The Outlet Collection at Elk Grove

Outlet collection

City Leaders Notified of Planned Demolition of Mall Property

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 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.


Project Description

On October 8, 2014, the City Council approved a new development plan for the Regional Mall site in the Lent Ranch Special Planning Area.  The Project, referred to as The Outlet Collection at Elk Grove, involves the construction of approximately 775,000 square feet of commercial uses (with up to 689,000 square feet of that being gross leasable area).  This approval restructured the existing approvals for 1,300,000 square feet (with 1,100,000 square feet of that being gross leasable area) that were provided with the Elk Grove Promenade Project (EG-05-878), including the reuse of approximately 332,000 square feet of previously constructed buildings.

Primary, core tenants will be solicited based upon the outlet mall concept, with manufacturer-branded stores selling direct to consumers; however, it will include a number of other shopping, dining, and entertainment opportunities, such as a movie theatre and multiple restaurant spaces..  A future Phase 1B is also shown in the site plans along Promenade Parkway; a future Phase 2 area is reserved at the north end of the site.

The Project will utilize much of the existing building shells and continue many of the architectural elements and design features from the 2007 approval. In this way, the proposed Project is seen as an amendment to the existing approvals, rather than a new approval.


Frequently Asked Questions

Question: What’s going to happen to the property?
Answer: The property owner, The Howard Hughes Corporation, has notified the City that it intends to abandon their plans to build the Outlet Collection at Elk Grove. They have stated that they will demolish the existing partially constructed mall buildings. HHC owns the property and have stated that they are considering their options for its future. These could include bringing new development concepts forward or selling the property. In either case, the City will work with the current or eventual owner of the property to evaluate development proposals for the site that will be in the best interests of the community.
Question: Can the City force Howard Hughes Corporation (HHC) to build the mall?
Answer: No. As a privately owned company, the City has no authority to compel construction or to approve or disapprove HHC’s decision to abandon their plans for an outlet mall.
Question: Will a mall ever get built on that site?
Answer: There are no guarantees on what will be built on the site in the future. The site is zoned for a regional mall, but could be rezoned to allow for other desired uses. Re-zoning would require City Council approval. The City is hopeful that the location of the property and current and future growth planned for the area will make it an attractive option for retail and/or entertainment options for our residents.
Question: What does this mean for the future of new retail in Elk Grove?
Answer: The City remains as focused as ever on bringing new retail concepts to Elk Grove. The City is pleased with the recent opening of Costco and the construction of its adjacent shopping center, The Ridge, currently under construction. The Ridge has capacity for up to 250,000 square feet of new retail and dining options, the first of which are expected to open there in 2019. And we continue to pursue a number of retail projects at other locations that have the potential to elevate retail offerings in the city.
Question: Does this decision impact the future of the Casino? Is that project still moving forward?
Answer: The Wilton Rancheria Tribe expects to break ground on their casino in 2019. This decision should not impact the casino project.

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