A concept plan for the future of Sunrise Mall, as shown on the city’s website. (click for larger map)
By Mike Hazlip—
In a new “Citrus Highlights” video update Wednesday, the City of Citrus Heights streamed a 30-minute online presentation to answer questions and highlight various development activity around the city.
The city’s economic development and communications manager, Meghan Huber, took questions from city spokeswoman Nichole Baxter and a few comments from individuals participating online.
Huber said her goals are attracting new businesses, retaining businesses, marketing, and supporting startup companies. She said the top economic sectors for potential growth are medical, government, and retail.
Local examples of growth in the medical sector include a new surgery center currently under construction on Stock Ranch Road, as well as the new Dignity Health building on Greenback Lane. Huber also highlighted the recent grand opening of a new Green Acres plant nursery along San Juan Avenue, in a long-vacant building.
Another area of booming economic activity is in the home improvement economic sector, which Huber said has seen a 40% increase since the pandemic began over a year ago.
Huber said one challenge with development in Citrus Heights is limited space, as the city is 98% built out. “We don’t have the luxury of just throwing up new construction,” she said.
Noting examples of redevelopment, Huber cited the transition of the former Toys R Us building into a Hobby Lobby. She believes there is still potential for additional redevelopment in Citrus Heights, and described the abandoned Studio Movie Grill site on Auburn Boulevard as having a “really compelling value proposition” to a potential tenant.
Redevelopment of the building was left unfinished when Studio Movie Grill filed bankruptcy after pandemic shutdown orders negatively impacted the business. A report in the Sacramento Business Journal also said the project’s troubles may have begun before the pandemic.
The site in the northern outskirts of the city is visible from I-80, where traffic counts are over 175,000 vehicles on the interstate and an additional 40,000 pass by on Auburn Boulevard. The boulevard itself is also slated for a $23 million infrastructure upgrade, as part of the city’s second phase of the Auburn Boulevard Revitalization project.
Plans for transforming Sunrise Mall are on schedule, according to Huber. She said an environmental impact report for the city’s Specific Plan for the mall is nearing completion, and the city expects to release more information this summer.
The mall is currently zoned retail, limiting potential development, Huber said. She expects rezoning efforts will attract new interest in the site.
The city’s plan for guiding redevelopment at the mall anticipates a four-phase project spanning 20 years, including a new “main street,” offices, residential and at least one hotel. The first phase would use the existing parking areas, three-quarters of which are surplus, according to Huber.
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By Mike Hazlip—
Despite the impact of pandemic-related closures, the city’s economic development team sees light ahead for Citrus Heights.
Meghan Huber
Meghan Huber, economic development manager for the City of Citrus Heights, presented an overview of what’s happening in town at a neighborhood association meeting Tuesday night, highlighting current development plans like the 260-home Mitchell Village and the recently opened Green Acres. She said increasing population density will make the planned Sunrise Tomorrow concept for redeveloping Sunrise Mall more attractive to potential retailers.
Huber cited the increase in demand for single-family homes fueled by pandemic shutdown orders as another positive sign of future growth. Multiple reports by The Sentinel show the current housing market is extremely competitive as Bay Area workers look to create home offices away from the city.
“We’re seeing folks, [due to] COVID, not wanting to be in that extremely dense multi-family environment. They want breathing room,” Huber said.
Another strength, Huber said, is the number of small businesses in the area. She said more than half of Citrus Heights businesses have less than 10 employees, while about 90% have less than 50 employees. Huber called Citrus Heights a “small business powerhouse.”
Despite activity in the small business sector, Sunrise Mall remains largely vacant. The shopping center has seen a 40% decline in economic impact over time, according to Huber, and a 40% vacancy before the pandemic shutdown orders took effect in the first quarter of 2020.
Huber said she is working behind the scenes with the city to change the course of the 100-acre regional mall.
“If we were to leave that mall to market, it would most likely decline into industrial and warehouses,” Huber said. “When you have very large floor plates that can be used for large industrial uses, that’s the lowest hanging fruit.”
Huber said the city is working with property owners to expand the zoning of the area to include office, residential and hotel uses. The site’s current retail zoning does not allow any uses outside of shopping, according to Huber.
Other regional malls across the country have seen a similar fate, and Huber is well-aware of the challenge of redevelopment in an area that is 98% built out.
“We don’t have room for error,” she said. “We don’t have land that we get to dedicate to a lesser than best use. You need to be so much smarter with your strategy.”
During her presentation, Huber also announced $11 million in grants from the Sacramento Area Council of Governments for the second phase of the Auburn Boulevard Complete Streets project and improvements to Old Auburn Road. The grants are the largest award Citrus Heights has ever received at once, according to Huber.
Huber’s presentation was made during the monthly meeting of Citrus Heights Area Seven-Eight-Nine (CHASEN). The neighborhood association, formerly CHASE, recently voted to merge with area nine, and now represents a large area of the city, north of Greenback Lane and east of Sunrise Boulevard.
Citrus Heights is made up of 11 neighborhood areas, three of which have combined over the years. Each holds monthly meetings to discuss topics affecting their areas.
