SACRAMENTO - A Sacramento judge has ruled the city of Sacramento can use eminent domain power to take control of what was the downtown Macy's men's and furniture store for a new sports and entertainment complex.
The vacant building at 600 K Street was the hold-out in the city's efforts to assume possession of a portion of the Downtown Plaza location for the arena for the Sacramento Kings.
When the city's efforts to reach a sales agreement with mortgage lessees of the Macy's building and structures failed, it sought eminent domain law to take over the property. The city argued time was of the essence to begin demolition in May/June 2014 for a targeted September 2016 arena completion date. It also claimed potential hardship in that the NBA could move the Kings franchise elsewhere without a new facility.
The land the old Macy's sits on was owned by CalPERS, the state employee retirement system.
The city of Sacramento was required to deposit $4,350,000, the appraised value of the property, with the state treasury as part of the ruling.
According to the city's term sheet with the owners of the Kings, Sacramento has committed to putting up $258 million of the $448 million arena price tag.