by Ken Gimblin

SACRAMENTO–George Speir an attorney from Chicago representing U.S.Bank partner of the Macy’s building ownership. Macy’s is located at the west end of Westfield Mall downtown plaza. Speir has objected to eminent domain reasons given by the Sacramento city council to force emient domain and for U.S. Bank to sell it’s share of the former department store building to the city.

The city council enforced emient domain through a 7-2 vote on Tuesday that will force U.S.Bank and CalPERS to sell their shares of the property to allow the Sacramento Kings to build their training facilities near the new arena at the mall.

Speir argues that the U.S.Bank has niether received an offer from the city for the property and Speir wrote that the “public interest and necessity do not require the project.” The city council said eminent domain could be enforced if it benefits the region economically and brings jobs to Sacramento.

Does this mean that U.S.Bank will hold out for more, Spier says the bank has not received an offersheet since the last bid that was made on the property last year when the Kings wanted to buy the Macys building but withdrew after the Kings nearly moved to Seattle. The NBA later ruled in favor of Sacramento to keep the Kings and fast forward to today the city and the Kings are asking U.S. Bank and CalPERS to sell or face emient domain.

Once it was decided to keep the Kings in Sacramento the city has been trying to negotiate with the building owners but neither side has been able to settle on final sale price. Speir is the only hold out at this point as CalPERS is on board with selling their share to the city in statement from CalPERS spokesman Brad Pacheco, “CalPERS has no objection to the city’s right to acquire the property through eminent domain, we recognize the significance of the city’s downtown redevelopment efforts and are eager to find a resolution that is in the best interests of everyone involved including our members, the city of Sacramento and the tenant of the property.”

Sacramento city attorney James Sanchez said that the city did forward an offersheet for the property to U.S.Bank last September. Speir says that he nor U.S.Bank received an offersheet from the city. There had been talks through the summer between U.S.Bank and the city about purchasing the property and sources tell Sportstalk that the city nor U.S. Bank can come to an agreement on a price. U.S.Bank is not satisfied with the amount being held in escrow by the city which came from the Kings at $4.3 million.

The city is holding the money also as part of a pre construction agreement that was made at the time of new owners purchase of the team regarding construction budgeting. The city which is also facing an anti arena group Sacramento Taxpayers Opposed to Pork or STOP who are trying to put an initiative on the ballot that asks voters to approve public monies for all facilities built for sports or entertainment.

The eminent domain legal costs are not part of the $258 million city contribution for the $448 million new arena costs. The $4.3 million came from the Kings to be held in escrow for the property purchase which U.S.Bank says they need to see a new offersheet.

The city now must present the eminent domain case in front of judge, the city must prove that the city would benefit economically in order to force the sale and a move on the building owners. City Council members who voted for the arena say that the property is necessary for the completion of the new arena and training facility for the Kings.

The two council members Darrell Fong and Kevin McCarty voted against the eminent domain proposal and Fong said that the arena doesn’t “cross the threshold” for eminent domain.

Ken Gimblin is covering the new arena proposals for both the Sacramento Kings and Golden State Warriors for Sportstalk Radio