Sacramento city council approves eminent domain suit to acquire land for new Kings arena
In the effort to secure the final piece of land needed to build a new Kings arena, the city of Sacramento has decided to exercise its political clout . On Tuesday night, city officials voted 7-2 in favor of moving forward with eminent domain proceedings to seek control of the space formerly home to the Macy’s menswear/furniture store at the Downtown Plaza.
“I do want to note that continued negotiations can occur between now and when we have order of possession,” Assistant City Manager John Dangberg said before council last night. “And we will encourage that and we will certainly be open to further negotiations and settlement.”
The city approved a “resolution of necessity” for eminent domain at the Jan. 7 meeting. A court action will now be filed by the city to move forward with seizing the privately owned parcel of land.
The building, located on 600 K Street, has been vacant since fall after Macy’s chose not to renew its lease. It is owned by the California Public Employees’ Retirement System (CalPERS) and its ground lease is held by U.S. Bank. As part of the planned entertainment and sports center, a new practice facility for the Kings is expected to built on the land.
Kings ownership, who purchased the Downtown Plaza mall from JMA Ventures, entered talks to purchase the building formerly known as the Macy’s menswear/furniture store last spring. An independent commercial appraiser established the fair market value of the property, but the Kings and owners of the building were unable to reach an agreement after several months of negotiations.