Elk Grove Suspends Development Agreement For Ghost Mall, Referendum on Indian Casino Development Agreement Likely to Appear in Special Election

December 20, 2016 |

The City of Elk Grove recently recorded a document with the Sacramento County Recorders Office that indicates a special election on an aspect of the proposed Indian casino could be put to Elk Grove voters. 

On Friday, December 16 a document signed by Elk Grove City Manager Laura Gill was recorded regarding the recently adopted ordinance, 23-2016. That ordinance removed a development agreement on the portion of the Howard Hughes Company's unfinished Outlet Collection at Elk Grove shopping Center that they intend to sell to the Wilton Rancheria for their $400 million casino resort.

The removal of that development agreement was crucial for the Wilton Rancheria, and their financial sponsor, Las Vegas-based Boyd Gaming. To place the land in federal trust and establish a tribal gaming facility, the land must be free of any encumbrances including the development agreement.

In the aftermath of that rescission of the development agreement on the 35-acre parcel to be sold to the Wilton Rancheria, a petition drive was organized seeking to reverse the City Council's decision. That petition drive gathered over 14,000 signatures that were submitted to the Elk Grove City Clerk that are currently being validated. 

The recorded document says "pursuant to elections Code section 9237, pending the referendum petition, the effectiveness of the Ordinance and the Development agreement is suspended."  

California Election Code section 9237 states:

If a petition protesting the adoption of an ordinance, and circulated by a person who meets the requirements of Section 102, is submitted to the elections official of the legislative body of the city in his or her office during normal office hours, as posted, within 30 days of the date the adopted ordinance is attested by the city clerk or secretary to the legislative body, and is signed by not less than 10 percent of the voters of the city according to the county elections official’s last official report of registration to the Secretary of State, or, in a city with 1,000 or less registered voters, is signed by not less than 25 percent of the voters or 100 voters of the city, whichever is the lesser, the effective date of the ordinance shall be suspended and the legislative body shall reconsider the ordinance.

The Elk Grove City Manager, Attorney, nor any of the Councilmen or Mayor replied to an email request sent yesterday seeking comment.

With the recording of this document, it is believed that based on certification of the signatures by the City Clerk a special election will be called for a referendum on whether or not to rescind the development agreement.

The recorded document can be viewed here.