Sacramento seeking to file eminent domain suit for arena property
“After negotiations over the property stalled without a deal, the city of Sacramento is preparing to push ahead with an eminent domain lawsuit to seize control of the former Macy’s men’s clothing and furniture store at Downtown Plaza, a vital parcel in the plan for a new sports arena.
Top city officials will ask the City Council on Tuesday for authority to file an eminent domain lawsuit as early as next week. The city has been trying for months to buy the vacant site from its owners, but has been unable to secure agreement on a sales price.
The former Macy’s sits at 600 K St. and has been empty since last summer, when the department store chain consolidated its downtown operations into its store on the western end of Downtown Plaza. The site contains more than half the land needed for the planned $448 million arena.
The parcel is owned by CalPERS, the state’s public employee pension fund, and U.S. Bank holds a ground lease on the property, according to a city staff report. C-III, a Texas-based asset management firm, is negotiating on behalf of U.S. Bank, city officials said.”
Lillis, Ryan and Tony Bizjak. Sacramento Bee 2 January 2013.