas costs less than one-third the price of light rail extensions and drives population density, economic investment and reduces the need for cars and parking. Run them until after 2:00 AM to give downtown visitors an option to leave their cars at home—especially if they plan on drinking.

5. Legalize street life.

This is another cheap and easy solution. Part of Second Saturday’s success is its prolific use of street music, performers, and vendors, but its monthly status creates a feast-or-famine condition. A permit program to allow music, performance and vending at any time means that visitors to K Street won’t need to check their calendars before going downtown. Street music and vending also gives local entertainers and small businesspeople a stepping stone to a retail storefront or a musical career. Musicians and vendors will promote activity, give walkers a reason to stick around, and attract visitors to enjoy the street life. This also does not rule out special street festivals and special events above and beyond the day-to-day activity, and maintaining K Street as a pedestrian walk maintains this valuable civic amenity for more public festivals. Both everyday street life and special events will draw visitors from within Sacramento, the surrounding region, and tourists from out of town.

6. Tours bring tourists.

Despite the demolition of the past few decades, K Street still retains a remarkable number of historic buildings, proud evidence of our architectural heritage in stone, terra cotta and concrete. Many cities use local tourism programs to bring visitors into the heart of the city, but to most visitors, Sacramento’s history ends at the edge of Old Sacramento. Efforts to alter this perception have been minimal. The Downtown Sacramento Partnership has a guided tour program, but it is minimally staffed, minimally funded, and minimally advertised. Downtown visitors looking for local history information are likely to come up empty-handed. Sacramento needs a full-strength tourism program worthy of a city with such a rich and diverse history. K Street, the walking street at the heart of the city, can be the center of such a tour program, with more tours branching out into nearby downtown streets and our architecturally rich residential neighborhoods. History tours appeal both to visiting tourists and to locals interested in learning more about their city's past.

On K Street, the potential star attraction of local tourism is right under your feet. Sacramento’s underground sidewalks, the result of a street-raising measure intended to keep the city above flood waters, run the length of K Street from the river to about 12th Street. Many are demolished, but enough material remains to allow a tour to weave in and out of underground sidewalk spaces, sunken alleys, basements, and even below-surface businesses. Combined with the dramatic story of the raised streets, and some entertaining and colorful stories from Sacramento’s history, the potential of an underground sidewalks tour is unlimited. In Seattle, local booster Bill Speidel turned a walk through clammy underground sidewalks in a notoriously bad part of town into a million-dollar tourist attraction that is known worldwide, drawing as many as 300,000 visitors a year and employing as many as 50 full-time staff. There is no reason that Sacramento can’t do the same.

7. Bring on the nightlife.

If a suburban mall isn’t the answer, what will bring suburban residents downtown? The answer is simple: Give them something the suburbs don’t have. Sacramento is best known for its quiet suburbs, the result of a decades-long whitewashing operation to conceal our party-animal past. The rowdy days of the Gold Rush, the proliferation of local breweries and wineries, our almost total refusal to acknowledge Prohibition, the legendary jazz and blues clubs of Sacramento’s West End, and even last year’s New Year’s Eve party (2,000 expected, 12,000 attended) burst through the “town where nothing happens” façade. It’s time to face the truth, and bring more nightlife down the length of K Street. This doesn’t just mean bars, it also means late-night restaurants, theaters, live music venues, dance clubs, movies, spas and salons, comedy clubs, coffee shops, and other imaginative options for entertainment. Cooperative parking agreements with state parking lots can provide tens of thousands of parking spaces, and better public transit can carry revelers home in safety.

8. Shop local, even if you’re from out of town.

The shopping-mall consultants are half right about K Street—it does need more than nightlife to survive. Daytime and early evening traffic means retail stores and services in between the state-employee lunch rush and the arrival of the dinner, drinks and dancing crowd. However, national chain stores are hesitant to expand, even if bribed into doing so. And again, suburban visitors won’t drive downtown to a store in their local mall. The answer is, again, to give them something the mall doesn’t have: unique, local stores. Local businesses keep money in the local economy, stimulate local employment and provide a unique character that chain stores simply can’t match. Encouraging local businesspeople to rent storefronts on K Street should be a city priority. Matched with neighborhood-serving retail like food markets, cleaners, drugstores and small department stores, locally-based retail on K Street should appeal to suburban shoppers, out-of-town visitors, and central city residents. As stores fill and crowds start to appear, instead of having to beg national chains to locate on K Street, they will appear on their own, smelling money to be made.

One idea we might lift from San Francisco: the much-adored Metreon, high-tech consumer wonderland, is falling on hard economic times, with many vacancies. Earlier this year, a full-time farmer’s market moved into the Metreon, and has already proved a popular destination. A permanent farmer’s market on K Street, instead of the current sporadic weekly markets, would provide fresh foods to a neighborhood where none are sold. Downtown workers, visitors and residents would all benefit from a convenient source for the Sacramento Valley’s agricultural bounty.

9. Living on K Street shouldn’t mean sleeping directly on it.

The destruction of the downtown neighborhoods near K Street was followed by the destruction of thousands of inexpensive rental rooms, commonly known as SRO hotels, where thousands of workers lived. As inexpensive housing disappeared, the poorest people did not. Out of necessity, they made their home on the streets. Many are still there, and as existing SRO stock is phased out of service and homeless services disappear, their numbers grow. They will not vanish and they will not simply move away, because they have nowhere to go and no alternative. The only way to reverse this trend is to replace the housing that was lost. This replacement housing need not be here on K Street, but it needs to be somewhere. Our only alternative is to accept the presence of people sleeping on the streets as an unalterable condition, and tell them that their suffering is necessary and unavoidable—or to simply remain in denial of the problem, which amounts to the same thing. As a people, as a city and as a nation, I think we are capable of better than that.

