Cal Expo officials say they won good reviews -- balanced, with a dose of harsh economic reality -- this week when several developers offered opinions on an Expo redevelopment plan.
Cal Expo and National Basketball Association representatives met with four major developers for what they call a "reality check" on their multibillion-dollar concept for a Sacramento Kings arena, a new fairgrounds, and an array of housing, offices and stores on the Expo site.
"What I learned this week is we have a viable project," NBA representative John Moag said. "There wasn't one developer who said, 'You're crazy.' "
Expo officials said developers confirmed their suspicions, however, that the project can't happen until the economy improves.
"It comes as no surprise. We learned a project of this size is not financeable in today's market," said Brian May of Cal Expo. "Everybody has a different opinion on when economy is going to bounce back."
Expo and NBA representatives said they were told they should continue laying the groundwork for the redevelopment plan in anticipation of an eventual economic turn-around.
Officials declined to say which developers participated. A.G. Spanos company officials confirmed participation. Other invitees, including Mark Friedman, whose family owns Arden Fair mall, declined comment.
May said Cal Expo and NBA officials are reviewing developers' suggestions before deciding on next steps.
The redevelopment effort began nearly two years ago when NBA officials approached Cal Expo about building an arena on site.
Expo officials say their fairgrounds need an overhaul. NBA and Sacramento Kings officials say the team's current home, Arco Arena, is antiquated and doesn't allow the financially struggling franchise to produce adequate income. City voters previously rejected a proposal for a publicly financed arena in the downtown railyards.
The NBA's Moag said he wants to start the formal process this year of signing a private developer as a partner.
The strategy is for a developer to finance and build the new fairgrounds and arena. In exchange, that developer would lease part of the existing Expo site to build a mixed-use community.
The challenge will be coming up with up-front financing to get construction started, Expo's May said. The plan envisions three key funding sources: private funds from the developer, funds from the Kings, and "tax increment" funds from expected future increased value of the Cal Expo land.
"The questions is how do we carry those costs until a developer can begin seeing return on the investment?" May said.
Call The Bee's Tony Bizjak, (916) 321-1059.
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