Latest news with #StateofCalifornia
Yahoo
21-05-2025
- Business
- Yahoo
California, Google rework first-in-nation journalism deal amid state deficit
SACRAMENTO, California — A landmark deal to funnel millions of dollars into California newsrooms risks being downsized after Gov. Gavin Newsom proposed funding cuts and Google, the initiative's main corporate partner, slashed a third of its original commitment on Wednesday. Google, for now, will drop its 2025 contribution to the program to $10 million from $15 million. The move matches California's pledge, with Newsom slashing state funding for the deal to $10 million from $30 million last week in his plan to close a $12 billion budget deficit. However, Google could still increase its contribution, pledging to match up to $5 million in any donations made to the newsroom fund, meaning its final 2025 contribution may meet the initial $15 million figure if public, private or philanthropic groups donate enough money. "We appreciate the leadership of Governor Newsom and Assemblymember Wicks in fulfilling the framework established last year,' Jaffer Zaidi, vice president of global news partnerships at Google parent company Alphabet, said in a statement. 'We're committed to its success, and based on the agreement, we're pleased to match the State of California's initial contribution to the Civic Media Fund.' The California State Library will host the fund after the UC Berkeley Journalism School backed away from the agreement late last year. It's the first time details of California's journalism funding deal with Google, announced as a handshake agreement last summer, have been laid out in a document since. The agreement sets a powerful precedent for Google to tie journalism funding to what governments and other companies put in, giving it leverage as other states attempt to extract newsroom funds from the search giant. Notably, the reworked deal did not come with a memorandum of understanding to hold Google to its end of the bargain. Instead, terms for California were outlined in a framework released Wednesday by Assemblymember Buffy Wicks, a Bay Area Democrat who led negotiations on the deal. Wicks billed the fund as a first-in-the-nation solution to aid local outlets decimated by lost advertising revenues as readers turn to aggregation sites like Google News. Her release rebranded the initiative from the Newsroom Transformation Fund to the California Civic Media Fund. 'Sustaining local journalism will take all of us — government, philanthropy, and the tech sector — stepping up together,' Wicks said in the announcement. 'By investing in trusted, community-based journalism, we're strengthening civic engagement and protecting the foundation of our democracy.' She plans to release a full proposal in a budget trailer bill in the coming days. State lawmakers will consider the bill as leaders work with Newsom's office to iron out a final state budget over the next few weeks. No other sources of private funding were announced. But OpenAI's vice president of global affairs, Chris Lehane, said the company 'appreciates the opportunity to collaborate on this important project.' The original deal emerged out of negotiations with state lawmakers, who had set off a battle with Google by proposing measures to force tech giants to pay online publishers, similar to countries like Canada. That framework promised to send $180 million to California journalism programs over five years, including $125 million for the proposed transformation fund. California had initially promised to invest $70 million in a new 'Newsroom Transformation Fund' through 2029, while Google initially promised $55 million. At the time, journalists' unions immediately blasted the agreement for committing nearly $70 million in Google's money to researching and developing artificial intelligence, a technology many reporters fear could replace their jobs. UC Berkeley's Journalism School was initially named to host the fund but backed away amid concerns about how funding would be administered. An advisory board will oversee and administer the funds, but the California State Library will have final say. The advisory board will increase to nine members from seven, adding two seats reserved for State Library appointees alongside news publishers, members of journalism ethics groups and journalists' unions. Separately from the $10 million Google is pledging this year for the fund, the company will also continue its in-house newsroom support programs like the Google News Initiative, per the release.