But it isn’t just the poorest that need housing in the central city. Housing for all income levels should be included in new development projects, but putting it into existing buildings would be even easier. Many formerly residential buildings were converted to office use in the 1960s and 1970s, so why not convert the abundance of vacant upper-story office space back into residential units? This housing should cross the economic spectrum: SRO units for the disabled and seniors, low-income units for service employees, workforce housing for office employees, and high-end, high-up housing for the high rollers. A truly urban life results when you can see all the way across the economic spectrum just walking down the street. That can’t happen unless the street has places for all of them to live, dine, work and shop. Again, not all of these places have to be directly on K Street, but they should be close enough to walk there in a few minutes. Restoration of residential buildings will preserve their architectural value, bring life back to the neighborhood, fill a great social need, and jobs restoring and maintaining the buildings will create more employment than comparable levels of new construction.

10. Have faith, be good, and the Skyscraper Fairy will come.

Part of the current mentality of property owners on K Street is based on outdated models of how downtown development should happen. For decades, cities were assumed to be teeming pits of an imaginary disease called “blight” that could only be cured with wrecking balls and a liberal application of public-funded redevelopment dollars, designed to push out “undesirable” tenants and solicit only the coveted suburban émigré to return to the central business district, and then only to spend money and leave, never to live. Today’s cities don’t work like that anymore. People want to live in cities because they want the amenities of urban life unavailable in the suburbs. If K Street can offer those amenities, not a sanitized Disneyland version and certainly not a copy of a suburban mall, they will grow interested in K Street. If they are interested, they will come to visit. If there are places to live, and things to see and do, they will want to move downtown. Once enough people have moved downtown that there is no longer room in existing buildings, and people feel safe and secure in neighborhoods that are well-maintained, high-rise developers who understand how cities work will look at K Street and see dollar signs. Instead of developers seeking handouts to build on K Street, they will come with money in hand where they think they can make even more.

And when they do, the Skyscraper Fairy will visit the property owners and civic leaders who took care of their buildings, who encouraged vitality and street life instead of a tax write-off, who promoted transit and walkability, and drew people back downtown to share in K Street’s uniqueness, character and history. She will shower them with money and riches and blessings, and cranes will rise on K Street, filling the gaps between the last century’s architectural gems with bright, tall new buildings. Yes, Sacramento, there is a Skyscraper Fairy, but she has very high standards.

William Burg is a board member of the Sacramento Old City Association. This story is a guest editorial opinion, and does not represent the opinion of Sacramento Press or its editors.

800 K/L-Belvue Demolition Plan Returns To City Council

2009-08-24T18:59:58Z

On Tuesday, August 25, the Sacramento City Council will hear a proposal by developers Bob Leach and Parkcrest Development to build a hotel at the corner of 8th and K Street and a parking structure at the corner of 8th and L Street, a project that would require demolition of city landmark the Bel-Vue Apartments and adjacent buildings. The meeting will be held at New City Hall, 915 I Street, at 6:00 PM in the main City Council chambers.

The item was originally to be heard at the August 11 meeting of the City Council (see sacramentopress.com/headline/11884/City_to_decide_on_fate_of_BelVue_Apartments_and_Berry_Hotel_today ) but was taken off the agenda at the last minute. According to the staff report, the "Exclusive Right to Negotiate" between the city of Sacramento and the developers expired on Sunday, August 23, but city staff can still work with the development group while a new RFQ (Request for Qualifications) is being prepared, a process that should take about 90 days according to the staff report. If city staff and developers cannot reach an agreement, the new RFQ will request proposals from other developers and development groups for a different project on the 800 K Street site.

Also according to the staff report, city staff had not fully analyzed the new proposal as of its submittal date of Friday, August 21, and could not provide complete comment. One change from previous proposals is a change to requested exemption from the hotel's "Transient Occupancy Tax": instead of 100% exemption from TOT for 10 years, they are asking for 50% exemption for 14 years. According to the accompanying financial documents, this would add up to approximately the same total subsidy for the project, but over a different span of time.

Another change is that Mohammed "Mo" Mohanna is no longer listed as a member of the development team. The staff report does not specify whether another investor has joined the team in Mohanna's place, or whether one of the existing investors will contribute more funds to make up for Mohanna's financial contribution to the project, or why this change has taken place. Most of the financial commitment comes from the Korean firm Consus, but the city has not yet received a formal commitment with complete terms and conditions from Consus.

The staff report does mention that the original "Exclusive Right to Negotiate" for this project occurred as a condition of a lawsuit settlement between the city of Sacramento and Mohanna, in addition to the city's payment of about $18 million to Mohanna for the land.

The total subsidy for the project is estimated at $31.5 million in land and tax exemption (both transient occupancy tax and tax-increment fund exemption.) This amount does not include the money previously paid to Mohanna for the property as a result of the lawsuit settlement.

The staff report does not address the issue of a potentially competing hotel project planned for the corner of 10th and K Street, nor does it address the issue of the demolition of the Bel-Vue landmark.

