Newest articles on The Sacramento Press tagged as "ds development"

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

2011-06-25T03:02:16Z

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Read more about the 700 block project here.

Moving forward with K Street redevelopment plans

2011-06-23T02:02:53Z

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

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

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

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

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

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

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

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

The housing element of the project also changed.

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

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

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

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

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

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

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

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

The developers disagree.

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

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

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

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

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

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

Where Do They Go From Here?

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

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

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

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

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

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

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

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

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

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

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

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

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

Shady Lady Saloon owners to open restaurant in Galt

2011-05-17T00:34:28Z

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

RESTAURANT THIR13EN previews its menu and location

2011-05-16T04:25:57Z

Tuli Bistro owners Adam Pechal and Ulrike “Ulli” Lesk Petersen previewed the space and menu of their second restaurant, RESTAURANT THIR13EN, on Friday. The restaurant is located on the bottom floor of the Sterling Hotel at 1300 H St., where the restaurant Chanterelle was until it closed last January.

All evening invited guests were provided teasers of THIR13EN’s menu, which included oyster shooters, sous vide quail wings, seared scallops, Kurabuta pork belly and seared sirloin with potato puree. Each guest was also provided a drink ticket to sample offerings from their full bar, such as wine from Berryessa Gap Vineyards, international beer taps and a number of signature cocktails.

Petersen and Pechal — who is also the head chef — expanded their business with the Smoked-Out Trailer, a mobile culinary rig, and Tuli Catering, but when they were approached by the building owners through Bay Miry at D & S Development, about taking over the space, they couldn’t resist, they both said.

They said they were especially interested in the ballroom, which would allow them even more business via catering events. Pechal said the ballroom had not initially been part of the deal, but the real estate company made it happen, convincing the hotel to include the ballroom to sweeten the pot and finalize the agreement.

Marketing director and Pechal’s longtime friend, Johnny Shin said the company is now the exclusive caterer for the Sterling Hotel Ballroom.

“The large kitchen at the Sterling allows us to ramp up our catering services with the same quality that Tuli Bistro serves daily,” Shin said. “House-made pastas and meats combined with seasonal and local sources are at the heart of Chef Adam’s goals. We are now able to support Tuli Bistro, Tuli Catering and our Smoked-Out Trailer to full capacity.”

While Pechal said he wants to maintain the tradition of local sustainable food and keep the general vibe of the two restaurants the same, THIR13EN will be at a higher, more refined level.

“Tuli Bistro is a bit more rustic than THIR13EN,” Pechal said. “Here at THIR13EN there will be more attention to detail.” He specifically mentioned the use of different cooking techniques, such as the sous vide used on the quail wings that night .

Shin said the THIR13EN idea stemmed from wanting to do more with space. Shin talked about how he and Pechal would take “research trips” to San Francisco, a place that was really able to demonstrate how to make the most of small spaces.

One thing they came across in their research was the idea of a “community table.” Shin explained that a community table was a larger table set aside in a restaurant with open seating. It seated at a first-come, first-served basis and allowed people to enjoy the food while mingling with other diners.

The community table at THIR13EN will seat 13. It was not ready for the preview event, but Shin said it will be custom-built from a Boos Block cutting board. Besides the community table, the restaurant can seat 40 inside and 40 more on the patio outside.

While the exact arrangement of the restaurant is still being determined, Pechal said they were going for a “humbly elegant” look and feel, and the community table will help in that respect. He said that the community table will be placed between seated tables and the bar, a position he noted would functionally break and yet blend the room.

Shin said the restaurant will begin taking reservations Monday for their first dinner bookings for May 27 and 28 and each weekend after. They will open for lunch Monday through Friday from 11 a.m. to 3 p.m. starting in June.

Maydestone renovation halfway done

2011-01-29T01:14:24Z

Apartments in the Maydestone building downtown are starting to look more like homes as work progresses in the historic building’s restoration.

“It’s a very urban project, it’s a very prime location,” said Bay Miry of D&S Development. “There’s been a lot of people already inquiring about it.”

Renovation work on the century-old building at 15th and J streets started in September.

“Our whole goal was to do it in 10 months, and we’re still on that path,” Miry said. “We expect to have tenants in here by early summer.”

A previous article showed the progress made up to Nov. 17, and workers have made significant strides since then.

