Category: Sacramento Kings

by Ken Gimblin

SACRAMENTO–George Speir who represents the U.S. Bank certified co-owners of the vacant Macy’s men’s store building located at the eastern end of the downtown plaza are the only group that is holding out to sell the vancant department store. The last piece of the puzzle that will open the path for construction for the Sacramento Kings to build their new arena.

The City took the owners of the Macy’s building to court and won an eminent domain judgement to purchase the building from owners CalPERS and the certified owners for $4.35 million back on March 15th. The certified owners said the building selling price should be at $10 million and that the certified owners own the building would not get their fair share as the certified owners say the building and property is worth more than double than the $4.35 million that the city and the Kings are paying. CalPERS owns the property land portion and have agreed to sell their share.

A ruling by Sacramento Superior Court Judge Raymond Cadei that the property maybe sold to the city and the Kings for $4.35 million for the benefit of the city while the building is not doing any good sitting empty and CalPERS and the certified owners would lose any business by selling an empty buidling. CalPERS had no problem with selling their share but the certified owners said they’d be shortchanged in the deal. Speir says that the case will now be brought to the 3rd District Court of Appeals even though the city of Sacramento is in control of the property.

While the appeal is pending that further pushes back the time deadline set by the NBA of fall 2017 to have the arena finished, groundbreaking is scheduled for late spring (May). The NBA said that if the arena is not in place and ready to go by fall of 2017 the team will be forced to leave Sacramento and will be moved to another city.

Speir wrote on court documents that the certified owners rights are being violated and that Cadei’s ruling was a rush to judgement and that the certified owners case needs to be heard out, “the city’s needs are not grounds for taking shortcuts and ignoring the (owners) property rights.”

Assistant City manager John Dangberg said the timeline is a major factor in play now that the certified owners have filed an appeal “failure to achieve possession of the property by April 2014 will put the arena project at significant risk (and development) would come to a halt” said Dangberg.

Further the certified owners say the lawsuit filed by the city for eminent domain only covered the land and property which CalPERS owns and not the building which the certified owners own. The city and the Kings are basically $5 million apart from the $4.35 million purchase price of the vacant building which the certified owners will most likely be asking for. The Kings who have purchased most of the downtown plaza at $36 million or more than 96 percent of the mall property, may have to haggle these last $5 million with the certified owners in the court of appeals.

Ken Gimblin is covering the Sacramento Kings and Golden State Warriors arena developments for Sportstalk radio

by Ken Gimblin

SAN FRANCISCO–The supporters for development on the Waterfront particularly the Golden State Warriors and San Francisco Giants didn’t get what the Sacramento Kings got. The Kings won a court ruling preventing an initiative from going on the ballot in Sacramento to strike down a proposition that would ask voters if public money should be spent to build the new downtown Sacramento Kings arena.

Ballots that were submitted to the Sacramento County Clerks office in favor of the initative were ruled not to have legal wording and that the initiative was therefore kept off the ballot. The Warriors who want a brand new arena built at Piers 30-32 and the Giants who want to develop retail and condos at AT&T Park were told that Proposition B a height striction initiative would be allowed on the June ballot that would ask voters if height restrictions should be in play for any new development for the Waterfront.

The Giants who are underwriting a legal challenge to Prop B with three plaintiffs fronting the charge to stop the initiative Tim Colen Executive Director of the San Francisco Housing Action Coalition, Michael Theriault a leader of the building and construction trades, and Corrine Woods a neighbor of the project site.

Intially the Giants wanted the court to hear the appeal which would strike down the initiative but the state appellate court of appeals would not hear the legal challenge and denied the appeal. The Giants group were contending that illegal encroachment on state shoreline laws and that local or city jurisdiction could not prevent the Giants group from development.

The Giants further argued that the San Francisco Port Authority had jurisdiction on waterfront development laws but the judge Marla Miller had denied an earlier request to strike down Prop B from the coming election in June. One reason was that the voters have virtually spoken with more than double the required 9,702 signatures to put Prop B on the ballot. Miller also added that any legal challenge would be heard after the election.

The Warriors want a brand new arena built on Piers 30-32 the intial build on the piers are estimated double the original cost at $180 million. The waterfront neighborhood want the height restrictions enforced and don’t want to lose their views of the Bay Bridge, Treasure Island and the bay. The Warriors by building at Piers 30-32 would get a brand new 12 story arena, a 17 story luxury condo and a ten story hotel which would be built across the street from the arena.

