Not sure if this deserves its own thread, but thought it was interesting.
City, developer must first agree on plan to move tracks
By Mary Lynne Vellinga - Bee Staff Writer
Last Updated 12:20 am PST Tuesday, November 28, 2006
Story appeared in METRO section, Page B1
Sacramento city officials are finalizing a key agreement with the downtown railyard developer that would allow building to finally move forward on the shuttered industrial site -- one of the nation's largest.
"This is further along than we've ever gotten, and we're gaining steam," said Sacramento Mayor Heather Fargo.
Despite Sacramento voters' resounding rejection earlier this month of a sales tax increase to build a new Kings arena in the railyard, city leaders say they still expect Georgia developer Stan Thomas to break ground by next year for an ambitious project that would include 10,000 housing units, offices and shops.
Before that can happen, however, the city and Thomas must reach agreement on a plan to move the existing freight and passenger tracks about 300 feet to the north -- something Fargo said would cost about $40 million.
Moving the tracks would open up land for development and make it possible for Thomas to elevate Fifth and Sixth streets over the tracks on footings paid for by the city as part of the deal.
In addition, the city needs to make a deal with Thomas to buy the land needed for a planned train, bus and light-rail complex. Thomas' local development team has described the station as a key anchor for the planned development, and it's long been one of the city's top priorities as well.
City staff members are finalizing the agreements on the land purchase and track relocation, and had planned to present them to the City Council at today's session. That presentation has been postponed until Dec. 5.
"We're making great progress here; it's just a complex transaction and we probably have a dozen people working on it," Assistant City Manager John Dangberg said Monday.
City Council members are scheduled to receive a closed session briefing today on the status of the negotiations.
Agenda documents produced for today's meeting identified two sources of funding that the city intends to tap in order to move the tracks and buy the land for the station. Part of the money -- $15.9 million -- would come from the city's yearly allocation from Measure A, the county's transportation sales tax. An additional $11.6 million would be borrowed from various city transportation funds and paid back through next year's Measure A allocation.
Fargo said the city has various additional federal and local sources of funds, including $2.5 million earmarked earlier this year from a $75 million city bond.
"We're not concerned about being able to (raise) the money to do this," Fargo said. "It's a high priority for us, for the Sacramento Area Council of Governments and for the federal government."
City leaders contacted Monday sounded more optimistic than they have in the past that something would happen in the railyard soon. Three years after his investment group agreed to buy the railyard from Union Pacific, Thomas has told council members he plans to close on the 240-acre property by the end of the year.
"My fingers are crossed and double-crossed that this will happen," said City Councilman Ray Tretheway. "For the city to have the property around the (train) depot and for the UP yard to come into private hands -- it would be a spectacular day in Sacramento.
"We've heard deadlines after deadlines after deadlines," Tretheway continued. "This clearly seems the most promising. It's very serious."
Even after the city acquires land for the new transportation complex, it would likely be years before it actually got built. The city intends to go after federal and state bond funds, including a piece of the $20 billion statewide transportation bond passed by voters Nov. 7. Still, it could take years to piece together the $300 million or so needed.
"It could be five or seven years out," said Assistant City Manager Marty Hanneman. "You've got to come up with $300 million, and that's going to be a big challenge."
Still, just moving the tracks and concurrently completing the first steps of the planned transportation center -- improving parking, bringing in light rail and more buses -- would provide a significant boost to the railyard rebirth, said Suheil Totah, vice president for railyard developer Thomas Enterprises.
"People expect the entire railyard to be developed at once, and it's not going to be," he said. "It's going to be developed over 15, 20 years. To get these individual pieces is how this project will develop. To get this first piece is a huge step forward."
City, developer must first agree on plan to move tracks
By Mary Lynne Vellinga - Bee Staff Writer
Last Updated 12:20 am PST Tuesday, November 28, 2006
Story appeared in METRO section, Page B1
Sacramento city officials are finalizing a key agreement with the downtown railyard developer that would allow building to finally move forward on the shuttered industrial site -- one of the nation's largest.
"This is further along than we've ever gotten, and we're gaining steam," said Sacramento Mayor Heather Fargo.
Despite Sacramento voters' resounding rejection earlier this month of a sales tax increase to build a new Kings arena in the railyard, city leaders say they still expect Georgia developer Stan Thomas to break ground by next year for an ambitious project that would include 10,000 housing units, offices and shops.
Before that can happen, however, the city and Thomas must reach agreement on a plan to move the existing freight and passenger tracks about 300 feet to the north -- something Fargo said would cost about $40 million.
Moving the tracks would open up land for development and make it possible for Thomas to elevate Fifth and Sixth streets over the tracks on footings paid for by the city as part of the deal.
In addition, the city needs to make a deal with Thomas to buy the land needed for a planned train, bus and light-rail complex. Thomas' local development team has described the station as a key anchor for the planned development, and it's long been one of the city's top priorities as well.
City staff members are finalizing the agreements on the land purchase and track relocation, and had planned to present them to the City Council at today's session. That presentation has been postponed until Dec. 5.
"We're making great progress here; it's just a complex transaction and we probably have a dozen people working on it," Assistant City Manager John Dangberg said Monday.
City Council members are scheduled to receive a closed session briefing today on the status of the negotiations.
Agenda documents produced for today's meeting identified two sources of funding that the city intends to tap in order to move the tracks and buy the land for the station. Part of the money -- $15.9 million -- would come from the city's yearly allocation from Measure A, the county's transportation sales tax. An additional $11.6 million would be borrowed from various city transportation funds and paid back through next year's Measure A allocation.
Fargo said the city has various additional federal and local sources of funds, including $2.5 million earmarked earlier this year from a $75 million city bond.
"We're not concerned about being able to (raise) the money to do this," Fargo said. "It's a high priority for us, for the Sacramento Area Council of Governments and for the federal government."
City leaders contacted Monday sounded more optimistic than they have in the past that something would happen in the railyard soon. Three years after his investment group agreed to buy the railyard from Union Pacific, Thomas has told council members he plans to close on the 240-acre property by the end of the year.
"My fingers are crossed and double-crossed that this will happen," said City Councilman Ray Tretheway. "For the city to have the property around the (train) depot and for the UP yard to come into private hands -- it would be a spectacular day in Sacramento.
"We've heard deadlines after deadlines after deadlines," Tretheway continued. "This clearly seems the most promising. It's very serious."
Even after the city acquires land for the new transportation complex, it would likely be years before it actually got built. The city intends to go after federal and state bond funds, including a piece of the $20 billion statewide transportation bond passed by voters Nov. 7. Still, it could take years to piece together the $300 million or so needed.
"It could be five or seven years out," said Assistant City Manager Marty Hanneman. "You've got to come up with $300 million, and that's going to be a big challenge."
Still, just moving the tracks and concurrently completing the first steps of the planned transportation center -- improving parking, bringing in light rail and more buses -- would provide a significant boost to the railyard rebirth, said Suheil Totah, vice president for railyard developer Thomas Enterprises.
"People expect the entire railyard to be developed at once, and it's not going to be," he said. "It's going to be developed over 15, 20 years. To get these individual pieces is how this project will develop. To get this first piece is a huge step forward."
Maybe its like my son thought sometimes....its not lying if I just omit some things. 
