A proposed settlement between the city and K Street property owner Moe Mohanna is tentatively scheduled to go to the Sacramento City Council on Oct. 7.
Details of the settlement have been kept tightly under wraps by city staff. Assistant city manager John Dangberg said today there is "a lot of work to do" but is hopeful an end to the K Street stalemate is imminent.
"We're all optimistic and hopeful that we're going to be able to reach consensus and settle this thing," Dangberg said. "We're targeted to go to the council on Oct. 7 in closed session with a possible settlement."
If the settlement is approved, he said, the City Council will announce it and answer questions after the closed session.
A source knowledgeable about the settlement said "money will change hands" between the city and Mohanna.
Mohanna and the city have been locked in an eminent domain battle over the 700 and 800 blocks of K Street since February.
The city wants control of the properties so it can award those in the 700 block to Joe Zeiden, owner of the Z Gallerie furniture chain. Zeiden plans to revamp the block into a retail row, restoring the historic facades while revamping the backs of the old stores.
The city filed its lawsuits after Mohanna failed to follow through with an agreement to swap his properties in the 700 block for others in the 800 block. Mohanna said a fire and subsequent demolitions by the city in the 800 block have left those properties worth far less than the ones Zeiden would be getting.
In a recent interview, Mohanna said he is working with Bob Leach, developer of the new Le Rivage hotel on the Sacramento riverfront south of the Tower Bridge. He said Leach plans to build a high-rise hotel at Eighth and K streets and is negotiating with the Hilton hotel chain.
Leach could not be reached for comment this afternoon.
Call The Bee's Mary Lynne Vellinga, (916) 321-1094.
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Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.