by Charlie O Mallonee

SACRAMENTO–The fight over the Macy’s Men’s store property at Downtown Plaza that the Sacramento Kings want to purchase will not settle fast as this fight has been going on for almost more than a year. CalPERS says the property value that is underneath the building is worth $12.85, the C-III investor group says the property quote is undervalued and worth $31.5 million and the Kings and the City says it’s $6.3 million.

The good news about all of this fighting it’s not going to hold up construction of the downtown arena, the arena is going to continue and the building is going on and everything else. This is one of those paper suits that is going on that ultimately the city will win because they’ll wind up going eminent domain and they’ll get what they want.

The one group of people I would put money on and that’s going to get their money out of it are CalPERS because CalPERS is a gigantic organization they own a lot of property and they have a lot of attorneys. They’re going to do very well and moneywise what their asking for the property it’s not crazy.

The part that’s really out of whack is what C-III is asking for the building and that building is absolutely not worth that because the entire center was going to close up sooner or later and probably sooner. Virtually no one was shopping in those stores and they were closing just as rapidly as they were trying to open. I actually have a friend who had a store in that center and they finally had to move out and move to a different location.

The foot traffic was down so low, C-III doesn’t have a real good case they’re just going to play it out to get as much money as they can. The good news is everyday construction goes on at the arena. Whatever that land is worth, whatever the Macy’s building is worth became worth a lot more because of the arena not because someone was clamoring to move into that building.

Everybody was waiting to move out of that center for quite sometime as a matter of fact I’m really amazed that they were still there which leads me to believe they were locked into a leasing contract and not let them out because frankly there’s not enough traffic to support a store in that spot. This is financial posturing and it could go on for quite sometime the danger would be if it was holding up construction. As of right now their on schedule to get the project done on time.

Charlie O does commentary on the Sacramento Kings each week listen to his podcast below on http://www.sportsradioservice.com