Title:
Title
Destination Sacramento Program
End
FileID
File ID: 2019-01409
Location
Location: Old Sacramento Waterfront, District 4
Recommendation:
Recommendation
Pass a Motion: 1) directing staff to proceed with architectural and engineering design for the Front Street and the Museum Event Deck projects of the Destination Sacramento Program; and 2) authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 3 to Agreement No. 2019-0830 with Stantec Architecture, Inc. for Phase 2 for environmental and planning work for the Destination Sacramento Program in the amount of $174,800, for a new total not-to-exceed amount of $539,280.
Contact: Ellen Sullivan, Development Project Manager, (916) 808-5758; Richard Rich, Riverfront Project Manager, (916) 808-2519, Office of Innovation and Economic Development
Body
Presenter: Richard Rich, Riverfront Project Manager, (916) 808-2519, Office of Innovation and Economic Development
Attachments:
1-Description/Analysis
2-AECOM Return On Investment Analysis
3-Destination Sacramento Overall Project Site Plan
4-Front Street Plans
5-Front and K Street Rendering
6-Museum Roof Deck Rendering
7- River Docks Rendering
8- Rough Order of Magnitude Costs
9- Project Schedule
10- Phase 2 Supplemental Agreement
Description/Analysis
Issue Detail: On June 27, 2017, City Council set goals for redevelopment of the Old Sacramento Waterfront (Waterfront) to (1) create a regional destination attracting millions of people a year to the waterfront, and to (2) create a marketable asset that would assist civic efforts to increase Convention Center sales, aid efforts to attract outside businesses to the region, and help attract and retain a next-economy workforce.
On April 30, 2019, staff presented a four-part plan to City Council for the Waterfront (Waterfront Plan) to achieve those goals:
• Destination Sacramento Program (Program): Three proposed projects (Projects) developed under TOT funding to revitalize the Waterfront;
o Front Street Project
o Museum Event Deck Project
o River Docks Project
• Waterfront Partnership: Joint funding and management of the Waterfront by an operational partnership of the California State Parks (State or State Parks), City of Sacramento (City), Downtown Sacramento Partnership (DSP), and private sector owners and merchants (Private Sector)
• Infill Development: Development of vacant Waterfront parcels by private interests as a result of catalytic public investment
• District Lighting, Entrances & Parking: Improvements to Waterfront access and safety
At that hearing, City Council approved an initial $5,000,000 of funding for the Program, with a commitment of up to an additional $42,000,000, for a total of up to $47,000,000 (Resolution No. 2019-0138), and directed Staff to proceed with Phase 1-Feasibility for the Program to include planning level documents describing the scope of the proposed improvements, rough-order-of-magnitude cost estimates, a schedule, and an analysis describing potential returns and benefits to the City for the investment (collectively, the Workplan). Since then, Staff has worked with its consultant team to develop the Workplan for consideration by Council as more fully described below.
Destination Sacramento Workplan
The Destination Sacramento Program is comprised of three projects: Front Street, the Museum Event Deck, and the River Docks (Attachment 3). For each project, the Workplan describes the proposed scope of work (Project Description), a rough order of magnitude budget (Project Cost) and a Schedule to completion.
Front Street
Project Description
The Front Street project is located on city-owned property bounded by Front Street, the Sacramento River (land side), J Street, and Neasham Circle. It is a series of public assembly buildings, structures, and public spaces that, with their surrounding amenities, create programmable event spaces for visitors and the people of Sacramento to congregate along the Waterfront.
Front Street (Attachment 4) is anchored by the Landing Building, a two-story assembly building comprised of a ground floor with service, storage, and concession uses, and a second story assembly hall with interior and exterior spaces for public and private events. Surrounding the Landing Building would be plazas, landscaping, and recreation areas supporting the assembly function of the building.
Supporting the Landing Building, the Trestle will be a two-story event venue with a public stage, second story overlook for events viewing, promenade, and concessions. It will frame a larger open-air event area suitable for performances ranging from small intimate gatherings to crowds of 5,000 people and more. The Trestle will also house ground level support functions such as storage and restrooms.
