Sunrise Mall subdivision with hotel ‘footprint’ gets OK from Planning Commission

By Sara Beth Williams–
The Citrus Heights Planning Commission voted Wednesday to recommend the City Council approve the subdivision of a 2.8-acre lot at Sunrise Boulevard and Greenback Lane, which lays out a “footprint” for a potential hotel.

If subsequently approved by the City Council, the subdivision will allow the existing US Bank to remain on an existing 0.93-acre parcel while allocating 1.48 acres for a future hotel development as well as a 0.38-acre parcel anticipated for retail or restaurant use.

The original subdivision request to subdivide the US Bank parcel map was submitted in October 2022, according to application data online.

Related: What’s going on with the plans for a hotel at Sunrise Mall? – Citrus Heights Sentinel

“The project is consistent with and is really our first step in our Sunrise Tomorrow Specific Plan,” Community Development Director Casey Kempenaar said during his May 22 presentation of the parcel map.

The potential hotel footprint may not be the exact layout, Kempenaar said, but the outline would allow for the accommodation of a hotel with up to 110 rooms.

In addition to the parcel map, the Planning Commission approved an included development agreement between the developer and the city to facilitate communication between both parties and ensure that milestones are understood and documented. The development agreement includes necessary right-of-way permissions, provides for infrastructure upgrades, sets operating standards for the future operator of the hotel, and includes provisions to ensure that it remains a hotel for at least 25 years.

For the development of a future hotel, a design permit would need to be formally submitted to the city for review.

Commissioner Thomas Scheeler noted that he’d heard rumors of a major remodel occurring at the US Bank location, which is being subdivided. Lot owner Patrick Ellwood, President of Ellwood Commercial Real Estate, confirmed that plans for a major improvement project at the US Bank had been planned and that he had delayed the hearing on the approval of the proposed subdivision to avoid any potential conflicts. Plans for a bank remodel abruptly fell through, and Ellwood said as soon as he found out, he “accelerated” the process of bringing the subdivision proposal up for review.

Ellwood Commercial Real Estate’s attorney added that US Bank currently has a long-term lease, and the real estate company supports any major renovation project that might occur at the bank in the future. Ellwood’s attorney also said the subdivision development plan was “designed to work around the bank” and they want to push for a hotel first before addressing the development of the third, smaller lot.

Commissioner Andrew Van Duker expressed concern over the lack of parking in the proposed hotel footprint. Ellwood responded that the city and Planning Commission will have “multiple” opportunities to review specific project designs by different potential hotels and that parking will be addressed “over time.”

Kempenaar also said parking is shared throughout the entire site as part of a reciprocal easement agreement. As well, Assembly Bill 2097 prohibits the city from enforcing minimum parking standards within one-half mile of any public transit station.

Ellwood and his attorney expressed that they are “looking forward to this opportunity” and praised city staff, saying working with the city has been “totally harmonious,” which he added was not his experience elsewhere.

The motion passed unanimously and will be forwarded to the City Council for final approval. Chair Natalie Price was absent. A draft agreement included in the Planning Commission’s agenda packet indicates the item will come before the City Council on June 27, 2024. To view the most up-to-date City Council agendas, visit the city’s website here.