By Rachel Wulff

SACRAMENTO (CBS13) — City leaders denied an attempt to block progress on a 15-story development that will bring residential, retail and much-needed hotel rooms to downtown.

The city council swiftly denied the appeal to block construction on the 10K project due to environmental concerns. Saying as per state guidelines, the project is exempt and projects like this are providing much-needed housing for downtown workers.

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“I am prepared to open and close the public hearing. And reject the appeal and approve the project,” said Sacramento vice mayor Steve Hansen as council shut down an attempt to stop construction over concerns about formaldehyde emissions.

(credit: Mohanna Development)

Developer Nikki Mohanna is excited that plans for the 15-story mixed-use development at 10th and K can move forward.

“I am an advocate for urban infill. I believe where you grow, the true sustainability is bringing the housing to areas where people don’t have to commute and they can walk to work bike to their workplace,” said Mohanna.

The cutting-edge design would bring more than 7,500 square feet of retail, 200 hotel rooms and nearly the same amount of dorm-style apartments with community spaces. Most will be no bigger than 400 square feet at an affordable price.

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It’s a move in the right direction for businesses booming around the Golden 1 Center.

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“There’s a lot of hype around it and excitement, which comes with housing challenges,” said Philip Hernandez.

Hernandez lives in Folsom but is commuting downtown while he helps open a restaurant along K Street. He is excited about a hotel under construction at 7th and L and two new apartment buildings: one at 19th and J and another in the 700 block of K street called ‘The Hardin’.

(credit: Mohanna Development)

He says the urban workforce needs housing and the ability to walk to work.

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“Once people realize ‘What do you mean I have to pay to come to work?’ It’s been tough for us,” said Hernandez.

City leaders and developers hope sacrificing square footage for a chance to live where you work will be the key to sustaining downtown development.

“There’s room for all of us. It’s coming up with solutions for those of us who want to take advantage of opportunities,” said Hernandez.

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Demolition of three vacant buildings can now take place to build the 10K development. No word on the cost of construction. Developer says project must now go out to bid.