Newest articles on The Sacramento Press tagged as "the railyards"

Ashby talks arena, Natomas housing

2010-12-07T02:09:13Z

New Sacramento City Councilwoman Angelique Ashby hosted a driving tour of North and South Natomas and the Gardenland/Northgate neighborhood for The Sacramento Press on Monday. Throughout the tour, Ashby commented on a range of issues affecting Natomas, including plans for a new basketball arena and her views on the city’s low-income housing ordinance.

Ashby’s district includes the downtown Railyards and Natomas — two spots discussed in recent months as potential homes for a new arena. As she drove by Arco Arena, she said she wants to ensure that site in Natomas is factored into any development plans for a new sports and entertainment complex.

“But if the consensus is that if an arena best serves the city of Sacramento by being built downtown, or the Railyards, or wherever, then I’m OK with that — so long as that plan includes a designated re-use plan for this Natomas site,” she said.

“And I won’t be in support of anything that doesn’t address the Natomas component.”

While driving around North Natomas neighborhoods, Ashby expressed her views on the area’s planning issues. She said she would like to reexamine a 2000 city ordinance that aims to distribute affordable housing in neighborhoods.

“Because of the low-income inclusionary housing ordinance only applying to new growth areas, we have a lot of low-income inclusionary housing in North Natomas,” she said. “[This] isn’t really a problem, except for that it’s all stacked up. And we don’t have any services for low-income folks.”

For example, North Natomas doesn’t have a food bank, she said.

“Let’s see if there aren’t some modifications (to the ordinance) we can make to help stabilize our communities,” Ashby said. “And make the neighborhoods a little bit more balanced as they address serving the needs of folks.”

Ashby also pointed out large, neglected structures that were supposed to be developed but are now bank-owned blight. She nicknamed the failed development near East Commerce Way “Stonehenge,” and said the structures should be torn down. Graffiti and a knocked-down Porta-Potty were some of the features of the site.

Ashby also provided a tour of South Natomas, pointing out Regional Transit’s plans to run a Light Rail line there on a busy part of Truxel Road.

“I’m just not convinced that running Light Rail down this street will help it,” she said. “But I’m open to the discussion and I’m listening.”

Ashby also commented on the relationship of the Gardenland/Northgate neighborhood to South Natomas. “I think Gardenland/Northgate is its own community. But they very much are neighbors with, and associated with, South Natomas,” she said.

Ashby expressed optimism about the Natomas community and future plans for the area. “Who would choose to live here, I think, is a pretty cool family,” she said. “It’s somebody who wants a suburban setting like a Rocklin or a Roseville, but they want to be in the city of Sacramento. They want to be green ... They would be willing to hang out downtown.

“When people talk about building out downtown, this is who is going to go down there and shop and eat,” she said. “So, what you don’t want is to allow this community to fall apart at the seams. Because this is the community that will help stabilize the rest of the city if we can keep it as an attractive solution to the suburbs.”

Photos by David Watts Barton.

Kathleen Haley is a staff reporter for The Sacramento Press.

Railyards rolling along

2010-07-28T22:57:47Z

Work on what is called "one of the largest urban infill sites in the nation featuring environmental benefits and smart growth" steams forward with the buliding of the 5th and 6th Street bridges on the site's 240 acres.This view looks northwest towards I-5 (above and below).

This tall steel structure was raised early this morning. The exact name/function of it is unknown to the photographer.

The property is the site of the western terminus of the Transcontinental Railroad which later produced engines, cars, track and other equipment for the railroad. During its peak, the site housed the largest railroad facility of its kind west of the Mississippi and employed one third of all the workers in Sacramento.

Housing

The Railyards will include 12,000 mixed-use high-density housing units, including town homes and condominiums. Incorporated throughout the project, housing will include for-sale, rental units and affordable housing. The northeast portion of The Railyards will include a park-like green belt with water features where residents can meet, shop, eat and relax.

Sports and Entertainment
The development plan includes a possible sports arena, with supporting restaurants, clubs, office space, a hotel, retail, housing and parking.

