You guys bring up some valid points for the pro's and con's of downtown direction. Let me explain how I see the "big picture" unfolding, and how these projects fit.
Sacramento is a very unique in that development and growth isn't symmetrical at all. Due to environmental challenges and requirements, very large areas fairly close to downtown are exceptionally underdeveloped, and likely will remain so for a long time (and in some cases permanently). As a result, much of the most significant development is taking place far from the urban core, and moving yet further away.
As a result, I see a few problems and opportunities as the metro area grows from about 2 million folks today to about 2.8 million within the next 13-15 years.
The problems I see are a very poor interstate system for transporting a metro area the size of Sacramento. Traffic during rush hour is awful and bound to get worse with the lack of significant new road expansions. In addition, the further out expansion of the sprawl, especially in regions such as Elk Grove and south, Folsom and El Dorado to the east, and the Lincoln/Rocklin area to the north east make commuting time to downtown even greater.
To meet this need, pockets of significant office and retail development are taking place. The office clusters I see outside of downtown are in Rancho Cordova/Folsom, Roseville (Douglas) and Natomas. The retail centers appear to be Roseville/Rocklin, Folsom, Elk Grove and Natomas. As a result, I see each of these areas becoming mini-regional units, pretty much self contained with a few hundred thousand to half a million folks per region. Some older commercial areas are significant in size too, but I see both the Sunrise and the Arden Fair areas basically too far from downtown to have much impact if it were desirable to live and shop in downtown. To me, they more "fill in the blanks" on the areas somewhat south and west of Roseville/Rocklin.
Now for the opportunity. To me, this still leaves a very large area that can be dedicated to support downtown/midtown retail development. As I see it, the area west of 59th st, east to Harbor Blvd, south of the river, and north of Fruitridge is territory that can be retained by downtown retail. Adding in the long term potential higher density development that should come to downtown when the next real estate boom hits (and you don't grow from 2 million to almost 3 million without some type of boom), and I can see good support for a somewhat upscale and unique K St along with a standard type of mall (nicely done) at Downtown Plaza. Also, with the greater hotel capacity downtown, the visitor opportunities should increase too, providing a supplemental base for restaurant support.
Eventually add in the attractions and residential density of the Railyards and Township9, and the future looks fairly bright and sustainable to me.
http://www.hcd.ca.gov/hpd/hrc/rtr/ex5.pdf