800 K hotel/Bel-Vue demolition goes back to City Council

On Tuesday, August 25, the Sacramento City Council will hear a proposal by developers Bob Leach and Parkcrest Development to build a hotel at the corner of 8th and K Street and a parking structure at the corner of 8th and L Street, a project that would require demolition of city landmark the Bel-Vue Apartments and adjacent buildings. The meeting will be held at New City Hall, 915 I Street, at 6:00 PM in the main City Council chambers.

The item was originally to be heard at the August 11 meeting of the City Council (see sacramentopress.com/headline/11884/City_to_decide_on_fate_of_BelVue_Apartments_and_Berry_Hotel_today ) but was taken off the agenda at the last minute. According to the staff report, the "Exclusive Right to Negotiate" between the city of Sacramento and the developers expired on Sunday, August 23, but city staff can still work with the development group while a new RFQ (Request for Qualifications) is being prepared, a process that should take about 90 days according to the staff report. If city staff and developers cannot reach an agreement, the new RFQ will request proposals from other developers and development groups for a different project on the 800 K Street site.

Also according to the staff report, city staff had not fully analyzed the new proposal as of its submittal date of Friday, August 21, and could not provide complete comment. One change from previous proposals is a change to requested exemption from the hotel's "Transient Occupancy Tax": instead of 100% exemption from TOT for 10 years, they are asking for 50% exemption for 14 years. According to the accompanying financial documents, this would add up to approximately the same total subsidy for the project, but over a different span of time.

Another change is that Mohammed "Mo" Mohanna is no longer listed as a member of the development team. The staff report does not specify whether another investor has joined the team in Mohanna's place, or whether one of the existing investors will contribute more funds to make up for Mohanna's financial contribution to the project, or why this change has taken place. Most of the financial commitment comes from the Korean firm Consus, but the city has not yet received a formal commitment with complete terms and conditions from Consus.

The staff report does mention that the original "Exclusive Right to Negotiate" for this project occurred as a condition of a lawsuit settlement between the city of Sacramento and Mohanna, in addition to the city's payment of about $18 million to Mohanna for the land.

The total subsidy for the project is estimated at $31.5 million in land and tax exemption (both transient occupancy tax and tax-increment fund exemption.) This amount does not include the money previously paid to Mohanna for the property as a result of the lawsuit settlement.

The staff report does not address the issue of a potentially competing hotel project planned for the corner of 10th and K Street, nor does it address the issue of the demolition of the Bel-Vue landmark.

The staff report for this item can be found here.

The agenda for this week's City Council meeting can be found here.

sacramento.granicus.com/ViewPublisher.php

The Bel-Vue on the chopping block, but hope for the Berry

My new Midtown Monthly article, on the Bel-Vue

On Tuesday, August 11, the Sacramento city council will decide whether to give away the half-block containing the Bel-Vue to a group of developers, who would raze the remaining quarter-block and the underground sidewalks on 8th & K to build a new hotel at 8th & K and a parking lot where the Bel-Vue stands. Full staff report is visible here:

http://sacramento.granicus.com/MetaViewer.php?view_id=8&event_id=94&meta_id=182207

In slightly brighter news, at the same meeting the City Council will hear (and hopefully approve) a plan to restore the Berry Hotel, just across the street from the Bel-Vue.
http://sacramento.granicus.com/MetaViewer.php?view_id=8&event_id=94&meta_id=182203

They will also hear an updated plan regarding development along Sacramento's alleys (focusing on architecturally interesting alleys like the one behind the Bel-Vue.)
http://sacramento.granicus.com/MetaViewer.php?view_id=8&event_id=94&meta_id=182205

On the consent calendar, the Council will add three buildings to the official list of Sacramento landmarks, including the Coloma School in Elmhurst, 1210 H Street in Mansion Flat, and "The Trap" (aka Pimentel's Ingleside Cafe) along Riverside near the Pocket.
http://sacramento.granicus.com/MetaViewer.php?view_id=8&event_id=94&meta_id=182179

So there's hope that these items might make the appeal of reusing the Bel-Vue, and not giving our treasures away, more immediately apparent.

