SACRAMENTO (CBS13) — The Sacramento City Council will vote on Tuesday whether to pursue an eminent domain claim to clear space for a new Sacramento Kings downtown arena.
The Macy’s building on K Street is a critical piece of property for the project. The city says its negotiated for months with the property owners—the California Public Employees Retirement System.
Now, Assistant City Manager John Dangberg says its time to take a hard line.
“We’re out of time for negotiations, and we need to move forward with the eminent domain process,” he said.
The Macy’s building sits empty now after the company consolidated downtown. Dangberg says CalPERS has refused the city’s offer based on a third-party appraisal.
“Often times, after the action that we’re proposing to take—eminent domain—it brings people back to the table,” he said.
This wouldn’t be the first time the city has considered eminent domain in downtown Sacramento.
In 2008, the city settled out of court with developer Moe Mohanna after threatening to take over a rundown area of K Street. Mohanna dropped his lawsuits against the city in exchange for $18.6 million.
Unlike that case, the city’s price tag for the property will be reimbursed by the Kings.
Dangberg says the city is willing to keep talking if the owners are willing to listen.
If the City Council approves the measure on Tuesday as expected, the city will seek to fast track the process with an order for prejudgment possession.
They could take possession of the property within 90 days of the filing, with a price settled after that.