The staff report for this item can be found here:

sacramento.granicus.com/MetaViewer.php

The agenda for this week's City Council meeting can be found here:

sacramento.granicus.com/ViewPublisher.php

City to decide on fate of Bel-Vue Apartments and Berry Hotel today

2009-08-11T08:36:49Z

On Tuesday, August 11, the Sacramento city council will decide whether to give away the half-block from K to L on 8th Street, containing the Bel-Vue Apartments and several other buildings to developers Bob Leach, Mohammed Mohanna and Parkcrest Development. The land was recently purchased by the city from Mohanna at a price of $18.6 million, and the developers are asking not only for free land but several years of tax-free operation. The net cost to the city will be about $34 million, 25% of the total investment for the project, in return for about 10% of the return. The proposed project is a 300-foot luxury hotel at 8th and K and a parking lot on 8th & L where the Bel-Vue stands. The project would destroy all surviving structures on the project site. In addition to the landmark Bel-Vue, the 1895 Feldhusen Building and the circa 1910 Sam's Club building would be demolished, although neither has the status of city landmark.

The proposed project would also demolish two half-blocks of Sacramento's underground sidewalks, along the corner of 8th and K Street. The sidewalks are still clearly visible from the alley, as the photograph above shows. As with the loss of the Bel-Vue, approval of this project would mean the loss of structures that, despite having fallen into disrepair and disuse, are part of the city's historic fabric. By restoring these elements instead of demolishing them, the city can maintain resources that cannot be duplicated in modern construction, and provide valuable downtown housing and a potential historic site of great tourism interest.

The staff report mentions that city staff and the developer have not been able to come to agreement on business terms, due to the low rate of return for the city and the large investment the project represents. The "Exclusive Right to Negotiate" (ERN) between the city and the developers has been extended twice in order to work out details, but city staff is still not confident in the developer's proposal. The council has been asked to advise city staff how to proceed.

Full staff report is visible here:

sacramento.granicus.com/MetaViewer.php

In slightly brighter news, at the same meeting the City Council will hear (and hopefully approve) a plan to restore the Berry Hotel, just across the street from the Bel-Vue. The hotel was acquired by the city after another developer's plan to restore the building failed last year. The hotel is currently being vacated by the city, and is almost completely vacant. This plan would restore the interior of the building, providing long-needed repairs, and reopen the Berry as permanent housing for very low income individuals. The Berry has filled this role for years, but if this plan is approved, the building will be completely renovated and restored, and a social services agency will provide a staff person to work with disabled residents. The staff report is visible here:

sacramento.granicus.com/MetaViewer.php

These two projects are almost polar opposites. The restoration of the Berry Hotel promises to bring back a city landmark, restoring to occupancy a 1920s hotel. The project will house those least able to find housing, those with very low income, and it will be completed for far less than a new project of similar scale would cost. Across the street, the Bel-Vue was occupied by tenants until shortly before it was taken over by SHRA. It will be demolished and replaced with a parking structure. The proposed hotel project will be utterly infeasible without a massive subsidy, one that a city in the throes of a financial crisis cannot afford. Perhaps the City Council will review the Berry project and consider what else they might do with the Bel-Vue, a city landmark and apartment building, for less money than the developers' subsidy.

The meeting will be held at New City Hall, 915 I Street, Sacramento, at 6:00 PM in the main council chambers.

The full city council meeting agenda is viewable here:

sacramento.granicus.com/AgendaViewer.php

(In the interest of disclosure, I oppose the demolition of the Bel-Vue and plan to attend in order to voice my opposition to the 8th & K project--and my support for the restoration of the Berry Hotel.)

Crocker construction - RIP, Charles Gwathmey, architect

2009-08-05T00:38:36Z

A quick ride along Front Street south of the Tower Bridge reveals that all three of the projects in that area are proceeding apace, giving even the casual visitor a sense of what our riverfront development is going to look like in the very near future. With the death yesterday of Charles Gwathmey, the architect behind the new Crocker addition, we wanted to share these photos, taken, unbeknownst to us, on what would be the day of his passing.

First is the new Crocker addition, which will triple the size of the museum, and more importantly, create a modern new presence that is visible from I-5 as well as from the riverfront area.

Last week, crews started adding the metal facing that will give the center its sleek, modern feel. With the factory-like triangular roofs across the top, it looks like a Charles Sheeler painting for the 21st Century.

And the front entrance, which sits near the old Victorian structure, is shaping up beautifully.

On a sad note, the architect who designed the new Crocker wing, Charles Gwathmey, died on Monday in New York City at the age of 71. The Crocker will be one of his last buildings to be built. There's a good piece on him in today's New York Times.

On a more pedestrian, and happier note, the old railroad viaduct that crosses I-5 from R Street to Front Street looks to be right on schedule to open by the end of this month.

The pedestrian bridge, which has long brought those in the know from downtown to the Sacramento River faster than any other route, is now safer and more attractive, if not as down-low and vaguely hip, frequented only by skaters, frequent bikers and the homeless. In addition to the new asphalt surface, which extends from road to road where there was once only gravel, the original railing has been retained, and low lights are currently being added to keep the pathway useful at night.

Finally, on the river side of the bridge, on Front Street, improvements to the railroad line continue, and the core of a new plaza has been added just south of the bridge, the outer ring and steps leading up to it taking shape over the last few weeks.

