Sacramento Proposal/Approval/Construction Thread - III

[snfenoc]

There was an article in today's Sacramento Business Journal about the city granting Pappas Investments a 1-year extension on demolishing the existing, ugly parking garage at 2025 L street (20th and L streets). This project has been in the works for a long time. It was originally going to be a phased project: Phase 1 is a parking garage and ground floor retail on 20th and Crapitol; and Phase 2 is a Whole Foods with apartments on top at 20th and L.

The agreement between the city and Pappas to build a boring parking garage at 20th Crapitol called for Pappas to build the Whole Foods/93-unit apartment project within a year of completing the new parking garage. As we know, Whole Foods pulled out of the project. However, that was 3.5 years ago. Despite continued interest in Sacramento's central city, a great location and multiple similarly-sized projects getting built, Pappas has done nothing with the 20th and L streets property.

The city's zoning administrator stated Pappas made a good-faith effort to develop the property. Coupling that with latest uncertainty due to COVID-19, the city granted a 1-Year extension, which Pappas can petition to extend, if needed.

Pappas actually sought to be relieved of demolishing the old garage at 20th and L and building a new retail/apartment project completely back in November.

A while back, there was some discussion that older development companies don't really think outside the box, are risk averse and lazy. I have to wonder if that is exactly what is happening in this case.

I'll be the first one to admit the costs involved with construction are too high. However, we have many examples of 5-8 story, 100-unit apartment projects getting built. Plus, I find it hard to believe that Pappas couldn't find a grocery store to locate in that part of Midtown. Lots of people live and work in the area. Even if a supermarket would not work, a smaller market concept might have worked. OR... forget building a market, altogether, and change the concept.

I also have to wonder if Pappas simply likes having a portfolio of parking garages. With the city raising parking fees, and being right next to a number of clubs, maybe Pappas just thinks it's nice and safe to keep the parking garage and the steady income it produces without any crapital investment on their part.

If you make a promise, follow through. Pappas had years of economic growth to build something.

[Majin]

Exactly, thats somewhat the point I was trying to make a few pages back.

Not everything is strictly a market issue, as in if there is a market for it, it will get built.

There are other factors such as politics, lazy/complacent/incompetent developers, land speculation, extremely risk adverse banks or banks chasing easy money.

Sacramento obviously has(had?) a healthy urban mixed used market for over a decade now. If you didn't build anything at all in that time it isn't "the market" thats a problem.

[snfenoc]

A few pages back you were talking in general terms, questioning why Sacramento developers are not building taller. We all explained ad nauseam that Sacramento's market doesn't really support building 20, 30 or 40-story apartment and office buildings... in general. Construction prices are too high. You could not accept that answer, and tried to argue that something sinister was afoot.

I am talking about a specific developer that was unable or unwilling to make adjustments, after a potential tenant pulled out over 3 years ago; so it could fulfill its promise to demolish an ugly parking garage and build a 5 or 6-story residential mixed-use building in its place. There is no doubt that different developers have different business models and different levels of risk aversion. Pappas Investments has been in Sacramento a long time; and they may be operating on a model that isn't with the times, but it is comfortable for them. My issue is they made a promise to develop 20th and L in exchange for entitlements to build a parking garage on 20th and Crapitol. They have not kept their promise and the city should not be granting any more extensions.

You talk in general terms, we address those terms in general. Then you pick a specific case and talk about it as though it's the rule.

Lots of developers have invaded Sacramento during the past 10-15 years. Very few have proposed anything over about 10 floors. Even fewer have delivered. Those who have were either building for the government or got huge subsidies.

Sure, you can force the market's hand... Government does that all the time. What good it does in the long run is questionable.

By the way, a number of the supposedly supra-market forces you mentioned are perfectly "cromulent" and legitimate aspects of the market. Speculators help drive interest and coax land owners into selling their properties for development, instead of just holding them. Risk aversion keeps companies from going too far, losing everything and ending up with nothing. Can you imagine if a more reality-based John Saca proposed twin 35-story buildings a year earlier? Maybe we would not have that giant hole in the ground. Chasing easy money?!? What the hell else is business for, if it isn't chasing money? I don't work because I absolutely love my job and can't wait to serve people I could not care less about. I work because I like money. I like buying sports cars. I like eating out... at restaurants. I like having a roof over my head. I'm not in it just for the satisfaction of doing something. Yes, that plays some role. However, I am mostly in it because I want to profit from my time.

