The approval process for the Golden 1 Center was met with opposition at every step. But the conversation around the downtown Railyards project – which will include a soccer arena for the Sacramento Republic FC and a new Kaiser Permanente hospital – has been considerably more muted.
The reason why? Money.
The city contributed $233 million to the Golden 1 Center. And while the city has shelled out money over the years to clean up the Railyards site, this new development project is asking for no new city funds.
“This is not a taxpayer-funded project. It’s a privately funded project,” said city project manager Richard Rich.
Development firm LDK Ventures says it will spend roughly $100 million on infrastructure – think roads and utilities – to get the Railyards area ready for further building. LDK Ventures purchased the Railyards land in October 2015 for an undisclosed sum.
That $100 million is expected to include some public grant money, but LDK Ventures partner Denton Kelley said those grants would come from state and federal agencies. If Sacramento City Council approves the plan, future tenants like Sac Republic FC and Kaiser would purchase their plots from LDK Ventures and pay for their own construction costs.
If the project is greenlit, Kelley said infrastructure construction will begin in 2018.