Business Journal: Midtown Jimboy's Closes, Expected MLS Economic Boost, Sutter Health Lawsuit, Flatstick Pub Opening

Midtown Jimboy’s Closes

Jimboy's Tacos in Midtown Sacramento shut its doors for good yesterday. The owner of the restaurant near 29th and O streets chose not to renew the franchise agreement. There was no official reason given. But last year, a sign was posted at the restaurant apologizing for slow service because the restaurant couldn't find employees. The Sacramento Business Journal's Sonya Sorich says the company still has more than 40 locations across California and Nevada.

"Jimboy's actually opened a Downtown Commons location near the arena last month,” says Sorich. “The chain was established in 1954. And the Folsom-based company says no other locations are closing."

The Jimboy's on 29th Street was in business for more than 50 years.

Economic Boost Expected From MLS Franchise

A Major League Soccer team in Sacramento could bring big business. On Monday, MLS executives are coming to Sacramento to make a major announcement. Sorich says an MLS team would open up a new world of local sponsorship opportunities.

"We're talking about possible naming rights ... licensing partnerships ... all sorts of things,” says Sorich. “That'll definitely be something interesting to watch in the future."

It would also likely be a major catalyst for Sacramento's Railyards development. If MLS grants Sacramento a team, that team would ultimately play in a new stadium planned on 7th Street in the Railyards development, north of downtown Sacramento. Construction of the stadium briefly started and then stopped a few years ago. Work on the stadium would presumably resume at full force soon. And that could lead to more development around the stadium itself.

Sutter Health Reaches Settlement

Sutter Health on Wednesday reached a tentative settlement agreement in an antitrust case that was being pursued by the California Attorney General's Office. The lawsuit was filed in March 2018. It alleged that Sutter had engaged in anti-competitive practices that have driven up the cost of health care in Northern California.

“The case was originally brought by a group of self-funded employer insurance plans in 2014 and was later joined by California's Attorney General,” says Sorich. “The state claimed that Sutter's dominance of the Northern California health care market, through mergers and acquisitions, has forced insurers into costly contracts.”

The case was settled days before opening arguments were expected to begin in San Francisco Superior Court.

“A spokeswoman for the health system acknowledged that a tentative settlement agreement had been reached, but declined to disclose additional information,” says Sorich. “Representatives from the Attorney General's office also confirmed the settlement agreement, but declined to comment further until a final agreement is approved by the court.

Sutter is the area's second-largest private employer, with about 16,000 local employees. “A drawn-out legal battle could've impacted the Sacramento region's health care industry and economy,” says Sorich. 

Flatstick Pub Opening Near Golden 1 Center

A new business is opening in downtown Sacramento on Sunday that combines an indoor mini-golf course with beer, food and art. Sorich says it's called Flatstick Pub.

"It’s at 7th and K streets, near Golden 1 Center, and it fills what was previously a tasting room for craft brewery Ruhstaller,” says Sorich. “The local business is based on a concept from Seattle. This is the first Flatstick Pub location in California."

Ruhstaller moved its tasting room to a nearby site on K Street. In addition to mini golf, Flatstick Pub will offer "duffleboard," a bar game combining shuffleboard and golf. The 14-thousand-square-foot space is on two levels.