Miry added that the project has received funding from the Sacramento Housing and Redevelopment Agency.

“If it weren’t for SHRA, this wouldn’t have come together,” he said. “Without redevelopment (funds), there’s no way this could have happened.”

Most noticeable from the street is the exterior progress, in which bare wood has since been covered with wood siding and painted.

The paint scheme will reflect the building’s original colors, and much of the molding and other parts are original, including the fire escape facing 15th Street. The stucco covering on two of the sides is original, and has been restored in places. A steel staircase on the rear of the four-story building has been finished and meets modern fire code, Miry said.

The interior is being restored to include 32 units ranging in size from 450 - 750 square feet. They will qualify as affordable housing, and Miry said he is anticipating having tenants ranging from young professionals to empty-nesters looking for a downtown spot.

Rents will range from approximately $700 - $1,300 per month, Miry said, which will qualify as affordable housing for those earning approximately $30,000 - $60,000 per year.

Construction is being done in four stages of eight units each, and the first eight have had their walls covered, with detail work well under way.

Miry said workers are taking care to keep the historic character of the building intact, with the crown molding being restored or redone, and original fixtures – dressers, kitchen countertops and pull-out beds – are being restored and incorporated into the new spaces.

In that vein, original radiators will also remain in the units, but each one is equipped with modern central heating and air conditioning, Miry said. Also new to the units is a fire sprinkler system to meet fire code.

The interior walls will be smooth, with paneling in some areas. Curved joints between walls and ceilings in some areas preserve the older architectural feel of the building.

Insulation has been added, and the original windows have been restored. Miry said they are not multi-pane windows, but single-pane. They retain the rope-and-pulley systems, and the original counterweights are being used.

When constructed, the building’s walls were lath and plaster, and where there has been demolition work, sheetrock has been installed.

The basement will feature a fitness room, about 20 storage spaces tenants can rent and a lounge area with a kitchenette. All units in the building have their own kitchens, and Miry said the kitchenette in the lounge is included for convenience.

Washers and dryers will not be installed in each unit, but will be available in the basement.

Also in the basement is the original elevator equipment, which will not be functional, but will remain, with signs providing historical information, Miry said.

Eco-friendly materials are being used where applicable, and solar panels will be placed on the roof. LED lights will also be used in the building.

“It’s a bigger up-front cost, but it saves energy and money in the long run,” Miry said.

“We’re not taking any shortcuts,” he added. “(It’s a) really quality apartment project. Given how high-profile this is.... As far as our reputation, we want to make sure we do something that makes a statement.”

Brandon Darnell is a staff reporter for The Sacramento Press.

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.

A year's activity on K Street

2010-12-30T01:19:45Z

The downtown portion of K Street saw a lot of activity in 2010, from streetscape improvements to community debate over the redevelopment of troubled portions and the construction of new nightlife venues.

At the beginning of the year, portions of K Street were still torn up from the previous year’s streetscape improvement project. A Sacramento Press article from February covered the ongoing improvements, which have since been completed.

By late March, the city was discussing the next step in the process and considering four proposals for the 700 and 800 blocks of the street.

The plans for K Street were the subject of significant public debate, with historians, developers, residents and businesspeople all involved. Historian William Burg wrote his opinion on the plan here, generating a lengthy discussion on what the future should hold.

In advance of a pivotal July City Council meeting, the major contenders were vying for the city’s nod to develop portions of K Street, and Sacramento Press Editor in Chief David Watts Barton wrote his first of several editorials on the subject.

The July 13 City Council meeting saw two teams – one led by D & S Development, Inc. and CFY Development, Inc. and the other by Sacramento developer David Taylor – come out on top. To read more about the meeting and their proposals, click here.

Barton wrote a second editorial on the subject in which he expressed his approval of the decision as well as the community involvement throughout the process.

Other news on K Street in 2010 involved the construction and opening of new businesses.

The portion getting the most attention was the 1000 block of K Street, in which a trio of venues promises to add to the street’s nightlife.

San Francisco nightclub owner George Karpaty’s multimillion-dollar vision was undergoing construction in 2009, but work had stalled. By February, the construction was back on track.

As the months passed, construction steadily progressed, and Barton wrote another editorial about K Street – this time specifically about Karpaty’s project.

