Would an Outlet Mall In Elk Grove be Viable? Why the Silence?

June 6, 2013 | With the recent buzz that the long-stalled Elk Grove Promenade Mall might be resurrected as an outlet mall by its current...

June 6, 2013 |

With the recent buzz that the long-stalled Elk Grove Promenade Mall might be resurrected as an outlet mall by its current owner, the Howard Hughes Company (HHS), the residents of Elk Grove can look to the possibility that the eyesore on the city's south side will finally be dealt with.

But as the buzz lingers, there are a few thing worth noting before the champagne bottle is popped.

First, as we have seen in the past, any time there is a major economic development our elected officials have been all over the announcement like stink on manure. Recall how Mayor Gary Davis quickly trumpeted the announcement that the prison health authority would relocate it's offices to Elk Grove. 

Construction stopped in July, 2008.
This time around the information was revealed by a forum reader who posted information that HHC would be developing it as a outlet mall. Yet there was not a word from Davis, his fellow council members or the city.

In a story published this afternoon by the Sacramento Bee, Davis tepidly said he is open to the idea. Hardly the ringing endorsement that we would have expected if in fact HHC had secured tenants.

Beyond that, given the relatively close proximity of the Folsom and Vacaville Malls, both of which are owned by Simon Mall, is this a viable location? Given both outlet malls have nearly identical rosters (Folsom tenants - Vacaville tenants) of high end tenants, would these tenants want to risk cannibalizing their sales with another regional location?  

Furthermore, a review of the HHS website doesn't seem to reveal that they currently have any outlet malls in their roster. Would they really be willing to go up against Simon's numerous outlet malls in Northern California? 

So while this is yet another interesting development in the decade long saga of the Lent Ranch Mall, the silence from our local elected officials is indicative.   



Post a Comment Default Comments

13 comments

Doubting Thomas said...

I don't believe a word of what is said about any deals.
The Hughes announcement is just that and nothing more: a solicitation for businesses to locate at the abandoned eyesore.
To me, there is no real imaginative leadership in the Planning Commission, the Planning Department,and the City Council's Economic Development Department.

Anonymous said...

I agree. It is nothing more than a new marketing tool to see if they can get some businesses/investors interested and if this doesn't work they will try another one. Another page on their web site you might want to look at


http://www.howardhughes.com/properties.html

Anonymous said...

I am not one to believe the city government officials in Elk Grove..they have a long history of misinformation and hyper pole. That said, I would personally like the idea of an Outlet Mall vs. a traditional mall. I think traditional malls are quickly becoming a thing of the past.. Unless you have every single upscale boutique possible, you cannot survive in a mall environment. I hope our "leaders" don't rush to judgment and accept whatever Hughes is throwing at us. It is time for US to decide what is best for our community. Reducing the footprint from 1.1 million sq. ft. down to approx. 570,000 sq. ft. is already a "downgrade". Our leaders need to stand firm and negotiate instead of standing there with their hat in their hands and accepting the first offer that comes along. Stand your ground...get us something upscale...something that will draw the masses; let's stay away from Targets and Wal-Mart’s...lets shoot for something better. How about a Nordy RACK, etc. Set your limits higher than usual. How about some upscale dining: PF Changs; Elephant Bar; Peppermill; a great steak house. You have a relatively clean slate out there; let's put some thought into this and make a statement. Let's not just accept what they offer, Remember, we all have to live with it...and we have lived with a dump for five years now. Lets turn this around...

Anonymous said...

Anonymous 14:43...
I hear you but I think you're assuming the city council has more influence than they do. In the end, the HHC makes decisions based on what they believe the market will support. The city council can cajole and lobby all they want but they cannot make HHC finish the project nor can they make them build an upscale mall. Certainly, they can deny projects for zoning concerns but understand that HHC can, in turn, walk away and do nothing.

Anonymous said...

With HHC pulling the strings, the council can only stand on the sidelines and say "thank you"?? I agree with 14:43..demand excellence. If HHC plans don't include excellence, then don't approve the changes they will require. If HHC wants to let it sit and rot, so be it. But please don't get that stupid cheshire cat grin (Davis) and kiss them on the mouth. I say play ball with them. They have all to lose...we can gain a real shopping experience.

Anonymous said...

Anonymous 15:23...
No one is asking for the city council to roll over but let's be realistic on what the city council *can* demand. They can demand that the development is in accordance with zoning ordinances. They can demand that it is designed safely. securely and environmentally sound. But, in the end, they have very little control over "upscale mall" or "outlet mall." Unfulfilled market demand will trump *ANY* cajoling of the city council... If HHC believes the outlet mall is the best way to make a return on investment, then they are unlikely to be swayed (unless the city gives them incentives - which I'm sure you're unlikely to support - as I wouldn't either).

SteveB6509 said...

I think the smaller size of the development is fine. If the market could accommodate a larger size, don't you think they would develop it that way. If you put all the space out there at once, you will get the 50% that would occupy the space being advertised. To get the other 50%, you would end up needing to lower rents and bringing in lower-class tenants. It sounds like they might have a Phase I and then a Phase II once I is completed. Smart move.

While we are frustrated with what this site has become, I trust HH much more than the City Council and the city government to know what will sell. the best thing the city can do is to offer incentives to help jump-start this development.

Anonymous said...

SteveB6509,
You had me at "...if the market..." but lost me at "...offer incentives..." :) If the market supports, incentives are unnecessary. If by "offer incentives" you mean help streamline the approval process (within the means of the law) and get the project moving then I think we're almost in agreement! :D

Carnac the Magnificent said...

I am not convinced the Howard Hughes people are genuine with the proposal. Until we hear and see actual details, whenever that might be, how can we be sure they are not just blowing a bunch of hot air?

Anonymous said...

Carnac the Magnificent - they very well could be. That's why I hope the appropriate EG officials are engaging HHC to understand their intentions and get them moving forward. That would be a good question to pose at the next council meeting - one I'm certain the council would welcome.

Lynn said...

Indeed this will all be very interesting in the end. And in the end...HH will do what will be best for their business. Remember this was part of the bankruptcy deal and not a piece of property that they would of sought out. Many years back...there was a group of citizens that fought this entire mall plan, even the very friendly developer county board of supervisors could not support or approve a mall...and guess what the city of Elk Grove came into being so we residents could have "local control". Tell me how is that working for everyone? Ask our city manager about incentive monies...I think that well is drying up unless of course taxpayers want to increase "fees" to get the outlet stores coming! Yes...lets ask our city leaders about this one...Are they lighting the fire under HHC?

Anonymous said...

NO incentives...none whatsoever. This is a priviate industry; our tax dollars should not be used for private industry to make a profit. If the business enterprise cannot survive, then they should not build it. It's basic supply vs demand. Our city will go broke handing out government/taxpayer sponsored free money. If the demographics do not support this mall, it should not be built. End of story.

Lynn said...

Anonymous,

Well our city leaders are seeking pro soccer....I believe an incentive package will come with that as our city chooses to spend 9.4 million on land to build the stadium... I would consider this private industry. What do you think????

Follow Us

Popular

Archives

Elk Grove News Minute






All previous Elk Grove News Minutes, interviews, and Dan Schmitt's Ya' Gotta be Schmittin' Me podcasts are now available on iTunes

Elk Grove News Podcast




item