B-Street Nears Financing Plan and K St Update
From Today's Sacramento Business JournalB St. Theatre sets stage for final financing of new complex
manderson@... | 916-558-7874
- I saw they posted a sign at the site at 27th and Capitol with a nice
rendering of the Theater to 'B'...
On Nov 5, 2010, at 12:21 PM, Bruce Holmes wrote:
> From Today's Sacramento Business Journal
> B St. Theatre sets stage for final financing of new complex
> It’s showtime for the B Street Theatre, which is trying to raise $10
> million to complete the financing for its planned midtown theater
> complex at 27th Street and Capitol Avenue.
> The $24 million project has been in the works for about five years,
> with various revisions and downsizing along the way. Plans now call
> for two theaters, with project review by the city starting next year
> and ground breaking slated for 2012.
> The theater company is counting on raising the $10 million from
> individual investors via naming rights for the theater and seats —
> the latter for $2,500 each. It’s also selling ceramic stars for
> $5,000 a pop that will be used to decorate the buildings’ interiors.
> “We’re doing campaigns with seats, bricks, stars. You name it,” said
> Bill Blake, B Street Theatre’s managing director.
> B Street plans to finance an additional $5 million through seat
> charges — a facilities fee that’s added to ticket prices.
> Although fundraising is difficult in this economy, the theater is
> trying to raise far less money than when the plan first materialized
> five years ago. The company pared about $10 million from its initial
> To help attract investors, the theater is touting the economic
> impacts of its expansion. Constructing the theater will create 120
> jobs, and the expanded theater will hire another 76 employees. In
> addition, it should help generate business for nearby restaurants.
> “There are no restaurants within a half-mile of the current
> location. There are more than 50 within a half-mile of the new
> location,” said Jamie Romas, capital campaign manager with B Street.
> The theater currently is at 27th and B streets, adjacent to the main
> north-south line of the Union Pacific railroad. It’s at the edge of
> midtown in a residential neighborhood nestled against a levee
> protecting the central city from the American River.
> “If you are really thoughtful about it, you don’t put a theater next
> to a railroad track. You don’t put a theater next to the California
> National Guard. You don’t put a theater in a primarily residential
> neighborhood,” Blake said. “You do put a theater in a place where
> people can park one time and have an evening.”
> The theater began in 1986 when brothers Tim and Buck Busfield
> started Fantasy Theatre, a professional theater group performing for
> children at schools. They launched B Street Theatre in a former
> roofing supply warehouse in 1991. The theater features professional
> actors in original plays, but it does have a funky vibe, especially
> given its location.
> “The new location makes a huge difference. This will be a new world
> for the people who go to B Street,” said Randy Paragary,
> restaurateur and owner of four restaurants in the neighborhood
> around the new B Street location.
> Having the new theater amid the string of restaurants along 28th
> street in midtown “will be a more complete experience and it will be
> a lot more fun” for theater-goers, he said.
> Fundraising for the theater has been complicated by the many changes
> in the project’s design. At first, it was slated to be a stand-alone
> theater. Then there was a plan calling for a mid-rise condominium
> complex with the theater at its base. The condos would have
> subsidized the construction of the theater’s shell.
> When the housing market collapsed, the condo component briefly was
> envisioned as apartments or office space, but that didn’t work out
> “It’s always good when you dream big, and it’s better when you can
> come up with something that is feasible,” said Richard Lewis,
> executive producer of California Musical Theatre, which puts on
> shows in Music Circus, the Broadway Series and the Cosmopolitan
> The simpler plan is more appealing to long-time patrons who have
> grown fond of the current venue, Romas said. “The theater we are
> going to get now is more designed with B Street DNA.”
> The new adult theater would contain 250 seats, just 50 more than the
> current theater. But the children’s theater would grow from 112 to
> 365 seats, possibly becoming a statewide destination rather than
> just a regional draw.
> “The economy is tough right now and it is difficult, but we can’t
> just wait until the economy is better. This might be the new
> normal,” Romas said. “We’re not looking for one big donation. We
> would like to see a lot of donations.”
> Sutter Health got naming rights for the children’s theater because
> it donated the land. But there are still naming rights available for
> the B Street stage as well as the entire complex.
> Although the Sacramento region has had a reputation of being a
> difficult place to raise money for arts, that has changed in the
> past decade.
> Several large projects have been funded, not just by large donors,
> but by small, individual donors as well. These include the $61
> million Mondavi Center for the Performing Arts, which opened in 2002
> at the University of California Davis; the California Musical
> Theatre, which opened its $12.5 million, 2,200-seat Wells Fargo
> Pavillion in 2003; and this year’s $100 million expansion of the
> Crocker Art Museum.
> Still ongoing is a fundraising campaign to build the $25 million E.
> Claire Raley Studios for the Performing Arts at 13th and H streets.
> It will house offices and rehearsal space for the California Musical
> Theatre, Sacramento Opera, Sacramento Philharmonic Orchestra and the
> Sacramento Ballet.
> The project got a $9 million contribution from the city, a $5
> million city loan, and has raised about $8 million, including $5
> million donated by local philanthropist Joyce Raley Teel in memory
> of her mother. It has another $3 million to go.