Transportation

The city proposes to construct a new Sacramento Intermodal Transit Facility (SITF) along with a new track alignment featuring light rail, rail and bus connections, freight services and pedestrian linkages on the south end of the property. This will facilitate and support the growing transportation needs of the region, including Amtrak’s third busiest route in the nation, the popular Capitol Corridor.

Central Shops
A vibrant urban destination, featuring the preservation of seven notable historic brick structures, the Central Shops, which were built by the railroad beginning in 1868.

Over the next 20 years, the project will generate an overall regional economic impact of $33 billion by creating 19,000 permanent jobs, 2,800 annual construction jobs and resulting in an ongoing, annual positive economic impact of $2.7 billion.

(Information from The Railyards press release)

SacPress Photos | Kati Garner

Arbitration close for Railyards land

2009-10-29T02:27:04Z

The city of Sacramento and Railyards developer Thomas Enterprises expect to move forward Monday on attempts to put a price tag on key land needed for a future regional transportation center.

The city exercised its right to request an independent arbitrator after both sides failed to agree on the price of 33 acres needed to build the transportation center, an expansion of the historic Sacramento Valley Station into the 244-acre Railyards development.

A public hearing has been set for 9 a.m. Monday at Sacramento County Superior Court to help narrow down the list of potential arbitrators qualified to set a value and price for the land, which will also contain relocated railroad tracks and other infrastructure needed for the transit center and the Railyards development, said Sheryl Patterson, senior deputy city attorney.

Each side will submit five names to a judge. The judge will winnow that to a list of the five most qualified.

Both sides will then strike names from the list, after the judge tosses a coin to decide who goes first. Arbitrators will be crossed off if not available. The arbitrator is expected to be selected and the dates of arbitration hearings set by the end of next week, Patterson said.

Photo by Eric Whalen. Suzanne Hurt is a staff reporter for The Sacramento Press.

Agencies plan RR track mitigation

2009-09-17T01:07:56Z

Concerns about historic Southern Pacific railroad shops and other archaeological resources delayed the environmental review process for the future regional transportation center proposed for the Railyards.

A complicated review process also caused delays as federal, state and city planners worked out plans to mitigate environmental and other impacts expected from the future depot, which will connect with the historic Sacramento Valley Station.

Under the National Environmental Protection Act, the Federal Highway Administration (FHWA) conducted a review of the city's proposal to prevent or offset impacts to wildlife, air and water quality, historic buildings, building occupants and train passengers during construction and operation of the new depot and relocated train tracks. The environmental assessment was approved Aug. 31.

Federal agencies conducted concurrent reviews of the environmental assessment, so the process took less time than it would have in the past, according to the FHWA. The process took more than a year, compared to the average three to five years a linear review usually takes.

Still, the number of agencies involved, the lack of experience some agencies have with environmental reviews and the fact that conducting concurrent environmental reviews is a new procedure postponed a decision the city expected months ago, said Ellie Buford, the city's principal planner for the environmental review of Sacramento's intermodal facility.

"Last-minute" concerns arose over potential impacts to the built environment's historic properties, archaeological resources which are listed or eligible to be listed with the National Register of Historic Places, she said.

Those properties are the Central Shops Historic District, which dates back as far as 1868; the Sixth Street levee, built from 1852 to 1880; the Sacramento Southern Pacific Railroad Station District, built in 1925; and the Southern Pacific Railroad Depot, a national landmark now known as Sacramento Valley Station, built in 1925.

The train tracks will be moved closer to the Central Shops. The future depot will be located between the Central Shops and the Sacramento Valley Station.

The agencies involved want to make sure the four historic properties are protected, according to the FHWA. In the last stage of the review process, a document was added that spells out additional ways these resources will be protected.

According to the new document, known as the Intermodal Built Environment Treatment Plan, the city must assess the current condition of historic properties and monitor the foundation of the historic central railroad shops during construction and operation of the train tracks and depot for vibration and stability. The California Department of Transportation (Caltrans) must determine the protective measures required for each phase of the intermodal project.

