Old Sacramento's waterfront is finally getting a serious cash infusion. Sacramento's City Council voted this week to approve $25 million in repairs and upgrades for the historic district, setting up a two-step construction plan that starts with what the city already controls and leaves the trickier riverfront pieces for later.
The package splits the work into Phase A, which can kick off right away, and Phase B, which city officials say will have to wait until lease negotiations with the state are sorted out. City staff pitched the move as a way to start fixing boardwalks, docks and public-market sites now while talks over key riverfront parcels play out.
As reported by Sacramento Business Journal, councilmembers backed the initial $25 million spending plan along with a starter list of Phase A projects. Phase B is expected to cover more work at the former Rio City Cafe building. The outlet noted that the vote essentially lets some construction move forward even as the city hammers out a master lease with the state.
What The $25M Covers
Phase A is set to tackle the basics that visitors actually walk on and through. City staff laid out a to-do list that includes replacing aging boardwalks, designing and redeveloping public market buildings, building a Native-inspired children's play area and handling other immediate infrastructure fixes.
Much of the funding is expected to come from Transient Occupancy Tax revenues, along with state and federal grants, according to CapRadio. That reporting also breaks down grant awards and other funding sources tied specifically to the river-dock and playground work.
Deck Repairs And Tenant Search
One of the most visible sore spots has been the shuttered deck at the former Rio City Cafe site. The city moved this year to replace the deteriorated structure after engineers found the timber and steel had degraded from decades of exposure. State funding, roughly $4.6 million, is covering much of that reconstruction, KCRA reported.
At the same time, staff have been shopping the waterfront around to potential new tenants. The city has been soliciting proposals for new operators at several riverfront venues, including an RFP for the Steamers Building, as part of a larger push to reactivate businesses along the water.
State Lease Negotiations Hold Up Some Work
There is a big catch to all this: the city does not own every piece of land along the river. Staff told the council that the State Lands Commission controls property west of the seawall and that bond proceeds cannot be spent on those river-facing parcels until a new master lease is in place.
Local coverage of city documents notes that the leasing process "could take a year or more," which is why some projects were bumped into Phase B, according to reporting by Abridged / PBS KVIE. Until that deal is set, certain high-profile waterfront improvements will sit in the on-deck circle.
What This Means For Businesses
For longtime operators, the disruption has been brutal. Losing deck access cut deeply into revenues for Rio City Cafe, whose co-owner called the shutdown "crushing, heartbreaking" after outdoor seating was closed for safety reasons, CBS Sacramento reported.
City leaders argue that the phased approach is the only realistic way to move forward: start and fund the work Sacramento controls now, then layer in river-facing investments once lease talks with the state clear the way.
Timeline And What To Watch
The council approved the Phase A project list with the understanding that Phase B will wait for state lease terms and other approvals. Staff are expected to return with procurement plans and bond schedules once those pieces come into focus.
For more detail on how the Indigenous-themed playground will reshape the waterfront, see local reporting from Hoodline on the Indigenous-themed play area, and for the latest on the hunt for a new cafe operator, see Sacramento City Express on the Steamers Building RFP.
