Business Journal: Developer Saca Asks For Subsidy

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(Sacramento, CA)
Monday, September 4, 2006

Developer John Saca has asked the city for an $11 million subsidy to help him open an InterContinental Hotel in one of his two 53-story condominium towers under construction on Capitol Mall.  The 230-room hotel would take the first 18 floors of one of the towers and become one of the highest-end hotels in the Sacramento area.

Saca, who originally said he would not ask for a subsidy when he announced The Towers project in July 2005, said a 16 percent increase in construction costs have forced him to ask for the money. He wants the money to be paid over two years and he adds that it would offset the $11.5 million in city fees he will have paid by then for the $500 million project.

But Saca’s request comes at a time when the city has more requests for funding than money available -- including a possible $20 million request by the owners of Westfield Downtown Plaza.   The city is looking over Saca’s request. The city has approved subsidies for all but one large downtown hotel project during the past 30 years.