Meanwhile, the new rail line for the excursion train to Miller Park, with a promenade on the west side, is also proceeding south from the first stage of the original promenade that starts at the Tower Bridge and Embassy Suites.

We'll be keeping an eye on all this development, the first, bold steps towards integrating downtown with the river that flows past us, barely noticed, day after day, year after year. It's a long way from here to San Antonio's Riverwalk, but the first steps look promising.

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.

City nabs $56m for redevelopment

2009-07-01T04:18:36Z

The city of Sacramento has won $55.8 million in Proposition 1C funds for infill redevelopment, the city announced late Tuesday.

On Monday, the California Department of Housing and Community Development approved money to help fund infrastructure for four projects: the Railyards, Township 9, Curtis Park Village and Capitol Lofts. Proposition 1C was approved by voters in November 2006.

The $6 billion Railyards project will get about $30 million, said city spokesperson Wendy Klock-Johnson.

The new funding brings the project's total public bond funding to at least $115 million.

“This is a step in the right direction for our city in terms of economic development and creation of employment opportunities in Sacramento,” Mayor Kevin Johnson said. “This is a proactive step towards Sacramento becoming a world-class city.”

Georgia developer Thomas Enterprises broke ground last winter on the infrastructure phase of its effort to transform the historic Union Pacific railyards into a mixed-use district abutting downtown's Sacramento Valley Rail Station.

K Street Mall redevelopment continues

2009-06-25T03:28:29Z

Work is moving forward to bring a mermaid bar and other nightlife venues to troubled K Street Mall, while the city attempts to address a lawsuit over the development.

At the end of May, developers David Taylor and Los Angeles-based CIM Group finished the first stage of interior work for the controversial project to redevelop long-vacant buildings at 1012 K St. and 1016 - 1022 K St. Crews cleaned up contaminants including asbestos and lead and also took down some inside walls.

The developers are now working on construction drawings to gain approval to bring the shell and core up to code. They are expected to submit the drawings to the city in August to show how they plan to meet the city's seismic, electrical and plumbing requirements, said Beth Tincher, a senior project manager with the city's Economic Development Department.

San Francisco nightclub owner George Karpaty, the project's proposed tenant, is planning to operate two high-end nightclubs at 1016 - 1022 K St.: the 3,050-square-foot Dive Bar with a giant aquarium inhabited by live, human mermaids and a 4,300-square-foot over-30 dance club whose widely ridiculed name is proposed as Frisky Rhythm; and Pizza Rock, a 5,600-square-foot gourmet pizza restaurant with an outdoor patio. The structure last housed a Hit Or Miss clothing store.

By the end of July, Karpaty is expected to submit applications for special permits needed to operate the nightclubs and outdoor patio, as well as to get the exterior design approved, Tincher said.

The developers will later propose another project for the building at 1012 K St., previously a Rite Aid.

The city's Redevelopment Agency currently owns the land and will later transfer ownership to the developers. Tincher could not provide a dollar amount for the land's value.

"There's a negative value shown on the property because of the contaminants. It's not a site that most people would consider valuable," she said.

The Sacramento City Council came under fire in March for approving $5.7 million in subsidies for the project on the blighted mall. The funding includes $5.4 million for tenant and public improvements, and nearly $300,000 for abatement and interior demolition.

Former Sacramento City Councilman Josh Pane, nearby restaurant and club owners and some residents criticized the city for giving the money to David S. Taylor Interests and CIM. Pane sued the city and the developers in spring to try to stop the project. He contends that the city OK'd the development without a proper CEQA review.

Attorneys for the city and developers are holding ongoing meetings with Pane and his attorneys to try to resolve the issue.

"We feel very confident that everything was done absolutely 100 percent correctly," said Ellen Warner, a partner at David S. Taylor Interests.

Providing redevelopment funding had been part of the deal to sell Taylor the Sheraton Grand Sacramento for $130 million last year. The city agreed to split $50 million in profits from the sale with Taylor and CIM for development in the J, K and L Streets corridor, she said.

Other Sacramento Press stories on the subject can be found here and here.

Public hearings will be held after the special permits applications are submitted.

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

Crews building Riverfront Promenade

2009-06-03T20:13:25Z

Standing on Front Street, Beth Tincher was more than satisfied to survey riverfront construction this week.

The project manager of the city's Docks Area Project and Riverfront Promenade watched construction workers set the promenade's concrete retaining wall and a circular seating wall that'll soon surround a water feature centerpiece playing off the city's historic waterfront.

"I'm excited, because it's been a long time in the making," said Tincher, standing south of Tower Bridge. "It's pretty amazing to come out to the site and see what this could be -- the potential of this highly under-utilized old brownfield site."

Sacramentans will get more than simply a mile of bike-and pedestrian-friendly riverside parkway when the promenade is finished by year's end. The $23 million, 14-acre promenade is seen as the next big piece of the plan to stimulate redevelopment of an old industrial area and to connect the Sacramento River to downtown Sacramento.

City officials have talked about redeveloping the Docks Area site for more than 13 years. Embassy Suites Sacramento and two blocks of promenade were built about 10 years ago near Tower Bridge.

As part of the 2003 Sacramento Riverfront Master Plan, the promenade will one day form the entrance to the Docks Area, a 30-acre mixed-use area expected to hold housing, shops, restaurants, office towers and possibly a hotel. The combined 44-acre site is one of the city's only redevelopment opportunities along the river, said Tincher, a senior project manager with the City of Sacramento Economic Development Department.

