K Street Mall

K Street Mall projects closer to groundbreaking

2011-05-20T04:48:53Z

Redevelopment projects for the 700 and 800 blocks of K Street cleared a final hurdle on their way to the Sacramento City Council when the city's Preservation Commission approved both Thursday night.

The commission called a special meeting to consider the final major design components after both projects were approved by the Planning Commission last week. A City Council vote of approval, which will be set for sometime in June, would mean groundbreaking could finally begin on two key blocks of K Street Mall that have long been eyesores.

The projects will add 337 mixed-income apartments in the downtown core, rehab the landmark Bel-Vue Apartments and restore all but one of the building façades on the south side of the 700 block of K Street. The projects were both approved unanimously by the five commissioners present.

Activists in the city's preservation and housing communities have worked long and hard for housing and historic preservation there. The community raised an outcry over a previous project that proposed tearing down the Bel-Vue, recalled Preservation Commission Chair Karen Jacques.

"Finally, we are going to see some really nice development on both the 700 and the 800 blocks of K Street. That's a huge boost for this city," she said. "Those two blocks have been a disaster for so long. With these projects, the historic buildings are getting saved."

The special meeting was held Thursday, rather than waiting for the commission's next scheduled meeting in June, to get the projects to the council as soon as possible. The projects may qualify for redevelopment funding that is at risk of being lost if Gov. Jerry Brown abolishes redevelopment agencies to help solve the state's budget woes.

No one is certain when that might happen. Some officials and developers fear it could be as soon as June 30.

In addition, developers want to get the projects under way to get lower bids during an economic downturn when little construction is taking place, said YHLA Architects principal Bob Lindley, who represented developers of the 800 block before the commission.

Commissioners also approved establishing a Preservation Commission subcommittee to meet with the developers of the 800 block: David Taylor Interests, Domus Development and the city's Redevelopment Agency, which is the property owner. The subcommittee will work with the developers on minor changes and was set up Thursday night to help expedite the project.

Plans for the 800 block are to rehab the landmark Bel-Vue Apartments at 1123 Eighth St. and integrate the historic property with a new addition and an adjacent new building at 800 K St., bringing 200 new or renovated apartments to the block. The entire project will contain 23,000 square feet of retail space.

The four-story 801 L St. building will be constructed as an addition to the three-story Bel-Vue. The combined structure will be nearly 82,000 square feet with 56 residential units and 11,000 square feet of retail and 10,000 square feet of ground-level parking.

The Bel-Vue building's ground-floor retail storefronts will be renovated and wrapped around the alley corner so that it faces the alley. The Bel-Vue's 26 apartments will be modernized, brought up to code and outfitted with bigger kitchens and bathrooms. Non-historic buildings will be demolished to make way for the new addition, which will feature a landscaped internal courtyard.

The corner of Eighth and K streets, which has long sat empty, will hold a nearly 193,000-square-foot, six-story building with 12,000 square feet of ground-floor retail, 144 apartments, a landscaped, internal courtyard and basement parking. The exterior of the 800 K St. building will be a modern interpretation of the Art Deco style.

For the 700 block, developers D & S Development, Inc., and CFY Development Inc. – led by David Miry, son Bay Miry and partner Steve Lebastchi, and Cyrus Youssefi and his son, Ali Youssefi – will build a six-story apartment building with 137 units and a parking garage that's nearly 28,000 square feet.

The backs of six buildings will be demolished to make way for construction of the apartment building. The number of apartments was decreased from 153 to incorporate the commission's earlier suggestions to make the rooftop and alley-facing exterior less flat, Ali Youssefi told the commission.

The project also would involve restoring all storefronts except one and turn 64,881 square feet of retail into a live music club, four restaurants with bars and shops. The block would feature sidewalk patio seating in front of nearly every ground-floor space, open-air mezzanines and rooftop decks for dining, bars or residential use.

Groundbreaking for work in the 700 block is expected to happen by the end of 2011 or early 2012. The project should be completed within two years, Youssefi said.

Groundbreaking for the 800 block project is expected to begin in early spring of 2012. The project should be completed by late 2013, said Ellen Warner, a partner at David S. Taylor Interests.

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

Dive Bar, Pizza Rock owner hopes to build more elsewhere

2011-03-25T02:17:01Z

Dive Bar owner George Karpaty is expanding his business territory.

Two months after opening the mermaid bar and two other businesses on Sacramento's K Street Mall, Karpaty is in the final stages of negotiating a lease for a fourth concept in El Dorado Hills.

The San Francisco nightclub owner previously said the bars and gourmet pizza restaurant he opened in Sacramento early this year were pioneer concept s he would like to take elsewhere.

Karpaty is now talking with folks in Santa Monica, Hollywood, Las Vegas and Oakland about opening versions of the K Street businesses there, depending on space available. He and Pizza Rock partner Tony Gemignani are also working on plans to open Pizza Rock restaurants throughout the United States, Karpaty said this week.

"Pizza Rock is the one we're looking for a big roll-out and having a lot of them in the next 10 years all over the country," Karpaty said.

Pizza Rock, Dive Bar and the District 30 dance club, located in a renovated building at 1016 - 1022 K St., are all drawing more crowds and making more money than expected for this stage of the business plan, he said.

Current discussions involve opening Dive Bar and Pizza Rock in Las Vegas and opening just Pizza Rocks in the other three cities. Karpaty is looking into opening the entire trio in additional cities because they complement each other well, he said.

Dive Bar's giant aquarium, where "mermaids" and "mermen" can sometimes be spotted, is believed to be the biggest aquarium in a nightlife venue in the world – second only to tanks at professional aquarium museums. The tank at the next Dive Bar will be 40 percent bigger than the 7,500-gallon tank at 1016 K St., Karpaty said.

"We've never opened anything like Dive Bar" anywhere else, he said.

Karpaty already owned popular San Francisco establishments – Ruby Skye nightclub and a "speakeasy" called Slide – when he developed ideas for a vacant K Street building owned by Sacramento developer David Taylor and Los Angeles-based CIM Group.

Karpaty said it's too early to talk about the new concept he has in the works for El Dorado Hills Town Center 30 miles from Sacramento. But he's very close to signing a lease with The Mansour Co., which owns the retail and office complex.

The company's owner, Tony Mansour, said they're about 30 days away from finalizing a lease agreement for 6,000 square feet.

"We're almost there," Mansour said. "You never know until the ink gets dry and the money's in the bank."

Mansour, who lives in both Los Angeles and El Dorado Hills, experienced Karpaty's K Street businesses during their grand openings.

"I never do a deal with anybody unless I know what they serve and how they deal," he said. "We love the pizza and the mermaids."

The El Dorado Hills operation could open within six to nine months if all goes as planned, Karpaty said.

"It's up to him how fast he can open," Mansour added. "We'd love to have him open as soon as possible. We're excited to have him in the area because we think it will draw from the region."

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

K Street now - A photo essay

2011-02-01T06:17:31Z

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 – are currently working with the city on plans to redevelop the south side of the 700 block of K Street.

The developers propose a mix of adaptive reuse and new construction that would include a music club, four restaurants with bars and other retail, second-floor apartments, sidewalk patio seating, rooftop decks for dining and residential use, and a six-story apartment building on the alley.

The developers also plan to restore historic brick and wood storefronts facing K Street.

City staffers expect to bring the project back before the Preservation and Planning commissions and the City Council for final action in May and June. The developers hope to start construction in the fourth quarter of 2011 and open the completed development two and a half years from now.

Above and below are photos of the buildings in their current conditions.

The historic Pacific States Building at 700 K Street will be turned into a live music club with a roof terrace. The club would anchor a key block across from Westfield Downtown Plaza and St. Rose of Lima Park. Built in 1929, the structure combines Renaissance Revival and Spanish Colonial Revival styles.

The building was once home to Pacific States Savings & Loan Co. and more recently the Men's Wearhouse clothing store.

Developers propose building a club big enough to hold 500 people with the addition of space from the neighboring Joe Sun building at 704 K St. Its roof terrace is proposed at 3,225 square feet.

The gray and green Joe Sun Building is L-shaped, with a storefront at 704 K St. and a rear entrance at 1109 Seventh St. Developers will create a new exterior that contrasts with the historic Pacific States Building, right, because the existing exterior was already completely altered and has no historic significance. This was built as the National Dollar Store in 1930.

The interior will open up to the Pacific States Building. The corner music club will take three-quarters of the ground floor and half of the second floor. The other half of the upper floor will be a creative live-work office. The remaining quarter of the ground floor will hold a lobby entry for the upstairs and for a basement sporting ceilings at least 11 feet high that will be used for retail.

Once visited by singer Al Jolson, the former Ancil Hoffman Saloon and Flagstone Hotel at 708 K St. would be converted into a restaurant and bar with retail and four apartments. The saloon was built in 1912. Eight apartments were added upstairs in 1921.

The ground floor of the Plaza Galleria at 712 K St. is expected to be used as retail, possibly by a salon, with three apartments above. The building's eligibility as a landmark is being determined.

The developers would preserve the now orange and white landmark Morelia building at 716 K St. for use as a bakery or coffee shop, with two apartments on top.

The building at 718 K St., where a tattoo business once operated, is planned to house a restaurant and bar/lounge and four apartments overhead. Its basement was once used as a nightclub. Plans call for exposing the basement to the ground floor with the use of a mezzanine, which developers say would be unique for downtown Sacramento. The building would also house a lobby providing access to a second-floor corridor leading to the 17 apartments from 708 - 724 K streets.

The W.T. Grant Co. building at 724 K St. would contain a restaurant and bar on the ground floor and in the block's second-most spacious basement, which features 8- to 10-foot ceilings. The second floor would hold four apartments.

Another potential historic landmark is the former Tower Records at 726 K St. Developers plan to restore the 1970s mural and use the space for retail.

The corner building at 730 K St. – once a home to a a jewelry store – will be built for retail and two apartments above. It had been used as a mini-mart in more recent years.

Plans call for demolishing the old Texas Mexican restaurant at 1114 Eighth St. for the project.

On that alley, developers propose a six-story apartment building with 153 units and a 91-space parking garage. The top floor would have a mezzanine level and rooftop deck with views of the Capitol, while parking would be located underground and on the building's ground floor.

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. However, developers are working with city staff and city Preservation Commission members to determine how to reuse some of the alley's historic elements. That may include reusing historic brick, windows, doors and fire escapes and other elements on the alley-level façade and interior or rooftop courtyard gardens.