Unlike fee-based homeowner’s associations, the neighborhood groups have no required dues — and anyone residing, working, or owning property within the neighborhood’s boundaries is able to be involved in the association.
Sentinel staff report– The Citrus Heights City Council unanimously voted to award a $1.2 million contract to a San Francisco-based architectural and planning firm for the creation of a “shovel ready” plan to comprehensively guide future development on the 100-acre Sunrise Mall property.
The plan, and an associated environmental impact report, is expected to take up to two years to develop — and a senior city planning manager indicated that actual development “could take a couple decades, perhaps” to complete.
The award of the contract to the Gensler firm during the council’s Oct. 10 meeting represents the next major step in the city’s plan to re-envision what many view as a declining and under-utilized Sunrise Mall property.
In a staff report to the City Council, Economic Development Manager Meghan Huber said that while the mall thrived for several decades after being built in the early 1970s, the economic impact of the mall has declined by about 50% over the past 13 years.
Planning Manager Casey Kempenaar also told council members during the Oct. 10 City Council meeting that many examples of dying malls can be found around the country, but said “they also represent a huge opportunity for cities.” He noted examples of cities successfully turning their failing malls into “downtowns” or entertainment centers.
“We know that people don’t want to just go into the store and shop. They want the experience — they want to have an experiential experience of food and dining and seeing other people out — and you just don’t see that in the mall today,” said Kempenaar. “So we want to create a different approach to the mall in the future.”
So what exactly is being planned? While specific aspects have yet to be determined through the process of developing a Specific Plan that will guide future development at Sunrise Mall, city leaders and staff have indicated a goal to steer away from a strictly retail and restaurant vision for the mall.
In comments during the council meeting, Huber said city staff had spoken with Gensler about a “shared vision” for what could be possible on the property — including how to apply “things like wellness amenities, integrating work-live-and-play,” streets as public space, and “remaking a downtown.”
Integrating new green spaces and converting unused and under-utilized portions of the 75-acres of parking lots surrounding the mall were also mentioned. Potential for a hotel and popup stadium were also brought up by one or more council members, but city leaders made clear that public input and collaboration with mall property owners will be taken into account before plans are finalized.
Housing was also discussed as a likely feature to be integrated into the Specific Plan.
Nate Cherry, a spokesman from Gensler, told the council during the meeting that he saw an opportunity for “all kinds of housing” to be integrated into future plans for Sunrise Mall. He said such use would help address the state’s housing shortage and also make a “village” environment.
The housing aspect was also indicated by the City Council, which adopted a General Plan amendment on July 11 that refocused the vision for the mall from being only a “commercial destination” to a broader vision of becoming the city’s “premier destination to shop, work, live and play.”
A state SB 2 grant, which is partially funding the development of the Specific Plan, is also specifically tied to funding only projects that have the “potential of increasing housing.”
Two residents spoke during public comment on Thursday, with David Warren advocating for more opportunities for public input and advising the council hold off for a month to allow more public review of the contract with Gensler. A representative from the Homeless Assistance Resource Team also spoke, advocating that empty parking lots be turned into townhouses and condos and stating there was general support for a fitness center, movie theater, a grocery market and other features to make the mall property have a “complete everything.”
In comments made during the meeting, Mayor Jeannie Bruins called the opportunity to guide the future of Sunrise Mall “exciting.”
“You know, I’m not afraid of visioning,” said Bruins. “I think we have to have vision and we have to be ready to accept that what worked in the past does not work in the future necessarily.”
Councilman Daniels called the planning stage “a very big deal” and said Citrus Heights wouldn’t exist without Sunrise Mall, referencing the key economic base the mall has provided the city since it first incorporated in 1997.
“The worst thing that could happen, I think, out of this is that we get some big, big grandiose plan about something so wonderful and it looks great in pictures and great in the ideas and it sits on the shelf and it never happens,” said Daniels, cautioning his colleagues to be “realistic” in the planning stage.
What is a Specific Plan? The Specific Plan will provide a vision for the future of Sunrise Mall, which will include enhanced zoning for the site, a cohesive site design and a pre-approved environmental impact report that results in a “shovel ready development opportunity,” according to Huber. She also said it will deliver a “pro forma that proof points successful development.”
The Stock Ranch commercial area in front of Walmart on Auburn Boulevard is also guided by a Specific Plan. Such plans can provide a vision and specific guidelines for development of an area, but the city is not able to dictate which specific tenants will set up shop.
The development of a Specific Plan will include four parts: market analysis, community outreach, execution and an environmental impact report.
To develop the plan, the city selected Gensler as the “most qualified” of six bids. According to a staff report, other bids received ranged from $700,000 to $2.5 million.
The city says a portion of the cost for developing the plan and EIR is expected to be gradually recouped through reimbursement from future developers. A significant portion of the funds, $310,000, will come from an SB 2 Planning Grant.
According to the city, work on the Specific Plan and EIR is set to begin next month and will take approximately 18 to 24 months to complete.
