Elk Grove Promenade Developer May Shed 13 Malls

Chicago-based General Growth Properties (GGP) may relinquish ownership of 13 non-performing retail facilities to creditors as part of its Chapter 11 reorganization plan according to documents filed yesterday with the Securities Exchange Commission.

GGP, the developer of the the half-built Elk Grove Promenade entered bankruptcy last year following the the credit crisis which hampered its ability to service a multi-billion dollar debt obligation.

The properties consist of 12 malls and one community center located in California, Colorado, Florida, Louisiana, Michigan, Virgina, Texas and Utah. The California property is the Chico Mall and does not include the Elk Grove Promenade.

GGP also said in its filing that it needed more time to settle about one third of over 10,000 creditor claims totaling over $250 billion. The company listed assets of $25 billion in its bankruptcy filing.

Construction of the Elk Grove Promenade stopped in July, 2008 prior to the international financial crisis. Since the halt of construction and GGP's ensuing bankruptcy, the ultimate fate of the beleaguered mall on Elk Grove's southside has been an issue confounding city officials.