Politico
21-05-2025
- Business
- Politico
California, Google rework first-in-nation journalism deal amid state deficit
SACRAMENTO, California — A landmark deal to funnel millions of dollars into California newsrooms risks being downsized after Gov. Gavin Newsom proposed funding cuts and Google, the initiative's main corporate partner, slashed a third of its original commitment on Wednesday. Google, for now, will drop its 2025 contribution to the program to $10 million from $15 million. The move matches California's pledge, with Newsom slashing state funding for the deal to $10 million from $30 million last week in his plan to close a $12 billion budget deficit. However, Google could still increase its contribution, pledging to match up to $5 million in any donations made to the newsroom fund, meaning its final 2025 contribution may meet the initial $15 million figure if public, private or philanthropic groups donate enough money. 'We appreciate the leadership of Governor Newsom and Assemblymember Wicks in fulfilling the framework established last year,' Jaffer Zaidi, vice president of global news partnerships at Google parent company Alphabet, said in a statement. 'We're committed to its success, and based on the agreement, we're pleased to match the State of California's initial contribution to the Civic Media Fund.' The California State Library will host the fund after the UC Berkeley Journalism School backed away from the agreement late last year. It's the first time details of California's journalism funding deal with Google, announced as a handshake agreement last summer, have been laid out in a document since. The agreement sets a powerful precedent for Google to tie journalism funding to what governments and other companies put in, giving it leverage as other states attempt to extract newsroom funds from the search giant. Notably, the reworked deal did not come with a memorandum of understanding to hold Google to its end of the bargain. Instead, terms for California were outlined in a framework released Wednesday by Assemblymember Buffy Wicks, a Bay Area Democrat who led negotiations on the deal. Wicks billed the fund as a first-in-the-nation solution to aid local outlets decimated by lost advertising revenues as readers turn to aggregation sites like Google News. Her release rebranded the initiative from the Newsroom Transformation Fund to the California Civic Media Fund. 'Sustaining local journalism will take all of us — government, philanthropy, and the tech sector — stepping up together,' Wicks said in the announcement. 'By investing in trusted, community-based journalism, we're strengthening civic engagement and protecting the foundation of our democracy.' She plans to release a full proposal in a budget trailer bill in the coming days. State lawmakers will consider the bill as leaders work with Newsom's office to iron out a final state budget over the next few weeks. No other sources of private funding were announced. But OpenAI's vice president of global affairs, Chris Lehane, said the company 'appreciates the opportunity to collaborate on this important project.' The original deal emerged out of negotiations with state lawmakers, who had set off a battle with Google by proposing measures to force tech giants to pay online publishers, similar to countries like Canada. That framework promised to send $180 million to California journalism programs over five years, including $125 million for the proposed transformation fund. California had initially promised to invest $70 million in a new 'Newsroom Transformation Fund' through 2029, while Google initially promised $55 million. At the time, journalists' unions immediately blasted the agreement for committing nearly $70 million in Google's money to researching and developing artificial intelligence, a technology many reporters fear could replace their jobs. UC Berkeley's Journalism School was initially named to host the fund but backed away amid concerns about how funding would be administered. An advisory board will oversee and administer the funds, but the California State Library will have final say. The advisory board will increase to nine members from seven, adding two seats reserved for State Library appointees alongside news publishers, members of journalism ethics groups and journalists' unions. Separately from the $10 million Google is pledging this year for the fund, the company will also continue its in-house newsroom support programs like the Google News Initiative, per the release.
