Posted Feb 26, 2009, 11:24 AM
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Tuesday, February 24, 2009, 2:44pm PST | Modified: Wednesday, February 25, 2009, 1:01pm
City Council OKs purchase of Hotel Berry
Sacramento Business Journal - by Michael Shaw Staff writer
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The Sacramento City Council approved the purchase of the decrepit Hotel Berry, a move that includes the relocation of all its residents and closing the building.
The city already invested $5 million in a plan to have nonprofit corporations rehabilitate the apartment building, which dates to 1929. But a $21 million rehab effort that was supposed to be largely funded by selling federal tax credits last year was stymied by the economy and the lack of demand for the credits.
The nonprofit owner, Trinity Housing Foundation, agreed to sell the building to the city for $1 because it and the developer cannot afford the upkeep. The six-story Hotel Berry is about 50 percent vacant.
Relocating residents, operating costs, and paying off outstanding debt is estimated to cost $2.3 million. The city transfered money from other housing accounts dedicated to providing single-room occupancy housing to cover that cost.
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