Is There Enough Demand To Fill Planned Downtown Arena Development?
SACRAMENTO (CBS13) - There are concerns the new plan to build an arena, along with a hotel and new housing in downtown Sacramento may be too aggressive.
Can the capitol city support this type of growth?
Kings owner Vivek Ranadivé promises the arena will be the best in the world, but what surrounds this building may be just as vital to Sacramento's resurgence.
The newest plans show floors of office space and 550 new residences on the downtown mall site.
"I think it's probably a little aggressive," said realtor Luis Sumpter.
Sumpter deals in downtown real estate and says while the number of homes may be a bit high for Sacramento, there is a new mindset about living in the city's core.
"I think we are in a reverse thing where people used to be OK living in the suburbs and commuting downtown and coming down for a little fun, but I really think that has changed," said Sumpter.
The Kings owners are counting on that new mindset to help fund their billion-dollar-plus investment in the city. It is not clear how the homes will be configured on the land, which is over eight acres, but one of the plots will be the site of a new hotel.
"You've got a demand generator in the arena, so there is going to be some rooms that are specifically tied to that building that will help with some of these hotel rooms," said Mike Testa, a Sacramento Convention and Visitors Bureau spokesperson.
Those plans are still in the works, but the hotel will likely be high-end and feature 250 rooms. Set to be built in three years, the hotel could be opening at the perfect time, Testa says.
"I think when you have the arena you are also talking about expanding the convention center, so those two things combined, yes, it will create that demand and you will need more rooms," he said.
The offices, the residences and the hotel will all be built in phases. The first priority is to open the arena by the fall of 2016.
The city planning commission will review the latest plans. Plans for the hotel, office space and residences will be reviewed separately when they are finished.
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