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Old Posted Mar 11, 2009, 5:25 AM
sugit sugit is offline
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Join Date: Feb 2004
Location: DT Sacramento
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I wonder what " A compromise was reached between the council and both proponents and opponents of the project." was?

City Council OKs K Street subsidy
Sacramento Business Journal
Tuesday, March 10, 2009, 9:53pm PDT

The Sacramento City council on Tuesday approved a subsidy for a rehab project at 1012-1022 K Street.

The subsidy is $5.4 million to pay for the core, shell and tenant improvements for a nightclub, dive bar and restaurant on land the city has owned for 10 years. The proposed developer is a partnership between David S. Taylor Interests Inc. and CIM Group and the operator would be San Francisco nightclub owner George Karpaty. Taylor has had an exclusive right to negotiate for development proposals on the site, a former Rite Aid drug store and other closed businesses, since 2005. Under the proposal, the developers are bringing $5.3 million in equity to the project.

The subsidy funds would come from proceeds of the city’s sale of the Sheraton Hotel last year to Taylor Interests. As part of that deal, the city agreed to set aside half of the proceeds, about $25.6 million, to subsidize the development of property along the city’s central corridor along J, K and L streets in deals with Taylor.

Many downtown and midtown restaurant owners were opposed to the subsidy, fearing it would take business away from their establishments. A compromise was reached between the council and both proponents and opponents of the project.
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