Business Journals
28-04-2025
- Business
- Business Journals
Redefining the Core 2025: Downtown Sacramento construction projects
By submitting your information you are agreeing to our Privacy Policy and User Agreement . Join the Sacramento Business Journal to unlock even more insights! This article gives an overview of projects in Sacramento's Downtown neighborhood in various stages of development. This article gives an overview of projects in Sacramento's Downtown neighborhood in various stages of development. It's part of our Redefining the Core coverage, which features projects in the works, proposed or completed in the central city. While proposed or in the works projects appear likely, it's possible not every project will make it to the completion phase. GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events IN THE WORKS Gregory Bateson Building expand Gregory Bateson Building, 1600 Ninth St. in Sacramento Robin Douglas | Contributor Developer: State of California, Department of General Services Description: Extensive renovation of the four-story, 313,000-square-foot building that dates to 1981. Work includes replacing deficient plumbing, heating, ventilation, air conditioning, electrical, telecommunication and security systems; renovating elevators; improving disability access; removing hazardous materials; repairing water damage; and detailing exterior facades. Location: 1600 Ninth St. Cost: $161.5 million for progressive design-build contract Status: Construction is underway and expected to be completed in spring 2025. Jesse Unruh Building Developer: State of California, Department of General Services Description: Extensive renovation of the 1928 building, which has 125,000 square feet of usable space. Work includes removing hazardous materials; replacing deficient plumbing, heating, ventilation, air conditioning, electrical, telecommunication and security systems; installing new elevators; and improving disability access. The State Treasurer's Office is the building's primary tenant. Location: 915 Capitol Mall Cost: About $158 million for progressive design-build contract Status: Construction is underway and expected to be completed in summer 2025. Former Resources Building expand Former Resources Building construction at 1416 Ninth St. Robin Douglas | Contributor Developer: State of California, Department of General Services Description: Extensive renovation of the 17-story building, which was built in 1964, to house about 2,500 state employees. In addition to major gutting, work includes completely replacing mechanical, electrical, plumbing, telecommunication and security systems. It also includes removing hazardous materials, shoring up the building's structural integrity and replacing the roof and facade. Location: 1416 Ninth St. Cost: About $409 million for progressive design-build contract Status: Construction is underway and slated to be finished in late 2025. Capitol Annex Building Developer: State of California, Joint Rules Committee/State Legislature Description: Construction of a new building to replace the 70-year-old annex, which didn't meet seismic codes or comply with the Americans with Disabilities Act. The new 525,000-square-foot building will be a "double-T" shaped building designed to meet or exceed current seismic codes and ADA guidelines. It will also have an underground parking garage with 150 spaces. Location: 1315 10th St. between L and N streets, on the east side of the historic Capitol building. Cost: $1.2 billion Status: After a three-year legal battle, the existing annex building was demolished in summer 2023. Construction is underway and estimated to be finished in 2027. Cypress Developer: D&S Development Description: Construction of an eight-story building with 96 apartments, two live/work units and 1,830 square feet of ground-floor retail. Amenities will include a pool, community lounge, gym and eighth-floor terrace with barbecue and seating areas. Depending on the market, some units could be available for purchase. Location: 1330 N St. Cost: $50 million. D&S bought the site for $2.4 million. Status: Construction started in January 2023 and will be completed in summer 2025. The Diggs expand The city of Sacramento has received an application to convert a building owned by the California Public Employees' Retirement System at 1800 Third St. into residential, retail and office space. Ben van der Meer | Sacramento Business Journal Developer: Heller Pacific Description: Conversion of a four-story, 204,800-square-foot office building into housing, self-storage, office and retail space. About three-quarters of the building will be residential with 131 apartments, plus a manager's unit. In addition, there will be almost 25,000 square feet of self-storage, 16,500 square feet of creative office space, and 6,638 square feet of retail and