In a 7-2 vote, the Sacramento City Council decided Tuesday evening to move forward with a plan to acquire the now closed downtown Macy’s Men’s and Furniture store through eminent domain.
That spot accounts for more than half of the land needed for the planned new Kings arena at Downtown Plaza and will now be the subject of an eminent domain filing by the city.
Two of the groups still in control of that site are not happy about what they’ve been offered for the property.
Bryan Wenter, attorney for C-III and U.S. Bank, says that his clients have been paying $10 million a year in property taxes for 600 K street and that suggested compensation packages have not taken that into account.
Based on an independent appraisal, the city’s offered the owners of the Macy’s property $4.35 million.
CalPERS another owner, has told the city it does not intend to stand in the way of this development.
“CalPERS recognizes the significance of the city’s downtown redevelopment efforts and we are confident that we will reach a solution that is in the best interests of everyone involved – our members, the tenant and the city of Sacramento,” CalPERS’ Jo DeAnda said through a written statement.
Under eminent domain – a jury would decide the value of the site and it could be much less than what’s been offered.
The City of Sacramento says it would have to have control of the property by April to stay on its aggressive timeline to build a new arena for the Kings.
The plan is to ask for immediate possession along with the eminent domain filing.
Supporters are excited to see this step taken to get Sacramento closer to the 4,000 jobs the project’s slated to bring.
“The arena, the building, the land is going to be owned by the public and it’s going to be for public usage…it’s the right thing to do,” said Mike Tavares with CrownDowntown.
Councilmembers Darrell Fong and Kevin McCarty voted against the plan.