Stan & Heather's Excellent Adventure

Community Comments

When you consider that the state’s population is expected to grow to 50 million within the next 25 years, and the Capitol Corridor route already handles nearly 1.5 million rail travelers annually, this project represents more than a twinkle in Fargo’s eye. Perhaps it is her degree in environmental planning from UC Davis, but the mayor feels this is a giant step in a national trend toward New Urbanism. In this domain, successful places — whether neighborhoods, villages or urban centers — must have a diverse population, a design built around walking and public transit, and, finally, environmental sustainability.

Working on the Railroad

“There’s a fair amount of intrigue and excitement about this project,” Fargo says. “That’s what makes it different.” But not easy. Initial estimates peg development costs at $5 billion, but factors of 2x and 3x are not out of the equation. It could take years, perhaps two decades. Doesn’t matter, Fargo says. After all, this is a woman who, before her run for City Council back in 1989, successfully challenged a city community plan on the basis of environmental issues. Fargo came into the world of city politics early. Her father Frank served in the city manager offices in both Santa Maria and Davis then went on to become City Manager of Stockton, where Heather Fargo went to high school.

She unabashedly admits she had her eye on this project as far back as ’92. She is more than well aware that Thomas, the city and the county will have to overcome the tangled web of public and private concerns. And the dollars are enormous. As evidenced by the vacant fields, the Railyards have been a puzzle the city can’t solve.“But we have a new owner, and we’re ready to move,” Fargo says.

Southern Pacific first explored selling some of the Railyards nearly 20 years ago. After the company merged with Union Pacific in 1996, selling off rail land became a priority, and UP’s Mike Casey handled most of the deals — probably more than a couple billion dollars worth in his 24 years with the railroad. Coors Field in Denver had been railyards. The centrally located yards in Las Vegas were parsed out piece by piece, with Casey handling the negotiations. Yet the complexity of the Railyards deal in Sacramento towers in comparison.

"This deal had about 1,500 moving parts,” notes Casey, who has retired from UP. “The primary thing, frankly, is just the fact that this was going to have someone who can push the envelope and think outside the box. It needed a maverick, and Stan is definitely a maverick.”

Sacramento native Buz Miller, senior VP of Colliers International, worked as a broker for the Railyards sale. Seven years ago Miller recalls, Maryland-based Mills Corp entered into negotiations to take a 30-acre parcel off UP’s hands. According to one of the key players, who won’t go on the record, the large Australian developer Westfield snarled in disapproval to protect its commercial supremacy with its K Street Mall and Downtown Plaza developments. That led to the Mills deal falling apart. In 2002, Union Pacific instructed Miller to put out a Request for Proposal, what Thomas calls a “beauty contest,” to bring in companies to woo Casey and UP. Out of 14, Thomas Enterprises came out the winner, because Stan Thomas had a vision that covered all 240 acres.

"Ask anyone in this business,” admits Thomas, “and they think I’m crazy.”

The Wrong Track

• Share
  • Digg This
  • del.icio.us
  • Newsvine
  • Facebook
  • Reddit
  • Furl It
  • !Y My Web
  • Google
• Email
• Print

Recommend This

Community Comments