restaurant space. There also will be 60 parking spaces. Location: 1800 Third St. Cost: $45 million, including construction costs of $25 million. Heller Pacific purchased the building from the California Public Employees' Retirement System in December 2024 for $5 million. Status: Interior demolition started in March 2025. Project should take about 14 months to complete. Aiden by Best Western Hotel Developer: SJ Hospitality Inc. in Davis Description: Adaptive reuse of a four-story office building into a boutique hotel with 73 rooms and 55 parking spaces. The office building was built as a hotel in the 1950s, then converted to office space more than a decade ago. The project involves both exterior and interior renovations. Amenities will include a cafe serving food, beer and wine, as well as electric vehicle charging stations. Best Western describes its Aiden brand as trendy boutique hotels with casual charm and an eclectic neighborly feel. Location: 1111 H St. Cost: Not disclosed. SJ Hospitality purchased the office space in 2022 for $6.12 million. Status: Construction started in the third week of January 2025 and is estimated to be finished in August 2025. The Sequoia expand The Sequoia Hotel, a residence hotel with a closed taqueria on the ground floor, is planned to become permanent supportive housing for people who were homeless. Ben van der Meer | Sacramento Business Journal Developer: The John Stewart Co., Central Valley Coalition for Affordable Housing Description: Rehab of a 1910 hotel into 88 units of permanent supportive housing for residents who were previously homeless. Plans call for adding kitchenettes and bathrooms to 16 units and renovating 72 single-room occupancy units. Each floor of the six-story building will have a community kitchen and bathroom, and the ground floor will have a community room, laundry room, bike storage and property management offices. New mechanical systems, elevators, flooring, plumbing, fire safety and light fixtures will be installed. Services will include mental and physical health care, substance abuse counseling and job training. Location: 911 K St. Cost: $50.1 million Status: Construction started in April 2024 and will be completed in spring 2026. Esperanza Developer: Urban Capital LLC, Ibex Ventures Description: Construction of a 60,000-square-foot project with 132 apartments in two three-story buildings. There will be 90 one-bedroom lofts and 42 studio apartments. Amenities will include a community courtyard, bike storage and a lounge. Project is aimed at tenants with 80% to 120% of the area median income. Location: 424 12th St., 1117 E St. Cost: $30 million Status: Entitlements have been secured, and the building permitting process is underway. Construction is starting in April 2025 and will take about 19 months. 13C Apartment Development Developer: Vrilakas Groen Architects, property owner is the Merin Williams Family Trust Description: The first phase of the project consists of eight studio apartments in a two-story building. The second phase calls for two three-story buildings with 22 one-bedroom apartments on an L-shaped lot. The one-bedroom units will be 420 square feet. Location: 216 13th St. for the first phase; 1221 C St. for the second phase. Cost: About $5 million for both phases Status: Construction on the first phase of 13C was completed in May 2024. The second phase is still under construction and will be completed in fall 2025. CapRadio Live expand Performance space CapRadio Live has been stalled amid Capital Public Radio's financial difficulties. MARK ANDERSON | SACRAMENTO BUSINESS JOURNAL Developer: Capital Public Radio Description: Renovation of the building's ground floor into a 7,500-square-foot performance venue. The space will feature a 190-seat, broadcast-ready blackbox theater, a lobby and covered outdoor space for events. The space will be used as a learning lab for students at California State University Sacramento, for rentals, and for CapRadio events. Location: 1010 Eighth St. Cost: Direct construction cost is $7.2 million Status: Construction began in 2021 and was largely completed in 2023. Derailed by financial issues at CapRadio, the venue is now expected to open in 2025. PROPOSED Kroma expand A group from Los Angeles has submitted an application for an eight-story, 204-unit building with retail space on the ground floor at 1121 I St. in Downtown Sacramento. LPAS Developer: 1121 I Street QOF, a limited liability company established by RCB Equities for the project Description: Construction of an eight-story building with 204 market-rate apartments and ground-floor coworking space. Amenities would include a two-story ground-floor lobby and fitness center, a landscaped courtyard on the third-floor podium deck and a sky lounge and outdoor terrace on the eighth floor. Project would include 93 parking spaces, a pet wash and bike shop for tenants. The site housed a Goodyear Tire & Rubber Co. store and service center, which would be demolished. Location: 1121 I St. Cost: About $66 million in construction costs. Developer purchased the property in May 2022 for $6.47 million as an opportunity zone investment. Status: Entitlements have been approved, and the developer is submitting building permits. The goal is to demolish the existing buildings in May and June 2025 and to break ground in July 2025. 