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Meghan Huber is the new economic development manager for the City of Citrus Heights. // CH Sentinel
By Thomas J. Sullivan–
Meghan Huber is the City of Citrus Heights’ new economic development manager, a position she’s been in for just over a month. She was hired by the city to replace Devon Rodriguez, who held the position until moving out of state last year.
The Sacramento native and graduate of Sac State currently lives in Antelope and formerly worked in the economic development division for the City of Rancho Cordova. Prior to entering the public sector, Huber worked for J.W. Marriott and Hilton in the hospitality sectors.
“I’m looking forward to getting to know local business leaders and listening to their challenges and concerns,” Huber said. “We’re looking for 100 percent retention of small business here.”
Huber will also be looking at the number of significant commercial spaces of all types throughout the city now sitting vacant, to see how they might best be filled. She plans to speak to the new owners and management of the aging Sunrise Mall to see how the city can help support the mall’s redevelopment and, in time, fill the vacancy caused by the closure of anchor tenant Sears.
In an interview with The Sentinel last week, Huber described her role as being “all about business attraction, business retention, marketing and startup support.”
“From a business retention perspective, making sure we have a finger on the pulse of our business community, making sure everyone is happy and healthy,” she said. “And from a business attraction perspective, attracting as diverse industries as possible to help to overall diversify our economy. And then retail improvement, because we’re lucky to have a lot of retail real estate.”
The move by Hobby Lobby to fill the former Toys R Us store on Greenback Lane is just one example where she said “an opportunity to create employment and bring in revenue for the city has been realized.”
“Citrus Heights is a great place to start, and to grow a business,” Huber said. “There’s plenty of room for many to add a second location, or to expand their operation.”
Much of her day-to-day job responsibilities involve outreach and networking, which she said is something she genuinely enjoys. Although she’ll be partnering with other city staff on common objectives, Huber described the economic development division as a “one-woman show.” She reports directly to the city manager’s office.
Huber also said she’s excited by the city’s new marketing message and branding strategy, “Solid Roots. New Growth” which is reflected throughout the city’s web site and in its promotion materials. The branding campaign was launched by the city last year and seeks to communicate “a healthy respect for the past, and an eye on the future,” according to a promotional video.
“I’m excited to be a part of the Citrus Heights community and help contribute to its growth,” Huber said.
The Citrus Heights Payless ShoeSource store in Sunrise Mall will be closing amid the company’s bankruptcy. // CH Sentinel
Sentinel staff report–` Over the past three years Citrus Heights has seen Kmart, Sports Authority, Toys R Us, Sears, Aeropostale, Radio Shack, and other stores close amid company bankruptcy filings.
Payless ShoeSource’s bankruptcy filing this month is the latest in store closures affecting retail locations in Citrus Heights, as the face of retail continues to change locally and around the nation.
Some vacancies created by recent bankruptcies have already been filled, with Kmart to be replaced by a Studio Movie Grill and Big Lots store, and the former Toys R Us store on Greenback Lane to be filled by Hobby Lobby. Other former stores have remained dormant though, like the old Sports Authority location in the Birdcage Marketplace that has sat vacant since closing in mid-2016.
Seeing those vacancies filled is a task the city’s new economic development manager, Meghan Huber, has her eyes on. She was hired by the city last month to replace Devon Rodriguez, who held the position until moving out of state last year.
In an interview with The Sentinel on Friday, Huber described her role as being “all about business attraction, business retention, marketing and startup support.” She said her work will include proactive outreach to attract new businesses to Citrus Heights, as well as reaching out to existing businesses to find out how the city can better help them thrive.
One of the city’s three year goals, adopted in 2017 as part of the city’s strategic plan, is to “diversify for a changing economy.” The City Council also set six-month objectives to further that goal, which includes identifying “health-related businesses to pursue for establishment in Citrus Heights” and processing entitlements for a new 16,000-square-foot surgery center at Stock Ranch and Sylvan Road.
The decline in brick-and-mortar retail is largely attributed to the rise in online shopping, but companies like Hobby Lobby are bucking the trend and continuing to expand while other companies go under. Hobby Lobby announced it is planning to open 65 more stores this year, including its new Citrus Heights store that is expected to open later this year.
The Payless store closures in Citrus Heights will leave vacant storefronts on Greenback Lane next to Burlington Coat Factory and also a vacant 3,200-square-foot space at Sunrise Mall. New owners at the Mall, Namdar Realty Group, have yet to announce whether they have plans to revitalize or redevelop the mall — but Citrus Heights Mayor Jeannie Bruins has expressed hope that the recent change in ownership will bring improvements to the mall.
Bargain hunters will still find plenty of items left on shelves of the mall’s Payless store, as well as the store at 7350 Greenback Ln. A visit to both local stores on Friday found store-wide markdowns of 20 to 40 percent, with the largest discounts on women boots, accessories, and winter-season wear.
Shelves appeared mostly full, with a wide variety of kids, women’s and men’s shoes and sizes available. A clerk at one location said more shipments of items from corporate are still scheduled to arrive.
Payless ShoeSource officially filed for bankruptcy on Feb. 19, following announcement of impending closures of more than 2,100 of its stores in the United States. Liquidation sales at stores began on last Sunday.
