Sunrise Mall: A future in limbo for businesses inside

By Sara Beth Williams–
The fate of Sunrise Mall businesses hangs in the balance as Ethan Conrad Properties has dropped plans to purchase the remaining 50 acres of the Sunrise Mall property.

The commercial real estate investment company’s CEO Ethan Conrad had in the past indicated to The Sentinel and to the Citrus Heights City Council that he would not continue in his intent to purchase the remaining acreage of Sunrise Mall if his amendment proposal was not accepted by the City Council.

The Citrus Heights City Council, along with Conrad, business owners and representatives, and an estimated 140 community members, discussed the mall’s future late into the night on Wednesday, April 23, culminating in the rejection of an amendment proposed by Conrad to change the Sunrise Tomorrow Specific Plan.

During the discussion, City Council members encouraged Conrad to continue with his purchase of the majority of the mall property and return with an updated site plan that better aligned with the Sunrise Tomorrow Specific Plan.

While numerous residents opposed the site plan and amendment request, business owners, developers and real estate agents spoke in favor of Conrad’s plan. At least one written comment submitted during the council meeting stated that the rejection of Conrad’s plan would mean the “death of my small business.”

Following the council’s decision to forgo amending the Specific Plan, Senior Vice President and Director of Leasing and Sales with eXp Commercial Tony Wood said in an email that the council “squandered a real opportunity and disrespected someone willing to invest.” Wood added that Conrad’s plan would have potentially generated up to a million in tax revenue for the city.

Two more small business owners in Sunrise Mall have expressed disappointment with the outcome of the council meeting but also held cautious optimism for their own futures.

Kevin Cadinha, owner of Perfumes Luxe, said he has been a resident of Citrus Heights for 30 years and wants to see the area revitalized. Cadinha also said he would like the community to “gather to help keep us going” and is not opposed to redevelopment if it allows the store to remain open.

“It is almost like the community doesn’t even think about us small businesses currently open in the mall,” Cadinha said.

Royal Stage Performing and Visual Arts owner Tammy Warta said the outcome of the meeting was “disappointing” because “at least there would have been a plan,” but that she respects and appreciates the difficulty the City Council had of taking so many opinions into account.

Despite the current state of the mall, Warta said Royal Stage “loves” the theater’s current location inside Sunrise Mall and she wants to encourage the community to come to shows, and shop and support the remaining stores. Warta also said the city has been “wonderful” to work with.

In an email statement received Tuesday, Mayor Jayna Karpinski-Costa said the community developed the Specific Plan, and it’s the “community’s vision for the future.”

“I was heartened by the community’s responses to Mr. Conrad’s proposal. Hundreds of comments by email and in person prove the community’s commitment to the plan. It’s not a vision to be compromised for the benefit of a few,” Karpinski-Costa said.

The city has also recently updated their Sunrise Tomorrow dedicated webpage with information reflection current redevelopment efforts.

Following the April 23 council meeting, Conrad confirmed with the Sacramento Business Journal that he has dropped plans to purchase the rest of the mall but said he would continue to develop his currently owned land, which includes the site of the former Sears.

“It’s definitely very unfortunate that the City of Citrus Heights didn’t approve the Specific Plan Amendment, since it would’ve been in the best interest of the community to do so based on the fact that the current Specific Plan is not economically viable and needs to therefore, be modified so that it’ll make sense for someone to perform the needed construction,” Conrad said in a statement to The Sentinel Tuesday.

The majority of the Sunrise Mall property is owned by the Namdar Realty Group, with small lots also owned by U.S. Bank and Red Robin, 18 acres owned by JCPenney. and 21 acres owned by Conrad.

Currently, an electric vehicle charging station is under construction on the southern end of the mall property. Sunrise Montessori Preschool is also renovating a former Sears Appliance building and anticipates opening later in the year, according to the preschool’s owner, who spoke during the city council meeting.

Economic Development and Community Engagement Director Meghan Huber also said during a recent strategic planning retreat that the city has been engaged in the process of deal-making in an effort to secure a hotel brand for the site. The council approved a tentative hotel footprint parcel map in June 2024 at the corner of Sunrise Boulevard and Greenback Lane.

The council will consider next steps in the coming weeks, the mayor said.

Sunrise MarketPlace Executive Director Kathilynn Carpenter declined to comment on the council’s decision or Conrad’s decision to forgo purchasing the rest of the property. Carpenter referred all other questions regarding Sunrise Mall to mall management.

Sunrise Mall management did not comment on the mall but referred requests for comment to Namdar Realty Group. The majority owner was not able to be contacted by press time, but management indicated that a response would be forthcoming.