1023 J St. expand 1023 J St. once had a proposal for a 40-story residential project. That project never moved forward, but an eight-story, 266 apartment building could see construction by 2026. LPAS Developer: RCB Equities Description: Construction of an eight-story building with 266 apartments across five parcels, 4,349 square feet of ground-floor retail and 151 vehicle parking spaces. Plans call for a second-floor clubhouse with an outdoor courtyard, kitchens and fire pits. The fourth floor would have a pool, outdoor kitchens and game areas, while the eighth floor would have a rooftop terrace/clubhouse. Existing commercial buildings on the site would be demolished. Location: 1023 J St. Cost: About $87 million. RCB Equities purchased the property from the Saca family in December 2022 for $7 million. Previously, a 40-story residential project called the Metropolitan had been proposed for the site but the project never moved past city approvals. Status: An application was filed in August 2023 and approved in March 2024. Developer would like to begin construction by late 2026. 13C Studios Developer: SKK Developments Description: Construction of two three-story apartment buildings with 127 units combined. The two buildings would be separated by a courtyard with fire pits, barbecue grills and lounge seating. Other amenities would include a fitness center and bike storage room. An existing building on the site would be demolished. Location: 1300, 1310 C St. Cost: Estimated at $25.6 million Status: Application has been approved, and construction drawings are under review. Construction is expected to start in summer 2025. Hotel Eleanor expand The purchase price for the building proposed to become Hotel Eleanor was $11.06 million. HRGA Developer: Hume Development Description: Adaptive reuse of a seven-story office building into a hotel with 107 rooms. Plans calls for a 2,725 square-foot restaurant and bar on the first floor as well as a banquet hall and smaller private dining area. The basement, once used as a bank vault, would have a private dining room, small bar and restaurant, and a prep kitchen. Built in 1915, the building is listed on the city's register of historically significant structures. Location: 700 J St., also listed as 1007 Seventh St. Cost: Not disclosed. Hotel Eleanor LLC bought the building in November 2024 for $11.06 million. Status: The city approved the project in July 2024. No building permits have been filed. Sacramento Canopy by Hilton & Residences expand Entitlements for a hotel project at 831 L St. have been extended to 2026. WATG Developer: Eva Hill, CEO of Venture Oaks Real Estate Group Description: Construction of a 14-story building with 265 hotel rooms on the first 11 floors and 55 luxury apartments on the top three floors. Amenities would include a rooftop lounge, ground-floor bar and restaurant, outdoor terrace, five meeting spaces and a fitness center. The hotel would operate under Hilton's Canopy brand. Location: 831 L St. Cost: About $150 million Status: Project has been approved. Entitlements have been extended through July 2026. Central Sacramento Studios Phase II expand A second phase of the Central Sacramento Studios project in Downtown Sacramento would replace an empty restaurant building with a five-story apartment building of affordable rents. Danco Communities Developer: Danco Communities, Sacramento Housing and Redevelopment Agency Description: Construction of a five-story building with 52 apartments geared toward tenants making 30% or less of the area medium income. It would have 35 studios and 17 one-bedroom units. Amenities would include a lounge, multipurpose room, fitness center, common kitchen, dog park and supportive services. Parking and a pool would be shared with the first phase of Central Sacramento Studios, which was completed in late 2023. That project involved converting a Best Western Plus Hotel into supportive housing. Location: 815 11th St. A vacant restaurant building on the site would be demolished. Cost: $30 million Status: Planning entitlement application was submitted in January 2025. Reviews are underway. 