A detection of harmful vibrations could lead to a stop in construction and the need to use alternative construction methods, as well as reinforce the buildings, Buford said.

The worst-scenario is that vibrational impacts from driving pilings into the ground and other construction could cause the shops to fall down, said Deputy State Historic Preservation Officer Stephen Mikesell, who has been heavily involved in the environmental review on behalf of the California Office of Historic Preservation.

While that is "highly unlikely," the possibility has led to the need for monitoring, he said.

Geotechnical studies indicated that no structural damage would occur from the construction or operation of the tracks, Buford said.

The state Office of Historic Preservation signed off on the environmental assessment with full confidence, Mikesell said.

"I feel pretty good that the resources are pretty well-protected," he said. "We're confident the city is prepared to do the right thing."

The document spells out the city's right to enter the Central Shops, which are privately owned by Railyards developer Thomas Enterprises, to conduct the monitoring. That agreement had to be worked out in recognition of the public-private partnership which is simultaneously developing the Railyards and adjacent depot, which is integral to design plans for the Railyards.

In addition, the document requires the city to hire a qualified consultant to prepare historic structure reports for each of the properties, in accordance with Historic American Building Survey/Historic American Engineering Record standards.

If the finding must be registered with the Library of Congress, the FHWA must ensure the Caltrans contacts the National Park Service (NPS) to determine the documentation needed for each resource, according to the document. Then, Caltrans must get NPS approval of at least documentary photographs before any construction can begin that would impact a historic property.

Otherwise, appropriate documentation must be determined by the California State Parks Office of Historic Preservation and Caltrans. The document also requires the city to prepare archival copies of the documentation for federal or state repositories.

The Sixth Street levee is important because it represents three distinct episodes in levee construction, which document residents' struggle with decades of flooding by the American and Sacramento rivers. The levee preserves the technological responses used at the time and may contain artifacts. Settlers built the levee, one of the city's first, using anything they had. Specialists will have to go through a section of it to see if pottery or any other archaeologically valuable items were used, Buford said.

The Native American Heritage Commission told the city its Sacred Lands File contains no record of native American cultural resources in the project area. Four native Americans and a group representing native Americans didn't respond to the city's requests for information about whether the site was believed to contain artifacts or significance.

In the document, standard mitigation measures were outlined to protect the endangered Swainson’s hawk and Valley Elderberry Longhorn beetle, as well as bats and purple martins identified as species of concern, or their habitat.

Elderberry bushes provide critical habitat for the beetle. Three elderberry bushes within 20 feet of existing tracks must be moved to a nature preserve or mitigation bank to prevent disturbance from heavy construction equipment. The other bush, which is more than 20 feet from the site of the future tracks, can be fenced.

A survey will be conducted to determine if Swainson's hawks are nesting in trees during their February to September breeding season. If so, heavy construction equipment won't be used within 2,000 yards, according to Buford.

Purple martins have been nesting under a ramp from the I Street bridge. Biologists have recommended planting pine trees to offset the loss of disturbed nesting space under the ramp, erecting permanent perching wires to offset other utility wires that are coming down and other measures that would protect nesting materials and flight. Biologists also may build bird houses for the species, she said.

Biologists must update information about bats, which include the pallid and Pacific Western big-eared bats. Intermittent roosting but no nesting was observed under I-5 and the I Street ramp. Mitigation measures will be determined based on what a new study finds, she said.

Photos by David Watts Barton. Suzanne Hurt is a staff reporter for The Sacramento Press.

New depot gets environmental OK

2009-09-16T02:49:20Z

Sacramento's future regional transportation center has gotten a green light to move on to its final design phase after clearing a federal environmental hurdle, months later than expected.

The U.S. Department of Transportation's Federal Highway Administration (FHWA) on Friday confirmed the city's proposed "intermodal facility" has made it through the federal environmental review process required due to federal funding for the project. Approval was delayed due to the complicated review process and concerns about the impact on historic Southern Pacific railroad shops and other historic properties.

