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http://sacramento.bizjournals.com/sacramento/stories/2007/09/24/story4.html
Cal Expo board agrees to consider arena, mixed-use project
Leaders will discuss the idea at their upcoming September meeting
By Kelly Johnson of The Sacramento Business Journal
September 21, 2007
Cal Expo has space available for a new arena.
View Larger Cal Expo's board of directors will consider mixed-used development along with a new arena for the Sacramento Kings.
The possibility gained the enthusiasm this week of several local real estate brokers and developers. The area is centrally located -- already recognized for its shopping, eateries, offices and hotels -- and has a large daytime population. Additional development combined with an arena would only add to the draw at Cal Expo, real estate sources said.
The California Exposition & State Fair board will mull over the idea at its meeting Sept. 28. The move follows a request from National Basketball Association representatives to begin negotiations on developing an arena on the property.
But it's unclear what types or size of development the state-owned venue might consider. It could be simply additional components Cal Expo has long-sought, such as expanding meeting space and a new amphitheater. Cal Expo also could pursue the mixed-use development without an arena.
Consultant John Moag, who is representing the NBA on efforts to find a new home for the Sacramento Kings, started looking at Cal Expo after Sacramento County voters last year soundly defeated two ballot measures that would have kicked in some public money for an arena in the downtown railyard.
Moag did not return calls this week. But he told the Business Journal last month that Cal Expo is an "attractive site," but has many unknowns, including whether the project is feasible, works financially or is of interest to Cal Expo.
Cal Expo's leaders are entering into this discussion without any preconceived ideas about what might constitute mixed-use development, general manager Norb Bartosik said. Nor do they know where on the fairgrounds an arena would be built or how any deal would be structured.
"We're at square one," Bartosik said.
Cal Expo has been interested for a while in the possibility of mixed-used development, said state Assemblyman Dave Jones, who is a non-voting Cal Expo board member and opposed last year's arena-related measures Q and R. Development of the property could occur with or without an arena, he said, but the interests of nearby residents and businesses and city plans must be considered with any urban infill.
The Cal Expo board also must be clear with Sacramentans that it cannot and won't use state general fund money for any development, he added.
The next best thing?
The downtown railyard would be a "home run" for the arena and associated development, but Cal Expo is a good alternative, said Matt Holmes, a San Francisco real estate broker who has worked on Sacramento-area projects, including currently The Fountains lifestyle center in Roseville. To have adequate impact, the commercial piece at Cal Expo would need at least 30 acres, he said. Given the current housing slump, he wouldn't recommend including housing in the mix at Cal Expo. He would suggest including offices, lots of restaurants, 1,500- to 8,000-square-foot shops, a large fitness center and at least two hotels -- perhaps one a boutique and another an extended stay.
Boyd Cahill, a retail broker with TRI Commercial/Corfac International, said mixed-use makes sense at Cal Expo given its central location and access to the Capital City Freeway. He likes the idea of more offices, hotels, a gas station, restaurants and entertainment at the fairgrounds.
Incredible John's Pizza Co. and Dave & Buster's, chains that combine food and games, would be a good fit, he said. But shops wouldn't fit unless they're selling something related to sports. "There's already a lot of retail" in the area, he said.
Developer Lux Taylor, whose office is across from Cal Expo, is enthusiastic about the potential for mixed-use and wouldn't rule out any component there. Even with Arden Fair mall and the neighboring Market Square, there's much demand from retailers for space in the area. Taylor agreed with Holmes that at least 30 acres would be needed for critical mass. "You could develop an incredible urban-style project," he said.
Cal Expo's land should be more intensively developed and used, said a local real estate source who didn't want to be named. Lodging would work, he said, but the area has enough retail, and the railyard will bring much new office space.
Not a slam dunk
Traffic and funding are big challenges for any project at Cal Expo. But legislation awaits Gov. Arnold Schwarzenegger that would allow Cal Expo to form a joint-powers authority to issue bonds and lease land to developers. Efforts toward this legislation began more than a year ago with a goal of doing something about Cal Expo's $40 million in deferred maintenance.
Cal Expo has 350 acres of developable area and another 375 acres in the floodplain that can't be built on under current laws.
Early this week, several Sacramento city and county elected leaders and a representative of Maloof Sports & Entertainment, which owns the Kings and Arco Arena, said they hadn't heard any specifics about possible development at Cal Expo.
Developers of the railyard think their site, which offers public transportation and downtown amenities, would be better than Cal Expo, said Suheil Totah, a representative of Thomas Enterprises Inc.
"We continue to be interested in having an arena at the railyard if there is in fact a funding plan for it," he said. But the project is moving ahead without arena plans.