> “It is a very difficult time to raise money,” Lewis said. “First of
> all, the Crocker Art Museum got out there and collected a lot of
> money in this community — and rightfully so,” and second, real
> estate developers who typically make up much of the philanthropic
> base locally are not in a position to give right now.
> manderson@... | 916-558-7874
> K St Update
> Developer proposes music venue to anchor K Street’s 700 block
> Premium content from Sacramento Business Journal - by Michael
> ShawDate: Thursday, November 4, 2010, 6:30pm PDT
> Related:Retailing & Restaurants, Travel Industry
> Enlarge Image
> Rendering courtesy of D&S Development
> The music venue on the 700 block of K Street will be on the former
> site of the Men’s Wearhouse.
> A music venue for 500 people will anchor the revamped K Street Mall,
> say developers designing mixed-use projects on the corridor long
> considered ground zero for the rebirth of downtown Sacramento.
> The multi-tiered concert space will sit on the corner of K and 7th
> streets, alongside local retailers and restaurants with a “Main
> Street” feel of second-story apartments inside K Street’s historic
> shops. That’s according to D&S Development, one of the partners
> negotiating with the city to remake the 700 block and enhance
> nightlife along the corridor.
> The urban renewal can’t come soon enough for Sacramento, which will
> have invested more than $60 million in remaking two blocks of K
> Street if projects proposed there are built. While the city is
> looking to complete these deals, it also is examining the post-
> recession course for infill and redevelopment.
> There has been $617 million invested in downtown over the past five
> years in 22 projects and all but five were to have been public-
> private partnerships. The K street projects on the 700 and 800
> blocks also will be public-private partnerships that rely on
> “The project addresses a lot of the concerns about K Street,” said
> Bay Miry, a principal of D&S Development. “It has significant
> housing, diverse and predominantly local retail, and removes blight.”
> The development team on the 800 block, headed by David S. Taylor
> Interests Inc., has not revealed more concrete plans than when it
> was selected to negotiate with the city in July.
> At the time, it proposed 120 housing units, including renovation of
> the Bel-vue Hotel and 20,000 square feet of retail.
> Signature projects such as these could be the last of their type for
> In a meeting with the Urban Land Institute last week, Leslie
> Fritzsche, Sacramento’s downtown development manager, said the city
> will no longer focus on a few small areas or wait for big projects
> to arrive. At that same meeting, an executive from a major national
> firm described how redevelopment will be far more challenging in a
> post-recession world.
> “Those days are over,” said Mike Daly, a senior vice president of
> development for Forest City Enterprises Inc., speaking of a time
> when developers fronted the funds for infrastructure improvements on
> big developments. “You need to get creative to bridge that gap.”
> Forest City is a publicly traded real estate firm that has tackled
> some of the country’s largest projects, including building thousands
> of housing units at Denver’s decommissioned Stapleton Airport.
> Daly said it takes 5,000 rooftops to create sufficient demand for
> one grocery store. Downtown housing falls far short of that.
> Developer Kipp Blewett, part of the team that created The Citizen
> hotel, noted that if Sacramento had built all the high-rise
> condominium towers proposed prior to the recession and real estate
> crash, it still wouldn’t equal 5,000 rooftops.
> Blewett, who had pitched a more ambitious concept for K Street, said
> downtown needs to concentrate on projects that make it a
> destination, such as The Railyards, a refurbished Downtown Plaza
> mall, a revamped J-K-L corridor and a new sports and entertainment
> “If we wait for housing, we’ll be waiting for the next 20 years,” he
> Meanwhile, Fritzsche acknowledged the city needs to advance projects
> already under way, such as “The Warren” — a 117-condominium project
> with ground-floor retail on 16th Street proposed by Sacramento-based
> Nehemiah Community Reinvestment Fund and Em Johnson Interest of San
> Francisco. The project needs to pre-sell units to receive financing.
> “I don’t think we do a good job of marketing and promoting,”
> Fritzsche said. “We don’t focus our attention as effectively as we
> On K Street, the D&S and Taylor projects will bring the first new
> housing to the urban core in years. Development teams expect to
> complete the deals in the spring and start construction immediately
> After touring the buildings on the 700 block, D&S Development
> dropped the number of proposed apartments there from 136 to 125 and
> increased the retail space to about 60,000 square feet.
> The team has a nonbinding letter of interest from the owners of the
> Shady Lady restaurant — Alex Origoni, Jason Boggs and Garret Van
> Vleck — to operate the 12,500-square-foot music venue proposed for
> the buildings now occupied by Men’s Wearhouse and Joe Sun. The venue
> would include a restaurant and bar.
> The smaller Shady Lady has a stage for musical acts, and the owners
> are “plugged into the music scene,” Miry said.
> He and his partners have identified users for about 70 percent of
> the retail space. They have nonbinding letters from local retail
> operators including De Vere’s Irish Pub, Kru and Red Lotus
> restaurants, and Tuli Bistro. Miry also plans to bring in a clothing
> boutique and a bakery/diner concept.
> “We have found a significant amount of potential basement retail
> space where the original elevation of K Street was,” Miry said. “We
> have also found potential roof-top retail spaces.”
> mshaw@... | 916-558-7861