Changes in Old Sac

2009-08-31T02:11:58Z

Locals who hit Gold Rush Days over Labor Day Weekend will notice some changes in Old Sacramento.

New business activity including historic building reconstruction is underway. While the addition of new ventures hasn't totally offset the loss of others, tourism revenue for 2009 seems to be holding steady with 2007 and 2006, said Melissa Martinez, executive director of the Old Sacramento Business Association, a business improvement district.

"We're staying steady in tourism," said Martinez. "That’s a really good sign."

In 2007, retail businesses brought in $2.25 million in sales tax revenue, about the same as 2006. Tax receipts dipped by $129,000 in 2008 — primarily due to the I-5 renovation, she said. Roughly 2 million to 3 million people are believed to visit Old Sacramento each year.

In the last 18 months, 12 businesses have opened and 19 have closed in the historic district.

A new restaurant is set to open this fall, and significant construction has just begun to replace the buildings which contained the Ebner Hotel and Empire House, which had stood on K Street since at least 1856. The construction will add retail and office space behind a facade that replicates the two original buildings as closely as possible. The new building will not house a hotel.

Some businesses are getting creative to draw in more customers now. On Thursday, Renaissance Faire veteran Chris Reyes started her first day walking the wooden sidewalks in a black fairy outfit and handing out fliers for the 23-year-old Garden of Enchantment. Half of the sidewalk leading to the tiny shop at 126 K St. is closed as part of the Ebner/Empire construction site.

The long-awaited reconstruction of the side-by-side historic hotels and the start of other new ventures are “promising signs” for the area, said Natalie Birk, manager of the city's Old Sacramento Historic District.

"We've got a lot going on," she said.

The most notable loss was California Fat's Asian Grill & Steakhouse, which closed in May 2008 after 35 years as a restaurant location. The 1015 Front St. site, which the Fat family operated under several names, is still available for special events. Another big loss was Discover California, which had operated for 17 years. The store had sold mainly souvenirs and fudge. The owners added a wine bar in the store a year or two ago, but that wasn’t enough to save the shop, Birk said.

Fulton's Prime Rib & Grill closed in sub-level Pioneer Square previously. In addition, Vanity Salon closed on the ground floor of D & S Development’s iLofts at 120 I St. One of the partners, Brenda Overbo, reopened as Brenda’s Hair Studio above Pioneer Square. D & S is now talking with prospective retail tenants to fill the open space.

Second Street holds a lot of vacancies. A knickknack and gift store run by a woman and her son for 20 years closed there just last week, after being unable to hang on until Gold Rush Days, said Hassan Shaikh, a store clerk at a nearby purse and sunglass shop called 17.

Shaikh said he's sad neighbors have had to close during the recession.

"In Old Sacramento, we all feel like one community. We're all pretty much trying to help each other," he said. "We're all trying to make it and stay out of the red. It's a struggle for all of us right now."

Many businesses along the train tracks were closed because that area is going to be ripped out, Martinez said. Other vacancies, including sub-level and alley locations, are sprinkled throughout Old Sacramento.

However, there's been significant new activity as well.

Across from the California State Railroad Museum, the spaces surrounding Pioneer Square were remodeled and have been available since June for shops, a restaurant and wine bar.

D & S has sold eight of the nine live-work iLofts, which were completed in the old Mechanics’ Exchange building in 2007. The company expects to learn next week whether a buyer will purchase the $396,000 third-floor penthouse, or a different tenant will rent the space, said company representative Bay Miry.

The 1,000-square-foot unit comes furnished and features a contemporary look with marble floors and red granite in the kitchen. Views include Old Sacramento, downtown high-rises, the Sacramento River and Tower Bridge.

Last spring, Brickside restaurant opened at 106 J St., where Cantina Del Rio had served Mexican food since August 2005, and River City Saloon opened at 916 Second St. in the former home of the Earl Gray Manor, a tea salon that closed in August 2007 after only two years.

Hornblower Cruise ships now sit docked on the Sacramento River. The company has been offering history, dinner and Sunday brunch cruises since July. Also that month, Old Sacramento got clean, new restrooms built by the city next to the grassy area in front of Rio City Café.

In October, Old Sacramento Properties, a division of Harvego Enterprises, expects to open a restaurant, Ten22, on the ground floor of its new building, the Orleans. The mixed-use construction featuring 24 rental lofts was completed last September. Harvego has owned The Firehouse nearby for 10 years.

Crews are currently working on the restaurant's interior, which will create a light, vibrant atmosphere. The 6,900-square-foot space will seat 190, while a 2,400-square-foot courtyard will seat 100, said Harvego Enterprises Director Terry Harvego. American food "with a twist" will be served.

The Hall, Luhrs & Co. building, which long ago housed a wholesale grocer, is being renovated. Owner Mike Stafford of Stafford Architects Associates recently had a wall added to divide a front office space from the rest of the cavernous old building at 914 Second St. Once the renovation has "progressed sufficiently," Stafford plans to move his firm from a penthouse at 1107 Ninth St. to the Old Sacramento location and rent out the rest of the building, according to marketing materials in the windows. Neither Stafford nor his staff returned phone calls.

A few weeks ago, the owner of the original 17 on Second St. opened a second shop by that name at 127 J St.

Many of the closings happened when businesses relocated to buildings or areas where rent was lower, Martinez said.

"From a retailer's perspective, it’s a lot easier to go to a strip mall and pay a third less, maybe, and have all those current amenities that you won’t have in a historic building," she said.

To do business in Old Sacramento, owners must be willing to locate in an area with limited street entrances, smaller shops and windows, and fewer modern amenities. In exchange, their businesses get an "exclusive feel" from being in a historic district and they become part of a tight-knit community of unique little shops filling the "nooks and crannies" of Old Sacramento, said Martinez.

"They’re little treasures," she added.

Photos by Suzanne Hurt, a staff reporter for The Sacramento Press.

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Changes in Old Sac