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Judge Grants Sacramento Eminent Domain Rights

Judge Grants Sacramento Eminent Domain Rights

UPDATE: 3/20/14

A judge has given the city of Sacramento the rights to take over the former Macy's Men's store at Downtown Plaza.

Judge Raymond Cadei affirmed an earlier decision this morning after hearing last minute arguments from the building's owners: a group of mortgage holders and CalPERS.

The eminent domain ruling provides the last peice of real estate needed to build a new arena for the Kings. A jury will determine the sale price of the building within the next few months, and the team will pay for it.

Demolition of much of the mall is expected to begin in late May or early June.

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It's a bit of a surprise, but a judge is delaying his ruling on whether the City of Sacramento can take control the downtown Macy's for the arena project.

Use of eminent domain will allow city officials to secure the last piece needed for construction of the $448 million downtown sports and entertainment center, where the Sacramento Kings would play.  

The city sued the owners -- CalPERS and the bank holding the mortgage-- early this after sales negotiations broke down.  

The owners say the property is worth $10 million, but the city is offering a little more than $4 million.

The new arena is supposed to ready for play by 2016.

If completion of the project is delayed by more than a year, the NBA has the right to buy the Kings and could move the team. 

 

 

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