Sacramento Business Journal
Though there’s now a committed developer in place for the long-anticipated railyard project in Sacramento, it’ll still be years before any sizable development happens there, said Larry Kelley, managing member of the new Downtown Railyard Venture LLC.
“The timing is certainly not immediate,” said Kelley, already well known in the region for developing McClellan Business Park in North Highlands and carrying out the Stanford Ranch master plan in Rocklin. “There are a lot of things to be done.”
Tied to Kelley’s group taking over railyard development from its current owner, IA Sacramento Holdings LLC, is clarifying a plan for Union Pacific Railroad to clean up soil on the site. A plan to do so received state approval earlier this month, but the scope and timing are still being determined, and completing the designation of Kelley’s group as the master planner is tied to that plan being finalized.
Looking forward, Kelley said, he thinks there’s potential for office buildings and other uses within the railyard in addition to anticipated housing. Both a new state courthouse and a railroad technology museum are also planned for the area.
Smart development for the railyard will involve both being a good predictor of the market but being flexible and reactive as well, Kelley said, noting technology and consumer choices can change rapidly.
He’s aware many eyes will be focused on what happens with the railyard, which already fell into foreclosure once when the economic downturn led previous developer Thomas Enterprises to walk away.
“It’s a big responsibility, but I think we’ve enjoyed a reputation as being candid and very transparent,” Kelley said, describing how his company guided the development of his previous projects. “We’re used to those types of questions.”