Back view of the historic Morelia building, 716 K St., constructed in 1881. Tailor Patrick Buckley had the structure built with a second-floor residence. The building later housed Gensler-Lee Jewelers, Grayson's Department Store and then Paul's Bargain Center in the 1970s.

Some of the city's historic past can still be viewed with a walk down the alley behind the 700 block of K Street. The Morelia building, 716 K St., contains historic details such as old doors and windows.

Dive Bar complex opening

2011-01-17T07:05:42Z

Sacramento residents greeted the city's newest entertainment spots – a mermaid bar, a gourmet pizza restaurant with acrobatic pizza tossers and a high-end dance club – on K Street Mall last week.

Pizza Rock, 1020 K St., opened Friday following sneak previews held earlier in the week at all three businesses.

Sacramento Press’ Mariel Tagg was at Pizza Rock's grand opening Friday, talking to first-time customers and getting some background from co-owner Tony Gemignani:

http://www.sacramentopress.com/headline/43794/Pizza_Rock_opens_to_the_public

Grand openings for Dive Bar and District 30, which flank Pizza Rock, will be held Wednesday.

Community contributors Kati Garner and Ron Nabity covered a VIP sneak-preview party Wednesday night:

http://www.sacramentopress.com/headline/43568/Meet_Downtowns_New_K_Street

http://www.sacramentopress.com/headline/43561/K_Street_Mall_gets_new_life

Staff reporters Brandon Darnell and Suzanne Hurt included the trio of businesses in year-end development stories:

http://www.sacramentopress.com/headline/42861/A_years_activity_on_K_Street

http://www.sacramentopress.com/headline/42864/Sacramento_development_in_2010

A story on the exteriors featured an interview with the project's architectural design manager, Michael Boskovich of RMB Architects in Sacramento:

http://www.sacramentopress.com/headline/42329/New_faces_on_K_Street

This story explained one of the delays in the opening:

http://www.sacramentopress.com/headline/38671/Mermaid_bar_to_open_late_2010

A July story looked at owner George Karpaty's concepts and goal to help develop K Street Mall as an entertainment district:

http://www.sacramentopress.com/headline/33333/Fall_opening_expected_for_Dive_Bar

Sacramento Press Editor in Chief David Watts Barton wrote an editorial on the project:

http://www.sacramentopress.com/headline/33330/Karpatys_vision_is_nearly_reality

A story in early 2010 reported that work had resumed on Dive Bar and the two other businesses:

http://www.sacramentopress.com/headline/22142/Mermaid_bar_work_resumes

A story in June 2009 covered interior work by building owners David Taylor and CIM Group and a legal challenge to the project:

http://www.sacramentopress.com/headline/9795/K_Street_Mall_redevelopment_continues

Sacramento Press’ Colleen Belcher wrote about a City Council meeting on the project and how developer and building owner David Taylor and San Francisco nightclub owner George Karpaty teamed up:

http://www.sacramentopress.com/headline/4179/City_Council_meeting_to_determine_fate_of_K_Street_redevelopment_project

Sacramento Press’ Raoul Kleven got the city’s response to comments made about the city’s effort to redevelop the 1000 block of K Street:

http://www.sacramentopress.com/headline/4804/Citys_response_to_10th_and_K_development_project_comments

Photos 1 and 2 by Kati Garner. Photo 3 by Ron Nabity. Suzanne Hurt is a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.

K Street project seen as catalyst

2011-01-15T01:51:49Z

The Sacramento Planning Commission on Thursday applauded a development team's plan for the 700 block of K Street.

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 – propose a mix of adaptive reuse and new construction for the south side of the block.

Since it was introduced, the plan has grown to incorporate Sacramento's historic underground and plenty of outdoor living space, while keeping its residential component smaller and less expensive. The project would also restore historic building façades to help preserve the legacy of K Street, which was once the thriving heart of the city.

The plan calls for 63,780 square feet of retail, which includes a live music club, four restaurants with bars, and shops. The team, which is seeking planning entitlements, also proposes a six-story apartment building with 153 units and a 91-space parking garage. The development would feature sidewalk patio seating in front of nearly every ground-floor space, open-air mezzanines and rooftop decks for dining, bars or residential use.

Planning commission members praised the plan as reasonable yet exciting and varied enough to serve as a catalyst for further development of the troubled K Street Mall.

"That'll clean up that end of the town, and the rest will follow," Commissioner James Frayne said at the meeting Thursday night.

The amount of retail has been nearly doubled from the 37,480 square feet of retail space originally proposed.

The retail square footage was expanded to include another 15,000 square feet of original street-level spaces, which were turned into building basements when the street level was raised in the 1860s and 1870s, and 10,000 square feet of rooftop decks and second-floor mezzanine space. The plan now proposes using the majority of the block's basements for retail after developers got inside and saw how much character the spaces have.

"It blew our minds," Bay Miry said earlier Thursday.

Developers have found retail tenants interested in at least half the space, Ali Youssefi said.

The team also increased the number of alley-front apartments by 17, originally proposed at 136 units. The top floor would have a mezzanine level and rooftop deck with views of the Capitol, while parking would be located underground and on the building's ground floor.

The developers and the city wanted to add as many apartments and as much density as possible. They determined the building could contain five levels of wood construction, which includes a mezzanine level, on top of two stories of concrete cast construction.

The use of wood rather than steel will keep costs down so the units can be priced more affordably, while still meeting seismic requirements and all other building and life-safety requirements due to the smaller size. Rents are still being determined with the city, but could range from $700 to $1,300 for studios to two bedrooms, they said.

Commissioners especially liked plans to protect the Tower Records mural at 726 K St. and to turn the historic Banking Hall building at 700 K St. into a live music club with a roof terrace.

One concern that was expressed was that developers not ignore daytime uses by focusing too much on night clubs, said city Associate Planner Evan Compton.

The developers are seeking retailers who would draw daytime clients, including flower shops, a salon or spa, hard goods and a possible market.

They will spend the next month or two working with the city to determine what kind of financial assistance the city can provide. The city owns the block, but its future ownership is under discussion.

They're also pursuing new market tax credits established by the federal Community Renewal Tax Relief Act of 2000 out of "sensitivity" to the city's "limited resources," Youssefi said.

City staff expect to bring the project back before the Preservation and Planning commissions and the City Council for final action in May and June. The developers hope to start construction in the fourth quarter of 2011 and open the completed development two and a half years from now.

Graphics provided by the developers. Suzanne Hurt is a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.

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.

New faces on K Street

2010-12-17T02:35:39Z

Three new façades add a bit of “wow” to K Street Mall.

Work is close to wrapping up on San Francisco nightclub owner George Karpaty's new businesses, Dive Bar, District 30 and Pizza Rock. A month away from the expected opening s, contractors applied some of the finishing touches to the exteriors Thursday.

The bar, club and restaurant technically occupy one building, owned by Sacramento developer David Taylor and CIM. But the exteriors were rebuilt to look like three distinct, separate spaces – from sleek contemporary to slightly edgy to quaint, Old World charm.

The façades are like book covers, designed to entice by giving just a taste of what's inside, said the project's architectural design manager, Michael Boskovich of RMB Architects in Sacramento.

"This is – in my opinion, as a longtime local, – a big step up, something that's hopefully very contagious and will have legs in Sacramento," he said. "That's one of the things I appreciate about George's group – stepping out and doing this and, of course, including us."

District 30 at 1022 K St. sports a contemporary, minimalist exterior to match the interior of the sleek, elegant over-30 dance club. Three sets of double glass doors were set in a frame of white, metal composite panels. A copper and bronze "District 30" sign sits beneath 20 gray panels that will feature changing collages of illuminated art once the business opens.

"The sign is very subtle. It's not as much attitude or in your face as Pizza Rock," Boskovich said.

Pizza Rock, with its red neon sign and laser-cut metal flames, seems to burst from between its two sister venues. Filigreed flowers, hearts, stars and butterflies – designed to look like tattoo art – soften the sign, inspired by tattoos worn by Pizza Rock co-owner Tony Gemignani's wife. LED backlights will be added to give the flame a shadow.

Gears were bolted onto the tan travertine tile exterior to emulate old earthquake ties used to reinforce buildings. The centerpiece for an outdoor seating area in front is a glass- and mesh wire-enclosed fireplace built into an industrial-looking copper cauldron made to look like it was reclaimed from a junkyard. Inside, the other side of the cauldron holds one of the restaurant's pizza ovens.

"It's meant to add to the ambiance out here," Boskovich said.

Dive Bar at 1016 K St. was given an Old World hotel feel, with a brick façade and copper-penny storefront. Three curtained, "second-story" windows add to the illusion.

Stockton muralist Carlos Lopez painted Dive Bar's sign to mimic old painted ads still found downtown, including next door at 1030 K St., which contains Ambrosia Cafe. Lopez also painted Pizza Rock's ceiling mural resembling Michelangelo's "The Creation of Adam" – with the hand of God holding out an electric guitar.

Pizza Rock is expected to open Jan. 14. Dive Bar and District 30 are slated to open Jan. 19. Hours will be 11 a.m. to midnight, Sunday through Tuesday, and 11 a.m. to 3 a.m. Wednesday through Saturday.

The building’s renovation added 15 to 20 feet in height to the exterior. Several one-of-a-kind features were designed to create the three distinct looks.

Boskovich, whose company does a lot of retail restaurant work, said he's eager to see more entrepreneurs use such creative, high-quality exteriors on new businesses.

"I'd like to do more like this in Sacramento," he said. "Sacramento's ready."

Sign photos by Kati Garner. All other photos, including photo of Michael Boskovich of RMB Architects, by Suzanne Hurt, a staff reporter for The Sacramento Press. Follow her on Twitter @SuzanneHurt.

Mermaid bar to open late 2010

2010-10-13T00:37:34Z

Sacramentans will have to wait just a little longer to watch pizza makers tossing dough and mermaids swimming over bartenders' heads downtown.

The opening of a trio of new K Street establishments – Dive Bar, Pizza Rock and District 30 – has been postponed from this month to late this year.

The delay has come from “surprises” that cropped up while building a structurally sound vault under the sidewalk, said San Francisco nightclub operator George Karpaty.

"Nobody's really late. It's just the way construction goes," he said. "Big projects run into delays. They've done an outstanding job dealing with all the surprises."

