Business Journal: PERS Backs Out Of Towers Project

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(Sacramento, CA)
Monday, April 16, 2007
The California Public Employees Retirement System was a financial backer of the 53-story condo and hotel project … but developer John Saca has bought them out. He’s free to search for other financing to replace CalPERS $100 million contribution. It’s estimated that the project will cost at least $70 million more than originally thought, and that was one reason for the rift between Saca and CalPERS. The foundation has yet to be poured. Contractors are owed $35 million for work already done. Saca says he hopes to pay his debts and have new financing in a few weeks. The project would include 800 condo units and a high-end Intercontinental Hotel.