The city of Sacramento has an agreement in place to sell several key parcels on downtown’s K Street corridor to the Sacramento Kings, a key step in sparking development of the long-vacant sites.
The City Council is scheduled to approve an agreement Tuesday in which the city would purchase the parcels near Eighth and K streets from its former redevelopment agency for $2.6 million. The city would then immediately sell the properties to Sacramento Basketball Holdings – an umbrella group that includes the Kings – for $5.9 million. The city could also contribute another $200,000 to the Kings “to remediate soil contamination from underground tanks” at the site, according to a staff report.
City development staff is recommending that Sacramento set aside the roughly $3 million in net proceeds from the deal to help subsidize “catalyst projects” downtown, including a Hyatt boutique hotel planned for the former Marshall Hotel on Seventh Street.
As for the properties at Eighth and K, a Kings spokesman said the team was not ready to discuss its plans. According to a city staff report, the team is planning to renovate the historic Bel-Vue building at Eighth and L into apartments and retail and construct a new “mid-rise mixed-use project” on L Street “and on the currently vacant land on K Street.”
The site sits just two blocks from the main entrance to Golden 1 Center. City officials are anxious to see development on the block, passed by thousands of patrons headed into the new arena.