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Sentinel staff report–
Newly released financial projections show the city’s vision to transform Sunrise Mall into a “21st Century Main Street” would result in a $1.1 billion development value, once completed.
A financial projection based on a city consultant’s analysis of a 20-year projected development scenario lists the current land value of the 95-acre mall site at approximately $31 million. The projected cost to build out the entire project is estimated at $818 million.
Further financials showing the projected economic impact include 348 jobs during construction and 2,176 jobs created directly on site, once built out.
An additional 1,301 jobs are projected to be created off-site as a result of the project. Those jobs are anticipated to come from off-site business-to-business services and the project’s impact on the wider Sacramento region, “as a result of the additional economic activity generated at the site,” according to city projections included in a 70-page Sunrise Tomorrow Specific Plan Summary.
Citrus Heights would also stand to benefit from nearly $100 million in additional taxes over 20 years: $18 million from property taxes, $30 million from sales tax and $51 million from hotel occupancy tax income.
The city’s tax projections are based on a 20-year total, over the first two decades of operation. While actual property taxes paid from new residential units at the site would be much higher, $225 million, the projection only accounts for the amount that would be allocated to Citrus Heights by the county.
Total sales tax from the site is also forecast to be $229 million over 20 years, of which $30 million would go to Citrus Heights. By contrast, the city’s entire sales tax revenue during the past fiscal year was around $11 million.
The hotel occupancy tax would go entirely to the city, representing a significant new revenue source for Citrus Heights — which is known for its lack of hotel options.
To learn more about the city’s vision for transforming Sunrise Mall, see article: City unveils in-depth look at plan to transform Sunrise Mall
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