Bankrupt Elk Grove Promenade Developer Rejects Bid, Another Suitor Emerges; Scherman Attempts Revisionist History

As reported last week on EGN, the bankrupt developer of the Elk Grove Promenade, Chicago-based General Growth Properties, was the subject of a takeover bid from rival developer and mall operator, Simon Properties.

Subsequently, GGP rejected Simon’s offer saying it was to low. Not content, Simon has reportedly enlisted Blackstone Group LP, the world’s largest private-equity firm, to buy GGP.

Earlier today another suitor has emerged in the battle being fought over the carcass of GGP. The newest player is Canada’s Brookfield Asset Management who is reportedly considering acquiring a large portion of GGP.

Scherman Says

Meanwhile back at the mall formerly known as the Lent Ranch, while big money firms wage malls wars over the remnants of GGP, Elk Grove Mayor Sophia Scherman made some interesting comments in an interview with News 10.

The story reads:

Scherman said if GGP can't do anything with the vacant property perhaps it would make a good home for some outlet stores. "The place is shovel ready because it was built as an open-air mall," she said. "And factory outlet stores are usually in open-air (settings). So there really wouldn't be that much difference except that it would be lower priced stores."

Scherman said perhaps an outlet mall might draw larger stores, such as, Dillards and Macy's

We find it interesting how the enclosed regional fashion mall, the Lent Ranch Mall, became the open-air strip mall on steroids now known as the Elk Grove Promenade. The Lent Ranch Mall was promised by our elected leaders to be a facility that would compete with the Roseville Galleria in terms of prestige and the all important lifeblood of California municipalities, sales tax revenues.

Some of The Lent Ranch Mall's supposed anchor tenants were, you guessed it, Macy’s and Dillards. As the Lent Ranch Mall morphed into the Elk Grove Promenade the A-list anchor tenants gave way to mass market discounters like Target.

Obviously the plan Elk Grove citizens were sold by of our elected officials was seriously flawed if not outright fraudulent.

Scherman’s comments to News 10 are also seriously flawed.

Has the mayor forgotten that when she and other city council members were out pimping the Lent Ranch they were shouting with glee how retailers like Macy’s and Dillards would be anchor tenants? Even before the credit meltdown and start of the Great Recession, the expectations were already lowered to anchor tenants like Target, or if we were really lucky, a Super Wal-Mart.

Sounds like a classic bait and switch con game.

Now with the Elk Grove Promenade, our own local magnificent eyesore and symbol of the collective hubris that led us into the Great Recession, Scherman is saying that the open-air Elk Grove Promenade would be a great factory outlet mall that would somehow magically attract anchor tenants like, dare we say it again, Macy’s and Dillards.

Either Mayor Scherman is spinning, living in a alternate universe, thinks that the people of Elk Grove are a bunch of rubes that just fell off the turnip truck or worse, is desperately trying to revise local history to save her own hide.

Whatever the case, Scherman's comments display the sort of arrogance that put Elk Grove in its current predicament. The people of Elk Grove need to make sure this doesn't happen again.