Business Journal: Hotel Berry Renovation Stalls
The allure of tax credits wasn’t enough to woo investors for a planned $20 million renovation of downtown Sacramento’s Hotel Berry.
Friday, October 31, 2008
The city of Sacramento and its development partners laid out the deal. If an investor would put up money to help renovate Hotel Berry, an aging residential building in downtown Sacramento, the city would offer $13.6 million in tax credits. But no investors took the bait. The subprime mortgage mess, bank failures, bailouts and buyouts have turned investors shy. The city was planning a $20 million renovation to the decaying single-room occupancy apartment building. It would add small kitchens in each of the 115 units and improve the building’s structure. The credits were awarded in July, and the city had just a few months to find investors before the credits expired. Now the city will have to come up with a new plan. There’s no guarantee the credits will be awarded again. A new redevelopment plan could be ready to present to city officials by January.