The vault will hold three electrical transformers to power the buildings at 1016, 1020 and 1022 K St. A contractor working for developers David Taylor and CIM is expected to complete the work in about a week.

The night spots have been delayed previously. They were initially expected to open in late summer, and then in October. Those dates were too "aggressive," given the work that needed to be done, Karpaty said.

Scaffolding will go up and exterior work will begin once the sidewalk is complete. The kitchen must still be installed at Pizza Rock. Four pizza ovens have been imported from Italy and set in place.

Interiors are more than 80 percent done. Dive Bar's 40-foot-long, 7,500-gallon saltwater tank has been installed. The tank will weigh close to 50 tons once it’s fully loaded with water, mermaids and interior furnishings.

Merpeople – women and men – have been hired. Their costumes are expected to arrive from Florida this week, he said.

Now, Pizza Rock partner Tony Gemignani, a world pizza-throwing champ, is working on the menu. Two mixologists from San Francisco and a general manager are creating handcrafted house cocktails and spiked milkshakes.

"Completion is around the corner," Karpaty said.

K Street cars meeting Thursday

2010-10-12T03:21:22Z

Sacramento residents will get a chance to comment on the city's plan to reintroduce cars to K Street Mall at a community meeting on the issue Thursday evening.

The meeting is one of the last opportunities for people to give feedback on the design concept, which is not yet complete. The Sacramento City Council previously approved a $2.7 million construction and design project allowing cars back on K Street from Eighth to 12th streets.

The meeting is scheduled for 5:30 - 7 p.m. at the historic City Hall, 915 I St.

The public's input is being sought before the City Council's Nov. 4 meeting. The council will be asked to approve an environmental study and allow the final design work to be undertaken, said the city's Economic Development Department spokesman Maurice Chaney.

The City Council voted in November 2009 to allow bikes back onto K Street. The change took effect Dec. 24, 2009.

K Street Mall was closed to cars in the 1960s. The city's goal is to allow cars back on K Street by late 2011.

Splash park's opening stalled

2010-08-12T04:38:14Z

Summer 2010 is circling the drain, while a new fountain at St. Rose of Lima Park remains dry.

An interactive fountain, also known as a “sprayground” or “splash park,” was scheduled to begin operating earlier this summer at the renovated park at Seventh and K streets. The park's remodel was part of a $4.5 million project to help transform a blighted block of K Street Mall, and was expected to be completed in November 2009.

The fountain could be fully operational. But concerns about waterborne diseases and water conservation – and a resulting conflict between city and county regulators – appear to have kept it from being turned on.

The fountain’s grand opening was expected in June, then delayed until July, then put off indefinitely with no explanation from the city. City staff have declined interview requests.

The problem boils down to this: The city could run the fountain using drinking water from the city water treatment system. Or it could use the fountain's self-contained water recirculation system.

"That's kind of a city call whether they would do that," said John Rogers, division chief for Sacramento County's Environmental Management Department.

According to an e-mail sent Wednesday by city spokesman Maurice Chaney, city staff want to be "environmental stewards" by choosing the second option.

"We are sensitive to the...need to be as water conservative as possible," according to the e-mail. "We are...determining plans for the use of the recirculating feature and working closely with the county on the requirements."

But using recirculated water would change the safety requirements for the fountain. For one thing, the city would have to supply a temporary toilet and shower and drinking water for the public until a permanent facility is built.

The county approved the fountain’s design. The two agencies have been talking about the fountain and the toilet and shower requirement for two years, said Colleen Maitoza, who supervises the county's swimming pool program.

In 2001, the California Conference of Directors of Environmental Health created guidelines for interactive fountains, defining them as “special purpose pools” that fall under pool codes. The splash parks are considered pools because they were designed for people to play in, and thus must be inspected and permitted by Sacramento County, Maitoza said.

State law requires interactive fountains to have public toilets, showers, diaper-changing facilities and drinking fountains to help prevent the spread of illnesses, including those spread by diarrhea, just like public pools, she said.

Stricter regulations involving water treatment and hygiene facilities have been adopted in California and other states following outbreaks of waterborne illnesses picked up at pools, water parks, splash parks and other recreational water facilities. Seven kids were infected with Cryptosporidium at a San Jose interactive fountain in 2006.

In Idaho, where splash parks aren't regulated by the state's pool code, 49 people were infected with Cryptosporidium — and ensuing diarrhea, vomiting, fever, cramps and aches — at a newly constructed splash park in 2007, according to a U.S. Centers for Disease Control report.

In New York, a class-action lawsuit against the state parks department may soon go to trial after 4,000 people became sick with Cryptosporidiosis from a spray park at Seneca Lake State Park in 2005.

The St. Rose of Lima Park fountain was designed with two water systems, following the newest guidelines. One system can use potable water from the city's public water system. The other recirculates water from a 4,000-gallon tank into the fountain, then back into a self-contained filtration system using chlorine and a UV treatment system to clean and disinfect the water. UV light is used to destroy parasites that cause gastro-intestinal illnesses and are chlorine-resistant, Maitoza said.

The fountain was tested earlier this summer. A county Environmental Health Division inspector approved the fountain to begin operating using city-treated drinking water on June 7. Using that system, fewer jets would operate so the fountain would use less water, she said.

In early July, the city sought county permission to operate the fountain using recirculated water for a grand opening and the rest of the month. The county gave the city the option of using temporary hygiene facilities until permanent facilities are built, Rogers said.

"It's really critical because that water is being recirculated," Rogers said. "It's important that if people need to use the restroom, they have a special facility."

The requirements have led some fountains to be shut down. A water feature on the parking garage next to City Hall isn’t operated because the city would have to spend up to $100,000 to retrofit the fountain to clean the water, said Rob Kerth, executive director of the Midtown Business Association and a former city councilman.

"It's been a local issue all up and down the state," Kerth said. "There are some places where there are fountains that are dry with signs that say, 'If you don't like it, call your county supervisor.' "

City staff are currently evaluating options, according to the e-mail.

"We are working with the county to come up with a workable solution to operate the fountain using recirculating water, and we remain committed to opening the fountain as soon as possible," according to the statement provided by Chaney.

Which may mean that the new K Street fountain gets its grand opening sometime in the summer – of 2011.

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

Fall opening expected for Dive Bar

2010-07-23T05:43:33Z

Dive Bar and two sister nightlife venues are expected to open within three months on K Street, breathing new life into the struggling pedestrian mall well ahead of other developments.

San Francisco nightclub operator George Karpaty's trio of nightlife venues has been seen as competition by some at a time when local businesses continue to struggle and even close. Karpaty said he was lured to Sacramento partly by the success of nearby venues such as Social Nightclub, Ella, Grange and the Citizen Hotel.

But Karpaty said he's developed concepts — a "mermaid bar," a gourmet pizza restaurant with acrobatic pizza tossers and a high-end, over-30 dance club — to further develop K Street Mall into an entertainment district and to bring people from as far away as the Sierra Nevada foothills. He's using expertise gained from opening places like Ruby Skye and Slide, popular bars that draw Sacramentans to San Francisco.

"We're going to blow K Street up," said Karpaty, owner of Inner Circle Entertainment. "We're not bad guys. We're going to promote downtown."

Karpaty and his crews were working Thursday at the site, one week after the Sacramento City Council chose developer David Taylor and another development team to redevelop vacant properties for two nearby blocks. While those mixed-use projects are expected to bring much-needed retail and housing to the street, they aren't expected to open for at least two years.

Karpaty's concepts will be new to Sacramento. He's also pioneering some nightclub operations in this city that he'll then use at his other establishments.

Dive Bar, at 1016 K St., will feature a 40-foot-long, 7,500-gallon saltwater tank with fish and costumed mermaids, both male and female, set over the bar in a room just 18 feet across. Structural steel beams have been installed on the ground floor and in the basement to hold up the tank and reinforce the floor underneath.

"It's the most insane thing I ever took on," Karpaty said. “If a massive earthquake hits Sacramento, this aquarium will be the only thing left standing.”

The front of the bar is being built to evoke a classic Sacramento dive bar, complete with worn-looking couches. But beyond a giant “hole” in the back wall, the club opens into a main room topped by the aquarium, which is being fabricated from a single piece of Plexiglas by a former Monterey Bay Aquarium builder.

"The fish tank won't look like anything else in the world," Karpaty said. "I'm not into starfish and treasure chests."

Next door, Pizza Rock will feature a DJ playing classic to modern and funky rock from a California-made Peterbilt truck breaking through the ceiling 15 feet in the air and surrounded by chain-link fencing and barbed wire.

World pizza-throwing champ Tony Gemignani, a partner at the restaurant, will train the staff to juggle dough, while bartenders will juggle bottles and glasses.

The ceiling will be covered with a mural that mimics Michelangelo's "The Creation of Adam" — but the hand of God will be holding an electric guitar. The men's bathroom will feature exterior piping and graffiti to make it appear that guys are “peeing in the alley,” Karpaty said.

But the food will still steal the show, Karpaty said. Four types of pizzas will be made in four different custom-built pizza ovens imported from Italy. One of the ovens, positioned near the sidewalk for high visibility, will cook pizzas at 900 degrees - in 90 seconds.

"It comes down to food," he said. "I guarantee our food will exceed any theme."

The third venue, District 30, at 1022 K St., will be the most modern of the venues. An artistic glass facade will use movable photos of art, flowers and people, set behind 4-x-4-foot glass panels to create the front exterior. A covered patio in front will open onto a sidewalk seating area.

Inside, a 600-square-foot dance floor will share space with a 30-foot bar, "ultra" VIP areas and "peek-a-boo" booths with small cutouts in the backs so customers can interact and people watch. The club will hold up to 300. Finishes will be created with exotic materials including woods from Japan and France and ostrich skin.

The bar will use music to attract a crowd of mature, experienced clientele aged 30 to 50. The idea was to create a place for people who want to have fun and socialize, and who know how to have a good time without causing trouble, he said, adding that people shouldn't have to stop going to dance clubs just because they may no longer be in their 20s.

"Why is it that, when you turn 30, you can't go to a dance club? That's just nutty," he said. "People will look at this and go — 'Oh, finally: Something for grownups.’ "

Last February, Karpaty said he expected all three venues to be open by late summer. They are now expected to open in October. Work by the Sacramento Municipal Utility District to add an electrical transformer to power the buildings in an underground vault under the sidewalk in front is delaying the opening by a few weeks, Karpaty said.

