Sacramento Railyards - The New Downtown

[Majin]

Is only the bridge resuming or is general infastructure resuming too?

[202_Cyclist]

Sacramento will ask arbitrator to settle dispute over price of railyard parcel


By Tony Bizjak
PUBLISHED SATURDAY, SEP. 19, 2009
Sacramento Bee

http://www.sacbee.com/ourregion/stor...Our%2520Region

A multimillion-dollar land value dispute between the city of Sacramento and its downtown railyard developer appears headed for a long-awaited resolution.

City attorneys on Friday notified Thomas Enterprises, the Atlanta-based railyard owner, the city is calling in an arbitrator to decide the price tag the city will pay for a key slice of land Thomas agreed to sell the city in 2006.

In question are 33 acres at the front of the massive downtown yard. The city plans to realign the railroad tracks on that site to make room for a new transit center and to allow streets to be built into the upper portion of the railyard, connecting it with downtown.

The city and Thomas have never been able to agree on the land's value. City officials say they need to take ownership to begin that work.

"We've tried to get Thomas to move (forward)," the city's Marty Hanneman said Friday. "The mayor and council have made it clear they want this resolved."

A Thomas representative played down any rift, saying his company is willing to go to arbitration.

City officials are aiming for a hearing the first week in November.

"We've been discussing that with the city," said Suheil Totah, Thomas' vice president of development. "It's fine with us."

Totah acknowledged the failed sale-price negotiations took a long time, but said the city was slow finishing its appraisals and submitting an offer.

"Why it took that long, I don't know," Totah said.

Despite the disagreement, both entities say their relationship remains good.

Mayor Kevin Johnson this week said he "applauds" Thomas Enterprises for its commitment to helping the city redevelop the railyard.

Totah said Friday, "We couldn't do this project without the city."

The Thomas company, which bought the railyard from Union Pacific in 2006, is planning a $6 billion project, to be built over decades, that would nearly double Sacramento's existing downtown, adding 50 blocks of housing, offices, stores and entertainment venues.

The roots of the current impasse go back three years.

To help Thomas with funds to purchase the 240-acre site, city officials agreed in 2006 to pay Thomas a "placeholder" sum of $55 million for the front 33 acres.

City officials acknowledged they did not have time to do an appraisal beforehand but have conducted two since. Thomas already had an appraisal in hand.

Thomas and city officials declined to disclose what their appraisals show. A memo viewed by The Bee indicates the two sides are far apart: Thomas is valuing the land at $87.8 million, while the city puts the value at only $8.2 million.

Failing to reach a deal, the two sides decided earlier this year to go to arbitration but as of this week had not agreed on when.

With construction deadlines looming, the city on Friday invoked a right to unilaterally set an arbitration date within 45 days.

The arbitrator – a judge or attorney with at least 15 years of real estate experience – will be tasked with determining a sale price that is no higher than Thomas' appraisal and no lower than the city's.

The move to arbitration is the latest development in an up-and-down year for Thomas and its railyard project.

The company launched road-building work in the railyard in the spring, amid much fanfare, then had to shut down work soon afterward for lack of funds.

The project's prospects took a turn for the better last week when state housing officials agreed to begin allocating $47 million in state Prop. 1C bond funds.

Totah said his company should be able to resume work in the next few weeks. City officials say they want to be on-site early next year realigning the tracks.

[Rail>Auto]

Is there any railyards on the site right now or is the land abandoned?

[Web]

Originally Posted by Rail>Auto

Is there any railyards on the site right now or is the land abandoned?

not really but yes and definitely yes

[wburg]

The railroad museum still uses the Boiler Shop and Erecting Shop for restoration projects, maintenance of way, and storage of part of their collection. The railroad tracks are still in use, of course, and the passenger station is one of the busiest in the country.

[Rail>Auto]

Originally Posted by wburg

The railroad museum still uses the Boiler Shop and Erecting Shop for restoration projects, maintenance of way, and storage of part of their collection. The railroad tracks are still in use, of course, and the passenger station is one of the busiest in the country.

Thanks.. Also, will all of this be left intact after the project is complete? Also, thank you web for answering my ? as well.

[wburg]

Originally Posted by Rail>Auto

Thanks.. Also, will all of this be left intact after the project is complete? Also, thank you web for answering my ? as well.