Late in the year, things were coming together, with a projected opening for the end of December or January, and The Sacramento Press brought readers a glimpse into the venues.

By the middle of December, projected January opening dates for the three businesses were given in an update on the construction progress.

Just a few blocks away, near Seventh and K streets, Vive Cocina opened in March, and a tequila-themed restaurant and museum – Tequila Museo Mayahuel – was under construction at 12th and K.

To finish out the year on K Street, the Sacramento County Historical Society brought back a holiday tradition – antique holiday window displays on the corner of 10th and K.

Brandon Darnell is a staff reporter for The Sacramento Press. Image one by Brandon Darnell. Images two and four by Staff Reporter Suzanne Hurt. Image three by Ingrid Ratliff.

Photo tour of Maydestone Building renovation

2010-11-18T02:15:57Z

The century-old Maydestone building at the corner of 15th and J streets is scheduled to open in spring or summer to provide 32 apartments to working-wage tenants.

“We broke ground a couple of months ago,” said Bay Miry of D&S Development. “We’re building it in four phases of eight units.”

The building has four floors for housing and a basement, which will serve as a common area with an exercise room, office spaces and a common kitchen.

All units are fully contained with their own kitchens and bathrooms as well.

“I’m most excited about two things,” Miry said. “First, we are rehabilitating a major eyesore in a very prominent location. Second, it provides more workforce housing to Midtown and downtown.”

Much of the building’s historical character is being preserved, including the above mosaic at the main entrance.

According to Miry, historic pull-out beds are being preserved and incorporated into some of the remodeled units.

Corner units are the bigger ones, coming in closer to the 850-square-foot size. Smaller units begin at 400 square feet, and Miry said monthly rents will range from $700-$1,100.

Rooms will be accessed through the interior hallway on each floor.

An all-metal exterior staircase will allow for the building to be accessed by the rear as well as the front.

Some of the details of the approximately $8 million project are still being hashed out, and in the above photo, co-owner Steve Lebastchi (right) discusses construction-related issues with contractors.

The above photo shows the basement, which will house the common area and amenities.

Brandon Darnell is a staff reporter for The Sacramento Press.

Maydestone Renovation

2010-10-19T02:05:12Z

The Maydestone apartments are finally getting the rehab that we have been hearing about since 2006. Built in 1912 and continually having tenants until 2003 because of a fire, in 2009 Sacramento developer D&S Development took over an option to purchase the historic 34 room building. On the southeast corner of 15th and J, the Maydestone apartments have been vacant for five years and underutilized for decades. The $7.2 million renovation should be finish in late 2011 and clean up a busy corner on J Street. SHRA will contribute $4.57 million of low-moderate housing set aside funds. $2.29 million in the form of a 30-year forgivable loan (loan forgiveness based on performance) for seismic and historic renovations. Additionally, SHRA will provide a hard loan of $2.28 million for 40 years at 4 percent interest. Brief Project Overview

Karpaty's vision is nearly reality

2010-07-23T05:38:10Z

OK, now I'm really excited.

After the decision by the Sacramento City Council to choose the D&S Development and David Taylor Interests’ Promenade on K project for the 700 and 800 blocks of K Street, I feel good. Finally, there seems to be a plan in place for projects that will bring more life to K Street.

But I also want to celebrate the fact that there is already lots of life on K Street - and not just of the undesirable kind.

I live near K Street, and most nights, I can ride my bike down the street and see people walking from all manner of venues within the four blocks between Ninth and 13th streets: Marilyn's on K, the Crest, Cosmopolitan Cafe and Cabaret, Social, Ella, Cabana, the Esquire Imax and the Community Center Theatre all draw crowds. Throw in Parlare Euro Lounge and The Citizen Hotel and Grange restaurant, and you've got a number of folks out on the town.

Suburbanites with city fear may feel uncomfortable at times, but despite its name, the K Street Mall is not a mall. It's an urban street. And no matter how many establishments are on it, some won't feel safe. That's not the city's problem, really. The suburbs exist for a reason. The city's not for everyone.

But it is definitely for George Karpaty. The Bay area club developer's Dive Bar/Pizza Rock/District 30 trifecta on K between 10th and 11th is more than two-thirds done and will open this October. And it is going to be spectacular.

