City Notified of Planned Demolition of Mall

Press Release

Press Release - City Leaders Notified of Planned Demolition of Mall Property

Posted: 01/15/2019

The Howard Hughes Corporation (HHC) has notified the City that it intends to abandon plans to build the Outlook Collection at Elk Grove and will demolish the existing partially constructed mall in the City’s southeast area near Kammerer Road and Highway 99.

The news from HHC brings closure to years of uncertainty about the mall’s construction. A 2014 development agreement that included tax-sharing benefits for opening the mall within four years expired on November 21, 2018. As a privately owned property, the City lacks the authority to approve or disapprove HHC’s decision to move forward or not.

”The City did everything within its power to move the project forward, but all decisions on the development of the mall ultimately rest with HHC,” said Elk Grove Economic Development Director Darrell Doan. “While we are disappointed that HHC was not able to complete the project, we are excited for the opportunity to potentially partner with a new developer who shares the City’s vision for the site and its potential as a regional destination.”

With a population projected to exceed 200,000 residents within the next decade, Elk Grove is the second largest city in Sacramento County. Active residential and commercial construction is underway in the city’s southeast area. The Ridge Shopping Center opened their anchor store, Costco, last September and additional retailers are on the way.

“There were companies who signed leases at the mall who want to be here. Given this news, my team will do everything possible to assist those businesses locate somewhere in Elk Grove,” said Doan.

The Howard Hughes Corporation has advised the City it intends to demolish the existing structures on the property. The land remains zoned for a regional mall, but could be rezoned, allowing for other uses. HHC is considering their options for the property. These could include bringing new development concepts forward or selling the property.

The Wilton Rancheria Tribe, who purchased the property north of the mall site, estimates the start of construction for their casino project to begin later this year.

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