After Thursday’s appeals court decision opponents to the initiative said the denial for development of the projects would have an economic impact on the city for years to come and that it would put 3,690 housing units in jeopardy at the cost of $8.5 billion in port costs.

For proponents of the initiative it was a great victory as neighors said that with the initative they will get their views and neighborhood back, some neighbors said some of the housing units proposed by the Giants and Warriors wouldn’t be for affordable housing but for high profit margin move ins. Jim Stearns who is a political advisor who was supporting Prop B said, “we’re pleased that this issue has been kicked out of the courtrooms and back to the voters where it belongs.”

Ken Gimblin is covering the arena developments of the Golden State Warriors and the Sacramento Kings for Sportstalk radio

by Ken Gimblin

SACRAMENTO–It was once a men’s department store but after Macy’s closed shop it remained vacant and the owners one group known as “the certified owners” who are reportedly with U.S.Bank and CalPERS who own the property didn’t have a tenant and it was left empty.

When the Sacramento Kings and the City of Sacramento secured the Kings to stay in Sacramento the shopping at the Westfield Downtown Plaza began. The Kings purchased 96 percent of the Plaza property with the exception of the empty Macy’s building which sits at the edge of the Plaza near the entrance to Old Sacramento.

The valuable property is targeted by the Kings to be used for a gym, work out and conditioning area for the team. On Thursday Sacramento Superior Court Judge Raymond Cadei ruled in favor of the Kings and the City and granted the plaintiffs eminent domain rights to the purchasing price at $4.35 million.

While CalPERS had no objection to eminent domain to take their share of the property the certified owners did, objecting to the purchase price. The certifieds say that the property purchasing price should be raised to $10 million and that CalPERS controls the property and the certified owners own the building.

The Macy’s building is in the footprint of where the Kings arena and property would be. The Kings plan to begin construction in the spring of 2015 and plan to have the arena ready by September 2017 and the NBA pre season begins October 2017.

Cadei made his ruling based on the financial needs of the city and the Kings, saying that CalPERS and the certified owners are not profiting from having a vacant building sit unused when the Kings need the property to start construction for their new arena as soon as possible.

Notice for the tenants at the Downtown Plaza will go out this year asking tenants to move so that the Kings can begin construction and tear down needed retail space. The certified owners and their attorneys plan to haggle with the court and the Kings on the final purchase price for the property right now it’s been declared at $4.35 million for the sale price.

Ken Gimblin is covering the arena developments for the Sacramento Kings and the Golden State Warriors for Sportstalk radio

by Ken Gimblin

SACRAMENTO–Sacramento Superior Court Judge Raymond Cadei looks to be leaning toward ruling in favor for the city and the Sacramento Kings to get the last road block removed in order to get the Kings new arena build underway. Although Cadei has not made an official ruling in the immienent domain case for the city and the Kings to buy the old Macy’s men’s store that sits near the Downtown Plaza and near Old Sacramento entrance.

Cadei is expected to be making a ruling this week, Cadei made a tentative ruling in favor of the city and the Kings. The parcel which is owned by CalPERS and certificate owners or U.S. Bank owns the building and CalPERS has said that they have no objection in selling their share of the building. Attorneys for the certificate owners are said not to be satisfied with the purchase price offered by the city at $4.35 million.

The owners argued in court on Tuesday that according to property tax roles the property is more like $10 million. The Kings not the city would purchase the property. The Kings have spent $36 million purchasing the rest of Downtown Plaza. Cadei said he needed more time to study the arguements from the owners side but he did indicate that the property was needed to be sold to the Kings so that they can start building the new arena.

Cadei added that any further delay with a 2017 deadline set by the NBA to have the arena ready would put the project in jeopardy and that the building is sitting vacant and that CalPERS or the certificate owners would not suffer any financial consequences as a result of relinquishing the building but the city would suffer in trying to obtain the property. The property owner’s attorney George Speir said that the imminent domain process was flawed and that the City Council who got the lawsuit started voted only to cover the land and not the building. The land share is controlled by CalPERS and the building is controlled by the certificate owners.

CalPERS who is happy to sell would get their share covered while the certificate owners will not get anything for the buidling which is their share of the property. The debate now is about the price and Cadei could question the city and the Kings about the asking price if Cadei sees that the certificate owners are shortchanged in the deal. Otherwise Cadei could rule for the Kings asking price at $4.35 million and CalPERS and the certificate owners would have to work the shares of the money out.

Ken Gimblin is covering the new arena developments for the Sacramento Kings and the Golden State Warriors for Sportstalk radio