700 L St. Conversion expand At Seventh and L streets in Downtown Sacramento, 700 L St., the former home of Union Bank, is slated to be converted from office space into four condo/for-sale office and retail spaces. Ben van der Meer | Sacramento Business Journal Developer: 700 L St. LLC Description: Conversion of a four-story office building into four condo/for-sale office and retail spaces. Each floor of the 27,000 square-foot building would house one condo, plus common space. There would be an additional condo unit on what's currently a parking lot. No major changes are planned for the building's exterior. Location: 700 L St. Cost: About $500,000 to $600,000 for renovations. The developer is in escrow to purchase the building from its current owner, Schwager Development LLC. Schwager bought the building for $4.3 million in 2021 from Union Bank. Status: An entitlement application was filed in February 2025. Reviews are underway. 301 Capitol Mall expand Shingle Springs Band of Miwok Indians bought 301 Capitol Mall, long expected to be a key development site in Downtown Sacramento, in spring 2024. Ben van der Meer | Sacramento Business Journal Developer: Shingle Springs Band of Miwok Indians Description: Development of a long-vacant site in the heart of Downtown. During the past decade, a number of proposals from various partners were put forward for the site, but none of them came to fruition. Location: 301 Capitol Mall Cost: Not determined. The tribe purchased the site in April 2024 for $17 million from the California Public Employees' Retirement System, which had owned the property for more than a decade. Status: The tribe is finalizing its vision for the property and plans to make announcements in the first half of 2025. Convention Center Hotel expand A proposed hotel near SAFE Credit Union Convention Center would have skybridges to connect the hotel to the convention center. Hornberger & Worstell Developer: Christofer Co., Gafcon Inc. Description: Construction of a 350-room hotel near SAFE Credit Union Convention Center. The hotel, expected to be between 26 to 30 stories tall, also would have 18,000 square feet of meeting space, a 6,000-square-foot ballroom, ground-floor retail, underground and above-ground parking, an event deck, fitness center, restaurant and rooftop bar. Skybridges would connect the hotel to the convention center. Although no formal agreement has been signed, the plan is for the hotel to carry a Hilton flag. Location: 1418 K St. Cost: Estimated at $241 million in a staff report from the city, but that number is in flux Status: In November 2024, the City Council approved a resolution of intent to support the project with an unspecified amount of transient-occupancy tax, if necessary. At that time, developers said construction could start within 24 months and be completed in 2028 at the earliest. No formal application has been filed. HRGA Office expand Architectural firm HRGA is apparently looking to develop a project of its own, filing plans with the city for a two-story project of office space — apparently for the firm — and residential units in Downtown Sacramento. HRGA Developer: HRGA Description: Construction of a two-story office and residential project on what's currently a parking lot. The first floor, with about 2,700 square feet, would provide office space for HRGA, an architectural firm now located on Fair Oaks Boulevard in Sacramento. The second floor would feature two one-bedroom units. Location: 714 14th St. Cost: Not disclosed Status: Plans have been approved. There's no timeline for construction. 10K Developer: Mohanna Development Co. Description: Construction of a 15-story, mixed-use building with 220 hotel rooms, 186 apartments and a rooftop bar. The building also would have 7,400 square feet of first-floor retail space and a floor of co-living space with separate bedrooms and bathrooms but shared living areas. Location: 920, 924 and 930 K St., on the site of three empty buildings Mohanna purchased in 2015. Cost: Not determined Status: Project was approved in 2018. Citing challenging market conditions, Mohanna requested and was granted a three-year extension of entitlements, which would have expired July 23, 2024. The new expiration date is July 23, 2027. 800 Block Developer: CFY Development Inc. Description: Construction of two buildings with about 150 apartments and 20,000 square feet of retail space. Amenities would include coworking spaces, community rooms, music lounges and a rooftop terrace. Location: 800 K St. and 801 L St. Cost: $90 million Status: Plans have been approved but the entitlements expired in October 2022. Developer plans to resubmit for entitlements after financing is in place. Former Greyhound Station Developer: DBP Realty Partners LP of Sacramento Description: Remodel of the long-vacant Greyhound Station into restaurant and retail space. The garage area would remain for covered parking. Built in 1949, the 10,500-square-foot station has been largely unused since Greyhound moved to a new terminal on Richards Boulevard in 