SMUD is waiting for the customer to finish work on the vault and then will install the transformer, said SMUD spokeswoman Dace Udris.

Karpaty will be leasing three spaces at 1016, 1020 and 1022 K St. from developer David Taylor. Taylor is redeveloping the long-vacant building, as well as one next door at 1012 K St., with $5.7 million in city subsidies tied to the sale of the Sheraton Hotel. Karpaty plans to invest up to $2 million on the venues, he said Thursday.

In 2008, the city agreed to split $50 million in profits from the sale of the $130 million hotel with Taylor and CIM for development in the J, K and L streets corridor. The developers are still pursuing tenants for 1012 K St. Taylor also turned an old Woolworth's into the Cosmopolitan next door.

Karpaty and a friend, Adam Goldstein — a Los Angeles DJ and musician known as DJ AM — began looking for opportunities to open an entertainment venue here three years ago. Their idea was to open a megaclub. They toured dozens of Sacramento clubs and bars for six months while searching for the right spot.

"We saw opportunities other people didn't," Karpaty said.

Goldstein died of a drug overdose last summer. But Karpaty didn't give up. The broker who originally helped them in their quest called back to suggest Taylor's project on K Street. The ability of nearby venues to thrive — even though they were the first few to open on and around the long-troubled pedestrian mall — told him Sacramento had "an appetite for high-end (even) in a horrible economy," Karpaty said.

"We didn't want to wait to be the last one on the island," he said.

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

Council chooses two teams to revamp K Street

2010-07-14T06:16:58Z

In an upset vote, the Sacramento City Council on Tuesday chose two teams — one led by D & S Development, Inc. and CFY Development, Inc. and the other by Sacramento developer David Taylor — to revitalize two troubled blocks on K Street Mall.

In a split vote of 5 to 4, the council agreed to enter into an exclusive negotiating agreement with the teams endorsed by a selection committee to redevelop the 700 and 800 blocks of K Street. The majority of council members opted not to follow the recommendation of Mayor Kevin Johnson's ad hoc committee to give the entire project to the Sacramento Alliance Team, led by Rubicon Partners, St. Anton Partners and Preferred Capital Advisors.

"We need to be bold in our vision but also be realistic," said Councilman Kevin McCarty, who made the motion to approve those two teams.

Councilmembers Bonnie Pannell, Sandy Sheedy, Lauren Hammond and Robbie Waters mentioned developers' track records and the projects they thought could get done when they joined McCarty to approve D & S and CFY and their $35.5 million proposal to redevelop the 700 block. They also voted for Taylor and Z Gallerie owner Joe Zeiden to take on the 800 block with a proposed $46 million project.

The vote may have hinged on Waters and his detailed questions to all three development teams about construction schedules, public subsidies and other financing. Under Water's’ questioning, Taylor said he has nine months to a year to use roughly $20 million in redevelopment funds remaining from the city's $130 million sale of the Sheraton Hotel to Taylor.

"I supported every ambitious project downtown," Pannell said, referring to her time on the council. "Tonight, I can only support the project I think is gonna get done."

The council's decision followed an hour of public comment from about 30 people on the issue. Residents, preservationists, local business owners and labor union representatives overwhelmingly spoke out in favor of the two teams and their proposals, which were described as "safe" and "financially realistic" plans to build housing and primarily homegrown live music venues and retail by restoring historic buildings on $40 million in city-owned land.

Bill Burg, preservation chair of the Sacramento Old City Association, pushed for the two teams and their proposals to preserve the city's "existing urban fabric" rather than demolishing landmarks to build something else.

"Instead of revinventing K Street again, we can reconnect K Street to downtown Sacramento," he said.

Waters and other council members said they were concerned about the financing for the Sacramento Alliance Team's $210 million proposal. That plan was built around a 32,500-square-foot public market, tentatively called the California Boqueria, an adjacent office building, 213 artist live/work units and 75,000 square feet.

The negotiating phase is expected to take up to six months, according to city staff.

Just before the vote, Johnson said he may have made a mistake in asking the council in May to approve an ad hoc committee after the city's selection committee had already recommended developers for K Street Mall.

"I think the process feels a little fishy. And I need to acknowledge that," he said. "The intent was not to create this dynamic. I would agree that I think we could do this much better."

Johnson recommended the council reevaluate how it uses ad hoc committees in the future. But he said he appreciated the way the council and the community respectfully debated the issue and the proposals.

"This to me was a great discussion," he said.

Photos by Brandon Darnell. Suzanne Hurt is a staff reporter for The Sacramento Press.

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.

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.

Boqueria centerpiece for K Street plan

2010-06-29T05:47:41Z

They brought Sacramento the Citizen Hotel and its restaurant, Grange.

Now that same team is proposing an even more ambitious downtown project. Calling themselves the Sacramento Alliance Team, the partners behind the Citizen Hotel are seeking Sacramento City Council approval to redevelop the 700 and 800 blocks of K Street Mall.

Two weeks before a council vote on the matter, they held an open meeting on the plan's centerpiece: 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.

Two of the partners, Rubicon Partners co-founder Kipp Blewett and Grange Executive Chef Michael Tuohy, encouraged about 120 people at the meeting to sign an online petition, e-mail the council and tell their friends about the project.

"What we really need is your support to move forward with this," Tuohy said at a Citizen Hotel reception featuring California wine, artisan cheeses and local produce. "It's about telling the city of Sacramento that this is very important and this is what we need and this is what you want."

Four teams — including the Sacramento Alliance Team — answered the city's request for proposals to redevelop the troubled K Street Mall blocks and submitted ideas in March. Last month, a selection committee created by the city recommended two other teams to develop those blocks. Those teams, led by developers David Taylor and Cyrus Youssefi, were also endorsed earlier this month by the Downtown Sacramento Partnership board, of which Blewett is president.

The proposal by Blewett's team was bigger and more complicated to finance, and may just need to be analyzed further, said Project Director J-E Paino of Rubicon Partners.

"We didn't present anything that we think is pie in the sky and that we can't deliver," he added.

The partners chose to anchor their proposal with a food and agricultural complex because they believe it could kick-start downtown's revitalization — bringing 1 million annual visitors to Sacramento, the largest city in the Central Valley and the center of the country's largest agricultural economy, they said.

"People come here for food and wine, as well as scenery," Tuohy said. "We have the opportunity to write our own script about what is agri-tourism, California-style."

The roughly $30 million Boqueria would include a 25,000-square-foot ground floor with a farmers' market that would tentatively operate from 8 a.m. to 2 p.m. daily and open onto K Street via large, rolling doors; a wine-tasting room; an Italian coffee bar; eight food carts; exhibit space and an academic demo restaurant. A 10,000-square-foot mezzanine would include a kitchen theater, deli and more exhibit space.

The proposal was developed to meet the city's request for something "catalyic," which could entertain and bring people from the suburbs, while also turning the city's negative image as a "dusty cow town" into a positive image as the center of the farm-to-plate movement, Blewett said.

"What we came up with is the concept of healthy lifestyle ... centered around food and wine," he said.

Other partners include Pete Thompson of Rubicon, Steve Eggert and Pete Geremia of St. Anton Partners, and Dan Corfee and Craig Zarro of Preferred Capital Advisors.

The Boqueria is proposed to be built on currently vacant city-owned land and owned by a public/private cooperative. Construction would be financed by federal and state money, as well as substantial investment from California farmers and landowners, one of the wealthiest groups in the state, Paino said.

The structure could be finished by 2013. The team also proposed an office building, from 150,000 to 300,000 square feet, for agricultural-oriented tenants such as produce associations and statewide groups. The building, called the California World Food and Agriculture Center, could be built across the alley at Eighth and L streets, or be attached to the Boqueria following negotiations with the owners of two other buildings on K Street, he said.

The proposal's first phase in the 700 block calls for 213 alley-facing artist live/work units that would cost $1,000 a month for 1,200 square feet and 60,000 square feet of retail, including a brewery and blues bar. Work could begin immediately and be finished by late 2012 or early 2013. Financing would include the city's $20 million land donation and $20 million in redevelopment bond money, Paino said.

The second-phase office building would be finished a year later. A hotel has also been proposed for a third phase, but that would be put off until the economy improves, he added.

People at the meeting included foodies, farm and tourism representatives, city planners and UC Davis food science representatives.

A food and wine center collecting the best of the region and the state in one place would help California farmers, said Dan Best, who organizes most of Sacramento's farmers' markets.

"This is the center of the garden of Eden of food production," he said. "Why don't we have a center that showcases that?"

K Street developers endorsed

2010-06-18T05:20:01Z

The Sacramento City Council is scheduled next month to pick the developers who will take on the challenge of rebuilding two blighted blocks of K Street Mall.

A selection committee created by the city has tapped two teams. D & S Development, Inc., and CFY Development, Inc. — led by Cyrus Youssefi — is being recommended to redevelop the 700 block. The group 700-800 K Street, LLC — led by Sacramento developer David Taylor and Z Gallerie owner Joe Zeiden — is being recommended to take on the 800 block, said Beth Tincher, a senior project manager with the city's Economic Development Department.

The Downtown Sacramento Partnership endorsed those selections at a board meeting last week. The two development teams were backed over two others primarily because they had the most secure financing and could start the mixed-use projects the fastest, said DSP Executive Director Michael Ault.

"We heard all four proposals and honestly would tell you we'd be lucky to have any of the proposals," he said. "We did think the two proposals that were identified would be good, solid projects and could move forward pretty quickly."

The proposal for the 700 block focuses on restoring historic storefronts, developing smaller retail spaces in front and creating alley-front housing and a garage in back. A locally operated live music venue would be planned for the historic building that housed a Men's Wearhouse store.

D & S and CFY strengthened their proposal by concentrating on just one block and arranging financial backing. They obtained a commitment letter for a $28 million construction loan from Chase Bank and provided evidence of the availability of equity funds, said D & S Development spokesman Bay Miry.

"While the project needs to be unique and exciting in its vision, equally important is the project's doability and strength," he said. If the council approved their selection, Miry estimated their project could start about six months later, once entitlements and permits were obtained, and be completed in 18 months, which would be about July 2012.

The selection committee included people from the Sacramento Housing and Redevelopment Agency, the Urban Land Institute, a San Diego redevelopment agency and a professional experienced with redevelopment projects.

However, an ad hoc team made up of Mayor Kevin Johnson and three City Council members, including Steve Cohn and Ray Tretheway, is now also reviewing the four proposals.

The largest proposal came from a team led by Rubicon Partners Inc. and its co-founder Kipp Blewett, who, as DSP chairman, recused himself from weighing in on the proposals at last week's board meeting. Encompassing both blocks, the Rubicon plan would create 100,000 square feet of retail, a 35,000-square foot farmers' market, a 2,000-seat entertainment venue and an artisan alley with live-work walkups for artists.

A council vote has been set for July 13 once city staff make their recommendation, which will be made public the week before. A staff report will outline the list of criteria used in the process, Tincher said.

Getting "doable" projects started soon would benefit the city by enticing other investment, Miry said.

"I think they'd be a catalyst for more projects to happen and help create a renaissance on K Street," he said.

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

Lost guitar blues

2010-05-13T02:45:31Z

Sacramento residents might be wondering what's become of the Hard Rock Cafe's giant guitar.

The loss of the 36-foot red and orange six string — taken down when the restaurant closed in late March — has left a big hole at Westfield Downtown Plaza's main entrance. But like Neil Young said, "This old guitar ain't mine to keep. It's only mine for awhile."

The neon-lit Gibson Les Paul replica had become a local landmark after being installed at the shopping mall's Seventh Street entrance in 1997.

Sacramento was one of the few Hard Rock establishments to get a giant guitar. Out of 163 locations worldwide, only about 20 have exterior guitars that are 30 feet or longer. Las Vegas has two: a 45-foot guitar and a 90-foot one. All three would stand in the shadow of the world's largest, the 112-footer that withstood Hurricane Katrina at the Hard Rock Hotel & Casino Biloxi.

Locals can't be blamed for wondering if the iconic guitar moved to Seattle, where a cafe opened in February, or to Los Angeles' Hollywood Boulevard, where another cafe is set to open this summer.

A Hard Rock Cafe spokesperson was able to shed more light on the guitar's fate.

Turns out, Sacramento's guitar didn't end up at the new Seattle cafe. That location sports a replica of a 15-foot Fender Jag-Stang designed by late Nirvana guitarist Kurt Cobain.

When a Hard Rock Cafe closes, all of its memorabilia is shipped back to headquarters for refurbishing and redistribution, said the spokesperson, who asked not to be identified.

For now, the guitar is sitting in a dark corner of some palm-tree shaded warehouse at the corporation's Orlando headquarters.

"It's there and waiting for another location," she said.

Still my guitar gently weeps....

Photos by Suzanne Hurt.

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.

Mermaid bar work resumes

2010-02-13T03:12:53Z

K Street Mall is getting some activity after work began again on a mermaid bar and two other nightlife venues.

San Francisco nightclub owner George Karpaty originally hoped to open Dive Bar, a dance club named District 30 and a gourmet pizza restaurant, Pizza Rock, near 10th and K streets by late 2009. The $6 million-plus project was delayed at least in part by opposition, including a lawsuit to stop it that was thrown out of court last summer.

Saying he wanted to move forward, Karpaty declined to discuss the reasons the project on the blighted mall was thrown off schedule. But, he said, he now expects to open all three sites by late summer.

"We had some delays. But we're coming," he said.

Developers David Taylor and Los Angeles-based CIM Group have begun work on the shell and core of the building they now own at 1016, 1020 and 1022 K St. Crews are working to make the building structurally sound and to repair the roof, said Ellen Warner, a partner at David Taylor Interests.

"K Street still really needs a lot of revitalization," she said. "We think that's important for our community."

Late last year, the city's Redevelopment Agency transferred ownership of the building, which is divided into three suites, and one next door at 1012 K St. — and the land under both — to Taylor and CIM.

Fabricators in various studios are now building the giant aquarium that will hold "mermaids" of both genders, as well as other big pieces for Karpaty's new businesses.

"It's going to be far more over-the-top than people think," Karpaty said. "It's going to be insane."

Karpaty said he used his experience opening award-winning Ruby Skye and four other Bay Area nightclubs to create unique design elements for his newest project. Inside the gourmet pizza restaurant, Pizza Rock, a DJ will play music from a retro Mack truck that appears to be breaking through the ceiling 15 feet in the air.

And he said he expects Dive Bar's aquarium, which weighs 150,000 pounds without water, will be the biggest aquarium in a nightlife venue in the world — second only to tanks at museum-grade aquariums.

"I think this is the most creative project we've ever done. Period," Karpaty said. "It's revolutionary stuff."

The developers also have been talking with potential tenants for 1012 K St., but it's too early to discuss, Warner said.

A $5.7 million city subsidy for the properties still rankles some business owners. Karpaty stressed earlier this week that all the money did not go to his project or the building. City staff did not answer questions Friday seeking clarification.

A little more than $3 million is going toward shell and core improvements for both buildings, the one from 1016 to 1022 K Street and the one at 1012 K St. The remainder — more than $2 million — will go to future tenants of 1012 K St. for tenant improvements, Warner said.

The cost of tenant improvements for Karpaty's project are being shared by Taylor and Karpaty, she added. Karpaty said he's paid $2 million to date.

With city money being used to bring buildings up to code and ready to lease, the developers could have more money to help tenants pay for interior improvements specific to its new use.

The roughly 30,000-square foot building at 1012 K St. sits between Karpaty's future entertainment complex and The Cosmopolitan, which was opened without city subsidies in fall 2008 by longtime Sacramento restaurateur Randy Paragary and partners.

The property transfer was part of a 2008 Sheraton Hotel deal. The city agreed to split $50 million in profits from the sale of the $130 million hotel with Taylor and CIM for development in the J, K and L streets corridor.

Karpaty said he didn't want to divulge too much about the venues yet. But he did explain why he changed the dance club's name from Frisky Rhythm to District 30.

"I love the name Frisky Rhythm. I picked it. I'm going to build a bar called Frisky Rhythm — just not here," he said. "It did not receive positive feedback from people I was meeting with in Sacramento. So being a good project developer, I listened. We made a change."

Karpaty said he plans to organize shows and dancing at other venues in Sacramento, including the Memorial Auditorium and the Sacramento Convention Center. He added that he plans to put on five to seven grand-opening events for his K Street venues, with entertainment including stilt performers and contortionists.

"We're going to put on a big show," he said.

Suzanne Hurt covers business and development for The Sacramento Press.

Downtown group creates economic development strategy

2009-12-17T03:31:20Z

The Downtown Sacramento Partnership on Wednesday identified its primary strategy to help drive downtown's economic development for 2010 and beyond.

The business group's board also voted to accept a study of the J-K-L corridor prepared by Downtown Works, a Washington, D.C. retail consultancy firm.

The full and final report was presented at the partnership's annual meeting, held Wednesday morning at the Citizen Hotel.

Within the next month or so, the business group will identify the "core" three to five strategies out of nearly 30 that were approved for 2010 through 2012.

"Probably the most important element that has come out of the study is to restate a concept that has long been considered an important element by the partnership, and that is to focus our efforts in order to maximize their impacts," said Michael Ault, executive director of the Downtown Sacramento Partnership, in a prepared statement.

Long-term goals include improving people's ability to walk, bike, drive or take public transit throughout downtown and to reconnect the central city grid, with two-way traffic on K Street from Old Sacramento to Midtown, according to a strategy report.

The group's strategy would be to support the identification and improvement of important pedestrian corridors and to support two-way car traffic starting with at least four blocks on K Street Mall and whenever other opportunities present themselves.

K Street is currently closed to traffic or no longer exists in several places, including through the middle of Westfield Downtown Plaza and the Sacramento Convention Center.

Another strategy is to collaborate on the vision and schedule to develop critical downtown assets, including the Downtown Plaza, city-owned parcels in the 700 and 800 blocks of K Street, relocation and replacement of the Greyhound Bus terminal and a downtown sports and entertainment arena.

The partnership wants to encourage "more balanced" housing options to include units that would fit a range of budgets, rather than a majority of single-residency occupancy units as currently exists.

The strategy would include collaborating with the city to improve the process for putting housing in vacant or under-used upper floors of existing buildings.

The group proposes finding funding partners and working with the city to develop a retail recruitment program, which would involve hiring a retail recruiter and developing incentives such as loans and façade grants to bring new retailers to the target area, the J-K-L corridor.

The group also proposes initiating a study of downtown infrastructure including water, sewer, electrical and cable; a new focus on Old Sacramento; maintaining K Street streetscape improvements as a priority and other strategies.

"Given the findings, downtown offers a significant opportunity to the city to invest in enhancing our urban center, which will offer consumers a unique experience not rivaled by other jurisdictions in the region and ultimately bring more revenue to the general fund through increased sales," Ault said.

Westfield will sell Downtown Plaza

2009-12-15T20:43:48Z

Westfield Group has agreed to sell Downtown Plaza, Mayor Kevin Johnson announced Tuesday morning.

The city has been pressing Westfield to invest in the plaza for nearly 12 years. Since August, Johnson has been pushing the shopping mall owner to make good on its promise to invest at least $120 million in the under-performing plaza.

The alternative, he said at the time, was for Westfield to sell the plaza. Unwilling to invest that much, Westfield decided to sell, Johnson said. But the mayor and city staff must now find a buyer who can agree on a price with Westfield.

"Westfield has agreed to step aside, and, if necessary, sell its interests in Downtown Plaza," Johnson said during his weekly press conference Tuesday morning.

Westfield has not gotten on board with the city's new vision to open up the plaza, creating an "outward-facing" mall open to the sky and street traffic, he said.

The company's decision makes it easier for potential arena developers to discuss buying the property from Westfield, Johnson said.

Westfield had proposed a $120 million plaza overhaul in 2006. But the company repeatedly stalled on putting those plans into action. In May, Westfield postponed those plans for at least the rest of the year, yet completed a $120 million reinvestment at Westfield Santa Anita in Southern California's Arcadia.

Johnson and other city leaders have been meeting with Westfield representatives for months to negotiate either investment or the sale of the mall to the city or developers.

The Downtown Plaza was built in the 1970s. Westfield bought the plaza in 1998. The company now has more than $47 billion in investments in 119 shopping centers throughout the world.

The plaza has been losing tenants for years, and stores like Banana Republic and Ann Taylor closed recently. The mayor said he planned to call the chief executive officer of the plaza's anchor store, Macy's, later Tuesday to assure the department store chain of the city's commitment to the plaza and its retailers.

