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Suit over arena property to stay in Sacramento

SACRAMENTO, Calif. (AP) -- Sacramento's eminent domain lawsuit against the owners of a former Macy's department store downtown will be tried in the city.

A judge Monday rejected an attempt to move the trial out of town, handing city officials a key victory in their attempt to gain control of a vital parcel for the development of a new sports arena.

The Sacramento Bee says (http://bit.ly/NVXxVE) the trial is set for March 19.

The city is suing an ownership group that includes the California Public Employees' Retirement System and a Texas-based firm negotiating for U.S. Bank, which holds a ground lease on the property.

CalPERS supports the lawsuit. But the firm negotiating for U.S. Bank says it's not in the public interest.

Plans for a new $448 million Kings arena show the Macy's property covers much of the footprint for the proposed complex.

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Information from: The Sacramento Bee, http://www.sacbee.com

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