City of Sacramento files eminent domain lawsuit for arena land

The city of Sacramento filed an eminent domain lawsuit Thursday in Sacramento Superior Court that seeks to seize control of the former downtown Macy’s men’s clothing and furniture store for the development of a new arena.

The City Council on Tuesday approved the action by a 7-2 vote.

City officials said they have been unable to reach a deal with the property owners on a sale price since negotiations began last summer.

CalPERS, which owns the parcel, has said it does not object to the eminent domain suit. However, a firm negotiating the deal on behalf of U.S. Bank, which holds a ground lease on the building, has opposed the action.

The Sacramento Kings last week wired the city $4.3 million in anticipation of the city taking the eminent domain action. That amount was placed into an escrow account and is based on a third-party appraisal of the property.

A judge will have 60 days to rule on the case. If the judge rules in the city’s favor, the city could take possession of the property 30 days later. A jury will then determine the building’s sale price.

The building at 600 K St. covers more than half the footprint of the planned $448 million arena, as well as most of a planned practice facility and team offices for the Kings.

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