Federal transportation officials, along with other federal and state agency staff, have determined the new depot will not have significant impact on the environment as long as proposed mitigation measures are followed.

The FHWA signed off on the project's environmental assessment by issuing a "finding of no significant impact," or FONSI, for the first two phases of the transportation center, an expansion of the historic Sacramento Valley Station into the 244-acre Railyards development site. The FHWA actually signed off on the FONSI Aug. 31 and then notified the city of Sacramento, the lead agency on the project.

This environmental approval allows the city to submit construction authorizations for phases 1 and 2 to the California Department of Transportation by Dec. 1. Meeting that deadline ensures the project will still get $20 million in stimulus funding for the $56 million track relocation.

"It's a very important milestone for our project," said Hinda Chandler, project manager and a senior architect with the city's Department of Transportation.

Construction of Railyards infrastructure is expected to start within a month after the California Department of Housing and Community Development agreed to begin doling out $47 million in Prop. 1C money awarded in June 2008 to Railyards developer Thomas Enterprises. Following a six-week hiatus, the company will begin building the bridge at Fifth and H streets to extend Fifth Street into the Railyards.

The environmental approval allows the city to get easements and permits for utility relocation and to initiate final design work, in order to show by Dec. 1 that the city is ready to begin construction. The city had expected to get FHWA's approval on the environmental review process months ago, according to Chandler and Linda Tucker, spokesperson for the city's transportation department.

While construction had initially been anticipated for this fall, the delay put off construction for Phase 1 — track relocation — until March 2010, due to the lengthy bidding process that must now be held. Construction of Phase 2 — $30 million in expansions and improvements to the existing depot at Fifth and I streets — is expected to begin once track relocation is complete.

The expansion is expected to equip Sacramento to meet regional transportation needs for freight trains, service operators and passengers until at least 2025.

Sacramento Valley Station sits on a major national trade route called the Central Corridor, whose western junction is the high-volume Port of Oakland. The volume of imports and exports handled by the port via Sacramento has outgrown the 1925 station's current track setup, where freight and passenger trains share three tracks.

This has created a bottleneck for freight trains. As freight rail tonnage is expected to double by 2025, the situation would only get worse, and the Port of Oakland would be unable to handle growing trade.

Building tracks devoted to freight is expected to eliminate the bottleneck and enable a higher volume of freight trains to move more quickly through Sacramento, Tucker said.

In addition, Sacramento's station has not been able to keep up with the increasing number of train passengers. The station is already California's second-busiest train depot and the seventh busiest in the country, with 1.5 million train users each year and a roughly estimated 200,000 others using light rail, taxis, and local and Amtrak buses.

Cities are finding that downtown train stations are easier to access than airports outside cities. Train travel is becoming more popular after a decline that lasted 50 years, Chandler said.

Ridership is especially growing between Sacramento and the Bay Area. Expanding the transportation center to include a bigger, modern terminal and more space for trains, buses and other transportation is expected to draw up to 7.5 million users by 2025, and as many as 15 million if high-speed rail is added, Chandler said.

The station has eight Amtrak bus bays. The new regional center is expected to include 24 local bus bays and 11 for Amtrak and Greyhound buses, plus room for high-speed rail if needed.

In June, the Sacramento City Council voted against its 2007 decision to move the existing station 300 feet north, next to relocated train tracks. Councilmembers changed their minds after discovering an unnecessary station relocation would make the city ineligible to get federal funding for up to 80 percent of the project.

A California Environmental Quality Act review was conducted previously. Under the National Environmental Protection Act, an environmental review must be conducted by the lead federal agency when a project is getting federal funding. The new transportation center will get money from federal highway, transit and railroad programs through the U.S. Department of Transportation.

The FHWA and other agencies have been carefully reviewing the city’s proposal for more than a year. The other agencies include the California Department of Transportation, the state Office of Historic Preservation, the U.S. Fish and Wildlife Service, U.S. Environmental Protection Agency, the Federal Railroad Administration (FRA), the Federal Transit Administration and their state equivalents.

"It's a pretty good-sized project," said FHWA spokesperson Doug Hecox. "It's something we (took) great pains to be careful about."

