Statement from Mayor Steinberg on Rio City Cafe and the future of the Old Sacramento Waterfront

Statement from Mayor Steinberg on Rio City Cafe and the future of the Old Sacramento Waterfront

Conceptual overview of the plan for Old Sacramento

Mayor Darrell Steinberg on Tuesday released this statement describing the city’s $ 40-million-plus plan to revitalize the Old Sacramento Waterfront. He explained why the city will not spend $1.5 million or more on temporarily fixing the outdoor deck along the river behind River City Cafe. Engineers hired by the city have deemed the deck unsafe. Rio City Cafe says it needs immediate access to the deck and plans to close this weekend.

Sacramento (July 30, 2024) “Over the past week I have worked hard to see if there is a way to keep the Rio City Café open in Old Sacramento while the city pursues plans for a larger waterfront renovation.

Unfortunately, owners Mark and Stephanie Miller informed me yesterday that they will close on Saturday. They need immediate access to a deck that the city’s structural engineers have determined is unsafe.

My goal was to help this well-loved institution remain in business while providing time for both the restaurant and the city to evaluate the best long-term uses for the waterfront site.

The city has previously offered a significant rent discount to the Millers, and I suggested that approach again over the past few days. But Mark and Stephanie said even allowing them to occupy the building at a significantly reduced rent would not be enough to get them to stay open.

I talked directly with the structural engineers to see if there might be a safe “patch” for the deck. They told me there is no way to open it safely without spending $1.5 million (or more) and at least six months in design and construction. This repair would last only three to five years and would allow use of only a portion of the deck. The full cost of repairing the deck is close to $5 million, which can be included in the waterfront renovation plan.

Rio City Café has been a great part of our Sacramento scene for 30 years. I thank Mark and Stephanie for hanging in there during Covid and other challenging economic times. Many Sacramentans have had great experiences at Rio City Café, which opened as a result of the last significant city renovation of the Old Sacramento Waterfront.

That was 30 years ago, and the deck built as part of that renovation has reached the end of its useful life.

Many have asked why the city did not repair the deck over the last several years. It is a fair question that deserves a thorough answer.

I became aware only this month that Rio City Café planned to close their restaurant.

Conceptual drawing of revamped Public Market buildings in Old Sacramento

I had been told of the deck’s condition prior to the Millers’ announcement. The city economic development and public works staffs have been discussing the deck and the options with the Millers for months. The city has offered to help build an outside dining area in front of the restaurant (not nearly as good as the river access offered by the deck for sure) and to adjust their rent. The Millers have – at their own request – been on a month-to-month lease with the city since 2019.

This year, the city’s economic development staff recommended not spending more than a million dollars of public money to temporarily repair the deck. Instead, they will recommend soliciting proposals from potential tenants for the Rio City site and other key assets in Old Sacramento, including the north and south Public Market buildings.

 The idea is to dream big about how to use the city’s prime waterfront parcels to attract the most visitors, generate the most revenue and provide the best experience of the Sacramento River in a way that respects the history of Old Sacramento.

Had the Millers decided to keep Rio City open, they could have submitted their own proposal for the site.

The staff’s recommendation is not coming in a vacuum. They recommend soliciting other proposals because once again the city has a golden opportunity to remake our historic waterfront.

Conceptual drawing of revamped Public Market building in Old Sacramento

Before I leave office, I will work with city staff and my colleagues to bring forward to the City Council a $40-million plus Old Sacramento Waterfront modernization plan. I won unanimous City Council approval for a similar plan in December 2019, but it was delayed after Covid wiped out our hotel occupancy tax fund.

Our hotel occupancy in Sacramento has since rebounded, and with it our ability to invest millions in enhancing tourism without raising the hotel tax.

And unlike in 2019, we now have absolutely clear legal authority to invest hotel taxes in the waterfront. That’s because in 2022, I joined forces with Visit Sacramento to propose and win approval for Measure N, which allows the hotel room tax to be used for tourist-serving facilities such as Old Sacramento. The previous language said the city could only spend hotel taxes on convention centers and community theaters.

The passage of Measure N gives us the chance to make our waterfront more inviting for locals and tourists alike without affecting our general fund or vital city services.

The waterfront modernization plan will include: Renovating or replacing the existing public market buildings to open them up to the river; building a new playground with design input from the Native American tribes who originally inhabited the riverfront; creating new public and performance spaces; and constructing a viewing platform so visitors can better enjoy the special views of the Sacramento River. The future of the building that houses Rio City Café will be part of this plan.

In the shorter term, the funding plan will include rebuilding the worn wooden sidewalks of Old Sacramento and other upgrades. The city staff is exploring activations to fill the Rio City building in the meantime.

As hard as it may sound in the short run, I agree with my city colleagues that serving the public means soliciting interest from other high-end restaurants and potential users for the prime riverfront space Rio City currently occupies. Our staff is confident this space will be in high demand.

Enlivening our waterfront will be completed long beyond my term. I intend to get it started. I look forward to the next Mayor and Council seeing it through to completion.

The Rio City Café will always be an important and positive part of our city’s history. I am grateful to the Millers and look forward to a great future for Old Sacramento and our waterfront.”

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