Yeah, sugit and wburg, I think you guys are right; East End Gateway 1 is the 15 story project. I've edited my previous post. It's hard to keep all the sites straight. It gets confusing. Basically, I asked him about the possibility of a tower at one of the other EEG sites; I assigned Site 4 to the project (I was not sure whether it was 1 or 4, so I just picked 4), not Mr. Kigar.
He did not say anything about ground breaking in November. He did say CADA has not signed the Dispoition and Development Agreement (DDA) with Lambert yet. I do think he said that CADA expects to sign an agreement in January (if everything is good). This may be way off. Keep in mind, he is the lead for EEG 2 & 3; someone else is doing EEG 1 & 4. His answers seemed a tad vague, so maybe he is not best source.
This could be considered a Friday funny... but on Weds. the city dusted off the Epic plans to continue the application process.
Perpetual dream state
Sacramento Business Journal - September 21, 2007
Developer Craig Nassi can't drum up the equity needed to build his Aura condo project, and Sacramento's withdrawal of a $10 million loan offer makes the job next to impossible in today's tapped-out lending market. But that hasn't deterred the brash developer from pushing his next Sacramento project, "Epic," a 50-story mixed-use tower at 1215 I St. If built, it would be the city's tallest building ("if built" is a popular caveat these days).
Nassi's BCN Development recently requested the city begin processing the application again after it had been held indefinitely. The city's Design Commission looked over the project Wednesday. One source close to the development said Nassi might feel the mixed-use aspect, such as offices or a hotel, might make the project more viable than Aura. No word yet on whether Nassi will ask for city funds or request building permits be expedited, as he did with Aura, where no dirt has moved.
Yeah, sugit and wburg, I think you guys are right; East End Gateway 1 is the 15 story project. I've edited my previous post. It's hard to keep all the sites straight. It gets confusing. Basically, I asked him about the possibility of a tower at one of the other EEG sites; I assigned Site 4 to the project (I was not sure whether it was 1 or 4, so I just picked 4), not Mr. Kigar.
He did not say anything about ground breaking in November. He said CADA has not signed the full agreement with Lambert yet (a DCA? a DTA? I forget - Next time, I will remember to bring a pen, so I can take down the details). I do think he said that CADA expects to sign an agreement in January (if everything is good). This may be way off. Keep in mind, he is the lead for EEG 2 & 3; someone else is doing EEG 1 & 4. His answers seemed a tad vague, so maybe he is not best source.
DDA (Deposition and Development Agreement) is the term.
Marc de la Vergne over at CADA is the lead for sites 1 and 4. I went to the meeting lat month for site 1 (no rendering other than a site plan), and they said the time line is November 2008 for groundbreaking on site 1. The project is getting about a 5-6 million subsidy from CADA.
This could be considered a Friday funny... but on Weds. the city dusted off the Epic plans to continue the application process.
Perpetual dream state
Sacramento Business Journal - September 21, 2007
Developer Craig Nassi can't drum up the equity needed to build his Aura condo project, and Sacramento's withdrawal of a $10 million loan offer makes the job next to impossible in today's tapped-out lending market. But that hasn't deterred the brash developer from pushing his next Sacramento project, "Epic," a 50-story mixed-use tower at 1215 I St. If built, it would be the city's tallest building ("if built" is a popular caveat these days).
Nassi's BCN Development recently requested the city begin processing the application again after it had been held indefinitely. The city's Design Commission looked over the project Wednesday. One source close to the development said Nassi might feel the mixed-use aspect, such as offices or a hotel, might make the project more viable than Aura. No word yet on whether Nassi will ask for city funds or request building permits be expedited, as he did with Aura, where no dirt has moved.
Yeah, management from Fremont Mews asked about subsidies. CADA will provide the land (worth $1-1.5 million each? or total? I forget) and about $1+ million in funds for Site 3. Originally, Ravel Rasmussen planned 69 (ha!) units total for both sites (each building was going to be 4 floors). CADA asked them to add another floor to Site 3, increasing the total units to 80+. However, extra engineering and construction (basically, a concrete podium) is required for 5+ story buildings. This extra construction costs $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$, so Ravel Rasmussen asked CADA to contribute money ($1 million +) to mitigate the extra costs for Site 3.
Are these technically subsidies? I have no friggin' clue.
Shoot...The Fremont Mews people better hope the projects get built, it makes the area much more attractive for people to live and in turn should help them rent more places...plus they received a subsidy as well.
Yeah, I think the Fremont Mews manager was just trying to gauge what the rents will be. Somebody named Dimitri from 1801 L Street was there too; he was also interested in subsidies, rents, # of affordable units, etc.
Are these technically subsidies? Does a bear technically shit in the woods? Land and money on top of it certainly sounds like a subsidy to me. And if they're getting subsidies, I certainly hope they're providing a percentage of affordable units. Although I'm curious as to whether these properties will remain in CADA's control or whether the land ownership will be handed over to the development company.
I know, but the city (SHRA) also kicked in a subsidy for it as well.
CADA is required to keep a min 25% of affordable units in the total amount of units they develop. It isn't on a individual project basis, even if there is a subsidy on the project.
That's why you see a project like these with no affordable housing, a project like Fremont Mews with a higher than 25% affordable component, the Fremont Building with affordable housing but less than 25%, and a project like the one being planned at 16th and N (not the high rise) being a 100% affordable housing project....and whatever else in between.
Yeah, I agree, wburg. They are subsidies. CADA seemed uncomfortable calling them subsidies. Although, I do understand the money. Ravel Rasmussen never planned on 5 stories for Site 3. That was a CADA request.
According to the website, all units will be market rate.
Will it remain in CADA's control? I'm not sure. I got the impression that it would be under the developer's control. Why would CADA give land and money and get nothing out of it, though?? So maybe it will have some control.
I know with some of the projects, CADA does the property management and leasing which generates income. In addition, CADA receives the tax increment (property taxes and I think projected sales tax as well) from the project.
I'm pretty sure this is how it works...
The subsidy comes in the form of the developer getting a percentage of the TI in the form of an annuity stream.
So let's say the developer needs 1M, CADA figures out what % of the TI that 1M will come out to be as a annuity stream if sold at present value (bust our economics or finance books if you don't know what I mean) , the developer will then sell the annuity stream (in the form of a note I assume) to an investor at its present value to make up the 1M..and tada!..there is the 1M
He said CADA is excited to sign an agreement with the developer for the CADA Warehouse this month (or was it next month? I forget) and construction should begin within the next few months or so. (Where have we heard that before? However, he seemed pretty sure about it, so )
I got my copy of the CADA agenda for the 28th and it has CADA approving a DDA for Capitol Lofts. I can't believe that thing looks like its going to get built after all these years.
Also, on the same agenda is shows CADA supporting the Taylor/CIM team for the West End project and parking garage on R Street. No other information than that though. That team sure is making a big play on DT Sac.
How is it that San Jose is putting up two condo towers a la Aura: Axis, and some other high rise near their new city hall by Richard Meyer? How can that cow town out-do Sacramento? I guess it's the Silicon Valley edge...
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