This Wednesday, August 5, Sacramento's Preservation Commission will hear an update on the "Underground Sidewalks" survey project. This survey has explored much of Sacramento's surviving underground sidewalk structures, and is preparing a detailed report on their current condition and historic context. An earlier meeting, held in March, outlined what the survey would do(as discussed in this Sacramento Press article) and this meeting will present the initial findings of the survey team and report their progress. The final report on the underground sidewalks should be completed by September of this year.

The meeting will be held at Sacramento's City Hall, 915 I Street, in the City Council chambers on the first floor. The meeting starts at 5:30 PM and the Underground Sidewalks survey will be the first of several staff reports presented at the meeting.

A complete agenda of the Preservation Commission meeting can be found on the Preservation Commission's Web site.



Sacramento's underground sidewalks are a side effect of a massive street-raising project, executed from the 1850s to the 1870s and intended to keep downtown Sacramento above water during the region's frequent floods. Brick walls about 12 feet high were built at the street edge and filled with dirt, but the spaces between the buildings and the street were left open, and were the building owner's responsibility to cover and fill. Over the past 130 years, many of these spaces have been filled in or demolished by subsequent development, construction and sidewalk repair.

This survey, funded by a local nonprofit and a matching state grant, is intended to document all of the surviving "Underground Sidewalk" spaces in downtown Sacramento and research the methods used to build these structures. The survey will have many potential uses, possibly including the creation of a historic district, or facilitating an "Underground Sidewalks Tour" program similar to that found in Seattle and other cities. The public will have an opportunity to ask questions and provide comments to the Preservation Commission and the consultants conducting the survey.

The City Preservation Commission was created by the City Council. Its powers and duties include: to develop and recommend to the City Council preservation policies appropriate for inclusion in the General Plan and other regulatory plans and programs of the City and to provide oversight relative to the maintenance and integrity of the Sacramento Register of Historic and Cultural Resources; to review, nominate, and make recommendations to the City Council on properties eligible for listing in the Sacramento Register as Landmarks, Historic Districts and Contributing Resources as set forth in the Historic Preservation Chapter, Title 17, Chapter 17.134, of the City Code; to review and approve preservation development projects of major significance and appeals of Preservation Director decisions per the Historic Preservation Chapter, Title 17, Chapter 17.134, of the City Code.

Meeting location: New City Hall
915 I Street- 1st Floor, Council Chambers
August 5, 2009 - 5:30 P.M.

More on the Bel-Vue/8th & K project

City plans to demolish the Bel-Vue and adjacent buildings were mentioned in my previous blog post, also posted as a Sacramento Press article on July 3 but at the time the developer and financing organization behind the project were not identified. Since then, both have appeared, along with an additional partner. The financier, Consus Asset Management, is a new player in Sacramento. The developer, Bob Leach, just completed another Sacramento project, the Le Rivage Hotel. The other player in this project is a well-known name in K Street real estate, Mohammed “Mo” Mohanna. All three are asking the city for $18.6 million in free real estate and several years of tax forgiveness once the project is complete, and they want this done immediately, before public input and analysis by city staff and commissions can be completed.

Since my earlier article saw print, these parties were mentioned by articles in the Sacramento Bee, in Bob Shallit’s columns:
http://www.sacbee.com/shallit/story/2005107.html

In this column, Shallit mentions South Korea based Consus Asset Management (consusgroup.com ) as the primary financier, willing to put up $91 million for construction. Lead developer Bob Leach, builder of Le Rivage Hotel, made contact with Consus through local hotel builder Parkcrest Development. Also on the project team is Mohammed “Mo” Mohanna, who recently owned the land until the city paid him $18.6 million for it, after a lengthy series of negotiations, complex legal maneuvering, and the demolition of the buildings on the corner of 8th & K Street. The article mentioned that the developers were hoping for some tax breaks on this project.

