Quote:
Originally Posted by urban_encounter
I can't predict what's going to happen Michael and really if it makes economic sense it will happen. If not, it doesn't matter. One thing I can say is that 1988 is irrelevant.
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It’s only irrelevant if you ignore why it happen and why it could happen today.
In the last three economic cycles, Sacramento has been about 1 ½ years
behind when getting projects started. While most other cities reaped the
benefits of getting out of the gates early with their projects before the
economy dipped into a recession, Sacramento was still on the sidelines.
If the current (sluggish) economic cycle softens and the Fed reins in its
monthly QE3 printing of money, and other factors, it’s likely that many of
these on the drawing board won’t move beyond that. It’s fun to cheer these
proposals through the process, but I’m highly cautious as to how many will
break ground only because of where we are in the current economic cycle.
If Sacramento sees half these proposals completed, I would count that as an
enormous success. I’m glad to see the arena being built downtown, but I’m
highly skeptical about the city’s financing numbers and why they still don’t
want to talk about it… like when the bond payment rate nearly doubles in a
few years. It will be a great photo opportunity. Maybe you can join me Jim?
Regarding 301 Capitol Mall, my contact within CalPERS say we should not
expect to see a proposal for the site for at least 12 to 16 months because
they are uncertain about the economy. If this latest press release draws
enough positive attention, we should expect to see combination of
sectors in the proposal that include office, residential, retail or hospitality.