Mayor announces major investment plan to revamp waterfront, support iconic Sacramento events and develop Convention Center hotel
Sacramento (Nov. 15, 2024) - On Thursday, Mayor Darrell Steinberg and the City of Sacramento announced a plan to revamp the Old Sacramento Waterfront, boost funding for iconic events and music festivals, and support the development of a future Convention Center Hotel. These initiatives will leverage Transient Occupancy Tax (TOT) revenues to transform the historic district into a vibrant entertainment destination and enhance tourism City-wide.
“Nearly eight years ago, when I was sworn in as your mayor, I stated that our City must make our waterfront a top priority. Now, we have the funds and resources to make it happen,” said Mayor Steinberg. “On Tuesday, I will present to the City Council a plan to approve the initiation of a $46 million investment to modernize the Old Sacramento Waterfront. Together, we can make this historic part of our City an even greater destination.”
On Tuesday, the City Council will be presented with a $46 million plan to revitalize the Old Sacramento Waterfront. The Waterfront Reinvestment Program includes:
Renovating or replacing the existing public market buildings;
Repairing the boardwalk and K Street Barge;
Building a new playground with design input from the Native American tribes who originally inhabited the riverfront;
Enhancing the Old Sacramento docks to ensure safe public access and accommodate riverboat traffic; and
Activating new public spaces.
A similar plan approved in 2019 was postponed due to the pandemic’s impact on hotel occupancy tax funds. As hotel occupancy has rebounded in Sacramento, the city is now well-positioned to reinvest these TOT funds back into tourism.
Improvements to the Old Sacramento docks will be separately funded by a $1.5 million grant from the U.S. Department of Housing and Urban Development, provided by Congresswoman Doris Matsui, as well as Governor Newsom recently signed AB157, which includes $4.6 million for the “Sacramento Riverfront Safety and Pedestrian Access Restoration Project.”
“The proposed Waterfront Reinvestment Program will build on our efforts to transform downtown Sacramento and the Sacramento Waterfront into a vibrant community and visitor destination,” said City Manager Howard Chan. “With the support of our partners, elected officials and dedicated City staff, this project will enrich our riverfront, celebrate Sacramento’s heritage and drive local economic growth.”
“The merging of our two rivers is the reason people have settled here for generations. The water gives our region life, and it’s our responsibility to harness its full potential to create a lasting experience for guests and residents,” said Michael Ault, Downtown Sacramento Partnership Executive Director. “We’re excited to support the next chapter of Old Sacramento Waterfront’s story.”
“Many property and small business owners like myself have dedicated much of our lives to the stewardship of the Old Sacramento Waterfront,” said Janie Desmond-Ison, Owner of Steamers. “We support the City and its commitment to preserving the character of this historic area while creating new opportunities for growth.”
Investments in Convention Center Hotel and Event Funding
Along with the waterfront improvements, the City Council will consider a proposal to use TOT revenue to support the development of a new Convention Center Hotel, capitalizing on the recent expansion of Sacramento’s SAFE Credit Union Convention Center.
In addition, Visit Sacramento is requesting a one-time budget increase of $2 million for Fiscal 2024/25 to continue supporting iconic event production in Sacramento. Landmark events like the Farm-to-Fork Festival and Aftershock are major drivers of tourism and help bolster the local economy. However, rising production costs and changing consumer habits have strained festival budgets, leading to cancellations. The proposed temporary budget increase will help to address these challenges and maintain the City's position as a vibrant festival destination.
“Tourism isn’t about the tourist, it’s about driving economic impact and improving the quality of life for the people who call Sacramento home,” said Mike Testa, President and CEO Visit Sacramento.
For more information, please view the following City reports:
