More retrenchment in local development.
Bob Shallit: High-rise hopes fall short again at Eighth and I
Published 12:00 am PST Wednesday, December 12, 2007
Hopes for an office tower and high-rise housing at Eighth and I streets downtown have been dashed again.
The CIM Group, a Hollywood-based developer, has opted out of its plans to buy the parcel, raze the existing building and build a new one, says Rob Leonard, economic development director for Sacramento County, which owns the site.
CIM's move follows a similar decision last year by Texas home builder D.R. Horton to abandon its plans for a 21-story "Library Lofts" project at the same site.
Leonard says CIM's decision was a "sign of the (weakening real estate) market" and an indication that CIM is focusing on other local projects, including a joint venture with CalPERS at the former John Saca high-rise condo site at Third and Capitol Mall.
As for backing out of the Eighth and I streets project, CIM exec John Given says there were "some great ideas but it didn't come together."
What happens now at that location, where a three-story, former Bank of America building now sits vacant?
Leonard says the county likely will hold the land until the market improves.
Meanwhile, he adds, "we've heard from a couple of private and public (entities) that might want to lease the building."