In addition to the Landing, Trestle, and open-air event space, Front Street includes several other amenities that support the assembly uses of the site. It will include water features, including a steam feature, reflecting pool, and children’s splash pad to enhance the areas surrounding the Landing and Trestle. The Front and K Street intersection area will include large screens or projection surfaces to show interpretive content enhancing the assembly mission of the Program (Attachment 5).
This proposal would result in the removal of three buildings: the North and South Public Markets would be cleared and the Old Sacramento Schoolhouse may be moved based on the final rail layout. These buildings are owned by the City and are not original historic structures, having been constructed in the 1970’s and 1980’s during the Waterfront’s redevelopment. Staff will work to relocate tenants with leases in the North and South Public Markets and relocate the Old Schoolhouse, if necessary, prior to construction.
The California State Railroad Museum Foundation (CSRMF) currently operates a series of successful excursion trains on a State rail line located within a 20-foot railway easement immediately east of the newly constructed Embarcadero. To enhance the excursion train experience, Staff proposes to offer the State an option to install a new line into its reconstructed Passenger Station for passenger loading, and to demolish other rail lines on City property as shown in Attachment 4. The project proposes to relocate the Sacramento River Bikeway off the Embarcadero and install it parallel to the rail line.
Alternately, the State, CSRMF and City have discussed a relocation of the excursion train rail line and Sacramento River Bikeway to a location within the Front Street right-of-way, again with an access line into the Passenger Station.
Estimated Project Cost -- $41 Million
Schedule
Winter 2020 - August 2023
Museum Event Deck
Project Description
The Museum Event Deck on the roof of the City owned Sacramento History Museum building at the northwest corner of Front and J Streets (Attachment 6) would create a premiere space for events with views of the Sacramento River and Waterfront. The deck will be accessed through a new structure added to the rear of the building housing stairs and an elevator. The space would be enhanced with seating, landscaping, a conference room, and interpretive historical displays.
Estimated Project Cost -- $5.5 Million
Schedule
Winter 2020 - May 2022
River Docks
Project Description
The Destination Sacramento Program presented in April 2019 included the concept of a floating barge useable as event space, stage, river docking, and that could, as technology developed, be used for public swimming. During the Feasibility Phase, staff determined the current technology to be insufficiently tested and instead worked to improve the existing dock system with strategic additions to improve access and use of the docks (Attachment 7). It has been determined that these improvements are not eligible for TOT funding; therefore, staff is not recommending proceeding with this project until alternate funding sources are identified.
Estimated Project Cost -- $17.5 Million
Schedule
Winter 2020 - May 2025
Supplemental Agreement No. 3
On July 1, 2019, staff entered into a multiphase contract (2019-0830) with Stantec for the design and project management of the Destination Sacramento program. The contract consists of four phases: Phases 1A and 1B - Feasibility, Phase 2 - Planning, Phase 3 - Implementation, and Phase 4 Closing Phase. The contract authorized Stantec to proceed with Feasibility Phase 1A, which Stantec completed in August 2019. Relying on the authority granted to him under the City Code, the City Manager executed supplemental agreement number 1, which authorized Stantec to proceed with Phase 1B. On August 27, 2019, City Council approved motion (2019-0259) authorizing the City Manager to execute supplemental agreement number 2 to complete Feasibility Phase 1B, which Stantec completed in November 2019. As Phase 1B has concluded, staff is now recommending that the City Council authorize the City Manager to execute supplemental agreement number 3, which authorizes Stantec to proceed with Phase 2 - Planning to prepare an environmental study and plan for design, entitlements, and construction drawings for approved Projects. Once costs are negotiated, staff will return to City Council with future Phase 3 supplemental agreements to perform design on Projects as approved by City Council.
Policy Considerations: Implementation of this program will further the visions, goals, and objectives of the 2035 General Plan, the 2003 Sacramento Riverfront Master Plan as approved by the cities of Sacramento and West Sacramento, the Central City Specific Plan, and the Sacramento riverfront priorities set out by the Mayor and City Council. Further, the Destination Sacramento Program will support City investments in the Golden 1 Center and Convention Center Complex by creating a related and supporting asset that will aid the economic development efforts of the City and civic organizations.