8th and K hotel plan dropped

2009-12-09T06:53:53Z

Developer Bob Leach withdrew his proposal Tuesday to build a hotel on K Street Mall after financing — including public bond financing from the city — fell through.

The city of Sacramento's Redevelopment Agency now must go back to the drawing board by requesting other proposals for the property at 8th and K streets, as well as adjacent property in the 800 block of L Street.

"He pulled the plug," Sacramento City Councilmember Kevin McCarty said following Tuesday's City Council meeting.

The developers were asking the city to contribute more than $18 million in land and nearly $15 million in tax rebates toward the project.

"The city is not in a position to bond to provide permanent financing for the hotel," according to a city staff report. The item was withdrawn from the council agenda without discussion.

In 2008, the Redevelopment Agency had entered into exclusive right-to-negotiate agreements with USA Hospitality Inc., as part of a settlement with developer Moe Mohanna and other primary owners of the 700 and 800 blocks of K Street.

Development partners Bob Leach of USA Hospitality Inc. and Parkcrest Development, along with equity partner Mohanna, initially proposed building a 400-room Marriott Renaissance hotel at the southeast corner of 8th and K streets and a mixed-use project dominated by a 372-space garage on the adjacent northwest corner of 8th and L streets. The historic Bel-Vue Apartments, a city landmark built in 1910, is one of the buildings occupying that corner.

On Nov. 20, USA Hospitality submitted a new proposal to build a 300-room hotel, an adjacent 350-space garage and 100 condos above the garage in a second phase.

The developers had until Nov. 23 to get "stronger" financial commitments from lenders and investors; determine the cost to preserve the facade of the Bel-Vue; and complete business negotiations so those can be included in the development agreement. Those requirements were not met, according to the city staff report.

The South Korean company Consus Asset Management recently indicated it was willing to make a $91 million investment commitment as long as the developers got a loan from a bank that met Consus' requirements or the city agreed to provide the financing through municipal bonds. However, the developers weren't able to arrange such financing.

Leach, who built Le Rivage Hotel on the Sacramento River waterfront, submitted a letter withdrawing the project shortly before the City Council was to consider the agency's request to move forward and consider other proposals, confirmed City Councilmember Sandy Sheedy.

The city will be seeking qualified potential developers by Feb. 12.

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

Report: J-K-L focus must be residents

2009-11-19T05:44:13Z

If you build it, they will come.

What's been said about baseball diamonds in Iowa is now being said for downtown Sacramento's future retail market, according to a retail consultancy firm that has just finished a study of the J-K-L corridor.

In this case, "they" represent 72 percent of the greater Sacramento area's 1.65 million population: "urban chic" Sacramentans who own homes in the central city; young, child-free metrorenters; "in style" suburbanites who love the gritty city; long-time residents and new homeowners living just outside the core; and connoisseurs who want the best of everything, said Scott Schuler with Downtown Works of Washington, D.C.

"You have got to draw people from the entire market. The number of people downtown is not enough," Schuler said Wednesday when the firm presented a draft report to the Downtown Sacramento Partnership board, Mayor Kevin Johnson and city employees. The figure is based on demographic and lifestyle data other companies have produced for Sacramento.

The news that Sacramento's historic retail core could thrive once more by catering to residents throughout the region was a surprise to those who have long thought the area should be developed to attract travelers and the most wealthy residents.

"That is enough to support downtown if we have the right kind of market," said DSP Chair Kipp Blewett. "The future of downtown is going to be in the renaissance of the urban core."

While visitors remain important to the economy, they spend much more on food and beverages than retail. In addition, visitors want to experience the real city, Schuler said.

"They want to go where residents go," he said. "You don't market to them."

The city has focused strongly on bringing more nightlife and entertainment to K Street Mall. But the area needs at least as many, and possibly more, day-time uses, said Midge McCauley, also with Downtown Works, which prepared the report for the DSP and the city.

Downtown Works studied groundfloor spaces on J, K and L streets between 7th and 12th streets, and on the sidestreets of 9th to 11th streets in that area. About 18,000 people live downtown in 700 single-residency occupancy hotels and 220 market-rate housing units. The area includes 700 single-residency occupancy units and 220 market-rate housing units. About 18,000 people are estimated to live within a one-mile radius of 9th and J streets — a number the consultants pointed out as too low to support retail in the J-K-L corridor. About 93,000 people work downtown, she said.

Out of 231 total spaces, 57, or 25 percent, are vacant. Many current storefronts are "shabby" and "dated." Sandwich board signs and dead plants, replaced with new landscaping only recently, pull the area down, McCauley said. Obstructed sight lines are another problem, said McCauley, who recommended removing ticket vending machines and ramps

Only 10 percent of the 174 that are occupied are dedicated to selling retail goods. And out of 103 retail spaces that house restaurants, clubs or shops selling goods, Downtown Works identified only 12 percent as desirable enough to keep, she said.

Quality retailers have unique, attractive storefronts with distinctive, eye-level signs and appealing window displays, good merchandise that is well organized and a clean, well-maintained store.

The proposed solution: hire a "retail recruiter" whose job is to find urban pioneers — innovative retail entrepreneurs from near and far willing to open up shop in the city's risky downtown retail corridor. Arm the recruiter with the latest data on available property and financial incentives to lure retailers who agree with the vision to revitalize the area, McCauley said.

Undesirable tenants could be phased out as their contracts come up. The retail mix needs much more variety, such as apparel, outdoor goods, shoes, accessories and home furnishings. The mix should be unique — not something already offered in shopping malls. Independent stores should be focused on first, and chains that aren't overly represented in the market should be considered later, she said.

They recommend allowing cars on the entire K Street Mall, rather than a one- or two-block pilot which people are unlikely to use. The firm also recommends lower-level planters over trees, which they said block sight lines, tear up sidewalks and obstruct signs.

"People love their trees but trees are a retailer's nightmare," McCauley said.

Programs could be developed to offer facade grants and forgiveable loans for businesses that remain for at least five years, with 20 percent of the loans forgiven each year. Downtown Works recommended the first three to five pioneers get loans of $300,000 to $500,000. Other new businesses that fit the vision might get $20,000 to $100,000, McCauley said.

"We know those early deals are often the hardest ones to make," said McCauley, adding that the first deal would take a year to a year and a half if a recruiter began work today.

The DSP board members now must agree on whether to support the recommendations and then vote on formal adoption in December. Blewett said it was too early to discuss funding sources for such programs. However, if the city were to provide $1 to $2 million from the general fund, that could generate much more tax revenue for the city, he said.

Blewett pointed to Sean Kohmescher, who owns Temple coffee and teahouse on 10th Street, as the type of urban pioneer the corridor needs more of.

"He's young. He's entrepreneurial. He's committed to downtown," Blewett said. "Look what he did with a lot of elbow grease and some guts."

Suzanne Hurt is a staff reporter for The Sacramento Press.

Editor's Note: The Sacramento Press editorial department corrected a fact in the above article after the article was published. The original sentence is denoted with strike-through text, with the new sentence proceeding it.

Plaza change key to downtown's future

2009-10-14T03:49:55Z

Mayor Kevin Johnson has put it to the owners of the troubled Westfield Downtown Plaza: Either you're in or you're out.

The company, Westfield Group, has only another month or so to tell the city whether it will invest in its downtown Sacramento mall the way it's investing in Westfield Galleria at Roseville, Johnson told Westfield representatives and downtown business owners Monday.

"If not, we need you to not hold our city hostage anymore. We need you to sell and let the city move forward," he said. "In November or so, we need you to realize if you're in, you're in. If you're not, you're not."

For at least 11 years, the city has been negotiating over Downtown Plaza with Westfield, perhaps the world's largest shopping mall owner with more than $47 billion in investments in 119 shopping centers. In 2006, Westfield proposed a $120 million overhaul of Downtown Plaza. In May, the company postponed those plans for at least the rest of the year, while completing its $120 million reinvestment at Westfield Santa Anita in Southern California's Arcadia.

The mayor has been pressing Westfield for investment since at least August, when the company also backed out of a planned $200 million renovation of North County Mall in Escondido.

In a meeting at Cosmopolitan Cabaret Monday, Johnson said he and other city leaders are currently engaged in meetings with Westfield Group to determine whether they can make the current partnership work, or whether Westfield should sell the mall to the city or developers from Sacramento or beyond.

The mayor delivered the ultimatum during the first of two community meetings dubbed "Unlocking the Grid" that he's holding as the city works on a new strategy for K Street Mall and the downtown core. More than 100 business and property owners and others took part in the first meeting. Next Monday, Johnson plans to meet with people who live, work or visit downtown at 5:30 p.m. at the cabaret, 10th and K streets.

At the meeting's start, Johnson took a look back at decisions made in the last 50 years that cut off key streets and areas like Old Sacramento and the Sacramento River: the widening of Capitol Mall in the 1950s, the construction of I-5 and removing cars from K Street in the 1960s, construction of the suburban-style Downtown Plaza and Sacramento Convention Center in the 1970s, light rail construction in the 1980s, and tripling the size of the convention center in the 1990s.

Johnson encouraged participants to consider all of the city's assets while coming up with big-picture ideas to improve downtown and reconnect all its parts. Every decision impacts what the city will become, he said.

"We have to create an environment where all boats are rising," he said. "I don't want us to fall into doing the easiest thing to do."

Problems with safety and cleanliness were at the forefront for many. K Street Mall is plagued with "bums, lunatics, thugs and drug dealers," and the city should have a "visible police presence" on K Street until 2 a.m., said Gene Barton, who owns Marilyn's nightclub, 908 K St.

"No one's patrolling alleys. No one's down there after dark," he said.

Hannah Brantingham, the 27-year-old operations manager for 24 Hour Fitness on Seventh Street, said she didn't feel safe walking three blocks down K Street Mall to the afternoon meeting. She's concerned about the safety of employees who walk from a dirty yet expensive parking garage and about cars being stolen or burglarized there.

Another participant asked whether the city would relocate "SRO" hotels, cheap hotels providing single room occupancy on and around the mall.

The SROs have been a problem for "too long," said Johnson, who added, without going into specifics, that he's committed to not having SROs be an impediment to Westfield or other business owners.

The city should focus first on building a mass transit system to carry more people downtown, which would encourage development, said developer David Taylor.