The area has a strong link to the Sacramento River's prominent past. The site was once the unloading point for commercial cargo being shipped from San Francisco to the city, gold mines and beyond.

The city put the Docks project out to bid and have given a San Francisco partnership formed by Kenwood Investments and Wilson Meany Sullivan an exclusive right to negotiate (ERN) to redevelop the mostly-abandoned former industrial area. The partners have worked together on other complex projects and are currently managing the 400-acre redevelopment of Treasure Island in San Francisco Bay.

Staff from the city's Department of Utilities and the Redevelopment Agency are currently studying the feasibility of moving Pioneer Reservoir, which holds excess storm drainage and sewage from downtown before pumping it back into the regional water system. The study's results are expected to be presented to the city council in July, said Tincher.

After that has been completed, the city is required to adopt a Docks-specific plan and certify the final Environmental Impact Report (EIR) as part of the ERN agreement with the developers. The city is preparing the final EIR and will start the public hearing process for the EIR and the Docks-specific plan in August or September.

The city can then begin negotiating with the developer on the Disposition and Development Agreement to determine which party will fund what parts of the project, she said. The developer would then work on the design and tentative map approval.

The promenade will stretch from O Street south to Miller Park. The parkway's gem will be one-third-acre Pioneer Landing Park, which will contain a public plaza holding a "cloud vessel," a misting water feature art piece designed to resemble a boat's hull in honor of the riverfront's past. Other, smaller art pieces will be scattered throughout the parkway.

The promenade and especially the large water feature are being designed to enhance the city's image. The feature will be lit at night and viewable from the adjacent freeway and the California State Railroad Museum excursion train based in Old Sacramento.

The final design of the Docks Area has yet to be worked out and is being impacted by the housing and commercial real estate markets, Tincher said.

However, concepts being considered include 1,000 to 1,155 housing units; 45,000 square feet of commercial space for shops, restaurants and other businesses that can draw people to the waterfront; 500,000 square feet of high-rise office tower space; and a possible hotel. The office space is expected to be built in 20 to 30 years as demand arises, she added.

Following the current timeline, an estimated $14 million in infrastructure construction in the Docks Area would begin between mid-2011 to the start of 2012.

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

R Street Market Plaza update

2009-05-15T04:11:30Z

One woman wanted to know if the Crystal Ice warehouse is going to be "totaled."

Andy Wasserman wondered how a new market plaza would impact Fremont Park just one block over.

And Linda Hinchey was concerned about whether she'd be priced out of the neighborhood, as well as how the sidewalk drainage system would impact her ability to motor her wheelchair to Safeway.

"I'm glad to see that there's improvement going on in the neighborhood," said the 65-year-old, who lives on a fixed-income on 17th Street. "I hope some of it is going to be affordable."

They were among the 40 to 50 people who attended the first public meeting regarding the R Street Market Plaza Wednesday evening. The Market Plaza is a vital piece of the plan to transform historic R Street into a vibrant mixed-use neighborhood. Another public meeting will be held in the fall, but opportunities for input will be limited.

The engineering consultants, Mark Thomas & Co., and Sacramento Department of Transportation staff presented the latest update on the plaza, to be built on two blocks that are now mostly empty buildings and vacant lots from 16th to 18th Streets. They held a question-and-answer session and then worked one-on-one to note attendees' suggestions and address individual concerns.

Those blocks -- and especially the block from 16th to 17th Streets -- contain critical pieces of Sacramento's past due to their ties to Crystal Ice and Cold Storage Co., and the Sacramento Valley Railroad, said Roberta Deering, who works in the city's Office of Historic Preservation. The railway served the ice house and other industrial businesses during R Street's heyday.

The plaza also is a critical feature of the planned infill development because it'd be designed to do double-duty as a sizable public gathering spot. Residents say the old roadway through those sidewalk-free, dormant blocks is currently used mostly by neighbors walking to the Safeway store at 19th and R.

"People are very grateful to finally have a grocery store in this neighborhood -- a grocery store they can walk to," said Andy Wasserman, who's lived near Fremont Park for 25 years.

The design calls for preserving the main railroad track that runs down the center of the street and as much of the siding track as possible, said Mark Thomas & Co. Vice President Robert Himes, the main presenter. The siding tracks went to warehouse docks for loading and unloading.

The exterior of the oldest Crystal Ice building, which is a historic landmark, also will be preserved to front commercial development with possible residential on top, he said. All new businesses on those blocks must be mixed-use, with some combination of retail, office and/or residential, Himes said.

But it's too early to know exactly what businesses may open there.

The new infrastructure will include sidewalks with 4-inch curbs, Americans with Disability Act-compliant corners, drain gutters, and 24-foot sidewalks on the street's south side. Two rows of tall shade trees and on-street parking will be included on that side. The 17th Street intersection will retain the old pieces of granite that line the siding tracks.

Some neighbors weighed the pros and cons of updating the street infrastructure and adding sidewalks and lower-than-standard curbs. Residents used to mainly foot traffic there weren't completely sold on improvements that would bring car traffic.

Hinchey, 65, said she was concerned rainwater would collect and make it hard for her to get to the grocery store. She also asked whether the hot north side of the street would get shade trees.

Sheet-flow drainage should handle the rain well, and the design leaves room for those trees in the future, said Himes. The sidewalks and streets will be capped rather than use permeable concrete due to toxic chemicals that may exist from past use, he added.