I use the word "spectacular" advisedly. Karpaty was up here Thursday to check out his crew's progress, and was generous enough to give Sacramento Press reporter Suzanne Hurt and me an hour-long tour of the construction. Suzanne goes into great detail elsewhere in today's Sacramento Press.

I'll let Suzanne give you the details, which are amazing, and instead focus on my overall impression.

Wow.

This project has been trash-talked since it was first announced. It's been denounced by naysayers and some competitors as corrupt (there was public money involved), and by others as the wrong development in the wrong place. And I have to admit that I had my doubts. Development in Sacramento, as everywhere, can be shady, and when city funds are involved, some people assume the worst.

One friend has even complained that it will bring the wrong kind of people - "bridge and tunnel" types - as though only those deemed "cool" are entitled to enjoy Sacramento. Early media reports made it sound cheesy and over-the-top, and the original name Frisky Rhythm for the over-30 bar got lots of mocking commentary. And like many, I'm not one to think that Sacramento (or anywhere else) needs another theme bar or pizza parlor.

But having seen it with my own eyes, and having spent an hour with Karpaty, my opinion has changed. Spectacularly.

This is going to be something else. If you don't like bars or pizza parlors, if you like things low-key and modest, if you like K Street the way it is, this is not going to appeal. But one hour's tour gave me ample evidence that Karpaty is doing it right. He speaks with great passion and much sophistication about design, lighting, materials, sound, different types of crowds, economics and urban design. He's a substantial guy.

And the retrofitting of these old buildings - to accommodate a 7,500-gallon saltwater aquarium and so much electricity that an entire SMUD mini-substation is being built under the street in front - is nothing short of dazzling. Karpaty aims to serve a wide audience, and when it is all done - wait until you see the building facade, let alone inside - people are going to come from many miles around to check it out.

As I said, spectacular. As in, a spectacle.

But more deeply, what I came away feeling after this hour with Karpaty is a deep sense of inspiration and possibility. If Karpaty, who owns six clubs in the Bay area and knows his business, is going to invest so much in our town - a town not his own - why can't we?

We as individuals don't have to invest huge amounts of money, but what we DO need to do, IMHO, is get behind the people who are doing the work, taking the risks and spending their time on making K Street even more worth visiting. It's important to be critical and look at the details, and to be skeptical as well. But we also need to embrace change and take chances - yes, even with public money - and we need to have some faith that businessmen who are trying to make things happen, who are spending their lives creating jobs and bring life to areas that have been neglected, are not, as Karpaty says, "the bad guys."

Karpaty is about to open a group of venues that are going to take us a couple of big steps closer to creating a place where people will come from many miles around to walk, drink, eat, talk and celebrate the urban life. And I just don't see, as a citizen, as a tax payer and as a neighbor, how that is going to be anything but a good thing. And even if I find out that I am dead wrong, I am happy to take that chance.

So, I invite everyone to join me as I sit back and savor this moment: Not only can it happen here, it is happening here. Just wait till you see it.

DWB from Downtown: A new community

2010-07-14T08:47:51Z

Right on.

Tuesday night's vote for the more balanced proposal for K Street redevelopment was very good news, and not just for those of us who supported the winning team. Our city moved decisively forward tonight, and congratulations are due to all who participated in the process, from city staff to city council, from members of the community who spoke at Tuesday's meeting to those who have participated in the many Conversations on the subject on The Sacramento Press.

The Conversations here about the K Street process have been wonderfully civil, constructive, and deeply informative. The community cared about this issue, and engaged with each other on it. There was a sense that, no matter which development team you backed, the goal was mutual: To fix Sactown's problem promenade.

The synergy of community, media and government worked today in a way I don't think I've ever seen here. Watching it has been encouraging.

And now, that synergistic engagement must continue for this project to work. People must be held accountable, from the developers and contractors to the city's many inspectors and bureaucrats. Let's do this well. This project must be completed the way it was proposed - or even better. Bay Miry, Cyrus Youssefi, Joe Zeiden and David Taylor have won, but now the onus is on them to deliver. They seem likely to do so, which is why they were chosen. But as they know better than we, they have a lot of work ahead. Expectations are rising. So is the need for success.

Let's watch them do this together, through The Sacramento Press. Let's continue to tell this story in all its details together, each of us contributing what he or she has learned. And let's show those who say we must depend solely on professional journalists that the hardworking community contributors and pro journalists who participate here can tell this story not just as well as the pros, but better. Together.