Light rail to Davis could make it easier for UC Davis's 30,000 students to party, shop or eat downtown, said Steve Ayers, a developer and local steel company executive.

Plenty of talk revolved around how to bring more business, housing and spenders downtown. Some people suggested downtown — via retailers and restaurants — must stay open later to increase safety and make the area a more desirable place to be.

Sean Kohmescher said he keeps his Temple coffee and teahouse at 1014 10th St. open until 11 p.m., even though he loses money doing so, because that supports the kind of city he wants to live in. He suggested more business owners "take it upon themselves to create that."

While some were focused on bringing more "high-end" boutiques, restaurants and housing downtown, Kohmescher and others said the key is to have businesses that students and residents with middle-class or fixed incomes will use regularly.

Midtown works better than downtown because it has "mid-level" options, said Brook Taylor, a young professional who works in the Governor's Office of Planning and Research.

The city should focus on serving the needs of "folks in the middle" who provide a steady stream of business to the city, he said.

Suzanne Hurt is a staff reporter for The Sacramento Press.

Mayor to host K St. meetings

2009-10-07T04:38:40Z

Mayor Kevin Johnson on Tuesday announced two community meetings to exchange ideas on reviving K Street Mall and Westfield Downtown Plaza, shortly before an independent analysis comes out.

The mayor will meet with business and property owners next Monday, and then with the rest of the public on Oct. 19, as a way to involve the community in the ongoing effort to develop a new strategy for K Street and the rest of the J-K-L corridor, the core of downtown.

"We want to create a new vision," Johnson said in his weekly press conference inside city hall. “We need to re-imagine what downtown looks like.”

The issue has vexed other mayors and city councils. The meetings will be the first such community meetings held by Johnson.

Last spring, the city's Economic Development Department and Downtown Sacramento Partnership hired a Washington, D.C. firm to evaluate K Street Mall's existing retail environment and propose an immediate action plan, after taking into account new realities in the retail industry and the current state of the capital market, said DSP Executive Director Michael Ault.

Midge McCauley and other retail consultants from the firm Downtown Works will present their recommendations to the DSP board next month. Their work cost $80,000, said Johnson's spokesman Joaquin McPeek.

On Oct. 12, the mayor plans to meet with business and property owners, as well as the former owners of defunct businesses. The meeting will give stakeholders from J, K and L streets between Third and 16th streets a chance to share past challenges and current concerns, and give input on possible answers to the area's problems.

"The mayor believes that success cannot be attained unless the entire corridor is involved in the solution," McPeek said.

Johnson said he also wants to make sure they're appreciated.

"I want to thank them for staying and not bailing out on us," he said at the press conference.

At both meetings, the mayor will share his ideas for the area's future. He has engaged in talks with the Downtown Plaza's owner, Westfield Group, the world's largest retail property group, to find out by year's end if the company will invest more or sell its part of the shopping mall.

"I think it's clear the mayor is very focused on wanting to get some resolution on the future of Downtown Plaza," Ault said.

The plaza could face significant change, which could include reopening that section of K Street — as suggested last week during a panel discussion hosted by the Urban Design Alliance of Sacramento.

"I don't think it's surprising to anyone that that mall is in need of a pretty significant renovation or redevelopment," Ault said. "The current situation and status quo is not an option."

However, as the plaza's owner, Westfield Group has to be involved in moving forward, he added.

"This has got to be a team effort for all of us," Ault said.

The mayor will hold a public meeting on Oct. 19 for residents, visitors and people who work in the city. Location and time will be announced later, McPeek said.

"It's open to anyone who wants to come who has great ideas," he said.

Staff reporter Kathleen Haley contributed to this report. Suzanne Hurt is a staff reporter for The Sacramento Press.

Dialogue: K St. Mall

2009-10-02T04:16:45Z

Locals with dismal views of K Street Mall might take heart in the optimistic views shared during a Wednesday night panel.

Sacramento may not be a hard urban center like Chicago, Los Angeles, Boston or New York. But the answer to the problems plaguing K Street, from closed streets and empty storefronts to a struggling shopping mall and safety concerns, is not to try to replicate what large cities or the suburbs offer. Emphasizing Sacramento's distinct character is critical to revitalizing K Street and downtown, they said.

"This community has a soft-shoe quality. It's very unique, very friendly, very green," said Ken Kay, an urban designer who runs KenKay Associates in San Francisco. "The authenticity of this place is really the soul of what people want."

He was among the panelists who took part in September's Design Dialogue, "K Street: A Postcard into the Future" at the Crest Theatre, 1013 K St. At least 100 city residents, design professionals, developers, government employees, retailers and others turned out for the event sponsored by the Urban Design Alliance of Sacramento and Downtown Sacramento Partnership. The nearly two-hour question-and-answer session was moderated by Bob Chase, Sacramento County's chief building official.

Opening up K Street and improving links to the riverfront, Old Sacramento and the city's distinct neighborhoods are the hands that can administer cardiopulmonary resuscitation to the heart of downtown Sacramento, according to panelists discussing the future of K Street Wednesday night.

Ideas that were discussed include eliminating or reconfiguring Westfield Downtown Plaza; allowing cars and bikes back on the currently closed section of K Street; adding colorful old trolleys, creative lighting and more public art; ensuring the central city has good schools; and offering more culture and unique activities such as interactive venues that focus on art or technology.

Downtown needs to capitalize on its two major open spaces: the riverfront and Capitol Mall, Kay said. K Street's "flow" to the river and Old Sacramento, as well as the connectivity between other streets and neighborhoods, needs to be improved. That way, people can easily travel between the heart of K Street and the river, and from downtown to Sacramento's neighborhoods, which are "some of the best traditional neighborhoods in all of Northern California," he said.

"You have a pretty established street on K Street with a huge natural amenity — the river — at the end. You should monopolize on that," he said.

Downtown Plaza interrupts that flow, especially at night when it's closed. An indoor shopping mall like that is "outdated," Kay said.

The Downtown Plaza can't be considered successful, said Midge McCauley, a retail consultant with Downtown Works of Washington, D.C., who's currently preparing a study of K Street Mall for the Downtown Sacramento Partnership and the city.

Cities across the country developed indoor shopping malls after those sprouted up in the suburbs. But now those suburban malls are trying to capture the feel of a city by going after a "faux urban" experience, McCauley said.

"Here's the good news: You've got the real thing," she said. "We just have to repopulate it with retailers. But that starts with local and regional retailers. National retailers are not pioneers. They're not going to be the first in."

However, the mix of retailers and the other businesses, activities and amenities must be unique to K Street, rather than copying the suburbs, which has been proven not to work, she added.

The city is working on returning cars — and bikes — to K Street Mall as "one tool" to help bring more potential shoppers to the mall, said John Long, a transportation engineer with DKS Associates of Sacramento.

City planners believe opening two blocks as a pilot project could be done more quickly and at lower cost than other improvements that are being considered to bring retailers back. Businesses want customers to be able to drive by to check out their stores and to be able to drop people off right in front, he said.

In addition, people who are concerned about safety issues on K Street Mall need to be able to drive there first. Allowing cars is seen as the way to get people to K Street who aren't going now — suburbanites who don't work downtown, Long said.

The panelists acknowledged downtown was successful when enough people lived there and that downtown residents are another key to restoring vibrancy. However, Sacramento is "light years" away from having enough downtown residents to "radiate success" there again, McCauley said.

"Any major city, it's still based on the retail culture, as well as the other urban amenities a downtown has to offer," she said.

Suzanne Hurt is a staff reporter for The Sacramento Press.

K Street Mall update

2009-08-19T03:31:56Z

K Street Mall has seen some movement this month with restaurants reopening renovation continuing and a legal challenge dismissed. Big changes may still be in the works.

Two restaurants -- Three Monkeys and the Crepe Cafe -- have reopened in their old spots. Work continues on the renovation of St. Rose of Lima Park and relocation of the adjacent light rail station.

In addition, a judge dismissed a lawsuit contesting development of a mermaid bar and two other nightlife venues in the 1000 block of K Street. Following the suit's dismissal, San Francisco nightclub operator George Karpaty said he expects his proposed businesses would help change the city's nightlife landscape.

For some time, there has been talk of reviving K Street Mall and the downtown business district by introducing more nightlife. Karpaty said the businesses he plans to open in the 1000 block would help draw more people downtown at night, rather than suck customers away from existing bars or restaurants as the owners of those businesses have feared.

"We don't look at it as competition. We look at it as co-opetition," he said Tuesday. "We believe it will be good for all the other restaurants and clubs."

Former Sacramento City Councilman Josh Pane filed a lawsuit last spring to try to stop development of Karpaty's proposed projects in the space occupying 1016-1022 K St. next to The Cosmopolitan, which opened less than a year ago featuring Social nightclub. Another "ultra-lounge," known as Cabana, operates at 1200 K St. Longtime Sacramento restaurateur Randy Paragary is part owner of both nightclubs.

Pane, along with nearby restaurant[-] and club[-]owners and some residents criticized the city for giving $5.7 million in subsidies to the project developers, David S. Taylor Interests and CIM.

On Aug. 7, Sacramento County Superior Court Judge Lloyd Connelly threw out Pane's legal challenge. The judge chose not to review the merits of the case after Pane failed to "exhaust" administrative review by appearing before the City Council or at least filing a letter with that body, said Pane, who will not pursue the case.

The lawsuit hasn't impacted the pace of the development, said Karpaty, who owns Inner Circle Entertainment.

The venues were initially said to be opening by year's end. However, Karpaty didn't want to put a timeline on construction Tuesday. His staff is still working on special permit applications to get the exterior design approved and to operate the nightclubs and an outdoor patio. The city had expected those applications by the end of July.

Karpaty is well-known for creating unique, high-end nightclubs in San Francisco. Ruby Skye won Club World's "Best Club" award at last year's Winter Music Conference held in South Beach, Miami. Slide, a former speakeasy turned boutique lounge, was just featured on the Entertainment Channel as one of the most extreme bars in the world -- entered only by slipping down a slide, paying homage to its speakeasy days.

In Sacramento, Karpaty plans to operate three venues whose interiors he described as "over-the-top spectacular": Pizza Rock, a 5,600-square-foot gourmet pizza restaurant with an outdoor patio; Dive Bar, a 3,050-square-foot bar featuring a giant aquarium and human mermaids or mermen making surprise appearances; and a 4,300-square-foot, over-30 dance club whose name has been changed from Frisky Rhythm to District 30.

