Elk Grove Promenade Problems?

General Growth facing problems, dodging taxes in other markets

In case you missed it, in Friday’s Elk Grove Citizen, there was a photo of the Elk Grove Promenade with a cutline that said construction on the troubled Elk Grove Promenade was “on hold.” The cutline further said:

”The three major anchors Macy’s, Penny’s and Target have stopped construction for their stores.” (pg. B4, not available online.)

Although the Promenade’s website list Macy’s as a fashion anchor, Penney’sand Target have often been reported as anchor tenants. The prospect for Penny’s is probably not that good as they have severely curtailed construction plans.

The news of the Promenade’s problems come on top of other bad news for the strip centers’ developer, General Growth. In the Charlotte, NC area, General Growth has put construction of it’s Bridges at Mint Hill shopping center on hold.

Reading the story of Mint Hill is almost a mirror image of the Promenade. Change a few words here and there and you have in essence the same story.

Mint Hill Mayor Ted Biggers said developers told him construction is expected to be on hold until the end of the year and could not give a completion date. He said they told him they needed more time to complete planning work before continuing construction. The project's developers, Chicago-based General Growth Properties and Charlotte's Childress Klein Properties, declined to comment.

The break in construction comes at a time when consumers are becoming tighter with their spending and retailers are increasingly hesitant to open new stores.

In addition, General Growth has tried, and succeeded in lowering their property taxes on a mall in Coralville, IA.

All told, things are not looking well for General Growth or the towns that host them. What more could happen to General Growth and places like Elk Grove?