As a member of the Fremont Park Neighborhood Association, Wasserman is concerned about the plaza's effect on Fremont Park. Residents have worked hard to reclaim the park for the neighborhood.

"We're trying to turn the park into the center of the neighborhood," he said. "I hope festivals there [at R Street Market Plaza] won't kill off festivals in the park."

Bud Halliday is president of Newtown Booth Neighborhoods Association, representing three areas on the other side of 19th Street. Residents there have been worried about toxic materials in old R Street buildings. He said the materials reportedly have been cleaned up, but that could not be immediately confirmed.

Association members are also curious about the plan because of what it may indicate for redevelopment of their stretch of R Street. Halliday gave it a thumbs up.

"I like the layout and the concept -- which is to have a place for neighborhood people to go within walking distance and within biking distance," he said. "This looks like a very positive thing."

SCHS Presentation: M Street, the West End, and Capitol Mall

2009-04-27T17:19:26Z

The Sacramento County Historical Society Presents:
M Street and Sacramento's West End
When: Tomorrow, April 28, 7:00 PM
Where: Sacramento Valley Medical Society Building
5380 Elvas Avenue
Sacramento, CA 95819

Cost: Free

What/Why: At this month's Sacramento County Historical Society meeting, SCHS President William Burg will present a historical perspective of the evolution of M Street/Capitol Avenue between the 1850s and the 1950s. Drawing on photographs mostly from the Sacramento Archives and Museum Collection Center (SAMCC,) the presentation will cover the area's early residential neighborhood, featuring the homes of prominent Sacramentans like Leland Stanford and E.B. Crocker, the industries along the waterfront, and the multicultural neighborhoods that formed in the 19th and early 20th century. Finally, the presentation will review the effects of the redevelopment era on the neighborhood, and its transformation from a neighborhood into Capitol Mall.

Ample parking is available behind the building and along Elvas Avenue.

http://www.sachistoricalsociety.org

This is a presentation I originally gave to a group of architects, developers and electeds last February, on the history of M Street and how it became Capitol Mall. This presentation will be an expanded version, with more of the story of who lived in the West End and why it became the target for redevelopment.

K Street Subsidies

2009-04-27T06:21:42Z

With a 45% ground floor vacancy rate, K Street’s health is currently struggling. In an effort to help the street improve the blocks between 7th and 13th streets, the city has been pumping million upon millions of dollars into projects to then watch little to no improvements in foot traffic, empty store fronts and public safety. The list of subsidized projects is getting longer every year and I am beginning to wonder if spending all this money to clean up J or L streets might give us more to be proud of.

Right now the city has loaned Crest Theater $413,839 for capital improvements but the loan won't have to be repaid if the theater makes structural, safety, and aesthetic improvements as part of scenic easement to the Crest Theater marquee by 2019. The IMAX theater is getting subsidized at the rate of $425,000 since 2006 to help pay the rent till 2010.*Correction: The IMAX theater has a reduced rent. The city subsidy is $75,000 a year until 2010.* When the theater was first built in 1999 the city gave $6 million to the Esquire Plaza's previous owners - led by developer David Taylor.

In the last 5 years the city has gave out millions in an effort to revitalize K Street Mall. To name a few, the Cosmopolitan received a $9.8 million subsidy, The Cathedral Building received a $3 million subsidy, Ella Restaurant received a $750,000 subsidy, Pyramid Alehouse received $650,000 subsidy, and 717 K Street with retail and a restaurant (3 Monkeys) that has gone out of business $594,000. Last month the city approved another subsidy of $5.4 million to rehab buildings at 1012–1022 K Street in a partnership between David S. Taylor Interests Inc. and CIM Group to bring a vintage Dive Bar, pizza restaurant and upscale night club to three building that have been vacant more than eight years.

With the K Street Streetscape improvement project just kicking off at $4 million and Westfield Mall expecting to begin renovations at $40 million, as well as a proposal to open up K Street to vehicle traffic again, you might think things are on the up swing. But if you look back at the history of the street over the last 40 years, expensive improvements to upgrade the street have done little to make it an achievement.

If the goal is to get more foot traffic downtown then the city should only subsidize projects that add housing downtown. It now seems like nothing can be built downtown unless subsidies are part of the deal while at the same time city staff are waiving fees... the call for subsidies has become more rapid and will only falsely create a market that can't support it's self.

Editor's Note: The Sacramento Press editorial department found an error regarding the amount of subsidy received by the IMAX theater on K street and has corrected this article.

City Council meeting to determine fate of K Street redevelopment project

2009-03-10T07:57:24Z

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.

City To Close Historic Berry Hotel

2009-02-27T06:42:17Z

On Tuesday Feb. 24, the City Council authorized the purchase of the Berry Hotel from its latest owners, developer AF Evans. Despite the efforts of the developer to restore the hotel and maintain its use as housing for those with very low incomes, the city will soon close the Berry, without a plan to reopen it.

