SACRAMENTO (CBS13) — Tenants at the low-income Hotel Marshall in downtown Sacramento have been given 90 days to move out as the owner plans to turn it into a high-end boutique hotel.
Peter Koack says he's excited about what's taking place in downtown Sacramento, especially the proposed Sacramento Kings arena planned just a few feet from his property.
Currently, Hotel Marshall is home to dozens of low-income residents, many of whom are extremely poor.
"Since I'm in so much debt right now, this is the most affordable," said Bob Swanson.
The 103-year-old property is weary with an aging infrastructure and decaying facade. But it's right next door to where the Kings arena will be built.
Noack bought the hotel right before the 2008 economic crisis. With downtown beginning a transformation into a high-end hangout, he wants the hotel to cash in.
"I've been dreaming about doing this for the last 10 years," he said.
Catering to a more affluent clientele, he's adding more stories above the historic hotel.
"There will be some very active retail on the first floor, which will cater to the arena which will be right next door," he said.
But what about his current residents?
"We're relocating the tenants," he said.
They've been given 90 days to leave. Noack promised to help them find new low-income housing by paying their deposit and first and last month's rent.
"They're good folks, and we'll make sure they're in a good place," he said.
Many are moving to the Mercy housing development at Seventh and H streets, hoping the rent is comparable to the Marshall.
"Well that's great if he can do that. I'm on Social Security," said Alvin Keahur. "I'm not a basketball fan but if that brings money into the region and makes Sacramento prosper I'm all for it."
Noack also tells CBS13 there are no drawings of his plans at the moment, but they're in the works.
Advocates for the poor are against the development, with the director of the Sacramento Housing Alliance calling the move very disappointing and insensitive to the needs of the poor.
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