The agencies worked quickly to make sure the project wouldn't lose the stimulus funding in what FRA spokesperson Warren Flatau described as "choreographed bureaucratic collaboration."

"Everyone (was) committed to doing this in record time," he said.

To expedite the project, the agencies conducted concurrent reviews — a relatively new practice. Until two or three years ago, federal environmental reviews took an average of three to five years, and sometimes up to eight, while each agency took its turn reviewing the environmental assessment document, according to the FHWA.

An environmental review for Phase 3, estimated to cost $252 million, must be done at a later date because the design for that phase is still only conceptual, Chandler said.

That phase could involve major renovation of the historic station building. Phase 3 isn't funded and may not happen for many years, said Deputy State Historic Preservation Officer Stephen Mikesell, who has been heavily involved in the environmental review on behalf of the California Office of Historic Preservation.

A combination of federal, state and local funding is being used to finance the entire project. Last year, the project was awarded another $20 million in trade corridor funds under state Proposition 1B to fund track construction that will eliminate the bottleneck.

The city expects the state to issue bonds and award that funding within six months. If the state is no longer able to provide that funding, the city is confident the funds can be found elsehwere, Tucker said.

The city applied for $6 million more for Phase 1 in August, and on Tuesday, expects to submit an application for $30 million more, mostly for Phase 2.

An engineering consultant is designing the relocation of freight and passenger tracks, which will be moved north by 300 feet at the closest point and 500 feet at the farthest. The tracks will be straightened to allow long platforms and thus, longer trains.

Tracks will no longer be shared upon completion of this project. Four passenger tracks, two passenger platforms and at least two freight tracks will be built. The new configuration should increase passenger safety while no longer requiring freight trains to slow down as much. The tracks and new, longer platforms will allow more and longer trains, Tucker said.

Relocation of the tracks should take about a year. Tracks and signals will then be tested for three to four months. The new tracks are expected to be operating by mid-2011, Chandler said.

The historic rail station became a government facility in 2006, when the city bought that and nine acres of land from Thomas Enterprises. Amtrak leased the station from Union Pacific prior to the developer's purchase of the site.

The city is in arbitration with Thomas Enterprises as the two sides try to agree on the value and price for another 24 acres that the city has an option to buy, Chandler said. Negotiations aren't holding up track relocation.

The existing station will continue to be used as the depot during construction of the first two phases. Improvements to the historic station will include restoring an entrance at Fourth and I streets, which will highlight the station's architecture and allow passengers to enter from the front.

Once the larger facility is built to the north across the tracks, the historic depot will be used as a gateway to the new depot and as one location for baggage and ticketing.

"We feel it'll be a seamless blend of old and new," Chandler said.

However, the long-term use of the existing depot hasn't been settled. That could continue to be used as part of the depot or for an unrelated purpose, Mikesell said.

Photos by Eric Whalen. Suzanne Hurt is a staff reporter for The Sacramento Press.

Street Interview: Railyards

2009-09-02T01:54:35Z

The Sacramento Press is all about providing an outlet for everyone in the community. We hit the street recently to get people's opinions about The Railyards.

This week's questions:
1. What do you think is going into The Railyards?
2. What would you like to see go into The Railyards?

Steve Cagle, 52
Host, KVMR 89.5 FM's Blues Spectrum
Woodlake Neighborhood

1. "I thought it was going to be a downtown residential and commercial area with shops and lofts, town homes, little shops and cafes."

2. "Anywhere there's an open space, you're going to see transient people and/or homeless. People on the go with nowhere to go. You can push them other places just so far, until there's nowhere to push. I think when there's new building in the inner city, there should always be services for those who will be displaced. Like in Chicago — Travelers & Immigrants Aid. Not a drop-in center, but a place to go for information, or maybe a bus token, or where they can provide transportation to services. They should include that in the building plan — next to the cheese store or something."

Linda Mehawk, No Age Given
Stage Agency Analyst
Dixon

1. "I thought a sports arena was going in there."