Shallit followed this up with a second column:
http://www.sacbee.com/shallit/story/2017611.html

Here, the developers have urged the city to move quickly or risk losing financing. They have asked the city to give them the land, currently city-owned, for free, and to forgive taxes on the hotel for the first few years of its operation. Transferring the land quickly would also mean that there would be no time for an Environmental Impact Report to be completed, and before issues like the demolition of the Bel-Vue have had an opportunity to be fully reviewed by city staff, Preservation Commission or Planning Commission.

This issue will go before the Sacramento City Council on August 4. The city of Sacramento has held an Exclusive Right to Negotiate (ERN) with Bob Leach and Parkcrest, extended for 45 days on June 9, but that ERN expires on Friday, July 24.

The unspoken irony in the developers’ demand is that the city of Sacramento just paid nearly $20 million to wrest the property out of Mohanna’s hands, and are now being asked to give the property back to him. They are also asking for a free hand to demolish a Sacramento landmark, and forgiveness of future taxes, which means that it will be many years before the city of Sacramento sees any economic benefit or return on their investment of $20 million, their donation of a half-block of prime downtown real estate (by the city’s own valuation, worth the $18.6 million paid to Mohanna) and their sacrifice of irreplaceable historic buildings. This free giveaway would also add up to far more than the taxpayer-funded donation provided to developer David Taylor to rehabilitate three existing buildings on the 1000 block of K Street, a move that sparked widespread public criticism.

Why is there a need for such urgency? One possible answer is that there is another hotel project planned for K Street, only two blocks away. Unlike the project at 8th and K, this alternate project would require no historic buildings to be demolished. This project does not require the full Environmental Impact Report, instead using a far simpler process called a Mitigated Negative Declaration (MND.) The MND identifies the developer behind the project as "10th & K Developers, LLC" and mentions that it will include 180 rooms in a 12-story building with ground floor retail. Could this simpler, less complex project be the competition that worries the developers behind 8th and K, and enough of a problem to make them demand a massive public subsidy from the city of Sacramento for a project that will not have to pay taxes for many years, and action fast enough to short-circuit public debate and review by city staff?

Meanwhile, the deadline for public comment on the Notice of Preparation is approaching. According to Jennifer Hageman of the city of Sacramento’s Economic Development Department, part of the process will include a public scoping meeting to present this issue to the public, but as of this writing no date has been identified for such a meeting.

To give public comment about this issue, contact Jennifer Hageman of the City of Sacramento’s Community Development Department at jhageman@cityofsacramento.org or (916)808-5538. Written comments should be sent to Jennifer Hageman, City of Sacramento Community Development Department, 300 Richards Boulevard, Sacramento, CA 95811. Comments are due before 4:00 PM on July 27, 2009.

City To Demolish Landmark Building

The city of Sacramento has announced its plans to demolish the Bel-Vue Apartments, a registered city landmark, in order to clear land on 8th Street for a potential future parking structure.


Located adjacent to the now-vacant corner of 8th and K Street, the Bel-Vue was built in 1910 as the American Cash Apartments. Built in the Craftsman style with Asian overtones, the three-story brick building contains apartments above a commercial ground floor. When the Bel-Vue was built, it was one of many downtown apartment buildings. If it was built today, the Bel-Vue would be described as a mixed-use, transit-oriented infill project. The building is currently owned by the city of Sacramento’s housing and redevelopment agency, the result of a complex land exchange between Mohammed “Mo” Mohanna, Z Gallerie owner Joe Zeiden, and the city of Sacramento. This land exchange was part of the currently stalled plans to rehabilitate the 700 block of K Street.


The city’s plan is to prepare an Environmental Impact Report (EIR) containing two possible alternatives for buildings to be built on the site, and then demolish the existing buildings. One alternative is a pair of residential towers 300 feet high, running from K Street to L Street along 8th, originally proposed by former owner Mohanna and developers John Saca (of the failed 301 Capitol Mall project) and John Lambeth. The other alternative is a 300 foot hotel tower at the corner of 8th and K, currently vacant, and a six-story parking structure on the site of the Bel-Vue and the other buildings at the corner of 8th and L. There is no developer or investor specified in the EIR notice of preparation; the city of Sacramento plans to create the EIR and demolish the Bel-Vue and nearby buildings on speculation, in case a developer appears who is interested in constructing the buildings the city has proposed for the site.


