Alchemist CDC Public Market project faces funding setback

On April 9, leaders in the city of Sacramento and the Alchemist Community Development Corporation broke ground in the River District for its public market that will include an outdoor food court, farmers market, cafe, a large commissary kitchen, coworking office and a small retail store.  

Five weeks later, the entire development is on the brink of collapse due to funding shortages. The Alchemist CDC project is currently under construction with $9 million secured from state and federal grants.

Those are reimbursements that come roughly 60 days after the corporation pays the construction bills. To bridge the gap, they need a $3 million one-year loan to keep the cash flowing.

The city of Sacramento initially seemed to be a potential partner, according to Alchemist CDC CEO Sam Greenlee. But, as of Wednesday the city declined to provide a bridge loan.

Without the additional funding from the city, the public market risks a construction stoppage and the $9 million secured funds could be returned back to the state and federal government.

Sam Greenlee, the CEO of Alchemist CDC, said the corporation has just a short time to come up with additional funds to keep the project going.

“We have about a week to find the funding,” he said. “This project won't be built, and the decades of economic development this project was going to deliver won't be there.”

Greenlee said he’s received mixed signals from the city of Sacramento over the past few weeks on whether or not they’ll be able to receive those funds. He found out this morning that the city will not consider a loan.

“We have heard from different folks in the city, so it definitely feels like a reversal for us, based on quite a few things we had heard,” Greenlee said. “We have heard from other folks in the city that it was never a possibility to lend this, so just to say we're experiencing this in the reversal.”

During the groundbreaking in April, Mayor Kevin McCarty stated the city was excited to bring the public market to the River District.

On Wednesday, the mayor’s office released a statement.

“Alchemist CDC's transformative work lifts neighborhoods and drives economic development, which is why we have been proud to support them with $300k in State budget funds and, more recently, the City has provided more than $1.4M in loans, funding, and City impact fee deferment,” McCarty wrote in a statement. “Unfortunately, the City’s budget deficit does not allow us to provide any additional funding, but we continue to support their efforts in our community.”

The city is currently in a structural budget deficit of $66.2 million. 

Sacramento City councilmember Phil Pluckebaum, who represents District 4—which covers Downtown, East Sacramento, parts of the Broadway and River District—said he’s calling on the community to help support.

“If there's anyone out there, we're putting up the bat signal that we need your help,” Pluckebaum said. “This is a great program doing good work. They have the money committed. It's just a matter of getting between here and there.”