River Rebound

Hope meets hurdles at proposed waterfront towers

By Gary Delsohn
August 2024

Sacramento needs new housing in all varieties, locations and price ranges. This reality is part of what makes the American River One high-rise apartment proposal on the American River near Downtown so intriguing.

The 3-acre site at Bercut Drive off Richards Boulevard was home to the Hungry Hunter and Rusty Duck restaurants, torn down years ago.

Now, property owner Steve Ayers, who also owns the Elks Tower, has city approval to build four residential apartment towers ranging from 11 to 18 stories in a city that hasn’t exactly embraced high-rise apartment living.

The area known as the River District became desirable for developers in recent years with a new state office complex and Kaiser Permanente’s planned hospital. But much of the neighborhood remains industrial and rundown.

The area around Ayer’s project is a magnet for homeless people, thanks to its isolation along the river.

Not long after he bought the property, Ayers sued to block a proposed city project for homeless residents across from his land. The plan never came to fruition.

Recently, the 825-unit development proposed by Ayers became the target of a lawsuit filed by the Save the American River Association. The suit claims the city improperly exempted American River One from the comprehensive environmental review required by the California Environmental Quality Act, primarily because of its proximity to light rail and location within a transit corridor.

The attractive mixed-use project, about a half mile from light rail, has merit. American River One is designed by the respected architectural firm LPA Design Studios. The proposal includes four residential towers with a variety of public spaces, two stories of indoor parking, retail, restaurant, gardens and decks at multiple levels with views of Downtown and the rivers.

If developers and their partners want to invest in a much needed and ambitious project in a challenging neighborhood, why not give them a shot?

Ayers calls his site “one of the best blank canvases in the entire city of Sacramento,” but declined my request for an interview.

He was in the news several years ago when the California Gaming Control Commission rejected his application for a card room at the Elks Tower after a state background check concluded he lacked “good character.” Ayers appealed and sued, but never got his gambling license.

His troubles seemed to stem from two past convictions for driving under the influence and a 2017 domestic dispute concerning a public confrontation with his wife. In his appeal of the gaming commission’s ruling, Ayers, a successful local businessman, testified he often socialized with clients and “sometimes I drink in excess of what I should.”

Others testified for Ayers and said he completed an alcohol recovery program and made generous donations to Loaves & Fishes and other charities. News reports highlighted contributions he made to the community.

Anthony Scotch, longtime local real estate broker and development coordinator for American River One, tells me in an email Ayers is “not interested” in talking publicly. Scotch insists the project pencils out nicely.

“We had a marketing report done several years ago that indicated there would be a rental interest in a project like this,” Scotch says. “With the recent completion of the state office complex and the future plans of the Kaiser facility in the River District, the need for living units in this area is real.”

As for the neighborhood’s current state, Scotch says: “As is typical of older blighted neighborhoods, new projects tend to bring new life, population and other monies to improve the area.”

I like what I’ve seen and heard about American River One and the positive impact it can make on its surroundings. Being a builder in California requires patience and persistence. This proposal has been in the works for years. Like Ayers, it continues to encounter and overcome obstacles.

A vacant, sketchy 3-acre parcel leaves the River District worse off. Settlement of the lawsuit must recognize that reality. If the suit resolves without scuttling American River One, we’ll see if Ayers is committed enough to pull this off.

Gary Delsohn can be reached at gdelsohn@gmail.com. Follow us on Facebook and Instagram: @insidesacramento.

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