2011. Location: 701 L St. Cost: To be determined Status: Entitlements were approved in 2017. Since then, the developer has received three entitlement extensions. The most recent extension expires on July 19, 2026. Lot X expand Southern Land Co.'s application for the Lot X project's status with the city of Sacramento is currently classified as "waiting" after two years without movement from the developer. SCB Developer: Southern Land Co. Description: Construction of two residential towers and 21 townhomes with a combined total of 438 rental units. The tallest tower, with 26 stories, would have 263 apartments. The shorter tower would be 14 stories and have 154 apartments, plus flex space for offices. The two towers combined would have 11,000 square feet of ground-floor retail. An eight-story parking structure would be between the two towers. Location: 201 N St. for the 26-story tower; the 14-story tower would be at the southwest corner of Third Street and Capitol Avenue Cost: About $325 million. Southern Land bought the 2.58-acre site in October 2021 from the Sacramento Kings for $16.75 million. Status: No timetable has been set for this project. The city moved the application to 'waiting' in July 2024 after not hearing from the developer in two years. Crocker Art Museum Art Park Developer: Crocker Art Museum Association, city of Sacramento Description: Construction of an art-focused public park on a 3-acre unimproved parcel across the street from the current museum complex. Location: 216 O St. Cost: $30 million to $40 million for the full art park Status: The City Parks Department is taking the lead on creating sidewalks and pathways in the area. The museum would place a sculpture or two at the site. Those improvements should be complete by 2026; the full project is on hiatus. Sacramento Valley Station Developer: City of Sacramento Description: Construction of a new transit center and public space near the historic Sacramento Valley train station. The first phase would involve building a bus mobility center with an elevated 18-berth bus terminal and a lower level for micro-transit access, bike facilities and a small parking garage. The second phase would include building an elevated concourse over the train tracks when passenger volume requires expansion. The existing station has 26,000 square feet of leasable office and retail space, with 8,900 square feet of ground floor space available. Location: 32 acres near the Sacramento Valley Station at 401 I St. Cost: $120 million for the bus mobility center. There's now $13.8 million in place for current projects. Costs for future phases have not been determined. Status: City Council approved the final master plan for the station in April 2021. Multiple smaller projects related to the station are now underway. In summer 2025, construction will begin on a north entrance connecting passenger platforms to an upcoming plaza and entertainment venue in the railyards. Engineering design is underway for the final segment of a storm drain system that will be built in coordination with relocation of the light rail station, a move that will open up the area for construction of the bus station. Depending on funding, construction of the bus terminal could begin by 2029. Sacramento County Jail Expansion Developer: Sacramento County Description: Construction of a mental and medical health facility and booking site on a vacant lot next to the main jail. Location: 651 I St., where the main jail is located Cost: Almost $1 billion Status: In August 2023, the Sacramento County Board of Supervisors hired Kitchell CEM Inc. as construction manager for the project. Construction was slated to begin in 2026 and be completed in 2028. But in December 2023, amid extensive opposition, the supervisors paused the project and in April 2024 enlisted a third-party, CGL Cos., to review the proposal. In February 2025, the board approved the consultant's recommendation to suspend construction of any major updates to the jail. COMPLETED 7&I Developer: 730 I Street Investors LLC (Bay Miry, David Miry, Steve Lebastchi) Description: Rehab of a three-story office building that was largely vacant for 10 years. Built in 1962, tenant improvements include high-end finishes, glass offices, two banks of soundproof studios and large open areas for events and meetings. The 72,000-square-foot building has 125 parking spaces. Location: 730 I St. Cost: Not disclosed. Status: In February, 2025, coworking company The Urban Hive moved into 22,000 square feet of the building. California State University Sacramento and Capital Public Radio, which had leased 60% of the building, decided not to move into the space because of financial constraints at CapRadio.
Yahoo
05-02-2025
- Business
- Yahoo
Lumen Technologies Inc (LUMN) Q4 2024 Earnings Call Highlights: Strategic Debt Reduction and ...