I believe that we already have. Many contributors to The Sacramento Press played a crucial part in affecting this vote. The readers and conversationalists on SacPress had the most complete, most in-depth coverage of more aspects of this debate than any other news source in town. And Tuesday night, it mattered.

I'd like to give special appreciation to SP staff writer Suzanne Hurt for her finely-detailed stories on the business and development aspects and to her colleague Kathleen Haley for the scrutiny she gives city hall and the political process every day.

And then there is community contributor William Burg. Special thanks to this trained historian with a love of Sacramento, who quickly grasped the spirit and possibility of what Sacramento Press can be, and used it particularly well to help lead the conversation on this complex topic.

And he was not alone. It was a group effort.

As we build our community with rebar and stucco and steel and glass and bricks, we are giving ourselves more ways to enjoy the great life that is singularly available in urban Sacramento. But we are also building a community online, at The Sacramento Press, in which we can talk to each other, share information, disagree occasionally, and move forward toward greater understanding - in mutual respect.

Building a community online, as well as on the streets, we reinforce both. Onward!

Council 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.

Editorial: Choosing reality over dreams on K Street

2010-07-13T06:25:28Z

K Street. The very mention of this once-thriving street-turned-derelict-pedestrian mall sends people who’ve watched downtown’s progress, or lack thereof, into fits. Everyone has an opinion, an accusation, a conspiracy theory or a pet peeve about it.

And everyone has got a cure-all, that one big project that will change EVERYTHING.

Tuesday night, the City Council will meet to vote on which of the two teams of developers proposing projects for the 700 and 800 blocks of K Street should be given an exclusive right to negotiate. This is a big deal, with tens of millions of dollars in one case, or, in the other case, hundreds of millions of dollars involved.

More important, it is a test of whether city leaders are going to come through with at least one of the big projects that have been hanging fire for what seems like an eternity. The railyards, the Riverfront Promenade, the R Street Corridor...can they get at least ONE of these projects done? Or, perhaps, started?

But there is another, deeper question to be answered Tuesday night: Will the opinions of architects, of city planners, of business people and city staff, considering all the factors - cost, especially - be what wins out? Or will the decision be made by powerful interests with the ear of select politicians?

This latter question was raised anew last week, when Mayor Kevin Johnson, seeing that the grand project he was backing - the awkwardly-named “AuthentiCity,” aka the Boqueria - was losing out to the much more modest (and also poorly named) K Street Promenade, decided to add another step to the process: a committee comprised of himself and the three central city Council members: Ray Thretheway, Robert King Fong and Steve Cohn.

The latter project, by local developers who between them have done the very popular “Shady Lady” block of R Street, the Cosmopolitan complex on K Street, the Sheraton Hotel, the Sterling Hotel and Esquire development, and who have nearly all of their financing locked down, was favored by a committee of professionals. It was also approved by the Sacramento Old City Association and just yesterday, the Environmental Council of Sacramento.

Even more significantly, the K Street Promenade was also backed by the Downtown Sacramento Partnership, which represents the businesses of the downtown area of which K Street is the heart. Not only was it backed by the DSP, it was backed by the DSP at a time when that body’s chairman, Kipp Blewett, was head of the competing “AuthentiCity/Boqueria” project. Clearly, for a group to vote against its leader’s own project, the other proposal must be the superior choice.

And so it is. The K Street Promenade has new housing, parking, retail space and a slate of businesses - local businesses - signed up to bring new life to this blighted block: The guys from the Shady Lady are suggesting a 500-seat music venue, the man behind Kru and Red Lotus is talking about another Asian restaurant, Old Soul Coffee Roasters are engaged in the idea, and even the Top This yogurt shop folks are on board.

It is also remarkably cheaper, with a shortfall of only about $8 million that may need public financing, while the AuthentiCity project will need at least $80 million, and probably $100 million - or more - in public financing. Just where that money will come from even they are not sure. They’ve got some ideas, but...we’ll see.

The AuthentiCity project, which is said to feature an outpost of the Knitting Factory nightclub chain, is coming to be known by one feature of the project, the Sacramento Boqueria, a big farmers market with dining and educational options that is going to show the world that Sacramento is - you’ve heard this before - a “world class city.”

Haven’t we outgrown this whole notion yet?

