U.S. Bank owns the building on the site and has not agreed to a sale price. The city says a court hearing is likely to be held in the next few months.
CalPERS owns the land and has agreed to let the city take control of the property.
Meanwhile, a group that opposes publicly financing an arena is making some headway in a lawsuit against the city. In a tentative ruling, a judge says Councilman Kevin McCarty and the city's Economic Development Department Director may be deposed. Both men must also turn over documents related to arena financing negotiations.
The group claims the city fraudulently concealed or misrepresented information in the term sheet agreement for development of a sports arena.
Six months after receiving the approval to begin construction of a downtown arena, the Sacramento Kings and the City of Sacramento have broken ground.
The first demolition work is underway at the site of the Sacramento Kings' future home.
The Downtown Plaza garage entrances at 6th and J and 6th and L are now closed as construction begins on the downtown arena.
People with affiliations to the group Sacramento Taxpayers Opposed to Pork have filed notice they will appeal a judge's decision denying a request for an injunction blocking the downtown arena project.
Parts of Downtown Plaza will be demolished Friday to make way for the Sacramento Kings arena project.