That's the idea. The Boiler Shop and the Erecting Shop are in the process of being transferred over to State Parks, in exchange for a land swap between Parks, the city of Sacramento and Thomas Enterprises. There will be some reshuffling of tracks, but there will still be track connections to these buildigns, as they will be part of a new Railroad Technology Museum. The other five Shops buildings are supposed to be preserved and turned into commercial spaces of various sorts. The current railroad tracks between the passenger depot and the Shops buildings will be realigned along a tangent (actually the same place that the main line ran until the current passenger depot was built) with extra passing tracks to allow freight trains to pass through without blocking passenger trains picking up passengers at the depot--and enough footprint left for future HSR expansion later.

The passenger depot will be expanded with a new building on the back that will run from the existing depot's back door to the new track alignment. We will end up with a depot about the same size as Los Angeles' depot, serving Amtrak, regional commuter trains, light rail, RT buses, Amtrak buses, Greyhound (eventually they will move back from Richards to here) and (at some future point) an HSR line.

[Rail>Auto]

Originally Posted by wburg

That's the idea. The Boiler Shop and the Erecting Shop are in the process of being transferred over to State Parks, in exchange for a land swap between Parks, the city of Sacramento and Thomas Enterprises. There will be some reshuffling of tracks, but there will still be track connections to these buildigns, as they will be part of a new Railroad Technology Museum. The other five Shops buildings are supposed to be preserved and turned into commercial spaces of various sorts. The current railroad tracks between the passenger depot and the Shops buildings will be realigned along a tangent (actually the same place that the main line ran until the current passenger depot was built) with extra passing tracks to allow freight trains to pass through without blocking passenger trains picking up passengers at the depot--and enough footprint left for future HSR expansion later.

The passenger depot will be expanded with a new building on the back that will run from the existing depot's back door to the new track alignment. We will end up with a depot about the same size as Los Angeles' depot, serving Amtrak, regional commuter trains, light rail, RT buses, Amtrak buses, Greyhound (eventually they will move back from Richards to here) and (at some future point) an HSR line.

Sounds Great

[wburg]

http://www.sacbee.com/opinion/story/2259590.html

Editorial: Get a move on with railyard development
ShareThis

Buzz up!Published: Sunday, Oct. 18, 2009 - 12:00 am | Page 6E
Last Modified: Monday, Oct. 19, 2009 - 9:29 am
Before it could jump-start housing near what had been a blighted waterfront area, San Francisco needed to renovate the Ferry Building and surrounding piers to create a marketplace and entertainment draw where people could then imagine themselves living.

That's also true of Sacramento's downtown railyard area. The makeover of the seven historic Central Shops buildings as a public marketplace, a new Railroad Technology Museum and other cultural/entertainment venues is essential. Without it, a promised housing development is unlikely to draw people who have long associated this area with Interstate 5 and toxic cleanup.

But here is the sticking point. The city of Sacramento, the State Lands Commission, California State Parks and the developer, Thomas Enterprises, have yet to sign a key land exchange. All the parties except the developer have agreed to sign. So this key part of the railyard development continues to languish.

Then, there's another huge issue.

In a rush land deal in December 2006, the city gave Thomas Enterprises $55 million for the $74 million purchase of the 240-acre downtown railyard. This was called an "advance payment" for 32.8 acres, including the historic train depot, that the city would receive as part of its plan to create a transit hub and move the railroad tracks.

The catch is that the city and the developer were supposed to agree on a final purchase price for the 32.8 acres by February 2007 – or solve the dispute by mediation and arbitration no later than April 2007. Well, here we are two-and-a-half years later and the city is no closer to recovering the difference between its $55 million advance payment and the final purchase price – which city appraisals set at less than $10 million.

Why does this matter?

First, it is $55 million of taxpayer money and the developer may owe tens of millions of dollars to the city.

Second, the city cannot move forward on a construction contract for the track relocation project until this is settled. The state and federal governments have pledged about $45 million for that. If Thomas owes the city money, it would go toward the city's contribution to the track relocation project.

So what's happening now? The city finally made a demand for arbitration Sept. 18. But the parties haven't been able to agree on an arbitrator. Realistically, no one expects a hearing before early December.

For all the seeming activity in the railyard, the reality is that these delays are preventing key portions of the project from moving forward.

Mayor Kevin Johnson and the City Council need to keep the pressure on to get these issues settled. Pronto.

[Majin]

Seriously, 100's of million of dollars have exchanged hands and theres nothing to show for it? give me a break

[wburg]

Well, we have this...in other news, the city and Thomas Enterprises are getting ready for arbitration to decide how much the city is going to pay for the passenger depot and adjacent land (Thomas says $75 million, the city says $8 million.)

Test pile-driving will be important--the Railyards are built on top of a former swamp. The Shops buildings were built on top of deeply sunk wooden piles, and the original tracks were on trestles (some of which are still underground) to keep the trains above water.

