Elk Grove City Council to Hear 'Outlet Collection' at Next Meeting

September 29, 2014 | Hoping to jump-start construction of the Outlet Collection at Elk Grove (OCEG), the Elk Grove City Council will ...

September 29, 2014 |

Hoping to jump-start construction of the Outlet Collection at Elk Grove (OCEG), the Elk Grove City Council will hear the proposal to void that shopping center's planning agreement at its October 8 meeting.

The OCEG, formerly known as the Elk Grove Promenade, is the unfinished shopping center that sits on the city's south side along Highway 99 and Grant Line-Kammerer Road. The current owner of the shopping center, Howard Hughes Corporation (HHC), is seeking to change the terms of the 2001 special planning area (SPA) agreement.

At their September 19 meeting, the Elk Grove Planning Commission found that HHC was in violation of the SPA and voided the agreement. By finding them in breach of the SPA and voiding its conditions, it was the commission's and city staff's view this would help HHC fulfill its plan to convert the unfinished shopping center from a so-called fashion mall to an outlet-themed shopping center.

Raising objection to portions of HHC's plan was another property owner who is bound by the SPA, San Francisco-based M&H Realty Partners. M&H owns two parcels across Promenade Parkway from the OCEG and according to comments made by their attorney Elisa Paster, they would still be bound by the SPA. (See video below).

At the planning commission attorney's for M&H said that allowing HHC out of the SPA was unfair and threatened to litigate the matter if the city council approves it.

Paster did not respond to an email inquiry as to any action M&H may take should the city council approve the matter.



 

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5 comments

Future OCEG Shopper said...

Yay! So excited for the mall to move forward!!

JD said...

Not so fast. I believe M&H has a valid point. They were, and are, bound by the SPA. By removing HHC from the agreement HHC will then be given an unfair advantage. I'm sure M&H would have loved to have been removed from the SPA and would have developed their property long ago.

Just waiting for the lawsuit on this one. My prediction, the City of Elk Grove comes out as the big losers.

Anonymous said...

To JD above...OR, M&H gets a pretty sweet deal on future commercial in exchange for not suing the city. I do think M&H have a valid, legal standing on this. Depending on how M&H want to play this, they could cozy up to the city and accept a "deal" as to protect any future opportunities; or they could sue us and probably win big. Either way, it will take some time to shake this one out. Our city attorney, Hobbs, will make a fortune off us on this one. Probably string this out for months so he can bill us hourly to fix the mess he allowed to be created. Great system.

Anonymous said...

Would a lawsuit not hold up HHC going forward with the Outlet Collection? Sounds like the city would deal with M & H...give them whatever they want to get this Outlet going.

Why is it that everything this city does has controversey surrounding it...nothing seems to be clean anymore. I know we don't have a Planning Dir., but we do have a city attorney!!!!

Pogo said...

I tend to agree that M&H will extract a pound of flesh from the city. Can't say I blame them in this case.

The problem, like many things coming out of city hall is that this sets yet another unfavorable precedent for taxpayers. Developers fees will be lowered, parks won't be built, road maintenance will languish, money shuffled around various accounts to pay for schemes and the council will blame who, you pick 'em, "ball hog" Kevin Johnson, SAC Board of Supervisors, EGUSD, CCSD, anyone bogeyman but themselves.

We've seen the enemy, and the enemy is us.

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