by Brandon Darnell staff reporter for The Sacramento Press.
published on January 12, 2012at 5:49 PM
Ground broke on a new mixed-use retail and residential development in Midtown Thursday, and work is set to be complete on two vacant former state lots at 16th and O streets by mid-2013.
"We're going to get 84 market-rate apartments, 13,000 square feet of retail, and we're going to have another chunk of Sacramento with a nice infill, pedestrian-friendly development," said City Councilman Rob Fong, whose district contains most of downtown and Midtown. "It's the kind of live-work space that really is a nice fit for the city."
The project – with one four-story and one five-story, mission-style building – is a partnership between the Capitol Area Development Authority – a joint powers group between the state and city formed in 1978 – Ravel Rasmussen Properties and Separovich/Domich Real Estate Development.
The approximately $24 million project includes $1.5 million in funding from CADA, which also provided the two lots. The developers brought in $5 million and financed another $17 million, said Scott Rasmussen of Ravel Rasmussen Properties.
"We're hoping to get some small public improvement grant money from SMUD as well," he said.
Across the street from the Fremont Building and a few blocks away from Fremont Park and the popular restaurant Hot Italian, Rasmussen said the location is a prime spot.
"It's a dynamic location, and it may be kind of the new center for downtown and Midtown," he said.
The 84 apartments are expected to rent for between $1,200 and $1,500 and will be one- or two-bedroom units. The 13,000 square feet of retail space will likely house between five or six tenants, Rasmussen added.
Rasmussen declined to comment on the nature of the tenants, saying that while some outreach to businesses has been made, it is too early to speculate on which ones will eventually be a part of the project.
"I hear one of the retail users is going to be some sort of restaurant with patio dining," Fong said, adding that it's too early in the process for specifics.
Congresswoman Doris Matsui was in attendance at the groundbreaking, saying the project shows progress for the city.
"It shows that we're doing things in Sacramento, and we know that we've had a hard time, but things are getting better slowly," Matsui said. "It's going to provide a livability and a sense of community."
She added that the new plan in urban development – reverting to plans from a century ago – is to make living and working space that is walkable and easily accessible to bicycles.
"I think that by next year, we'll find real progress," Matsui said. "People (will be) walking around and enjoying themselves here. That's the goal."
Brandon Darnell is a staff reporter for The Sacramento Press.