In the city leadership said needs to find other ways of funding itself than development, new ways to develop are created.
Sheraton Grand deal is in works
The city hopes for a 'win-win' sale to spur further revitalization.
By Terri Hardy - thardy@sacbee.com
Published 12:00 am PST Wednesday, February 20, 2008
The city of Sacramento is considering selling the Sheraton Grand Sacramento Hotel on J Street and pouring at least $23 million of the proceeds into new revitalization projects downtown.
Under a deal still being negotiated with two developers – the CIM group and David Taylor – the city would net between $45 million and $47 million after the sale of the 503-room hotel and a nearby parking garage, said Assistant City Manager John Dangberg.
Part of the package also would require the city to set aside $23 million to $24 million from the proceeds to be used for future downtown projects proposed by Taylor and CIM, Dangberg said.
The sale price is still under discussion, Dangberg said.
Taylor said the unusual deal was conceived as a way to keep revitalization going downtown, even in the economic downturn.
"We've been struggling to get projects done," Taylor said. "We started looking at how we can help the city help us, and how we can help downtown."
Mayor Heather Fargo said the agreement would provide a win-win for the city and the development companies.
"When the deal was presented, it was hard to say anything but 'let's keep working on this,' " Fargo said. "It sounds like a great deal for Sacramento."