When the city of Sacramento acquired the Bel-Vue building and its neighbors, it was an occupied apartment building with several retail tenants on the ground floor. There were also commercial tenants in the adjacent buildings, and apartments above most of those buildings. The city of Sacramento evicted the residents, and today only one retail establishment, a Chinese restaurant, occupies the Bel-Vue, aside from a parking garage in one of the buildings facing L Street.


All of the buildings on the site have a role in local history. 815 L Street, constructed in 1915, was most recently the site of a nightclub of the same name. In 1957, the site was one of the original Sam’s Hof Brau locations. The side of the building, invisible from the street, still bears a painted mural advertising Sam’s. La Rosa, an Italian restaurant opened in 1927, occupied the site before the Hof Brau. On the corner of 8th and L is the Feldhusen Building, a two-story building with ground floor retail and residences upstairs. It was built in 1895 and remodeled in 1954. It was home to many businesses including grocery stores, dressmakers, and the Diamond Club Tavern card room.
Buildings like the Bel-Vue were once commonplace in Sacramento, but over the years they have become very rare.

Today, some developers seek out historic buildings for residential projects, converting them into modern apartments or condominiums. Local companies like D&S Development (http://www.dandsdev.com) have completed projects like the Old Sacramento iLofts and 1409 R, and are now restoring the historic Maydestone Apartments at 16th & J Street. Architect Mike Malinowski, contractor Bruce Booher and CFY Development helped convert the Globe Mills grain mill complex into unique residential lofts. At the Railyards, developer Thomas Enterprises will make the historic Southern Pacific shops buildings the focal point of a new downtown neighborhood. Other adaptive reuse projects like the Citizen Hotel, MARRS, the Cosmopolitan and the Firestone Building show how vacant historic buildings can be made into exciting, unique urban destinations. Projects like these are often more popular than newly-built projects because they offer one-of-a-kind places to live, work and play in an urban setting. They appeal to those who want to be close to the action of the central city and their downtown workplaces, or just like the unique character of historic buildings. Instead of demolishing the Bel-Vue, the building could easily be repaired and returned to its role as a place to live, with businesses on the street to serve downtown’s residents. Restoration of historic buildings is also a greener option than new construction, as it needs far fewer building materials and requires far less landfill space (where the demolished building’s components would end up.) If sales of recent projects like the 1409 R lofts (opened in April and already two-thirds sold) are any indication, these projects are popular even in slow economic markets, while urban infill projects in new buildings are far less successful. Historic buildings can also qualify for tax credits and other incentives that can make rehabilitation cheaper than demolition and new construction. In the right hands, the Bel-Vue could be a gorgeous, attainable new home for Sacramento’s residents for another hundred years.


In recent years, the city of Sacramento has seen many proposed projects fail to materialize. The failure of projects like John Saca’s 301 Capitol Mall towers at 3rd and Capitol resulted in ugly, gaping pits in our city’s urban fabric. Projects like the 700/800 block, bogged down by unexpected resistance and a poor economy, sit languishing, waiting for a better plan to appear. Projects that encourage the demolition of landmarks encourage speculators to allow their historic downtown properties to sit vacant, deteriorating for years or even decades, with the hope of an eventual skyscraper-shaped payoff that may never arrive. More forward-thinking developers could turn the same buildings into Sacramento's urban showpieces.


No developer or investor has been named by the city to actually build this project or pay for it, and even if a developer and/or investor does arrive, if they want to make significant changes to the plan they would need to complete a new environmental document, making this effort worthless. The sacrifice of one of Sacramento’s irreplaceable historic buildings would be for nothing. And even if the city’s long shot is successful, and a developer does build the project, we will lose a historic landmark and a quarter-block of potentially useful buildings for a six-story parking garage in a neighborhood with many underutilized parking garages.


To give public comment about this issue, contact Jennifer Hageman of the City of Sacramento’s Community Development Department at jhageman@cityofsacramento.org or (916)808-5538. Written comments should be sent to Jennifer Hageman, City of Sacramento Community Development Department, 300 Richards Boulevard, Sacramento, CA 95811. Comments are due before 4:00 PM on July 27, 2009.

