Sacramento hotel partnership means contracting, job opportunities
There’s a building boom going on in Sacramento – and the result is a huge uptick in construction activity and job opportunities. A former soup company facility will now become a warehouse facility for a major retailer, thanks to tax incentives from the city, and will create about 300 jobs. Bonney Field, a soccer stadium for the hometown team of Sacramento Republic FC, will see its seating capacity increase from the current 8,000 to 11,000, with the team owners planning to put $1.5 million per year into the stadium. And, work continues downtown on construction of a $477 million indoor arena that will serve as the home of the Sacramento Kings of the National Basketball Association.
Now comes the announcement of yet another major construction project – this one a public-private partnership (P3/PPP) that is expected to create an additional 300 jobs over the next two years. A new $24-million, high-end Sacramento hotel development has been approved by the County Board of Supervisors for construction at the Sacramento International Airport.
The Sacramento hotel development will be a five-story, 135-room Hyatt Place and is being developed by Sonnenblick Development. It will be located next to a parking garage, in an open space between the airport’s two terminals. “You fall out of baggage claim right into our lobby,” said Robert Sonnenblick, chairman of the development firm.
Among the amenities the new hotel will offer are an indoor pool and spa, dining area, fitness room and 3,500 square feet of meeting space. The developer will lease 164 spaces in the garage for guest parking.
Sonnenblick would pay for construction and assume all financial risk associated with owning and operating the hotel. The firm plans to invest $23 million in the project, including a one-time, $2.46 million payment for the lease of the parking spaces. The developer will pay $900,000 in rent for the hotel for the first four years after it is completed. After that four-year term, rent will be paid as a percentage of gross revenue.
This is not the first hotel that has been situated at the airport. An existing hotel was demolished a half-dozen years ago when a new Terminal B was added at the airport. Any plans to replace the hotel at that time fell victim to the Great Recession.
Construction on the new hotel is expected to begin in the spring.
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