On the Front Page of Today's Sacramento Bee

Railyard lands big retail tenant
By Mary Lynne Vellinga -- Bee Staff
Published Friday, May 26, 2006
Georgia developer Stan Thomas doesn't own Sacramento's downtown railyard yet, but his company announced Thursday that it has already landed its first retail tenant, Bass Pro Shops, a fishing and outdoors emporium. Suheil Totah, vice president of development for Thomas Enterprises, called the announcement by Missouri-based Bass Pro "the biggest thing to hit downtown in years," and proof that a rebirth of the historic railyard is moving forward.

"We're not just here to plan it; we're going to build it," Totah said of the planned neighborhood -- 10,000 housing units and 1.3 million square feet of retail -- that Thomas Enterprises promises for about 240 acres just north of the Amtrak station on I Street, a swath of land that was once Sacramento's industrial heart.

Bass Pro stores are comparable in size to Ikea furniture stores. They usually include waterfalls, aquariums, boat showrooms and sometimes restaurants and adjacent marinas.

"This thing is huge," Rancho Cordova fishing guide Steve Adams said when he heard about Bass Pro's plans. Adams predicted that shoppers would come from as far away as Oregon.

"Bass fishing is like NASCAR now," he said. "It's big money."

Bass Pro spokesman Larry Whiteley said the company was attracted to Sacramento because of its rivers, and its location between the ocean and mountains.

Bass Pro plans to locate the store near the back of the railyard, next to a spot earmarked by Thomas Enterprises for a new Kings arena. The site is part of a planned sports and entertainment district. It has access to Interstate 5 via Richards Boulevard and Jibboom streets. Plans call for widening of the streets.

Thomas Enterprises has been negotiating for "several months" with the city and county of Sacramento over the logistics of putting a new arena in the railyard, Totah said.

Despite the giant Bass Pro store, the sports district's layout will be kept urban and walkable, Totah said. Parking would be in garages, not vast surface lots.

The railyard has emerged as the favored arena location among members of a public-private group working on a financing plan.

"The (arena) talks have been very positive and we're very hopeful this will all come together," Totah said.

If an arena is included, it may not be the only one Stan Thomas is involved in. The developer is among the owners of 1,800 acres near Orlando's theme parks. He is negotiating with the Orlando Magic to build a new arena. In that case, he would become a limited partner in the sports franchise, Totah said.

Here, however, Thomas is just providing land for the arena, not helping build it, Totah said. Terms of a deal for a possible arena site have yet to be worked out.

The Sacramento railyard is considered one of the nation's most significant urban "infill" sites, a place that could double the size of downtown Sacramento. But the site has been difficult to develop. It lacks infrastructure, and was so soaked with toxins from past rail-car construction that it was designated a Superfund site.

In 2002, yard owner Union Pacific announced that it had chosen Millennia Associates, led by renowned architect Jon Jerde, to develop about 70 acres. The group later decided it wanted to buy the entire 240 acres.

During the more than three years it has taken to negotiate a sale, Jerde has receded from view while Thomas, his financial partner, has moved into the driver's seat.

Earlier this week Thomas met with officials from the city of Sacramento who were visiting Las Vegas for the International Council of Shopping Centers conference. A booth set up by Thomas featured information about his 12 projects around the country, including an 800-acre mixed-use project in San Antonio that also includes a Bass Pro.

City Councilman Rob Fong was there, and was happy to learn of the Bass Pro deal.

"I think it could be a potentially great thing," he said. "We keep talking about attracting destination retailers to the city core, and when you talk to people who know retail, (Bass Pro) is at the top of the list."

Assistant City Manager John Dangberg said the railyard is suited to host a large retailer like Bass Pro, which could not fit anywhere else downtown.

Totah said the sale of the railyard to Thomas Enterprises is nearing completion, but he would not predict a closing date.

"I don't give dates; I've given dates before, but there are no issues in terms of the deal. It's just a matter of finalizing the paperwork," Totah said.

Totah said Bass Pro hopes to open by 2008. In order to meet that timetable, Thomas Enterprises and the city of Sacramento will have to make fast progress on completing the purchase of the railyard, cleaning up toxins and building infrastructure.

Preparing the site is expected to cost about $300 million. Another $45 million will be needed to move the railroad tracks to the north, something that needs to be finished before Fifth Street can be extended into the site.

Still, Totah said his group is committed to moving forward quickly. Thomas Enterprises hopes to get city approval of its plans by April, and break ground shortly thereafter.

"There's been a lot of planning for the railyards, and I think people would just like us to get on with it," he said.