Bob Shallit: Pile-driving to begin at downtown railyard

By Bob Shallit
Published: Saturday, Oct. 31, 2009 - 12:00 am | Page 4B

Here's something we haven't seen in several years:

A giant crane in place, ready to start pile-driving at a major downtown construction project.

A red, 120-foot-tall crane was assembled this week at the Sacramento railyard. Starting Tuesday and continuing for two weeks, it will be hammering test piles to determine how deep foundations must be for the Fifth and Sixth street bridges that will take cars and pedestrians over the yard's relocated tracks.

Actual work on the bridges is set to begin in late February or March and will take about a year to complete, says Suheil Totah, the Thomas Enterprises VP overseeing the long-awaited railyard project.

The track relocation also will be completed during that time frame. The roads leading to the bridges will be done by the end of next year.

Cost of these components of the massive railyard redevelopment plan: about $127 million.

Totah acknowledges that the pile-driving din may be annoying to some. But it will be sweet music to others.

Says the Thomas exec: "It's the sound of jobs coming to the city of Sacramento."

[wburg]

Also, for those who think that "nothing" goes on in the Railyards...restoration and repair of historic railroad equipment is still happening in the old Boiler Shop and Erecting Shop.

http://www.sacbee.com/ourregion/story/2291311.html

Sierra No. 3 locomotive, star of movies and TV, leaving Sacramento



By Bill Lindelof
blindelof@sacbee.com
Published: Thursday, Oct. 29, 2009 - 7:29 am

The famous movie locomotive Sierra No. 3 this morning leaves the Sacramento railyards, where it has been undergoing rehabilitation, and heads for home in Jamestown, Tuolumne County.

The ironhorse star of such movies as "High Noon," "Back to the Future III" and "Unforgiven" and many television shows is to be trucked south on Interstate 5, entering at Richards Boulevard about 9 a.m., a news release from restoration officials states.

The locomotive has been undergoing boiler work at the Sacramento shops of the California State Railroad Museum. Restoration work will be completed at the Railtown 1897 State Historic Park in Jamestown.

The steam locomotive was built in 1891 and spent its early years in Arizona, arriving in Jamestown in 1897. There, it hauled ore, lumber, marble and other goods out of the foothills. Unlike other steam locomotives, Sierra No. 3 did not end up on the scrap heap with the advent of diesel-powered train technology.

The locomotive is expected to return to operation at Railtown in April, the start of the historic park's excursion train season.

Actor Clint Eastwood is one of "Old No. 3's" ardent supporters. He rode the locomotive at the start of his career in the television series "Rawhide." It also was used in his productions of the movies "Pale Rider" and "Unforgiven."

"It is housed in the original roundhouse, which is still in use," said Eastwood. "Together, these two assets provide a rare opportunity to experience history just as it was 109 years ago. Having this locomotive in operation will give filmmakers another reason to stay in California."

[kamehameha]

Bids to be sought on railyard road work
ShareThis
Buzz up!
By Dale Kasler
dkasler@sacbee.com
Published: Saturday, Feb. 20, 2010 - 12:00 am | Page 3B
Last Modified: Saturday, Feb. 20, 2010 - 10:47 am

The overhaul of Sacramento's downtown railyard is about to switch to a faster track.

After years of preliminaries and false starts, developer Thomas Enterprises Inc. and the city soon will request bids on four significant road-work projects totaling more than $100 million, officials with Thomas said Friday.

The start of the bid process means the former Union Pacific yard will turn into a serious construction site come summer, with several hundred workers on the job. The yard currently employs about 100 workers, most of them cleaning up historic shop buildings.

Putting out the bids "is a big milestone," said Suheil Totah, the vice president in charge of Thomas' Sacramento operations. "It's been years, it's been a big effort."

Just a few months ago, the project – which the city has been planning for decades, with different developers coming and going – appeared to be in danger of being derailed.

Thomas had used up tens of millions of dollars in commercial loans buying and cleaning the toxic land. Starved for cash, the Georgia development firm was getting sued by contractors over unpaid bills. Preliminary site work halted over the summer.

The firm's leader, Stan Thomas, told The Bee in September he was worried "we'd have to shut the project down."

The savior was government money, millions of dollars in subsidies that had been awarded to the project but delayed. The cash included state infrastructure bond money earmarked for the railyard in 2008 but stuck in limbo because of the budget crisis.

With the state finally able to complete the bond sales, "the funds are starting to come through," Totah said.

The four contracts have received a combined $117 million in government aid. The lion's share comes from two state bonds, and nearly $30 million is in federal economic stimulus money.

