New Embassy Suites begins to rise from waterfront.(Embassy Suites Riverfront Hotel )(Government Activity)

Sacramento will soon get something it hasn't had before -- a big, upscale waterfront hotel, which city officials hope will point the way to a new appreciation of the river as a resource for recreation and tourism.

The new Embassy Suites Riverfront Hotel is rising from a group of pylons at 100 Capitol Mall, along the riverbank just south of Tower Bridge.

The hotel is scheduled to open in March 2002, and when complete, the eight-story structure will have 242 rooms for guests, plus valet parking in a garage below ground level. There will also be 3,500 square feet of meeting space, a full-service indoor restaurant and outdoor terrace dining area, a swimming pool and spa, and other amenities.

The new hotel is a joint effort between developer Sacramento Hotel Partners LLC and the city of Sacramento's Economic Development Department. The agency's investment includes transferring the 1.6-acre site at no cost to Sacramento Hotel Partners. The city is also handling design and construction of off-site improvements (a new stoplight and traffic modifications), and completion of toxic remediation work.

In addition, the city is providing $450,000 of tax increment funds to enhance materials used at the exterior base of …