One sign of a world class city is that its citizens don’t sit around dreaming up ways to hit that one grand slam that is going to instantly vault it into the status of “world class” cities. Ideas like the Saca twin towers. Like Aura. Like the Sacramento Boqueria. Big projects that promise much but ultimately come to nothing.

I believe in dreaming big. But right now, in this town, we need a success. And success isn’t going to come in one fell swoop, with one grand gesture. It is going to come with something that is already happening on K Street: critical mass. The Promenade on K project offers just that.

With the existing establishments in and around K Street - the Community Center Theatre, the Cosmopolitan Cafe and Cabaret, The Crest Theatre, Esquire Grill, Marilyn’s on K nightclub, Pyramid Brewing, Parlare Eurolounge, Temple Coffee, Grange, the IMAX, and the still-to-open trio of nightclubs (Dive Bar, etc.) on K Street between 10th and 11th streets - critical mass is growing. What is needed now is simply MORE establishments to draw more people. We don’t need a “game-changer.” We just need more players in the game. The game will take care of itself.

This is the free market in action. This is the essence of good business, and of a healthy ecosystem. Diversity. Sustainability. Critical mass. I live five blocks from 10th and K, and K Street isn’t nearly as desolate as many would have you believe. On any given night, there are many people going to the above establishments. Add more establishments and there will be more people. This is not a zero-sum game.

The right idea is NOT to create one make-or-break grand gesture that “changes everything.” The right idea is to add more of what is already working, until K Street is a place to go because you want to be where the fun is, NOT because you want to go study California’s agricultural plenty or to take your friends visiting from Phoenix for one day a year to admire our Hall of Fame.

If nothing else, the money should guide us. This city is broke. We don’t have enough money to keep fire stations open, and we are cutting services at every level. City staff has clearly said, in its report, that the $14 million parking bond that the AuthentiCity folks want is not going to happen. But Mayor Johnson - and if they are to be believed, Tretheway, Cohn and Fong - want to spend $100 million we don’t have for a project that will take at least six years to complete, with uncertain results.

We’ve been down this path before. The Big Fix. The Grand Scheme. The Big Dream. And it hasn’t worked. And it won’t work this time.

It would be nice if the City Council members who are aligned in this case with our Dream Big Mayor would wake up and smell the reality. K Street has long been a street of broken dreams, and this Boqueria dream would be the biggest dream yet - and the biggest come-down when it fails.

By the way, the Boqueria project is an interesting idea, and one that would fit quite nicely into the project in which it was originally proposed: The revitalized railyards. It was long ago suggested for the gorgeous old railroad shops in the railyards, which is a marvelous fit. And that is where it should stay, a showcase of California that serves as a tourist magnet anchor for that enormous development. Then again, even there it may not work: Copia, a similar project started in Napa’s wine region with tens of millions of dollars of support from the Mondavi family, opened in 2001 to great fanfare but closed in 2008 after the tourists failed to materialize. And that was in “world class” Napa. During a real estate boom. That ain’t now.

Supporters of the Rubicon proposal speak in grandiose terms of “boldness” and “vision.” But looking at the whole proposal - not just the Boqueria, which is the LAST phase of the project, nearly six years out, and thus may never even be built - does what they’re proposing really look visionary? The drawings are not great, but they do give us a pretty good view of the “vision” - and it looks like something that could just as easily be in Roseville. A high-rise hotel. High-rise offices. High-rise housing units. Is that the vision we want for our historic downtown?

Supporters on both sides have been inundating council members with their opinions about this. One executive member of city staff told me he’d never had so many calls on a topic. This is good. The more people involved in this process, the better. And the better people understand this, the more likely they are to support the more modest, but more doable project that could continue to grow K Street as the vital core of Sacramento’s downtown.

Or we could go for big dreams and wait for years until it all comes crumbling down, taking tens of millions of our dollars with it.

And speaking of dreamers: On what did Johnson, Tretheway, Fong and Cohn base their ad hoc decision of last week? Do they know something city staff, the Old City Association, city planners and others with actual expertise don’t? Or were they dazzled and looking for something to put a little shine on their otherwise tarnished reputations? These four council members need to be held accountable for their votes, because if they choose to saddle the city with more debt and more bond issues, and a project that ultimately gets done, or worse, a project that doesn’t change K Street except to tear down some old buildings and bring in a bunch of tourists, while offering nothing to the residents of our city - they need to be held accountable.