Debt Reduction: Lowered debt by $1.6 billion in 2024, with redemption notices for an additional $200 million. Closed Sales: $8.5 billion in closed sales with major tech companies. EBITDA Guidance for 2025: Between $3.2 billion and $3.4 billion. Free Cash Flow Guidance for 2025: Between $700 million and $900 million. Revenue for Q4 2024: $3.32 billion, a decline of 5.3% year-over-year. Adjusted EBITDA for Q4 2024: $1.052 billion with a 31.6% margin. Free Cash Flow for Q4 2024: Negative $174 million. North American Enterprise Sales Growth: Over 15% year-over-year in 2024. Mass Markets Fiber Revenue Growth: 18.9% year-over-year. Capital Expenditures for Q4 2024: $915 million. Capital Expenditures Guidance for 2025: Between $4.1 billion and $4.3 billion. Net Cash Interest for 2025: Estimated between $1.2 billion and $1.3 billion. Cash Taxes for 2025: Estimated between $100 million and $200 million. Warning! GuruFocus has detected 8 Warning Signs with LUMN. Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lumen Technologies Inc (NYSE:LUMN) reduced its debt load by $1.6 billion in 2024 and sent redemption notices for an additional $200 million. The company secured $8.5 billion in closed sales with major tech companies like Microsoft, AWS, Google, and Meta, enhancing its position as a trusted network for AI. Lumen achieved over 15% year-over-year sales growth in North American enterprise channels, with significant growth in IP and ways. The company delivered more than 500,000 Quantum Fiber enablements, achieving over 90% year-over-year growth in fiber net adds while reducing expenses. Lumen's unified network architecture has enabled 85% of new Ethernet and IP data service sales in major metro markets, reducing delivery time and implementation costs significantly. Total reported revenue declined by 5.3% to $3.32 billion, impacted by divestitures, commercial agreements, and the sale of the CDN business. Adjusted EBITDA for the fourth quarter of 2024 was $1.052 billion, a decrease from the previous year, with a margin decline of 40 basis points. Free cash flow was negative $174 million, primarily due to the timing of cash from PCF deals. Mass Markets segment revenue declined by 6.3% to $670 million. The company faces challenges with legacy product declines, particularly in TDM-based voice and VPN, impacting nurture and harvest product revenues. Q: How is the 15% sales growth in North America translating into progress in verticals like large enterprise and mid-market? Also, how much of the growth in the "grow" product revenue is recurring versus one-time? A: The growth in product revenue was positively impacted by the State of California initiative, which started turning up revenue. The "grow" bucket now represents almost half of what we sell, indicating a focus on customer experience and growth products. While legacy declines were significant, the focus on grow products is driving improvements, and we have motions in place to manage disconnects and renewals as we move into 2025. - Christopher Stansbury, CFO Q: Can you provide insights into the top-line dynamics for 2025, especially in light of public sector comments and AI fabric revenue? A: Revenue trends in 2025 will be similar to 2024, with underlying improvements in sales and manageable disconnects. The AI fabric revenue will start ramping up more significantly in 2026 and beyond. We expect to see growth in the 2028-2029 window, driven by market rates on IP and Waves, with the platform layer providing additional opportunities. Public sector growth is challenging due to disconnects but remains a focus. - Christopher Stansbury, CFO Q: What assumptions drive the lower utilization for the enterprise segment by 2028, and can you explain the incremental costs expected in 2025? A: The utilization chart reflects fiber miles, with innovations increasing capacity and efficiency. The hyperscaler utilization increase is due to leasing previously unused conduit. For 2025, there's a $200 million headwind in EBITDA related to team ramp-up for PCF builds, a shift from on-prem data centers to cloud, and TDM disconnects. The $300 million in special items relates to one-time expenses for cost reduction. - Kathleen Johnson, CEO, and Christopher Stansbury, CFO Q: How does the recent Deepseek announcement affect the connectivity market, and what does it mean for content demand from hyperscalers? A: The Deepseek announcement accelerates the democratization of AI, increasing the total available market for our connectivity fabric. We see this as an opportunity to capture more market share, as it pressures companies to innovate and reduce costs, making AI more accessible. - Kathleen Johnson, CEO Q: Can you provide an update on the fiber sales and the potential for using copper infrastructure in these deals? A: We are open to discussions on selling fiber assets, either in whole or in pieces, depending on valuation. The bulk of EBITDA currently sits on copper, which doesn't have a significant CapEx burden. We are aggressive in converting copper to fiber where possible, and copper decom is part of our modernization efforts, contributing to cost reduction. - Christopher Stansbury, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 登入存取你的投資組合
