Sacramento city officials appeal for waterfront Marriott hotel18 Mar, 2013
The Sacramento Bee reports that city officials have proposed that the city float $30 million in bonds to help build a Marriott hotel and conference center overlooking the Sacramento River. The rest of the money for the $131-million, 343-room project would be provided by a Dallas development company.
According to The Bee, no major hotel in downtown Sacramento has been built in the last 25 years without government participation. That includes the Hyatt Regency, Sheraton Grand, Citizen and Embassy Suites hotels.
The development would mark another step for West Sacramento as it works to transform its riverfront "from a gritty industrial district to a community of office buildings, townhouses, shops and nightspots within walking distance of Old Sacramento."
"It is just a stunning site," said Ray Garfield, president of Garfield Traub, the national real estate investment firm hoping to partner with the city. "The river, the ballpark, the proximity to Old Sacramento, downtown, the state Capitol, all are strong indicators for great opportunity."
"This could be a transformational project that could activate the waterfront and ignite the Bridge District," Councilman Chris Ledesma said.
Reports The Bee, "Hotels in Sacramento have never been able to command high room rates, industry experts say, because their guests often are affiliated with state government, which limits per diem for travel. Yet the cost of building a high-rise hotel downtown is much greater than for low-rise suburban hotels spread out on cheaper land."
"Downtown, if it were pure private capital, it would never get done," said Tom Callahan of PKF Consulting in San Francisco. "The market is not strong enough to support the hotel on its own."
If a hotel deal is signed, city officials say they expect to sell up to $28 million in revenue bonds for most of their share.
External Source : The Sacramento Bee
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