Sacramento: 301 Capitol Mall: A New Plan for The Towers Site

[innov8]

Phillip, for a guy who was going to refrain from posting to this thread for
couple days fearing a flame war, your sure doing a good job of that.

I would imagine the same terms the Towers have for topping out by a certain
date or the contract with buyers would be void would also apply there.

[joninsac]

Here's a pretty important point that shouldn't be overlooked -

Originally Posted by sugit

Eric Rasmusson, a spokesman for Saca, said Deutsche Bank remains willing to lend Saca up to $400 million for construction.

It appears reports of The Towers' death have been greatly exaggerated. The push-pull of this project is driving me crazy. Yesterday, The Towers seemed doomed. Today, Saca says he has the additional financing lined up to cover the escalating costs and just needs to agree with CalPERS as to what the next step is going to be.

[TowerDistrict]

how strange that we all thought CalPERS involvment would mean inevitable success of this project - and now it seems they are the ones holding it up?

and for the record, i still think the Towers are going to be built as planned. i'll ask over at 55° if they can prepare a special crow dish for when construction resumes.

[Sacdelicious]

Additionally, in regards to the proposed resizing of the Towers: Remember, the BOE building had to be redesigned twice as tall in the middle of construction due to building instability at the lower height....simply cutting off half of the buildings and continuing construction on the current piles might not be physically possible (without going back to the engineering/design phase), which would mean additional delays.

And I strongly believe the project was sold on being the tallest, the most impressive, a symbol of the city. To backtrack on that would be a disaster...

[Majin]

Ok Saca already has another bank lined up to loan him the additional $70 million, DB will still loan him $400 million, CalPers has already agreed to invest $100 million. Thats $570 million dollars in this project, is there any reason for CalPers NOT go give the go ahead? LETS GET THIS PROJECT ROLLING AGAIN.

PLEASE END THE DRAMA AND BS!

[enigma99a]

Hmm. Any thoughts? If CalPERS is right that Saca could still remain part of the project, why would he turn it down? Let's get this thing going! At least CalPERS is still committed
---

The major equity partner in the landmark Towers on Capitol Mall wants to replace local developer John Saca to finish the hotel and condominium project.

The partnership consisting of Saca and the California Public Employees Retirement System broke ground last fall on the twin 53-story towers. But work stopped suddenly last month with contractors filing liens for unpaid bills.

Rising construction costs have put the project at least $70 million over budget.

Saca notified by email the hundreds of prospective condo buyers who placed deposits that he's defaulted on the $22 million loan for the block of land at 4th Street and Capitol Mall.

"Rest assured that I am working diligently and doing everything possible to move this forward and fulfill the dream of bringing this project to the Sacramento Community." Saca said in the message.

Saca told the buyers that CalPERS is responsible for the work stoppage because it withheld much of the $100 million initially pledged to the partnership.

But CalPERS suggests it won't contribute any more money until Saca is replaced as the developer.

"We made him a great offer where we bring in a world class developer with extra money and he would still be a part of it and he turned us down," CalPERS spokeswoman Pat Macht told News10.

Macht said negotiations with Saca continue.

[joninsac]

So it's a Saca vs. CalPERS power struggle. Whatever. Just build the motherf*cker, mmmkay?

[Sacto]

All this just sucks...

[joninsac]

It looks like The Towers will indeed get built, but not until after some bloodletting.

[enigma99a]

Yeah it sucks, but I don't think it will be a hole in the ground. If Saca can't do it, I think he'll give up and CalPERS can just get a new developer

[innov8]

Well, my calendar still has several Towers Condo Warming parties penciled in
that I need to attend in 2009. One way or another those suckers are going up

[Los_Lobo]

Originally Posted by innov8

Well, my calendar still has several Towers Condo Warming parties penciled in
that I need to attend in 2009. One way or another those suckers are going up

I agree. It has to be built! I've already planned my party menu (and yes it includes an old, dead crow). Now the guest list, well, that keeps changing.....

[sugit]

Originally Posted by enigma99a

Yeah it sucks, but I don't think it will be a hole in the ground. If Saca can't do it, I think he'll give up and CalPERS can just get a new developer

I don't know man, this has been Saca's baby since the beginning. He's not going to go down without a major fight. He may indeed get replaced, but there is going to be a fight over it.

I think joninsac is right, this thing is looking like it will get built (until the next panic setting article comes out), but there is going to be some bloodshed over it.

[TowerDistrict]

so whose desk does this mess end up on if CalPERS and Saca cannot sort it out themselves?

[innov8]

I would think it would go to court. If both parties can't come to agreement,
I would think the next step would to take it to court. Saca might have a
case of fraud against CalPERS in their attempt to take control of his baby.

[Fusey]

Hopefully it doesn't come to that. Who knows how many Towers buyers are weary of their investments with all the drama in just the last two days.

[TowerDistrict]

i hope not... i think CalPERS would destroy Saca in a legal battle.

[skyscaper mamma]

I agree with TowerDistrict....it'd be like David & Goliath except David wouldn't have any ammo for his slingshot.

[otnemarcaS]

It's pretty comical to read some(one) prematurely patting themselves on the back and saying "I told you so" when this project is not quite dead yet. Until this project is officially cancelled and refunds handed back, then it is still ongoing. Constructing 106 stories worth of floors in twin buildings will encounter challenging moments and lapses in Chicago, New York, Miami, San Francisco, LA etc much less a place like Sacramento. Why is this hiccup reason to proclaim it dead? In negotiations, there's always the - he said, she said, they said, we said, I want, they want, she wants, he wants, we won't, she won't, I can't, they didn't, he coudn't, she couldn't, we wouldn't, they shouldn't etc. Just ask the Kings and the city regarding a new arena.

Hey, Aura was left for dead and that seems to be on it's way to getting ready to start construction. Even in construction, Sacramento is a political town. Doing anything here just seems to require a little, or a lot, more effort than necessary.

[Schmoe]

If I were Saca, I'd take the buyout with one simple clause: name the towers after me. That would cement his legacy.

Then he can focus on building his other stuff.