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Citrus Heights Messenger

Sunrise Mall Redevelopment Wants a Hotel

Apr 15, 2025 02:54PM ● By Thomas J. Sullivan

The City of Citrus Heights is committed to attracting a hotel to the Sunrise Mall redevelopment. City Council approved a proposal last June to subdivide a 2.8-acre parcel at the busy corner of Sunrise Boulevard and Greenback Lane, home to a branch of US Bank, for a future hotel development and either retail or restaurant use. Photo by Thomas J. Sullivan

 

CITRUS HEIGHTS, CA (MPG) - Attracting a hotel to the Sunrise Mall redevelopment under the city’s Sunrise Tomorrow Specific Plan area is a declared strategic objective of the Citrus Heights City Council for its 2025-26 calendar year.

The strategic objective, formally adopted by the council on April 9, tasks the city with partnering with a Sunrise Tomorrow property owner to secure a signed agreement with an authorized hotel operator or developer. The goal is to establish a hotel within the Sunrise Tomorrow Specific Plan area by leveraging city resources and conducting targeted outreach.

The Citrus Heights City Council unanimously approved a request last June to subdivide a 2.8-acre lot at the busy corner of Sunrise Boulevard and Greenback Lane, which is home to a branch of US Bank, as a potential hotel footprint.

“Bringing a hotel to Citrus Heights has been a consistent theme in community feedback and it is a critical piece of the vision for Sunrise Tomorrow, a mixed-use destination designed to serve as an economic engine for the city,” said city communications officer Marisa Brown.

Approval of the subdivision request by the city allows the US Bank branch office to remain on an existing 0.93-acre parcel at the busy traffic corner. It also splits the two remaining portions into 1.48 acres for the location of a future hotel development. A separate 0.38-acre parcel is anticipated for either retail or restaurant use.

Attorney David Bowie addressed the City Council last June on behalf of Antioch Street LP and Ellwood Commercial Real Estate, the two developers who brought forth the tentative parcel map and subdivision request to the City Council.

Individual representatives from both Antioch Street LP and Ellwood Commercial Real Estate did not respond to requests for comment concerning inquiries they might have since received from potential hotel brands that could be considered for the site.

The development agreement signed by the city with the two developers also encompasses design agreements and zoning codes, along with public improvement requirements, infrastructure upgrades, right-of-way rights for roads and future hotel operating standards, according to the city.

The development agreement also lists accepted hotel brands that would be automatically approved by the Citrus Heights Planning Commission, including Embassy Suites and Holiday Inn.

Community Development director Casey Kempenaar, who presented the subdivision request to council members, described the revised parcel map as the “first domino to fall” in the plans for the mall’s redevelopment. Kempenaar oversees the city’s planning, building and housing divisions.

A new national-brand 3-star hotel built on the Sunrise Mall property with approximately 120 rooms could fill the gap in local lodging that exists between Rancho Cordova and Roseville. It could generate up to $500,000 annually in transient occupancy (TOT) taxes, Kempenaar estimated.

The agreement also stipulates that any future hotel must be a 3-star hotel and maintain operation for a minimum of 25 years.

“We continue to hear from residents, businesses and community stakeholders that a hotel is needed in Citrus Heights,” said Meghan Huber, the city’s Economic Development and Community Engagement director.

And Brown noted, “The city is actively partnering with the property owner and has engaged in discussions with multiple hotel developers to advance this opportunity.”

“As we work to transform Sunrise Mall into a vibrant hub for our community and the region, a hotel will play an essential role in supporting business activity, attracting visitors, and anchoring the site as a true destination,” Brown said. “The city of Citrus Heights is fully committed to making that vision a reality.”