Sacramento History Bike Ride Sunday June 28

For those who are interested in local history and bike riding, a group of CSUS Public History grad students are planning a “Sacramento History Bike Ride” this Sunday. The plan is to meet on the west side of the Capitol, pick out some interesting destinations, and bike around to historically interesting spots. We will share the stories of our favorite buildings and significant sites, the events that shaped the city, and little-known tales from Sacramento’s past. This is a participant-driven event, so if you have a favorite place downtown you can take a turn at being tour interpreter, or just go along for the ride. Route details will be decided the morning of the ride.

Sacramento History Bike Ride, Sunday June 28 starting at 10 AM until approximately 1:00 PM.
Meet us on the sidewalk on the west side of the Capitol (10th & Capitol) with your bicycle. Sunday is supposed to be hot, so bring sunscreen, a hat, and maybe some water.

Two events this weekend

City of Man, City of God:
The Catholic Church and the Shaping of Sacramento


On Friday, June 12, 2009, SAMCC will unveil a new photographic exhibit, City of Man, City of God: The Catholic Church and the Shaping of Sacramento. The exhibit depicts the role that people of faith played in shaping Sacramento’s urban agenda, from the 1850s to today. The evening will include an address by Dr. Steven M. Avella on his recently released book, Sacramento and the Catholic Church: Shaping a Capital City. The event is free and open to the public. It begins at 7:00 p.m. at SAMCC, 551 Sequoia Pacific Blvd, Sacramento.

The Catholic Church, present in Sacramento from the city’s beginnings, has had an important influence on Sacramento’s culture and development. Yet the character of Catholic life has also been shaped by the city’s diverse social, cultural, and political makeup. The exhibit and lecture will examine the interplay between the city and one community of faith in the creation of Sacramento’s urban agenda. Topics discussed include the geography of the Cathedral of the Blessed Sacrament, the early struggle of assimilation by various ethnic groups, and the conflict between religious and secular forces over caring for the hungry and homeless. The evening is not a history of the Diocese of Sacramento, rather a look at Sacramento as a case study of the role a religious denomination played in the development of an American western city.

Dr. Steven M. Avella grew up in Sacramento and has written prodigiously about his hometown. Avella is the author of two recent books on Sacramento, The Good Life: Sacramento’s Consumer Culture and Sacramento: Indomitable City. He is on the faculty of Marquette University, where he teaches courses on religion and American life. He is currently engaged in writing a biography of Charles K. McClatchy, a former editor of the Sacramento Bee. Dr. Avella will sign copies of his book, which will be available for purchase that evening.

For more information please call (916) 264-7072.
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Preservation Roundtable - Saturday June 13th
Category: Events & Workshops, Other News, The Roundtable.
9:00am to Noon at the Young Ladies Institute – 27th & N Sts.
Continental Breakfast * $5 donation

6/13/09 AGENDA:

9:00 Welcome & Introductions
9:10 Preservation Issues & Updates:
- CA State RR Museum Foundation - Kathy Daigle
- Capitol Dist. State Museum & Historic Parks-Pati Brown
- DOC (Devel. Oversight Committee) update
- City Preservation Office - Roberta Deering
– Hwy 50 HOV lane –Kathleen Green & Karen Jacques
– Minimum Maintenance for Historic Structures – Tim Brandt Preservation Commission Chair
- Capitol City Preservation Trust Awards –Kay Knepprath & Fred Turner
- Sacramento City School District’s Bldgs. on the block-i.e.-Jefferson School at 18th & N Sts.

10:30 Speakers – Budget Impacts on Historic Preservation –David Kwong and Roberta Deering-Questions & Answer session

11:50 Announcements
12:00 ADJOURN

Sponsored by:
Page & Turnbull, Architects & S O C A
and the Sacramento Old City Association (SOCA)

Next Preservation Roundtable meeting is Saturday, Sept. 12, 2009 at the School House in Old Sacramento