The contracts include the construction of two pedestrian routes connecting the railyard with Old Sacramento and downtown; a pair of bridges linked to downtown; and the relocation of some train tracks.

The track relocation will make room for an expanded transit facility and, perhaps, a new Kings arena. The Thomas firm and a development consortium backed by the Kings and the National Basketball Association have submitted competing proposals to build a venue at the railyard. Five other groups have proposed other locations.

Ultimately, the railyard will contain shops, offices and thousands of homes – an urban village that will double the size of downtown and cost billions of dollars to develop.

© Copyright The Sacramento Bee. All rights reserved.

[Web]

so the work teichert started and then wasnt paid for on time is going to be rebid?? does teichert have any recourse to restarting the old contract?

[Web]

Originally Posted by Web

so the work teichert started and then wasnt paid for on time is going to be rebid?? does teichert have any recourse to restarting the old contract?

Now it seems Thomas doesn't believe in paying property taxes....again why are we still allowing this corporation to build this?

[Ghost of Econgrad]

Sacramento railyard developer says it has check for tax bill
tbizjak@sacbee.com
Published Saturday, Apr. 10, 2010

The check's in the mail.

Officials with Thomas Enterprises, owner of the downtown railyard, said Friday they had overnighted a $218,000 check to the Sacramento County tax collector the previous day, making good on a long overdue December property tax bill.

The announcement came late on a tense day that started with the city threatening to withhold millions of dollars in state grant funds for Thomas' massive railyard redevelopment project unless Thomas paid up.

"I have a copy of the check," sent from company headquarters in Atlanta, said Thomas' local vice president Suheil Totah. It covers both annual installments, he said, including one due Monday. "They took care of it."

Not yet, not officially, county officials said.

Cynthia Gibbs, acting county assistant tax collector, said her office rummaged through the day's arriving payments and had not found Thomas' check by closing time.

"Depending on the carrier service they used, it may not get here until Monday morning," Gibbs said. "Technically, they have until 5 p.m. on Monday," the deadline for the second installment.

Thomas' local representative Totah described the failure to pay December's bill as nothing more than an oversight.

"We became aware of this last week," he said. "It was just something that was missed."

That mistake, however, briefly threw the 240-acre downtown railyard project into doubt, and renewed questions about the financial stability of the company.

Thomas plans to turn the railyard in the coming decades into a new downtown of offices, stores and thousands of housing units. It is working with the city, which plans to build a major transit center there, and has talked about a sports and entertainment facility on-site to house the Sacramento Kings basketball team.

Hit hard by the economic downturn, Thomas Enterprises has been forced to shelve work on several projects around the country.

Company owner Stan Thomas recently described the Sacramento project as a shining light, at the same time acknowledging it has only stayed alive thanks to millions of dollars in state and federal grant funds that have just begun to flow.

That includes $47 million the city and Thomas jointly are receiving from the state Department of Housing and Community Development.

And that's the money city officials on Friday threatened could be withheld until Thomas paid its county taxes.

"They're getting tens of millions of dollars in government grants, they ought to be paying their taxes," City Councilman Kevin McCarty said at a news conference Friday morning at the downtown depot on I Street.

City officials said they would notify the state about the situation. State officials said they would analyze the matter next week.

Deputy Sacramento City Attorney Sheryl Patterson, however, said that as long as Thomas pays the taxes, the city will consider the matter resolved and will allow its portion of the grant money to flow.

Ironically for Thomas, work the company has done on the site caused its property tax bill to skyrocket this year. County officials tripled Thomas' tax bill after reassessing the railyard.

"The value of the property increased," said John Solie of the county assessor's office. "We have an obligation to pick up that additional value."

Thomas initially appealed the reassessment but has withdrawn the appeal, Totah said. A contract company for Thomas mistakenly filed the appeal, he said.

Thomas and the city of Sacramento, meanwhile, are in dispute over the value of a small corner of the railyard that Thomas sold for a placeholder sum to the city three years ago for the planned transit center.

That dispute has gone to a court arbitrator and is expected to be resolved in the next few weeks.

Totah brushed aside the commotion over land values and late payment, saying his company is focused on what should be a big year for construction in the railyard.

Contracts are expected to be signed in the next few weeks to build bridges that will carry extensions of Fifth and Sixth streets into the railyard.

The city and Thomas also are planning to begin work in May moving the railyard train tracks to open way for development.

Speaking briefly to The Bee on Friday, company head Stan Thomas said his firm's financial situation has improved in recent months.

"Finally, things are getting better for us," he said. "The whole world's getting better."