Economic Impacts: A renewed Sacramento waterfront destination can have a beneficial impact on Sacramento’s ability to 1) capture increased sales from new Waterfront business, 2) encourage visitors’ choice of Sacramento as a leisure and convention destination, capturing increased transit occupancy tax revenues and 3) market the region to new business relocations, and workforce attraction, and retention.
Staff retained AECOM Economics Division to study the economic and fiscal impacts of Destination Sacramento, whose findings are contained in the Sacramento Waterfront Impact Analysis Draft Report (Attachment 2). Their reports finds the Program “…will provide a reason for many tourists to extend their length of stay or spend additional time in Sacramento and… will also be an attractive amenity for local residents, who will now spend some of their leisure time and money in Sacramento rather than elsewhere.”
AECOM estimated that new annual economic impacts from operations of the waterfront project and associated visitor spending would range between $38 million to $74 million in total value of goods and services across all industry sectors, with a mid-range value of $55 million in total output, $28 million in wages, and over 850 jobs.
In addition to economic impacts, AECOM estimated that the Waterfront will generate new fiscal impacts from Sales, Transit Occupancy and Utility Users Taxes of between $825,000 to $1.59 million with a mid-range of just over $1.2 million per year.
Environmental Considerations: This report concerns an agreement for design services that will not have a significant effect on the environment and is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines (Title 14 Cal. Code Reg. §15000 et seq.). Section 15061(b)(3), states that a project is exempt from CEQA if the activity is covered by the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The recommended action does not commit the City to the project or preclude the City from modifying the project to address environmental concerns. Appropriate environmental review, in compliance with CEQA, will be completed prior to development approval of the project.
Sustainability: Not Applicable
Commission/Committee Action: On November 13, 2019, the Investment Committee was given a presentation on the Destination Sacramento Program. Staff received comments and feedback on the project, related to parking, street closures, and activation. Staff will incorporate suggestions and feedback as appropriate
Rationale for Recommendation: Though the Waterfront is a historically significant attraction, it underperforms in visitor attraction, commercial occupancy rates, sales per square foot, and fiscal returns. Entertainment and leisure expectations have changed rapidly in the past decades, while the Waterfront has remained stagnant. A new category of events and activities has developed, organized by civic and community organizations, event promoters, convention sales forces, arts and cultural organizations, and others. The Destination Sacramento Program creates the venues for these events and are critical in reactivating the Waterfront and creating a regional marketing asset.
Financial Considerations: There are sufficient funds in the Destination Sacramento Program (I02185000) to execute supplemental agreement No. 3 with Stantec and move the projects forward to Phase 2 for an amount not-to-exceed $174,800. On April 30, 2019, City Council adopted Resolution 2019-0138, which authorized the use of these funds for eligible waterfront projects within the Destination Sacramento Program that qualify as allowable uses of TOT in accordance with section 3.28.180 of the Sacramento City Code.
Local Business Enterprise (LBE): Stantec is an LBE.
Background: The FY2016/17 budget priorities approved by the Mayor and City Council included an initiative to invest in the Sacramento riverfront as an economic driver for the region’s economy (Destination Sacramento). In December 2016, the Mayor and City Manager requested a plan to identify targets of opportunity to enhance the riverfront as a destination that would be a strategic asset for convention, visitor, business, and workforce attraction efforts by the City and other organizations.
