EGCC Agrees To Initiate Talks to Spur Devlopment Near Promenade

The Elk Grove City Council hopes to spur development near the unfinished mall.  The Elk Grove City Council directed city staff at last ...

The Elk Grove City Council hopes to spur development near the unfinished mall. 

The Elk Grove City Council directed city staff at last night's regular meeting to take initial steps to ease development requirements near the unfinished Elk Grove Promenade Mall.

The steps were taken after real estate developer Jim Gillum advised the council during the special council meeting on April 26 that he had clients who expressed interest in properties that are part of the Elk Grove Promenade planning areas. Because of entitlement included in the original development agreement, other facilities cannot be built until certain triggers are met.

In their discussion of the matter, the council supported making changes to the agreement between the city, M&H Realty that owns much of the other property and the current owner of the Elk Grove Promenade, Howard Hughes Company (HHC). For any changes to be made, all three parties would have to consent to changing the agreement.

"Is Howard Hughes ready to accept something like this," Council member Sophia Scherman asked Taro Echiburu, Elk Grove's planing director. Echiburu said that in his talk with HHC they indicated willingness to modify the agreement to allow non-retail commercial development to commence.

The council directed staff to work on making changes to the agreement that would be amenable to all parties. Construction on the mall stopped unexpectedly in July 2008 and it its original developer, General Growth Properties, landed in bankruptcy court filing the largest ever failure of a real estate developer.

"We need every tool in our toolbox to get that mall built," Council Member Gary Davis said. "It has been sitting there for too long, it is embarrassing, it is an eyesore."

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Anonymous said...

Do we not have more than our fair share of non-retail commercial property setting idle now? My experience has been that the Mall comes first and the other follows...not reverse. That only gives the Mall businesses another picture to consider. There was a reason for the original development agreement with the
builder and reversing this could only mean another delay.
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