Of course there are companies that cheat or make bad decisions. A truly free market can absorb that. Because, GENERALLY, it grows and adjusts over time.

[enigma99a]

Originally Posted by Majin

Good filling in these areas in midtown outside of the main corridors.

Still don't like building a 7 story building on J Street.

Better than a 7 story building at 601 capitol mall.

[LandofFrost]

If that 2 story parking garage on L Street was to be sold, I guarantee that taxing authorities will not be appraising its Highest and Best use as a 2 story parking garage, they will be taxing the crap out of it due to it's location and what a developer with any brains could get out of that prime location.

[Dieler]

Walked past the old Clarion Hotel on 16th and H Streets this afternoon. Demolition has begun!

[SacTownAndy]

This is a few years old but interesting. Hotel proposal at 16th/I. I don't think I've seen this before.

https://images1.loopnet.com/d2/GBUxU...Q/document.pdf

[snfenoc]

Broadway proposal would add 150 affordable apartments
By Ben van der Meer – Staff Writer, Sacramento Business Journal
May 14, 2020

https://www.bizjournals.com/sacramen..._news_headline

Bay Area-based affordable housing developer EAH Housing has submitted plans for two five-story buildings at 1901 Broadway, with 150 apartments and about 1,700 square feet of retail space.

ADDITIONAL INFO:

• The developer is EAH Housing. They have numerous projects in California, but only one in the Sacramento area - a UC Davis apartment complex.
• The location is 1901 Broadway (northeast corner of 19th and Broadway)
• This would be an affordable housing project.
• A portion of the units would be permanent supportive housing for those who are at risk for homelessness.
• Subsidies from the SHRA and the state.
• Originally, it was supposed to have 200+ units, but the developer was asked to scale it back in preplanning meeting with the city.
• EAH Housing is under contract with the property owner, Sutter Crapitol Group, to buy the site.
• Sutter Crapitol Group wanted to convert the site into retail, but decided not to go down that route and sell the property. (This city probably said, "You better build some housing.")
• Units would range from Studio - 3 Bedroom.
• Rent range would be $450 - $1300 a month.

Although it does not look very pretty, and the retail component is small, it would be nice to see this project get built, but I am not so sure funds will be available for what would likely be $65-85 million dollar project. (I am basing that figure on affordable housing prices being around $500,000 per unit.)


Project Drawing - LPA Sacramento Architects:


Current Site:

[Pistola916]

I wasn't expecting the design to be stellar considering its an affordable housing project but I too would like to see it get build. You have to wonder if Land Park NIMBYism will try to derail the project though.

It looks like its two 6-story buildings. Do they plan on building it all at once or in phases?

[snfenoc]

Originally Posted by Pistola916

I wasn't expecting the design to be stellar considering its an affordable housing project but I too would like to see it get build. You have to wonder if Land Park NIMBYism will try to derail the project though.

It looks like its two 6-story buildings. Do they plan on building it all at once or in phases?

You are correct. It is 2 buildings split by a private drive.

However, there is no mention of phasing.

The basic timeline laid out by the developer is to receive entitlements in July and acquire the property in September. The developer has asked to partner with the city to streamline approvals and partner with the San Joaquin Valley Rail to increase ridership on their planned line. It looks like the developer is going to apply for funding with the city this year and apply for state funding this year or early next year. Should the project receive funding, construction could begin in late 2021 and be completed in early 2023.

[snfenoc]

During my Google maps tour of Broadway, I noticed the Trondheim project on 1818 X Street, called the Onyx, is nearing completion (as of Feb 2020). You can see it under construction in the background, left-side of the picture.

If Trondheim receives a good leasing reception for the Onyx, their other project, called the Fitzgerald, could move forward. It would be located on the northwest corner of 19th and Broadway (foreground, right-side of picture).

