The property at 8th and K (CPR file photo/Ben Adler)
Sacramento’s work to revitalize a blighted downtown block of K Street has hit another hurdle – this time, at 8th and K. The slumping economy is already slowing the city’s attempts. Now, negotiations over a proposed hotel there appear stalled.
If properties could talk, this one would have quite the story to tell – a story that pretty much epitomizes the city’s struggles to redevelop K Street downtown. It’s been an arson victim, caught up in a failed land swap deal and the subject of an eminent domain lawsuit. Right now, it’s nothing more than a giant hole in the ground.
Last fall, its ownership shifted from property owner Moe Mohanna to the city’s redevelopment agency in a legal settlement. As part of that settlement, the city promised to work with a prominent Sacramento hotel developer on a 400-room, four-star hotel. The legal logjam was over, and hopes were high.
But now, 10 months later, negotiations between the city and developer Bob Leach appear stalled. And at tomorrow night’s council meeting, city staff will ask council members whether to continue working exclusively with Leach.
Neither the city nor the developer would return Friday afternoon requests for comment.