And that is why it is so inconceivable to Mohanna that he is now seen as one of the biggest obstacles to the redevelopment of downtown Sacramento. He has been called an obstructionist. Greedy. A negligent property owner. Even slumlord. He has frustrated city officials as well as other developers.
All thanks to his role in a legal, political and public relations battle with city officials that centers around the 700 and 800 blocks of K Street -- the section adjacent to the Westfield Downtown Plaza.
After years of stalled progress and on-off negotiations, Mohanna signed a complex development deal in 2006 that involved the city and another developer exchanging properties in those two blocks. It was supposed to be a key in the rebirth of K Street, including the construction of hundreds of high-rise residential units and the opening of new retail outlets that would lure suburban shoppers away from the malls.
Today, due in part to circumstances beyond his control -- but which city officials say should not have blocked the deal -- Mohanna is balking at the agreement and is fighting the city in court to stop it.
"It's extremely frustrating," says Leslie Fritzsche, the city's downtown development manager. "We have worked very, very hard to get to this point. We thought we had an agreement that all parties in good faith executed and signed. And we are a year into that with no formative move forward."
Many in the business community are waiting to see what happens in the 700 and 800 blocks. Without progress there, they say, K Street will never realize its full potential. And most are more than willing to blame Mohanna.
Developer Michael Heller Jr., who has been involved in well-regarded projects such as the MARRS building and the P.F. Chang building, both on J Street, says the delays on that end of K Street made the city miss a strong cycle of the economy. Now, he says, the market is weaker for new development, and Mohanna deserves more than an equal share of blame for that.
"My sense is, I see an effort and a willingness by other parties to make things happen, and I've not seen the same willingness from his side," Heller says. "I'm disappointed it appears he's not willing to be a team player down there."
The Dead Zone
Continued...Prosperity Icon: Money
Category: Business
Tags: mohanna, downtown, development, sacramento
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