Karpaty and his staff have been working with the city to get approval on exteriors for three facades, which are all contained in one building. They're fine-tuning ideas for such things as exterior colors, the rock facade to be used on Pizza Rock and preservation of a vintage billboard. The plan is to tie them to the area's existing look.

"We definitely want to give them three unique exterior and interior looks, because all three concepts are different from the other," he said. "We're looking to create some unique venues that don't look like they overly stand out, but don't look like they belong in the suburbs."

Covered with rustic brick, Dive Bar will look like it's been there 40 years, he said. Pizza Rock will look the most similar to the current downtown style. And District 30 will be more contemporary urban.

Pizza Rock's interior will be high-end industrial. World pizza-throwing champ Tony Gemignani is a partner at the restaurant. He's appeared on "Oprah," "The Late Show with David Letterman" and other shows. The Castro Valley resident will train the staff to juggle dough, while bartenders will juggle bottles and glasses.

While Karpaty said he respects Sacramento's established, high-end restaurants and clubs, he expects his businesses will "change the landscape of nightlife" in this city by offering something new.

"We're going to bring big things to Sacramento," he said. "That I can promise you."

Editor's Note: The Sacramento Press editorial team corrected errors in this story after it was published.

K Street's mojo rising

2009-07-17T02:51:54Z

Despite temperatures that soared past 100 degrees, construction crews worked hard this week to help K Street get its groove back.

Sacramento Regional Transit supervisors have been on-site daily to inspect, while crews selected by general contractor Otto Construction dug trenches and laid electrical conduit for a new light rail stop and handicapped-accessible "mini-high" platform on Seventh Street.

The roughly $4.5 million first phase of the K Street makeover includes a facelift for St. Rose of Lima Park, a light rail platform relocation and a streetscape renovation for the 700 block of K Street Mall. The city and Sacramento Regional Transit are partnering on the project. The long-term goal is to renovate K Street up to 12th Street.

City officials want to cultivate the mall's aesthetics and ambiance. They also want to more easily connect the area's struggling retail mall, Westfield Downtown Plaza, with the convention center and points in between.

"The streetscape is kind of the first step in revitalizing K Street," said Denise Malvetti, a city senior project manager who is overseeing the first phase project. "We're trying to enhance the pedestrian experience. We're hoping to make it look more inviting and pleasant."

Portland-based Walker Macy is the design firm on the project. Most of the funding for the first phase comes from tax increment financing, which uses expected future increases in tax revenue to fund current projects. Park funds are also being used, she said.

Since starting work on the project in early May, crews have excavated St. Rose of Lima Park and built trenches for electrical and irrigation equipment there. They've also poured new curbs and gutters on Seventh Street.

On the south side of K Street, they've opened hollow sidewalks that reach down to the city's original ground level. The streets of Sacramento flooded so much in the 1800s that many streets of the old city's downtown were eventually raised as much as 12 feet. Crews are now cleaning and shoring up the hollow sidewalks, said Malvetti.

Crews also have removed concrete and done excavating work in St. Rose of Lima Park, which was named for the first person in the Americas to be designated a saint by the Catholic church.

The park's layout will remain the same. The centerpiece will be a new water feature for people to play in during scorching Sacramento summers or just relax near during lunch. In the winter, the interactive, in-ground fountain will be covered by the ice skating rink. A new restaurant with outdoor dining is expected to replace Three Monkeys on the east side of the park.

Next week, a new underground vault for the park is expected to arrive. Otto Construction is expected to continue excavation to install the vault, which will store fountain equipment. These and other improvements are hoped to make the park -- and the mall -- more of a "destination" for residents, downtown workers and visitors, Malvetti said.

Recently, city officials and developers also have been talking about another idea to bring more people to K Street Mall: reopening the mall to cars.

The St. Rose of Lima light rail stop and handicapped-accessible platform ramp will be moved from the 700 block of K Street to Seventh Street to open up that section of K Street, making it easier to walk there and creating more of a plaza feel. The existing stop/platform will continue to operate until the new one opens.

The streetscape will be upgraded with more trees, greenery and flowerpots; matching black "street furniture" including benches, light posts, bike posts and trash containers; colored concrete paving stones or pavers. Any unhealthy trees may be removed and tree beds will be enlarged to hold landscaping.

The park is expected to be finished in November in time for the holidays. Construction on the south side of K Street will continue into December, said Malvetti.

City officials and staff are currently seeking funds to renovate other sections of the mall. No other phases are funded or planned yet. This first phase is expected to be the most expensive due to the park rehab and light rail relocation, she said.

"We're really excited to have Seventh Street under construction," Malvetti said.

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

Sac to get "3rd Saturdays"

2009-07-13T03:05:59Z

So -- you like Second Saturdays?

Do you like the way this local arts night has morphed into a street fair? Have you watched the event grow so big that you've hoped it could take over the central city more than once a month?

Your prayers may be answered this month when a new Saturday street fair debuts in Sacramento. Sponsored by Sacramento News & Review (SN&R), "Design Downtown" will bring mostly locally made or "do it yourself" (DIY) fashion and art to the K Street Mall from 3 to 9 p.m. every third Saturday starting July 18.

"We looked at the success of Second Saturday and said, 'Maybe that's something we can build on,' " said Clay Nutting, the sales and marketing manager for the paper. "We hope that it becomes a local, DIY kind of experience."

The weekly alternative paper is putting together "a creative block party" to bring more energy and business to the pedestrian mall, which is often nearly empty on weekends.

"No one's going to show up to see Sacramento News & Review," he said. "It's the vendors, it's the musicians, it's the businesses, it's the excitement of going out on a Saturday and doing something new."

SN&R has been working closely with the city and event partners -- the Hard Rock Cafe, as well as Cosmo Cafe and Social Nightclub, the former operated by Paragary Restaurant Group and the latter operated by Randy Paragary and Bob Simpson at The Cosmopolitan, 10th and K streets -- to get the event up and running in a short time. Beer makers Budweiser and Corona are event sponsors.

On Friday, SN&R staffers were still reaching out to other mall businesses to let them know about the event and how they can participate. Paragary Restaurant Group quickly became interested after canceling the Bloc Concert Series planned for last Saturdays at Marshall Park due to lack of profit. Few people went, especially to the June 27 concert that competed with other events that day, including SN&R's Music Fest and SAMMIES (Sacramento Area Music Awards) Ceremony.

In May, the concert series, Midfest Summer Celebration and Paragary Restaurant Group owner Randy Paragary came under fire from some Marshall Park residents and neighborhood groups. Residents expressed concern over impacts the events might have on the primarily residential neighborhood a few weeks after a Cinco de Mayo street party got out of hand outside Paragary's Centro Cocina Mexicana. Residents requested that the events be held downtown in a business district.

SN&R, a media sponsor for the concerts, was aware of the situation. But SN&R staff had already been planning the Third Saturday event, so its hasty launching isn't Paragary's attempt to meet residents' requests by moving the Bloc Concert to the mall, Nutting said.

"We looked at some of the concerns with events happening throughout town and thought that (K Street Mall) area might be more accepting of what we're looking to accomplish," Nutting said.

At the Seventh Street entrance to Westfield Downtown Plaza, the Hard Rock Cafe will hold a free, all-ages show featuring local teen bands on an inside stage from 3 to 6 p.m. Social will feature an after-party event with DJs. The main stage will be set up on 10th Street near the alley between K and J streets. Bands including The Kinetics, ZuhG and Musical Charis will play that stage after 5 p.m. Cosmo Cafe is extending its catering license to have a barbecue and beer garden.

Hard Rock Cafe staff think the event is "great," said Sales and Marketing Manager Kim Templeton.

"I think Sacramento has a lot of creative people, a lot of great artists, a lot of great musicians," she said. "I think K Street is a great area to bring some activity here."

The event will feature eclectic vendors selling fashion, jewelry, arts and crafts, while highlighting businesses on and around the mall. Some vacant storefronts plaguing the mall would ideally be used for art workshops, he said.

"Everybody knows K Street has had its ups and downs. (But) there are these really great high spots we want to accentuate," said Nutting.

At least 40 vendors are already on board to set up tables, booths and tents on the mall from Ninth to 11th streets and on 10th Street, which will be closed to vehicle traffic. Vendors range from local fashion designers and comic book artists to photographer Kenna Foster.

Nutting said he hopes street performers will get involved and he's encouraging other businesses to get musicians to play outside their storefronts. A jazz group is expected to play on a street corner.

By early Friday afternoon, the city's Parks and Recreation Department had awarded a conditional permit for the Design Downtown series. The official permit will be awarded as soon as SN&R gets insurance coverage for the event, said Recreation Superintendent Teresa Jackson, who oversees the department's special events office. A conditional permit allows an organizer to plan and advertise an event, she added.

A permit for the entire series will be awarded, rather than one for each date, because parks staff believe the mall will be a "good fit" for the event and crowd. Paragary Restaurant Group had to apply for a permit for each concert in the Bloc Concert Series so the city could evaluate whether Marshall Park could accommodate the crowd, Jackson said.

"With (K Street Mall) it's a much larger venue, so we don't have the same concerns with attendance," she said.

Off-duty Sacramento police officers have been hired to work the event. A sergeant will monitor the sound level, which will be established on the permit. The permit requires the beer garden to serve its last drink at 8:30 p.m. and the event to end at 9 p.m. No parking enforcement problems are anticipated.

SN&R also has worked with Sacramento Regional Transit (RT) District engineers to safely lay out the street fair without impeding light rail trains, which will be running every 15 minutes in both directions. Vendors will back up to storefronts and must be at least 10 feet from the tracks. Pedestrians must stay behind yellow warning tiles running on both sides of the track.

"We want to make sure the trains operate as they should and we want to make sure everybody is safe. The trains regularly operate in a pedestrian environment," said Alane Masui, RT's assistant general manager of marketing and communications. She encouraged people attending Design Downtown to use light rail.

"Light rail is the perfect way to travel to the event. It'll take you right to the event," she added.

Paragary Restaurant Group did not return phone calls.

As the event grows, SN&R will work with more businesses to find "creative ways" to tie them into Design Downtown, Nutting said. The paper wants to help businesses that are "sticking it out" on the mall despite the blight and the recession, he said.

"It's very organic. What it evolves into -- I'm just as excited as anybody to find out," he said.

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.