Tuesday, May 29, 2007

'It Can't Get Much Worse' for Sacramento's White Elephant

From the Sacramento Bee:

Downtown high-rise developer John Saca missed a Friday deadline to buy out his estranged partner, the California Public Employees' Retirement System, throwing the future of his twin condominium towers into jeopardy.

The giant state pension fund now has a week or two to decide whether it wants to take over the stalled, debt-ridden project at the entrance to Capitol Mall and move forward without Saca, CalPERS confirmed Tuesday.
CalPERS has brought in the CIM Group, a Los Angeles -based developer, to decide whether it would make financial sense to pursue a significantly scaled-down version of Saca's 53-story condominium and hotel towers. CIM's idea for the site also would include some office, said CalPERS spokeswoman Pat Macht. CIM also has approached the city about a possible subsidy for the project, Macht said.
"It can't get much worse," Saca said Tuesday. "There's a stigma on the property now, and it's hard to overcome that."


Max said...

Buh-bye "The Towers". CalPERS' best bet is to write off the $25 million as a loss and get as far away from this project as possible. Loved this quote from the article:

"The CalPERS executive who made the commitment to invest $100 million in the project left the pension fund, and CalPERS managers became increasingly uncomfortable with putting in more money. The pension plan pulled the plug."

Looks like a fox in the hen-house to me.

RMB said...

Wait until all the Pollyanna's come out later in the day. They will be screaming "Build it John, they will come".
None of those people have any economic sense. They are still stuck in free money 2004 where cost and price don't matter because the profits only go up.
I really do wonder how many of the ~400 depositors are really praying this thing falls apart and they get their money back.

Cow_tipping said...

Oh yea the stigma ... yea we cant over come that. of course not. not that the POS in a podunk town will not sell for the trumped up prices unless every one was on crack like Casey Serin.