SACRAMENTO (CBS13) — Sacramento’s Golden 1 Center has now been open for three years, and it’s bringing nearly two million people to the neighborhood annually.

In that time, dozens of new businesses have opened while others have closed.

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Tuesday was the grand opening of Polanco, Downtown Sacramento’s newest restaurant. The Mexican food cantina is just feet away from the Golden 1 Center, where the Kings are starting their fourth season.

“You can see and hear the people in the arena, hear the concerts, hear the announcer during the Kings games. It’s amazing,” Polanco General Manager Giovanni Joris said.

All that activity is credited with reviving the downtown scene. A new study by the Downtown Sacramento Partnership shows there’s growing interest around the arena.

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“We’ve got brokers, retailers, restauranteurs saying ‘We’ve looked at Sacramento for years,’ and now saying ‘we see what’s going on there we want to be close to it,'” Downtown Sacramento Executive Director Michael Ault.

So what kind of economic impact has there been in the last year? There’s a 38% increase in development projects, 42 new retail businesses have opened, and close to 500 new apartments and condos have been built.

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The study also shows development is driving up property costs. Some are concerned that could drive existing businesses out of the neighborhood.

“Any time you see investment like this, there will be people that survive and people that will transition,” Ault said.

Officials also acknowledge there’s work to be done.

“We’ve still got a lot of vacant buildings downtown that need to transition. We need to push the ownership interest that now is the time, let’s continue this momentum,” Ault said.

A momentum that places like Polanco look forward to benefiting from.

“We definitely feed off of that good energy and excitement about new things coming,” Joris said.

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The Downtown Partnership is predicting even more success from other projects in the works including the new convention center and renovation of the Old Sacramento Waterfront.