There are $116.7 million in subsidy requests for the $34.9 million in Sacramento city funds available. $25 million is requested for the Docks-area waterfront parkway (south of Capital Mall), and $10 million for the Docks-area waterfront land assembly.
Given the impact this project could have on the downtown area, it seems a clear policy choice; put the waterfront in front.
An excerpt.
Tough subsidy choices for city
Requests for help on projects dwarf the $35 million available.
By Terri Hardy -- Bee Staff WriterPublished 12:01 am PDT Tuesday, August 22, 2006
From hotels to condos to rehabbing Sacramento's Downtown Plaza, a flood of proposed development projects are pouring into the city.
These major projects also come with requests for city subsidies totaling more than $116 million, and more proposals are expected. The problem: The city's downtown redevelopment fund has only about $35 million remaining.
"We don't have enough money to cover projects on our wish list, at least right now," said Mayor Heather Fargo.
Last week, the owner of the Downtown Plaza unveiled its plans to renovate the mall, but said it will need some $20 million in city help. With that request and others coming, the city will do what it can to help, but some serious analysis is necessary, said Assistant City Manager John Dangberg. "Tough choices will be made," he said.
The shrinking redevelopment pot may mean projects are delayed, pared down, or canceled altogether, Dangberg said. Over the next few months, the city's Economic Development Department will evaluate the proposals, looking at their proposed use and benefits to the city before making recommendations to the City Council.
"What cannot be funded can't be funded," Dangberg said. "Either they'll find other ways to move forward, or they might drop off."
In 2005, the city approved a $114 million bond to fund projects in the 104-block downtown redevelopment area. The bond is to be repaid through anticipated growth in property taxes, or "tax increment" within the redevelopment area.
The council already has approved money for a host of projects, including $28 million to assemble land and allow the development of the struggling 700 and 800 blocks of K Street and nearly $9.9 million to transform a historic office building at 926 J St. into a Joie de Vivre boutique hotel/restaurant.
The city hopes in 2009 it will be able to issue another bond and collect an additional $20 million to $60 million.
Meanwhile, Dangberg and his staff are trying to think creatively about the most cost-effective use of the funds. One idea involves re-evaluating a controversial idea to bring a movie theater complex to the old Woolworth's building at 10th and K streets, Dangberg said.