The Fitzgerald:

[snfenoc]

Ben van der Meer of the Sacramento Business Journal just tweeted this...

With 1430 Q about to open, D&S Development has filed plans for an eight-story, 206-unit project at 17th and I streets in @ExploreMidtown

.

[sactivity]

Forgive me for asking, as I do not live locally... but can I assume that the new courthouse project is completely off the table now?

[Korey]

I sure hope the new courthouse is still on, same with the Richards Blvd office complex, which could really help the link from downtown to Township 9 and the River District. It seems like it's mostly renovations that are on the chopping block so far, which is still a shame as I want to see the east side of the Capitol spruced-up. At least we got some good stuff from the state lately, with the second STRS building, the O Street offices, and the gorgeous Natural Resources building.

Broadway is going to look pretty cool over the next handful of years, especially as the complete streets conversion knits together all of these projects and proposals. Hopefully the Fitzgerald does happen, along with Vrilakas' other residential project next to the storage building on 3rd. The Mill getting built out, the project on the Tower Records/Dimple site, this affordable project. Indie Capital's duplexes next to Selland's are going up now, and it looks like they're planning on something around 20/21st and Broadway: https://www.indie-capital.com/21b.

Further down Broadway in Oak Park, this site is getting sold as development ready: https://www.loopnet.com/Listing/3206...o-CA/18042030/ so seems to be in limbo now. I fear the other small project on 12th and 33rd is also paused. But there is still quite a bit of good infill happening on the ground in Oak Park, and the new Vrilakas shipping container-esque building is looking good.

Curtis Park Nimbys look like they're going to try to shoot this project down: https://sierra2.org/april-2-is-the-d...e-development/. Apparently the 3rd generation Sacramentan designed and developed 3 story building on an empty lot fronting 24th is too "out of the neighborhood character" and needs more parking . The Curtis Park Safeway is nice, as is the new Land Park Raleys, but I wish that the Crocker Village plan could have included much more multifamily (I blame both CPNA and Petrovich - a thoroughly suburban mindset developer - for this), and I anticipate the old Raley's site will be all single family, wasting a great opportunity to densify Freeport.

The new I Street Bridge design is so meh. Maybe the futuristic design will grow on me, but I would have preferred a more retro looking bridge.

I'm glad Arden Gateway (or whatever it's being called) is moving forward. Hopefully we can see a redevelopment of Arden Mall to include more housing at some point. Basically demolish the west end, consolidate the remaining retailers, and throw up a ton of housing with a small grid or main street concept.

The whole area around the 65th/CSUS light rail station is really going strong. Kinda flies under the radar but a proper college town area is developing, if a bit under-retailed and disconnected. The new Redding and Ramona Avenue feed-ins under 50 have really helped.

I'm nervous about 10K and the other hotel projects and have zero hope for 8th and K or 301 CM. Sacramento Commons and the underwhelming but still better than nothing building next to US Bank on 6th & CM are still going up.

That's my brain dump for the morning, hope everyone's doing well.

[sactivity]

^ a simple yes or no would've sufficed, heh, heh !!!

[Pistola916]

Originally Posted by sactivity

^ a simple yes or no would've sufficed, heh, heh !!!

According to the website, construction is scheduled for August 2020.
https://www.courts.ca.gov/facilities-sacramento.htm

[sactivity]

Originally Posted by Pistola916

According to the website, construction is scheduled for August 2020.
https://www.courts.ca.gov/facilities-sacramento.htm

Well, the reason I asked is because I read an article recently that the Gov revised the state budget and new construction for prisons, courthouses, etc... were off the table indefinitely.

[sactivity]

http://www.courthousenews.com/revise...court-funding/

[urbanadvocate]

Originally Posted by sactivity

http://www.courthousenews.com/revise...court-funding/

Since this is an already approved project is it possible it is an exception and still proceeding? Perhaps that is wishful thinking. IDK

[kamehameha]

I just spoke with the Clark's Construction head office in San Francisco. They said the New Sacramento courthouse construction is moving forward. Groundbreaking is still on schedule for summer 2020.