Cal Expo board agrees to consider arena, mixed-use project
Leaders will discuss the idea at their upcoming September meeting
By Kelly Johnson of The Sacramento Business Journal
September 21, 2007
Cal Expo has space available for a new arena.
View Larger Cal Expo's board of directors will consider mixed-used development along with a new arena for the Sacramento Kings.
The possibility gained the enthusiasm this week of several local real estate brokers and developers. The area is centrally located -- already recognized for its shopping, eateries, offices and hotels -- and has a large daytime population. Additional development combined with an arena would only add to the draw at Cal Expo, real estate sources said.
The California Exposition & State Fair board will mull over the idea at its meeting Sept. 28. The move follows a request from National Basketball Association representatives to begin negotiations on developing an arena on the property.
But it's unclear what types or size of development the state-owned venue might consider. It could be simply additional components Cal Expo has long-sought, such as expanding meeting space and a new amphitheater. Cal Expo also could pursue the mixed-use development without an arena.
Consultant John Moag, who is representing the NBA on efforts to find a new home for the Sacramento Kings, started looking at Cal Expo after Sacramento County voters last year soundly defeated two ballot measures that would have kicked in some public money for an arena in the downtown railyard.
Moag did not return calls this week. But he told the Business Journal last month that Cal Expo is an "attractive site," but has many unknowns, including whether the project is feasible, works financially or is of interest to Cal Expo.
Cal Expo's leaders are entering into this discussion without any preconceived ideas about what might constitute mixed-use development, general manager Norb Bartosik said. Nor do they know where on the fairgrounds an arena would be built or how any deal would be structured.
"We're at square one," Bartosik said.
Cal Expo has been interested for a while in the possibility of mixed-used development, said state Assemblyman Dave Jones, who is a non-voting Cal Expo board member and opposed last year's arena-related measures Q and R. Development of the property could occur with or without an arena, he said, but the interests of nearby residents and businesses and city plans must be considered with any urban infill.
The Cal Expo board also must be clear with Sacramentans that it cannot and won't use state general fund money for any development, he added.
The next best thing?
The downtown railyard would be a "home run" for the arena and associated development, but Cal Expo is a good alternative, said Matt Holmes, a San Francisco real estate broker who has worked on Sacramento-area projects, including currently The Fountains lifestyle center in Roseville. To have adequate impact, the commercial piece at Cal Expo would need at least 30 acres, he said. Given the current housing slump, he wouldn't recommend including housing in the mix at Cal Expo. He would suggest including offices, lots of restaurants, 1,500- to 8,000-square-foot shops, a large fitness center and at least two hotels -- perhaps one a boutique and another an extended stay.
Boyd Cahill, a retail broker with TRI Commercial/Corfac International, said mixed-use makes sense at Cal Expo given its central location and access to the Capital City Freeway. He likes the idea of more offices, hotels, a gas station, restaurants and entertainment at the fairgrounds.
Incredible John's Pizza Co. and Dave & Buster's, chains that combine food and games, would be a good fit, he said. But shops wouldn't fit unless they're selling something related to sports. "There's already a lot of retail" in the area, he said.
Developer Lux Taylor, whose office is across from Cal Expo, is enthusiastic about the potential for mixed-use and wouldn't rule out any component there. Even with Arden Fair mall and the neighboring Market Square, there's much demand from retailers for space in the area. Taylor agreed with Holmes that at least 30 acres would be needed for critical mass. "You could develop an incredible urban-style project," he said.
Cal Expo's land should be more intensively developed and used, said a local real estate source who didn't want to be named. Lodging would work, he said, but the area has enough retail, and the railyard will bring much new office space.
Not a slam dunk
Traffic and funding are big challenges for any project at Cal Expo. But legislation awaits Gov. Arnold Schwarzenegger that would allow Cal Expo to form a joint-powers authority to issue bonds and lease land to developers. Efforts toward this legislation began more than a year ago with a goal of doing something about Cal Expo's $40 million in deferred maintenance.
Cal Expo has 350 acres of developable area and another 375 acres in the floodplain that can't be built on under current laws.
Early this week, several Sacramento city and county elected leaders and a representative of Maloof Sports & Entertainment, which owns the Kings and Arco Arena, said they hadn't heard any specifics about possible development at Cal Expo.
Developers of the railyard think their site, which offers public transportation and downtown amenities, would be better than Cal Expo, said Suheil Totah, a representative of Thomas Enterprises Inc.
"We continue to be interested in having an arena at the railyard if there is in fact a funding plan for it," he said. But the project is moving ahead without arena plans.