Built in 1929, the Berry was part of Sacramento's downtown hotel district, interspersed with theaters and department stores on the blocks near K Street. The Berry and other hotels like the Clunie, the Land, the Sacramento and the Clayton offered nightly rooms to some, while others were rented on a monthly basis. In the era after World War II, downtown hotels faded in popularity compared to the new motor hotels. As redevelopment changed the face of downtown Sacramento, destroying many rooming houses downtown, hotels like the Berry became more strictly residential hotels, renting almost entirely to monthly tenants. Because the rents were generally less expensive than other housing, those with the least money to spend moved into these hotels. By 1929 standards, the Berry was a comfortable and luxurious place; by the 1970s and through today, it was housing of last resort, one step above living on the street. These hotels became known as "single room occupancy" hotels, or SRO hotels.

In 2007, AF Evans and Trinity Housing purchased the Berry with the intent of renovating the hotel, but maintaining its role as an SRO. To make this project feasible, AF Evans applied for Tax Credit Allocation Committee (TCAC) low-income housing bonds. Housing developers can obtain tax credits when building low-cost housing, which helps make low-cost housing more economically feasible. A non-profit developer like AF Evans does not need tax credits, so these housing bonds can be sold to another company who needs a tax write-off. AF Evans' objective was to use the money generated by the sale of the bonds to repair the interior of the hotel, replace its aging plumbing and electrical systems, and retain almost all of its 109 rooms. A number of rooms were to be converted to ADA-accessible use, but all would be affordable units. The agreement also included provision for an on-site case manager who would provide supportive services for residents of the hotel who are disabled or senior citizens.

The current economic crisis made the sale of tax-credit bonds nearly impossible, as very few businesses are in need of a tax write-off. The bonds could not be sold, and AF Evans returned the tax-credit bonds to TCAC. They have tried to maintain the hotel, and have spent considerable time and effort figuring out how to repair the building, but the costs of repair are far greater than the income that can be generated from rents. Because they planned to vacate the hotel, rooms were not rented out as they became vacant, and the hotel currently has only about 50 tenants. Due to their inability to fund the project, AF Evans and Trinity Housing decided to give up sell the hotel to the Sacramento Housing and Redevelopment Agency (SHRA) for $1.

SHRA considered several scenarios before deciding on closure. Keeping the hotel open in its current state is not possible due to the deteriorated state of the building. Carrying out the developer's plan to restore the hotel would cost about $13 million, and would still require relocation of the building's occupants while construction was underway. On February 12, the SHRA board decided that the hotel should be closed until better economic times. This plan will still cost about $2.5 million to relocate the current residents and secure the building. AF Evans had developed a relocation plan in order to temporarily move residents during the building renovation. With the ownership change, the city is now responsible for carrying out the relocation plan, but instead the move will be permanent.

The closure of the Berry means that Sacramento's stock of SRO hotel rooms will drop by 108 units. In 1986, there were over 1000 SRO units in Sacramento, down from about 4000 units in the 1960s. In 2006, the city of Sacramento passed an ordinance committing to the maintenance of the remaining 712 SRO hotel rooms in downtown Sacramento. If rooms were lost, the city of Sacramento is responsible for creating replacement units. Since the ordinance was passed, two hotels have closed, leaving about 630 units, with no replacement units built or under construction. After the Berry closes, about 520 SRO units will remain.

SRO housing is, admittedly, the housing of last resort, but in these economic times, many people are in dire need of affordable housing. If they cannot find housing they can afford, they can become homeless. As low-income housing in rooming houses and SROs has disappeared, homelessness has grown into a national epidemic. SRO hotels are often indifferently maintained, but they are preferable to a tent by the river or a spot on a park bench. As the number of SROs shrink, the number in tents or on park benches grows. Can we afford to wait until better economic times when the need for affordable housing is greatest in times like these?

Another factor in the story of the Berry is the historic nature of the building itself. The building is not listed on the current list of city landmarks, only because the city has not placed it on the existing landmarks list, which supplanted an earlier citywide list of historic buildings. Past surveys of Sacramento's historic buildings identified the Berry as a priority structure, worthy of preservation for its architectural merits and its association with Sacramento's history. Even its connection with Theodore Kaczynski, the infamous Unabomber, who briefly stayed in the Berry, adds to the building's legacy. Loss of the Berry Hotel would rob our city of part of its architectural heritage, as well as a home for 108 people with few other options for housing.

There is another alternative to allowing the Berry to sit vacant, at risk for another fire like the one that destroyed the buildings at the corner of 8th &K, or those on 9th & J years earlier. Compared to new construction, $13 million for 108 units of very low income housing is practically a bargain price. Because restoration of historic buildings requires more labor than materials, a restoration project would mean more jobs for Sacramento construction workers than a new project of similar size, and require far less consumption of raw material than a new building. It would also prevent the Berry from becoming another boarded-up vacant building downtown. Because the building will continue to deteriorate whether or not it is occupied, that $13 million repair figure will only grow with time, so the sooner the project is taken up, the less it will cost. Fast action would also reduce the risk of disaster by fire, or demolition by neglect. As a renovated building, properly run, the building could become an asset to the community, and a place of hope for about a hundred Sacramentans. As a vacant hulk, it can only represent lost hopes and missed opportunities.

Sacramento: City of Saloons

2008-12-12T22:54:54Z

Talking to people who grew up in Sacramento in the 1930s-1950s exposed me to an aspect of Sacramento that I never expected. Despite its reputation as a place without much nightlife, Sacramento has a long history as a town that stayed open late, played as hard as it worked, and was seldom short of musical entertainment. At some point Sacramento got a reputation for being stodgy and unexciting, and most of us who grew up here assumed that was the case, but the historical evidence simply doesn’t back that up.