2. "I'd like to see anything that brings more diverse cultural activities to Sacramento — like Los Angeles. I have lots of friends in LA. And there's always so much to do and to see and experience. It would attract more tourists. And plenty of parking. Honestly, parking can be a big deal."

Ed Castro, 77
Owner, Ed's Threads
Hagginwood Neighborhood

1. "I just hear bits and pieces. But I know at one time they were talking about putting in an arena for the Kings."

2. "I would say: definitely not an arena for the Kings. That would be number one on my list. The Kings are Las Vegas. The owners own casinos. In fact, if the Kings would leave town, I would be thankful. I guess probably housing and storefronts, maybe an arcade. What I wouldn't want is a vintage clothing store there — 'cuz that's what I do."

Kate Foster-Hunt, 59
State Worker
Sacramento

1. "I thought apartments and shopping, but I thought that fell through. As far as I know, nothing's happening now."

2. "I probably wouldn't go unless there's a market. We used to have a market on J Street many years ago. You could eat there and it was wonderful. So something like the old public market from the '50s."

Chris Ferris, 39
Stay-at-Home Dad/Media Monitor
Midtown

1. "I think there's going to be loft housing and shops, like a pavilion-type area, and an outdoor concert venue."

2. "I know they're going to do loft housing. Maybe family housing. And instead of bigger retail, maybe more independent stores: clothing stores, a record store would be nice. The big retail shops are nice, but I don't really go into those. I live in Midtown and I walk around a lot. It'd be nice to have a place that didn't shut down at 6 o'clock."

We welcome your suggestions for future "Street Interview" questions. Suzanne Hurt is a staff reporter for The Sacramento Press. She can be reached at suzanne@sacramentopress.com or 804-2856.

Mayor: City may face more layoffs if state takes funds

2009-07-22T03:38:55Z

Mayor Kevin Johnson is worried that the state’s plans to take local revenues could lead to more layoffs of city workers and slow major development projects. County government officials are also alarmed about the state’s plan, which could be approved by the Legislature on Thursday.

Legislative officials and Gov. Arnold Schwarzenegger are planning to use local funds to help balance the state’s $26.3 billion budget gap. The Legislature may take $1 billion in gas tax funds and $1.7 billion in redevelopment funds from local governments throughout the state. The state plan also includes borrowing $2 billion in revenues from local property taxes.

Earlier this month, the city laid off 135 workers and made severe cuts to programs to balance its budget for the 2009/2010 fiscal year.

Johnson told reporters Tuesday that he is participating in efforts to lobby against the state proposals. “I’m making phone calls, and we’re lobbying like crazy,” he said. “I don’t know if there’s anything we can do at the end of the day, but we as a city need to be prepared.”

If the Legislature approves the plan to take money from local governments, the city would likely have to lay off more of its employees, according to Johnson.

“I’m a little bit in denial,” Johnson said, referring to the prospect of more layoffs.

Sacramento would be able to part with local property tax funds because the city can borrow from its risk funds, Johnson said. However, the city is concerned about the possible impacts from the state taking redevelopment and gas tax funds, he noted. Johnson said major development projects in Sacramento, such as The Railyards, Township 9 and Curtis Park Village, could be affected if the city is compelled to give redevelopment funds to the state.

The county could also face hardships if the Legislature approves the plan as part of the state budget. County spokesman Zeke Holst said redevelopment projects would have to wait if the state takes local redevelopment funds. If the state borrows from the county’s property taxes, county social services programs will suffer, he said.

If county gas tax funds are tapped into by the state, road maintenance in the county would be delayed, he said.

*Photo by Cheyenne Cary

Kathleen Haley is a staff reporter for The Sacramento Press.

Railyards shops cleanup to start

2009-07-02T03:28:08Z

Cleanup of historic Southern Pacific railroad shops is expected to begin late this month as the next phase of the Sacramento Railyards project kicks into gear.

Hazardous materials including lead paint, asbestos, metals and other industrial toxins need to be removed from the shops, which were built starting in 1868. Georgia developer Thomas Enterprises has put the abatement project out to bid and expects to award the contract in the next few weeks, said Richard Rich, development director for the Railyards project.