Downtown Sacramento needs K Street work to start NOW. Sacramento doesn’t need better dreams; it needs a better reality. The Promenade’s development teams - D&S Development, CFY Development and David Taylor Interests - have said that they have financing that will allow them to start this fall, and that the project could be COMPLETED by sometime in 2012. At that point, the AuthentiCity/Boqueria project will still just be getting going - assuming they’ve gotten adequate funding, mostly from taxpayers - and the Boqueria itself, which is what has grabbed the public imagination, would still be three or four years off.

We need a success now! Besides, the Promenade project, with new housing, parking, retail and a host of local entrepreneurs involved, is by no means a small dream. It is, in my mind - and I speak only for myself here - the preferable dream. The fact that it is the dream that can actually be achieved means that it could be something better than a Big Dream that never gets done. It could be a better reality for downtown Sacramento.

As one poster on SacPress noted, “the most extraordinary project doesn’t matter if it never gets built.” If you want to focus on bold dreams, go look at the hole in the ground at 3rd and L streets, site of the “bold” Saca Towers, and contemplate the vanity of man. And recall that that project failed even when money was available for big dreams.

Dear members of the City Council, don’t believe the hype. Let’s get something good done. We are through being dazzled with promises. We just want some places to go on K Street Mall. We’re tired of big, “world class” dreams. We will be quite happy with a modest, Sacramento-class reality.

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.

Changes in Old Sac

2009-08-31T02:11:58Z

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

"They’re little treasures," she added.

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

New lofts at 14th and R

2009-04-05T02:14:36Z

At street level, the news at 14th and R Streets in the Grid is a whole row of new dining establishments: The Shady Lady bar and restaurant on the corner, Magpie Catering, Top This yogurt shop and Burgers and Brew. And there's a fifth establishment that doesn't serve food: hair styling diva Marci Landgraf's return to the salon business, yet to be named. (See Colleen Belcher’s Sacramento Press story tomorrow on the downstairs restaurants, which either have opened or will open in the next week.)

But there's another story on the second story: 12 lofts being sold by D&S Development, now on their third group of lofts in the Grid. Bay Miry of D&S (son of David Miry, the D in D&S, the S being Steve Lebastchi) gave me a tour of the lofts the other afternoon - that is, of the six units that haven't already been sold.

The units are old-school lofts, carved out of what was originally the Perfection Baking Company, then the Wonderbread factory and finally, the Pamela Skinner Gallery. Somewhere along in there, legendary local artist Steve Vanoni called the space home.

Now, the units have been converted the way lofts used to be converted, before companies built whole buildings and designed the units to be “lofts.” In fact, the units were designed by Miry and his dad, painstakingly worked out foot by foot. They’re small, but on short acquaintance, they look like they would work.

Miry, a twenty-something Rio Americano High School graduate who went away to school to study political science but found himself drawn back to his hometown, showed off the place in the company of his girlfriend, Samantha Peterson, who lived in D&S’s I Lofts in Old Sac before being one of the first to buy a place on R Street. Why?

“They’re beautiful, they’re in the middle of town with all these restaurants and bars nearby,” she said, sitting out in front of Magpie Catering and eating a late lunch. As for why she’s bought a loft, she asked, rhetorically, “Do you know how long it takes to clean 500 square feet? 20 minutes.”

The places are small, but they’re priced right, which is why they’ve moved so quickly in a down market. With spaces ranging from 498 to 1002 square feet, and prices that range from $209,000 to $379,000, the lofts on R Street are priced well for people who want to be near the action but can’t afford other, tonier lofts.

As Miry points out, the mortgage on a 500 square foot, $209,000 loft is about the same as a reasonable apartment, “and that’s not counting the mortgage deduction or parking.” Indeed, each loft comes with one parking space in a gated, covered parking area directly behind the lofts.

The spaces are gorgeous, with high-end appliances, frosted glass enclosures for bathrooms, and some elevated sleeping areas. There’s a lot of exposed brick and massive iron I-beams, as well as recycled wood and fashionable metal braces and stair steps.

Plus, there’s a big open wooden deck on the north side of the lofts, overlooking light rail with views of downtown’s skyscrapers - a nice place for outside cocktails.