The best description of Sacramento night life in its early days comes from Mark Twain:

Territorial Enterprise, February 1866
LETTER FROM SACRAMENTO [dated February 25, 1866]
”I arrived in the City of Saloons this morning at 3 o'clock, in company with several other disreputable characters, on board the good steamer Antelope, Captain Poole, commander. I know I am departing from usage in calling Sacramento the City of Saloons instead of the City of the Plains, but I have my justification -- I have not found any plains, here, yet, but I have been in most of the saloons, and there are a good many of them. You can shut your eyes and march into the first door you come to and call for a drink, and the chances are that you will get it. And in a good many instances, after you have assuaged your thirst, you can lay down a twenty and remark that you "copper the ace," and you will find that facilities for coppering the ace are right there in the back room. In addition to the saloons, there are quite a number of mercantile houses and private dwellings. They have already got one capitol here, and will have another when they get it done. They will have fine dedicatory ceremonies when they get it done, but you will have time to prepare for that -- you needn't rush down here right away by express. You can come as slow freight and arrive in time to get a good seat”. –Mark Twain

While working on my Southside Park book, I spoke with Billie Kanelos of Old Ironsides. She described one of her favorite pastimes as a teenager, walking downtown to the Dairy Maid, an ice cream parlor, for banana splits. But this wasn't an activity that she did right after school, then home in time for dinner at 6 or 7 PM, but rather at about 11:00 PM after seeing a movie on K Street. The Dairy Maid, like a lot of other Sacramento eateries, was open until midnight or later, and occupied by people of all ages.

It wasn't the only place, either; K Street and J Street had dance halls, theaters, nightclubs and restaurants that were open well into the evening, some all night. Some of the most popular were the Trianon Ballroom above the Fox Senator Theater on K Street (one of about a dozen downtown movie theaters), and nightclubs like the Mo-Mo, Congo and Zanzibar Club along M Street. Many restaurants were open late or all night, with fare ranging from Italian dinners to Chinese food to waffles.

Sacramento had many breweries, the biggest of which was the Buffalo Brewery on 21st and P, and several wineries, including the California Winery just across R Street from Buffalo Brewery. Hop fields were plentiful around Sacramento, to meet the breweries’ demand. While much of the beer was exported (Los Angeles was a huge consumer of Buffalo Brewery’s beer) a plentiful amount was for local consumption. One of downtown Sacramento’s best known Victorian era buildings, the Ruhstaller Building on 9th and J, was the taproom for Captain Frank Ruhstaller’s brewery on 12th and H, the Capital City Brewery. Buffalo Brewery’s taproom, the Buffalo Club, stood on 19th and S Street until being demolished a few years ago.

Prohibition, the nationwide ban on alcohol in the United States from 1920 to 1933, slowed down the official production of alcohol, and closed many breweries and wineries, but even then, Sacramento was notorious as a “wet” town, with many speakeasies downtown and in the outlying farm communities. At one point, officers of nearby military bases forbade their soldiers entry into Sacramento, due to Sacramento’s reputation as an easy place to get a drink. When Prohibition ended in 1933, legendary tavern Old Ironsides received Sacramento’s first official liquor license after Prohibition. It should be noted, though, that by the time Old Ironsides opened its doors, there were already other bars operating that had not yet bothered with the formality of obtaining a liquor license.

Others I met during my research for the book talked about the K Street cruise, Sacramento’s original cruise. Although in the 1950s and 1960s downtown Sacramento was changing, largely due to the explosive expansion into the suburbs and redevelopment pressures, there was still plenty to do downtown.

Redevelopment had a profound effect on downtown Sacramento, including both its nightlife and its population. The Capitol Mall project destroyed most of the residential neighborhood along M Street, including the aforementioned Mo-Mo, Congo and Zanzibar clubs, while Interstate 5 destroyed whole downtown blocks. One objective of downtown redevelopment was to reduce the population of the central city from its 1950s level of about 32 residential units per acre to a more suburb-like 8 residential units per acre. To accomplish this, 75% of downtown’s population had to be removed. Many of the remaining 25% could not afford the limited number of garden apartments that replaced earlier multi-story apartment buildings, rooming houses, and other residential buildings, resulting in an almost complete shift in the neighborhood’s population.

By the end of the redevelopment era, Sacramento’s downtown was almost depopulated, except for the several thousand residents of the old waterfront residential hotels. These hotels were closed, and either demolished or converted into non-residential structures as part of Old Sacramento. Because redevelopment-era case workers did not consider single individuals to be residents, working only with families, they were ineligible for relocation assistance or alternate housing. So they moved from their old homes into other hotels along K Street, some of which are still used as residential hotels.

One unintended effect of this depopulation was the elimination of most of the customers that came downtown, either on foot or by streetcar, to eat, drink and be entertained. Remaining businesses suffered because their customers now lived much farther away. Sacramento’s middle class had moved to the suburbs, and car-centric places like shopping centers, suburban movie theaters and drive-ins, and new indoor malls were more convenient than driving downtown to shop on K Street. Parking was limited, the streetcars were gone, and walking was no longer practical. Before long, downtown Sacramento had changed dramatically. Without customers with money to spend, the handful of remaining businesses had little reason to stay open late, or to stay open at all. New businesses focused their attention on the remaining market, mostly office workers who left at night. It was this era that gave Sacramento its reputation as a place that rolled up its sidewalks at 5:00 PM.