In its heyday, Southern Pacific practically owned the town. The railyards drove Sacramento's economy, and nearly a third of all the city's residents worked there. The shops lay at the center of the railyards.

The Railyards project, the country's largest infill project, will not only double the size of downtown, but the mixed-use district is being designed to recapture the importance of the former railroad site. The Central Shops being redeveloped near the Sacramento Valley Rail Station depot are the key to that, Rich said.

"Right now, the depot is kind of in a forgotten corner of downtown," he said. ""That'll put enough urban fabric around the depot that it becomes the center of the city again."

On Monday, the city won $55.8 million in Proposition 1C infill redevelopment funds from the California Department of Housing and Community Development. About $30 million will go to the $6 billion Railyards project. The new funding brings the project's state public bond funding to $115-$120 million, although none of that has been received, said Thomas Enterprises Vice President Suheil Totah.

The Railyards project also won $20 million in federal stimulus money this year and another $8 million in federal funds for a freeway connection project. The city and developer are pursuing another $100 million in federal stimulus money to help fund the city's future intermodal transportation facility. Developments are expected soon on the city's bid to get National Enviromental Policy Act approval for the facility.

The city has committed funding to the project and promised to build a city parking garage there as well. Thomas Enterprises has invested $200 million in the project so far. Private investment is expected to total about $5 billion, Totah said.

Central Pacific originally established the railyards during the steam locomotive era. The company later became Southern Pacific. The 244-acre site grew to contain at least 243 buildings.

The shops and other buildings began falling into disrepair in the 1930s when the Depression brought reduced rail traffic.

About the same time, diesel locomotives began to gain favor over steam locomotives. The Sacramento Railyards had been set up to produce and repair steam locomotives. Some diesels were worked on there, but retooling the railyards for diesel proved too difficult.

In addition, Southern Pacific moved most of its maintenance work to rural areas like Roseville as Sacramento grew. The railyard shops officially closed in 1999, four years after Union Pacific bought Southern Pacific.

Seven brick shop buildings were all that remained when Thomas Enterprises bought the site for an undisclosed amount in December 2006. All seven will be preserved and rehabbed for adaptive reuse. The massive Boiler Shop and Erecting Shop will be used for the state's Railroad Technology Museum.

Thomas will rehab the other five shops. The 56,000 former Paint Shop will contain a public market selling Central Valley products including produce, cheese, wine, meat and fish — similar to San Francisco's Ferry Building — near an extended Fifth Street. Other former railyard shops will house restaurants, nightclubs and retail stores. In the center, a football field-sized plaza will be built to hold large city events, a farmers' market or small performances.

"These buildings, which will surround the public open space, will form the nucleus of the cultural district," Rich said.

Hazardous materials abatement work is the first step to rehabbing the shops. About 80 percent of the work will be to remove lead-based paint from interior brick. Ten percent will be to remove sheetrock, floor tiles and pipe insulation containing asbestos. The rest involves other contaminants including heavy metals and polychlorinated biphenyl or PCB, he said.

The "significant" cost of abatement won't be known until crews get into the work. Thomas Enterprises tested methods to remove the paint without damaging the hard, fired surface of the brick. Nothing worked, said Rich.

"That put us in a difficult position of how to do it without damaging the brick," he said.

Standards set by the U.S. Secretary of the Interior dictate that the interiors of historic buildings that were originally covered with paint must likewise be covered with paint during rehab. Workers will gently scrape as much lead paint off the walls as possible and the brick will be encapsulated with lead-free paint, he said.

Thomas Enterprises broke ground on the infrastructure phase last winter. Initial grading of Railyards Boulevard and northern portions of Fifth and Sixth streets has been done. Extending Fifth and Sixth streets into the site will help connect the railyards with downtown, said Totah, adding that more infrastructure work will start once the developer gets the state funding it's been awarded.

Building construction is expected to start next year on 5th, 7th and Camille streets. Construction may include housing, mixed-use and office.