By Sara Beth Williams–
The City of Citrus Heights announced Wednesday that a property agreement has been finalized between The Mettle Shop and Tallen Capital Partners, propelling the proposed Sunrise Sports Center forward.
“The Sunrise Sports Center has reached its next major milestone,” the city wrote in a news release Wednesday.
Sports developer group The Mettle Shop signed an agreement to purchase approximately 13 acres from West Coast developer and investor, Terrence Tallen, CEO of Tallen Capital Partners, the investor group under contract to become the majority owner of the Sunrise Mall property.
The agreement officially establishes the planned location for the proposed 160,000-square-foot Sports Center, and establishes a path toward completing the property purchase “as a unique and key anchor for Tallen Capital’s comprehensive redevelopment of the Sunrise Mall,” the city said.
In March, the City of Citrus Heights approved the public-private partnership and financing framework for the proposed Sports Center, which will take over the site of the former Macy’s Men’s building.
A subsequent agreement was still needed to secure the planned sports center property. This latest agreement delivers on that anticipated next step by placing the property under contract, the city said.
“This is how a project of this scale moves from vision to construction, one major milestone at a time,” said Citrus Heights City Manager Ash Feeney. “With the partnership framework in place and an executed purchase agreement, the Sunrise Sports Center continues to advance.”
The proposed Sunrise Sports Center is designed to serve as the catalyst for the Sunrise Tomorrow redevelopment, the city has said, with the potential for “unlocking opportunities by creating favorable market conditions.”
By attracting year-round visitors and investment, the city anticipates the Sports Center will help transform the larger Sunrise Mall property and reestablish Citrus Heights as a premier regional destination.
Plans for the Sunrise Sports Center include a 4,000-seat arena, two ice rinks and covered turf fields. The center is expected to attract 1.29 million visits annually and support over 350 jobs. Year-round activity will increase demand for restaurants, hotels, shops and entertainment throughout Sunrise Tomorrow, helping to also transform the property and surrounding marketplace into a regional destination, the city said.
The Sports Center is expected to cost over $120 million, with The Mettle Shop contributing over $60 million and the city committed to pursuing $60 million in revenue bonds,
“Unlike most municipal bonds, which are typically repaid with tax revenues or other public funding sources, the Sunrise Sports Center bonds are designed to be repaid with revenue generated by the facility itself,” the city said, adding that General Fund dollars that support police, road maintenance, and other City services are not intended to repay the bonds. The bonds also do not require a new tax or assessment on residents or businesses.
The Sports Center project is expected to advance over the next year, with design, financing, and city reviewing still necessary.
The project and its financing will return to the City Council for consideration and approval before any construction moves forward, the city said. No timeline on when construction is anticipated to begin was given by the city.
This is a developing story. More information will follow in the Midweek and Weekend e-newsletters.
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