Why Citrus Heights said ‘no’ to Sunrise Mall amendment proposal

By Sara Beth Williams–
The Citrus Heights City Council, with an estimated 140 community members, and Ethan Conrad, CEO of Ethan Conrad Properties, discussed the Sunrise Mall’s future late into the night last Wednesday, culminating in the rejection of an amendment proposed by Conrad to change the Sunrise Tomorrow Specific Plan.

Conrad, accompanied by representatives from The Home Depot and In-N-Out Burger, presented a proposal to amend the plan requesting permission for uses currently prohibited.

Both company representatives promised to bring value to the community by adding jobs and sales tax revenue, along with other benefits. Conrad highlighted that both companies have been praised for treating employees well, with The Home Depot being labeled “World’s Best Employer” and In-N-Out Burger ranked 6th in the “Top 100 Best Places to Work.”

Community Development Director Casey Kempenaar stated that during the drafting process of the Sunrise Tomorrow Specific Plan, residents strongly supported the inclusion of a central gathering space, a mix of retail, dining, and entertainment, diverse employment opportunities, housing, and green spaces, such as parks and walkable trails. The plan, adopted in 2021, calls for a “21 century main street,” with a hotel and a high synergy of uses across the site.

Conrad submitted an updated site plan in March, which included six drive-thru restaurants, a three-acre section for multi-family housing, a one-acre event space, and an EV charging station. The site plan did not specify new tenants or exact locations in Phase 2, but mentioned that the existing building layout would remain. The investor listed multiple potential tenants on an accompanying website.

Several community members opposed the proposal, including Citrus Heights Chamber of Commerce Executive Director Sheri Merrick and former city council members. James Corless, executive director of the Sacramento Area Council of Governments, praised the Sunrise Tomorrow plan and noted its importance to the region and the state.

Residents voiced concerns about the lack of green space, a potential increase in traffic, noise, and potential homelessness linked to the proposed development directly behind residential areas. Karpinski-Costa asked Conrad directly why he wasn’t proposing a sit-down restaurant instead.

Conrad said market conditions determine what can be developed on the site, adding that the current Specific Plan, though well-intentioned, is not financially feasible. He described adding a Home Depot as a potential “catalyst” to drive redevelopment of the entire site. He also stated that without allowing for these types of uses, the mall property would remain undeveloped and “fail.”

Real estate agent Tony Wood supported Conrad’s view, stating that securing a Home Depot is an opportunity that “cities dream about.”

Some residents, including former council member Albert Fox, urged the council to work with Conrad on a revised plan. At least one Sunrise Mall business owner submitted a written comment, stating, “Pushing this project back will mean the death of my small business.”

Former mayor Jeannie Bruins spoke in response to the prospect of the mall and the redevelopment vision failing, saying, “We were told, if we became a city, that we would fail at the effort. Not only did we not fail, but we succeeded by a vote over 60 percent.”

Bruins also alleged that many did not think the city could succeed with it’s own police department. The Citrus Heights Police Department was formed in 2006.

“Now I’m being told that if we deny this plan, the mall will fail, the city will fail. I do not believe we will fail; I believe time will need to be taken, as we knew it would roll out over a period of time,” Bruins said.

Several council members emphasized the city’s collaboration with Conrad, including approval of the Sunrise Montessori project and an electric vehicle charging station. However, they stated that the current proposal did not align with either the General Plan or the Sunrise Tomorrow Specific Plan. Approving the amendment would require changes to both documents.

City staff indicated that amending these documents would be costly and time-consuming, and would not guarantee approval of future redevelopment plans.

Vice Mayor MariJane Lopez-Taff expressed concern over the lack of details in Phase 2 and questioned the “grandfathering” of uses for land Conrad did not yet own.

Karpinski-Costa and Councilmember Tim Schaefer questioned why Conrad had agreed to purchase the 21 acres of land from Sears’ previous owner in 2022, when he should have been aware of the vision of redevelopment outlined in the Specific Plan.

According to the city, Seritage, the previous owner of the Sears site, had proposed entertainment and housing consistent with the plan before divesting most of its real estate nationwide several years ago. Conrad purchased the Sears property in 2022.

After public comments and discussion, council members Kelsey Nelson, Porsche Middleton, and Lopez-Taff encouraged Conrad to reconsider his proposal and submit a revised plan that better aligned with the vision of the Specific Plan.

“We’re asking you, can you envision a positive eventuality doing something different that you may not have done before, and can absolutely [do],” Lopez-Taff said.

After 30 minutes of back-and-forth, where Conrad continued to assert his previous position, some councilmembers became visibly frustrated.

Speaking to Conrad following a discussion about the financial investment of demolition and new development resulting in high rent, Schaefer said that the Belmar property is “clearly working” and added that right across the street, the Marketplace at Birdcage is “thriving.”

“You’re telling us because we’re across the street that it’s going to fail unless your plan is the plan. I do not think you’re listening to anything. We’ve been here for four-and-a-half hours, and you have not heard a word we said,” Schaefer said.

The council ultimately decided to vote to oppose amending the Specific Plan.

Conrad has since dropped plans to purchase the rest of the 50 acres of the mall, according to the Sacramento Business Journal, but noted that he still plans to redevelop the rest of the acreage he currently owns.