By Sara Beth Williams–
Following the approval of an historic private-public partnership that could result in the transformation of Sunrise Mall, the city and the developers behind a proposed Sunrise Sports Center, outlined the next steps in the process of bringing redevelopment of the mall to fruition.
Martha Lofgren, partner with Brewer Lofgren and one of the consultants for The Mettle Shop, said during the latest City Council meeting on March 11 that the first immediate next steps involve technical studies, such as traffic and noise studies and a utility demand analysis.
“We have a lot of work left to do,” Lofgren said, adding that the team is also working with the city to retain a parking consultant that can evaluate what parking will be needed in the short-term and the long-term.
Entitlement applications will need to be filed by The Mettle Shop, Lofgren said, adding that those will be filed quickly.
Afterward, the city will need to determine what environmental analysis will be required based on their review of the project description and technical studies once they are complete.
Citrus Heights City Manager Ash Feeney elaborated, indicating that the entitlement package may include specific plan amendments, use permits, design reviews, subdivisions or lot line adjustment requests, and environmental studies.
The Mettle Shop will also work on refining a finance plan with the city, and Lofgren said The Mettle Shop hopes to bring the plan forth simultaneously with the project entitlement package.
Outlined in the Economic Development and Participation Agreement, the city has agreed to finance $60 million to The Mettle Shop in a municipal bond, secured by a lien on the complex. The Mettle Shop will finance the rest of the cost, which is estimated to be another $60 million, but could be higher. The full details are available to the public in the agenda packet.
Municipal bonds are loans issued by cities, counties, or other local governments to raise money for public projects. Investors who buy the bonds are repaid over time with interest. Feeney said the bond will be repaid from Sunrise Sports Center revenues.
Further, Lofgren said The Mettle Shop plans to do community outreach regarding the sports complex and will coordinate with city staff and the city council on how to appropriately conduct outreach.
Tallen Capital Partners, who is in the process of purchasing the mall, said Wednesday the developer also plans to survey the surrounding communities regarding future redevelopment and added that they want to “serve community needs.”
At the end of the process, Lofgren noted there will be public hearings, including before the Citrus Heights Planning Commission and the Citrus Heights City Council.
“Our goal is to make that happen by the end of the year,” Lofgren said.
Following last week’s council meeting, The Mettle Shop CEO Joe Wagoner sad in an interview that they hope to have all the pieces in place to begin the project early next year.
In an interview Friday, Terrance Tallen, CEO of Tallen Capital Partners, said they will work with the city on establishing a reciprocal easement agreement with current mall property owners.
The reciprocal easement agreement is an operating document for the shopping center, which includes shared parking agreements, operating hours, intended uses, prohibited uses, and so forth. Tallen said this can be done before his purchasing is final, but it doesn’t have to be. He added that working on an operating agreement is generally part of the purchasing process.
Currently the almost-100-acre property has been split into five parcels, with JCPenney and Ethan Conrad Properties owning the largest parcels, aside from Namdar Realty Group.
Related: Who actually owns Sunrise Mall? – Citrus Heights Sentinel
“We hope to transform the mall into a compelling regional destination, with food, entertainment, and housing,” Tallen said Wednesday, adding that the blend of a mix of uses outlined in the Sunrise Tomorrow Specific Plan is what makes projects successful. “It’s a great vision; it’s a timely vision,” he said.
During the council meeting, more than 50 people submitted written comments online, which were read aloud during the meeting. The vast majority of the public comments submitted in writing expressed support for the sports center on the condition that the Royal Stage theater, which is still open inside Sunrise Mall, be allowed to remain or that assistance be given to help the theater relocate.
Other businesses still inside and surrounding the mall expressed general support for the project, with Red Robin’s manager saying on Tuesday they are excited for the idea.
While some employees working for businesses inside the mall support the potential redevelopment, others are concerned about their store’s future. An employee with T&Z Toys said the owner wants a bigger location and added that it is important for them to know what is going on so they can plan ahead for the future.
On Wednesday, Tallen said he has spoken with JCPenney and plans to meet with Ethan Conrad, CEO of Ethan Conrad Properties, in the coming weeks. Ethan Conrad Properties owns a portion of the mall property on the southern end.
On Friday, Tallen said, once the purchase is final, they plan to interview existing tenants who want to stay and then put together a “compelling tenant mix.”
The purchase of the property is not finalized, and Tallen emphasized that concerned businesses who wanted to reach out to him with questions is welcome to do so.
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