Houston-based Hines Interests to develop plans for Elk Grove's 'Project Elevate'

Last night the Elk Grove City Council unanimously gave city manager Jason Behrmann the green light to begin negotiations with Houston-based Hines Interest for the development of the city's Project Elevate mixed-used facility.

Project Elevate is 20 acres of taxpayer-owned property south of Elk Grove Boulevard that is part of the 76-acre civic center that includes the District56 facilities.  

Hines Interests, which has an office in Sacramento, was one of four companies that submitted proposals for the project initially planned as a lifestyle shopping center. The city enlisted the services of Sacramento-based Turton Commercial Real Estate to screen the submissions. 

Described as an urban development in its current form, the facilities would include two parking structures with 1,700 spaces, a 100-room hotel, a specialty grocer, shopping, 78,000 sq. ft of office space, and 864 apartments of which 15 percent are mandated affordable. Estimated development costs are $600 million. 

During his presentation, economic development director Darrell Doan said Hines Interests' vision for the project does not precisely align with how the city envisioned the site. However, he stressed they are flexible.

"I think there needs to be some marrying of their vision with our vision," Doan said. "Hines is committed to doing that through the E N A [exclusive negotiations agreement] process."

The ENA is for six months, and as the taxpayers' representative, Berhmann will negotiate with Hines Interest on items like the purchase price of the 20 acres and "city participation," if needed. The ENA can be extended if required. 

City participation, Doan said, "well be identified if needed. That could take many forms; we don't know if it is needed yet." The staff report did not rule out Elk Grove offering cash incentives to Hines Interests. 

Doan said if all goes as planned, initial construction could start in April 2024 and the first phase completed by March 2026. The next presentation to the City Council on the process will be February 23, 2023. 

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1 comment

D.J. Blutarsky said...

The fact that the famous Greek developer-of-choice of Elk Grove incentive projects did not take the bait, tells me this may not turn out so well for Hines. Houston we have a problem!

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