Judge Gives Sacramento Possession Of Old Macy's Building In Downtown

Thursday's decision by a Superior Court judge affirmed an earlier, tentative ruling.

It enables the city to use the eminent domain law to wrest control of the vacant building from its owners, a group of mortgage-certificate holders and the California Public Employees' Retirement System.

CalPERS didn't fight the city, but the mortgage holders did.

Sacramento City Attorney James Sanchez says U.S. Bank was the primary opponent to the city's request for take.

"There were a number of technical challenges that they raised before the judge including the fact that there were a number of different entities involved in holding the tenancy that U.S. Bank had," Sanchez says. "Ultimately, the judge determined the city had taken the steps necessary under the law, had made the showing of the city's right to take, the public benefit associated with the take and the time urgency of the project."

Plans for a new $448 million Kings arena show the Macy's property covers much of the footprint for the proposed complex.

Officials with the city and the Kings say they hope to begin construction later this spring.

A lawyer for the mortgage certificate holders has not commented publicly.

The Sacramento Kings President Chris Granger released the following statement after the final ruling:

“We are pleased by the ruling and thank the City and other partners for their leadership on this issue. Today’s news moves us yet another step closer to breaking ground and building a truly world-class entertainment and sports complex that will revitalize downtown Sacramento and cement the Kings long-term future in this incredible community.”

Thursday, 12 p.m. (AP) -- A judge finalized his ruling Thursday in the eminent domain case that allows the city of Sacramento to move ahead with its plans for a downtown arena.  

Judge  Raymond Cardei ruled in favor of the city of Sacramento to obtain a parcel of land through eminent domain.

In a tentative ruling released earlier this week, the judge says the city made a proper offer of $4.3 million to U.S. Bank and the California Public Employees Retirement System for the building and land, which includes an empty Macy's building on the 600 block of K Street. U.S. Bank had argued otherwise.

The City and Sacramento Kings plan to demolish the building and the Sacramento Downtown Plaza to make way for a new arena.

The judge says the city has the right to take the property by eminent domain.

Eminent Domain Ruling.pdf