On June 27, 2017, a presentation to the City Council offered a plan to leverage the city’s existing riverfront assets and redevelop the Old Sacramento Waterfront (OSW) into a more vibrant entertainment district within its historic setting, creating a premiere riverfront destination. That plan focused on an initial phase of catalytic projects on city-owned riverfront properties. On January 23, 2018 City Council approved $150,000 (Resolution No. 2018-0039) to proceed on three of the initial projects:
1. The formation of a joint operating partnership between the City, State Parks and private landowners (Operating Partnership Parties) to explore the formation of a single entity to operate the OSW district;
2. Prepare a concept design for a new activity zone in Waterfront Park; and
3. Prepare a concept design to rehabilitate the city’s largely vacant North Public Market building.
To leverage the approved concept design funding staff designed and implemented the Waterfront Idea Makers Program (WIM) to expand the range of available concepts. Staff issued a request for qualifications setting out the design areas which expanded beyond Waterfront Park and the North Public Market, activation goals for the expanded areas and the site’s opportunities and constraints. Twelve teams submitted qualifications and staff selected five teams that submitted design concepts, videos and order of magnitude projects estimates on March 11, 2019. In addition to the professional design teams, WIM also invited the public and children to submit ideas.
On April 30, 2019, after reviewing the concepts produced as part of WIM, City Council approved up to $47,000,000 (Resolution No. 2019-0138) directing Staff to proceed with the project feasibility phase for the Destination Sacramento Program, starting with the waterfront. Three projects were approved to move forward into the feasibility phase: Front Street Experience, Sacramento History Museum Viewing Deck, and a multi-use barge. The feasibility phase includes TOT funding eligibility analysis.
Staff entered into contract (C2019-0830) with Stantec, one of the five Waterfront Idea Makers, on July 1, 2019, for the design and project management of the Destination Sacramento waterfront projects. The contract only authorized Phase 1A activities. On August 28, 2019, City Council approved a supplemental agreement (C2019-0830-1) to authorize Phase 1B to continue feasibility work.
Additionally, as part of the FY2019/20 Proposed Budget, City Council approved $300,000 (R2019-0248) for the Sacramento Riverfront Project (I02180200) for Phase 2 of the Riverfront projects, including lighting and the Waterfront Partnership.
Waterfront Four-Part Plan Update
In additional to the Destination Sacramento Program, staff identified other improvements that are necessary to ensure the strategy to reactive the Waterfront is successful:
Joint Operating Partnership - Under the direction of Mayor Darrell Steinberg and then California Resources Secretary John Laird, senior representatives from State Parks, the City, DSP and private property owners began meeting to explore the opportunity to create a joint operating entity to manage the Old Sacramento Waterfront. (Waterfront Partners, or Partners) The Partners retained Valley Vision to facilitate high level discussions on resolution of long-standing issues, goal setting and a process forward that resulted in a memorandum of understanding (MOU) approved by City Council on February 5, 2019 and formally executed by all parties on March 27, 2019. The Partners subsequently retained Economic Planning Systems to evaluate current sources and uses of operating funds to compare with optimal funding needs as determined by the parties, and to research best practices of similar benchmark districts for generation of additional operating revenue. In July 2019 the Partners Budget Committee a) drafted a target budget based on an improved level of maintenance, security and programing services, b) agreed in principal to an apportionment of increased funding c) agreed to pursue additional operational funding within their respective organizations and d) funded a process to re-form a Maintenance Assessment District originally formed in the 1980’s and now out of date.
District Lighting and Entrances - The City has been actively working towards solutions to provide lighting in the OSW as well as provide enhanced entries at the K Street Tunnel and the I Street entrance:
1. Implementing a public-private partnership for Building Façade Lighting, where the City will supply light fixtures and building owners will install, maintain and activate the fixtures.
2. July 2019 -The City hired a lighting consultant to provide concepts improving the safety and ambiance of the K Street Tunnel.
3. July 2019 -Next City Vanguard selected Sacramento as their Big Idea Challenge where Vanguard groups were tasked with creating concepts for the I Street entrance.
Funding has not been identified for the projects, however, Staff is working to find funding sources, such as cost savings and grants.
Public and Private Development - Since the Council approved the funds to implement Destination Sacramento, City Staff has been approached by several developers and businesses interested in locating in the waterfront. Staff will continue to help facilitate these infill development opportunities as they are important to the overall success and vitality of the Waterfront.
Stakeholder Outreach
After the April 30, 2019, City Council meeting, Staff began an extensive community outreach process. To date, staff has held over forty meetings with project stakeholders, ranging from key community and civic groups, as well as larger stakeholder meetings to solicit feedback on the project.