CalPERS Plans To Build Sacramento's Tallest High Rise
What's now a vacant lot on Capital Mall, between Third and Fourth streets, could be the future site of downtown Sacramento's tallest high-rise. The plans were announced this week. Scott Rodd from the Sacramento Business Journal says the landowner is CalPERS, the state agency that oversees public employee pensions and health benefits. And the developer is CIM.
"While there are many steps before this project would become a reality — submitting official plans, getting sign-off from the city and finding a signature tenant," Rodd says. "This is a notable development for a high-visibility property downtown."
The building would be a mix of office space, retail and about 100 apartments. It would stand at about 550 feet, or around 120 feet taller than the nearby Wells Fargo Center, which is currently Sacramento’s tallest building. CIM hasn’t filed official paperwork with the city yet, but the company did submit an inquiry last year for a project at the site.
Railyards Lacking Infrastructure
$700 million dollars. That's how much needs to be spent on infrastructure improvements to downtown Sacramento's railyards before any development can happen, according to a new report. Rodd says that includes track relocation, laying down roads, building transit facilities and putting in sewer systems.
"The $700 million figure was described in a report submitted to the City Council’s Law and Legislation Committee," says Rodd. "About $340 million of that $700 million — mostly from regional, state and federal government sources — has been invested in the infrastructure improvements, according to the project’s developer, Downtown Railyard Venture."
Some of the other money will come from an impact fee developers will charge builder-owners. The infrastructure work is expected to begin in May of next year.
Pot Tax Revenue Surpasses Expectations
Sacramento exceeded its projected cannabis tax revenue for the fiscal year that ended in June. The city originally thought it would collect about $4.5 million in taxes from cannabis, but it wound up generating more than $6 million. And almost all of the revenue came from dispensaries that were already operating in Sacramento under the old medical marijuana laws. Only about $500,000 of that $6 million came from new businesses. Rodd says that wasn't totally unexpected.
"The city is still processing hundreds of applications for cultivators, manufacturers, distributors and delivery businesses," says Rodd. "While some have been allowed to operate during the process, only a few have actually received their business operating permits."
City officials say they expect tax revenues from these businesses to increase significantly once they’re approved and in operation.
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