Here is the city proposal for the Sunrise Tomorrow plan. Courtesy photo

CITRUS HEIGHTS, CA (MPG) - “When Macy’s closes the two stores… (Sunrise Mall will) for all intents and purposes die,” said Sacramento-based commercial real estate developer Ethan Conrad. 

He was telling some 75 people gathered at the monthly neighborhood meeting of Citrus Heights Area Seven, Eight, Nine (CHASEN) on Jan. 21 that the city’s vision for its Sunrise Tomorrow redevelopment plan is not “economically viable.”

The amendment proposal, submitted by his firm Ethan Conrad Properties Inc. details adjustments to the plan approved by the Citrus Heights City Council in 2021 that would affect the redevelopment of the Sunrise Mall area. 

Conrad controls 71 acres of the southern portion of the mall and confirmed that he is in escrow to purchase 50 more acres, including the northern section of the mall where the two Macy’s stores are located. The JCPenney parcel that faces Arcadia Drive and includes a closed auto repair facility is also part of the same deal.

He purchased 21 acres of the almost 100 acre-Sunrise Mall property in 2022 where the former Sears retail store and its automotive service center were located.

“Unfortunately, there has been no current interest from any developer to move forward with the (Sunrise Tomorrow) plan as written,” Conrad said.

Specific modifications to the city’s Sunrise Tomorrow plan must allow all “logical use” tenants which would have been allowed before the city’s specific plan for the mall was approved, Conrad said.

Specific changes recommended by Conrad include the allowance of eight quick-service restaurant and drive-thru businesses, building and landscape materials sales, light industrial and storage uses, and automotive uses, as well as the removal of requirements for open space. His plan also calls for the elimination of proposed commercial office space on the mall property.

Here is an overview of the Conrad proposal. Courtesy photo

Conrad proposes to submit a commercial parcel map application, which will merge some of the existing parcels and to re-parcel them to allow indoor commercial recreation facilities that are not allowed within sub areas of the adopted Specific Plan and its zoning.

A quick-serve national restaurant is also shown being added along Greenback Lane. Conrad suggested BJ’s Brewhouse, potentially occupying the former Elephant Bar site, and IKEA to fill one of Macy’s vacant retail store locations.

The former Sears building is listed as “national tenant bowling/entertainment use” and a Home Depot is shown in the southeastern corner of the property.

Conrad’s presentation was pulled from the Jan. 22 City Council meeting agenda, according to a Jan. 16 announcement by the city. Instead, Conrad decided to make a presentation to the monthly neighborhood meeting of CHASEN with other scheduled community meetings to follow.

Conrad outlined his specific modifications to the Sunrise Tomorrow plan, calling his proposal “Sunrise Tomorrow Evolution.”

On Nov. 10, 2021, Citrus Heights City Council unanimously voted in favor of adopting the Sunrise Tomorrow Specific Plan and its associated environmental impact report (EIR), rezoning and a General Plan amendment for the future redevelopment of the nearly 100-acre mall property.

“Sunrise Tomorrow Evolution simply provides more flexibility for logical retail uses to ensure we can attract the tenants needed to establish an economically viable, long-term solution for the property,” Conrad said.

“We (Conrad) are simply proposing more flexibility to allow logical retail uses to allow the new retailers that will help drive the economic vitality of the new property, provide jobs, and increase sales tax revenue,” he said.

Modifications proposed by Conrad would have to come before the Citrus Heights City Council in a formal hearing, according to city communications officer Marisa Brown. Such a hearing has not been yet scheduled, she said.

Conrad said he had an opportunity five years ago to purchase Sunrise Mall from the Namdar Realty Group, a privately-held commercial real estate investment and management firm based in Great Neck, N.Y.

Namdar Realty Group did not respond to a request for comment.

In his slide presentation, Conrad said that the status of Sunrise Mall is “unacceptable” for Citrus Heights “and will only continue to worsen” with the recently announced closure of Macy’s. 

“Namdar has not demonstrated any increased urgency in response to Macy’s closure announcement,” Brown said. “The city continues to engage with all property owners and potential investors to support the redevelopment of the site.”

Conrad described the revitalization of the mall would take place in two main phases. Phase 1 would include construction of Home Depot, In-N-Out, two other fast-food restaurants, Judi’s Cleaners and Lucky Stripe’s Entertainment. 

According to Conrad’s Sunrise Tomorrow Evolution website, Phase 2 would involve placing tenants in the northern section of the mall. Tenants would be dictated by market demand and be subject to city approval, according to the website.

“The current occupancy of Sunrise Mall is approximately 50 percent but it is estimated to decline to approximately 20 percent once Macy’s vacates its two stores.

Brown also provided a map outlining the multiple parcel owners of Sunrise Mall.

 

Here is the city proposal for the Sunrise Tomorrow plan. Courtesy photo

Antioch Street LP owns the parcel at the corner of Sunrise Boulevard and Greenback Lane where a proposed hotel is under consideration. The US Bank will remain on an existing 0.93-acre parcel while allocating 1.48 acres for a future hotel development, as well as a 0.38-acre parcel anticipated for retail or restaurant use.

“While the city is in contact with each owner independently, there has not been a formal three-way conversation,” Brown said.

“There has been no current interest from any developer to move forward with the plan as it is written and there is widespread acknowledgement that there needs to be more flexibility to ensure plans for the space are economically viable,” Conrad said in his concluding remarks

Conrad lists more possible tenants, including Peet’s Coffee, a Nordstrom Rack, Dick’s Sporting Goods and Dunkin’ Donuts on its Sunrise Tomorrow Evolution webpage developed by the property company,

For further information on the Sunrise Tomorrow Specific Plan and related updates and to provide feedback, visit www.sunrisetomorrow.net.