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Saca's huge towers to go to city planners in phases

Developer will save money and speed up construction

Sacramento Business Journal - April 14, 2006by Mike McCarthyStaff writer

Developer John Saca has arranged with the city of Sacramento to phase the $11.5 million in building permits for his twin condominium towers on Capitol Mall, reducing his up-front costs and speeding construction.

It's a small savings in the $500 million project, but the kind of money management that will make things easier for Saca.

The phasing of permits is one of the new options in the Matrix program, devised by city manager Ray Kerridge and Bill Thomas, the city's development director. Matrix makes the development-approval process faster and more user-friendly.

"Years ago, you'd come in with 400 pounds' worth of blueprints for the whole project," Thomas said. "Now you can phase it."

The first permit, Thomas said, would be for driving 2,900 piles 70 feet into the ground to give the huge towers a firm footing.

The two 54-story towers (each one story taller than in previous plans) would hold 804 condominiums -- ranging in price from around $450,000 to more than $1 million for upper-floor and penthouse units -- plus a hotel, a health club, spa, stores and restaurants.

The complex would encompass about 2 million square feet, twice the space of the standard regional mall, Thomas said.

Saca expects to begin construction next month. The towers are expected to open 21?2 years after construction starts.

At 615 feet, the towers at 3rd Street and Capitol would be the highest edifices in Sacramento. Nearby Wells Fargo Center is 423 feet tall.

Saca cinched a deal last week with the California Public Employees' Retirement System, which will invest $100 million in the project. Along with cash from Saca, the money virtually ensures the project's construction.

Thomas said phasing the city permits is not a subsidy.

The staged permit program is also being used by developer Greg Nassi and his 38-story Aura condominium tower, being built on Capitol Mall at 6th Street. Nassi said that three-quarters of the project's 265 units were sold last weekend.

The first development in the phased permit program was the Marriott Residence Inn under construction at 15th and L streets. Developer Tony Giannoni got into the Matrix program last year.

The idea of phased permits was suggested by the city-appointed Development Oversight Commission because it allows construction to start sooner and saves the builder from borrowing more money for the project, said development consultant Brian Holloway, former chairman of the advisory body.

The Matrix also includes assigning teams of planners from various departments to consult with applicants throughout the process. The interaction is coordinated by a team leader.