Business Journal: Paragary's Hotel; Affordable Housing Trust Fund; New Homes In Colfax

Paragary’s Hotel To Open In June

Sacramento restaurant operator Randy Paragary and his company are getting closer to opening a new project in Midtown Sacramento. It’s a bar, restaurant and hotel. The Sacramento Business Journal's Sonya Sorich says the $28 million development is expected to open June 1.

"The six-story project will be at the corner of Capitol Avenue and 28th Street in Midtown,” says Sorich. “It will include Fort Sutter Hotel, as well as Cafe Bernardo and Four Palms Bar. The project has been under construction since October 2018."

When it opens, Fort Sutter Hotel will be the only hotel in Midtown. Paragary says he estimates the average room price will be around $175 a night. According to a hotel industry group, the average room rate in Sacramento was $146 as of November.

Sacramento Approves Affordable Housing Trust Fund

Sacramento city leaders this week moved closer to a plan for more affordable housing. The city council unanimously voted to create a new trust fund that could raise 100 million dollars over two years to kick-start the construction of possibly tens-of-thousands of new affordable housing units. This proposed trust fund would issue bonds to raise grant and loan money for both rental and for-purchase affordable housing projects. Sorich explains what the next step is.

"The city treasurer's office will conduct a stress test to ensure the general fund can absorb the additional debt service,” says Sorich. “The city could begin selling the bonds in late July to early August."

The new city bonds would be backed by future revenue from the Measure U sales tax. Funds from Measure U go into the city's general fund and don't need to be used for a specific purpose. Mayor Darrell Steinberg has promised the tax would be used to help Sacramento's disadvantaged communities.

New Home Construction In Colfax

In Placer County, new homes are going up in Colfax. Sierra Oaks is the city's first new housing development in years. Sorich says the gated neighborhood will only have 34 homes but there's already lots of interest.

"Two homes are complete, and five will be built in the next phase,” says Sorich. “This subdivision is on a piece of property that was mapped for homes years ago, but those plans were scrapped during the recession."

Colfax is going through rapid development now. The city, which is investing more in its infrastructure, is trying to re-brand itself as a recreation destination. Many of the homes in this new subdivision are designed with empty-nesters in mind. Prices range from about $584,000 to $638,000.