[Web]

Originally Posted by Ghost of Econgrad

Sacramento railyard developer says it has check for tax bill
tbizjak@sacbee.com
Published Saturday, Apr. 10, 2010

The check's in the mail.

Officials with Thomas Enterprises, owner of the downtown railyard, said Friday they had overnighted a $218,000 check to the Sacramento County tax collector the previous day, making good on a long overdue December property tax bill.

The announcement came late on a tense day that started with the city threatening to withhold millions of dollars in state grant funds for Thomas' massive railyard redevelopment project unless Thomas paid up.

"I have a copy of the check," sent from company headquarters in Atlanta, said Thomas' local vice president Suheil Totah. It covers both annual installments, he said, including one due Monday. "They took care of it."

Not yet, not officially, county officials said.

Cynthia Gibbs, acting county assistant tax collector, said her office rummaged through the day's arriving payments and had not found Thomas' check by closing time.

"Depending on the carrier service they used, it may not get here until Monday morning," Gibbs said. "Technically, they have until 5 p.m. on Monday," the deadline for the second installment.

Thomas' local representative Totah described the failure to pay December's bill as nothing more than an oversight.

"We became aware of this last week," he said. "It was just something that was missed."

That mistake, however, briefly threw the 240-acre downtown railyard project into doubt, and renewed questions about the financial stability of the company.

Thomas plans to turn the railyard in the coming decades into a new downtown of offices, stores and thousands of housing units. It is working with the city, which plans to build a major transit center there, and has talked about a sports and entertainment facility on-site to house the Sacramento Kings basketball team.

Hit hard by the economic downturn, Thomas Enterprises has been forced to shelve work on several projects around the country.

Company owner Stan Thomas recently described the Sacramento project as a shining light, at the same time acknowledging it has only stayed alive thanks to millions of dollars in state and federal grant funds that have just begun to flow.

That includes $47 million the city and Thomas jointly are receiving from the state Department of Housing and Community Development.

And that's the money city officials on Friday threatened could be withheld until Thomas paid its county taxes.

"They're getting tens of millions of dollars in government grants, they ought to be paying their taxes," City Councilman Kevin McCarty said at a news conference Friday morning at the downtown depot on I Street.

City officials said they would notify the state about the situation. State officials said they would analyze the matter next week.

Deputy Sacramento City Attorney Sheryl Patterson, however, said that as long as Thomas pays the taxes, the city will consider the matter resolved and will allow its portion of the grant money to flow.

Ironically for Thomas, work the company has done on the site caused its property tax bill to skyrocket this year. County officials tripled Thomas' tax bill after reassessing the railyard.

"The value of the property increased," said John Solie of the county assessor's office. "We have an obligation to pick up that additional value."

Thomas initially appealed the reassessment but has withdrawn the appeal, Totah said. A contract company for Thomas mistakenly filed the appeal, he said.

Thomas and the city of Sacramento, meanwhile, are in dispute over the value of a small corner of the railyard that Thomas sold for a placeholder sum to the city three years ago for the planned transit center.

That dispute has gone to a court arbitrator and is expected to be resolved in the next few weeks.

Totah brushed aside the commotion over land values and late payment, saying his company is focused on what should be a big year for construction in the railyard.

Contracts are expected to be signed in the next few weeks to build bridges that will carry extensions of Fifth and Sixth streets into the railyard.

The city and Thomas also are planning to begin work in May moving the railyard train tracks to open way for development.

Speaking briefly to The Bee on Friday, company head Stan Thomas said his firm's financial situation has improved in recent months.

"Finally, things are getting better for us," he said. "The whole world's getting better."

so they are sending the first installment on the day the second is due....I hope the second comes also......these guys thought they could just slide.....they finally figured people are watching.....

also has the bridge work stalled yet again ????

[CAGeoNerd]

Originally Posted by Web

so they are sending the first installment on the day the second is due....I hope the second comes also......these guys thought they could just slide.....they finally figured people are watching.....

also has the bridge work stalled yet again ????

What bridge? Are they repairing a bridge or building a new one?

[Web]

Originally Posted by CAGeoNerd

What bridge? Are they repairing a bridge or building a new one?

2 new bridges over the area where the tracks will be moved to......

[JVissle]

Originally Posted by wburg

Also, for those who think that "nothing" goes on in the Railyards...restoration and repair of historic railroad equipment is still happening in the old Boiler Shop and Erecting Shop.

http://www.sacbee.com/ourregion/story/2291311.html

Is it just me, or does that guy on the left look like Hugh Jackman and Clint Eastwood? I was looking at it like, damn Wolverine in the old west. Lol!