Oct 2

Oct 2 Construction starts on new Hyatt hotel at Seventh and L streets

The corner of Seventh and L streets was once one of the most lively spots in Sacramento. The Hotel Clayton offered elegant rooms and its Clayton Club hosted jazz greats like Louis Armstrong, Billie Holiday and Cab Calloway. On Monday, construction started on a project that will revive the now vacant and dilapidated property into an 11-story Hyatt Centric Hotel while preserving the facade of the historic Clayton building.

Completed in 1911, the building was in recent decades a single-room occupancy hotel called the Marshall. The Presidio Group bought the building about 10 years ago with plans to convert it to a Hyatt. About 60 residents of the Marshall were relocated under a city-mandated program that required the developer to provide each person with $2,400 in assistance.

The City of Sacramento participated in the project by lending the developer $4 million to close a financing gap.