The Citrus Heights City Council chambers were filled to standing room as members deliberated the future of Sunrise Mall.

CITRUS HEIGHTS, CA (MPG) - Sacramento real estate investor Ethan Conrad, CEO of Ethan Conrad Properties, has dropped his plans to buy an additional 50 acres of the Sunrise Mall.

His decision followed a four-and-a-half-hour Citrus Heights City Council meeting on April 23 in which the council voted unanimously against his proposed “Sunrise Tomorrow Evolution” plan to revitalize the property.

The 50 acres which Conrad had planned to buy from the Namdar Realty Group, owners of Sunrise Mall, included the actual mall building, enclosed store spaces and two recently-closed former Macy’s stores.

“I can almost guarantee we’re going to have a vacant property there that belongs to Namdar that doesn’t care like I do. I do care, I live here and I want to make things successful,” Conrad told the council.

Meghan Huber, the city’s Economic Development and Community Engagement director said, “The Namdar Realty Group has not provided any update or submitted proposals regarding potential development projects within the Sunrise Tomorrow Specific Plan area since the closure of Macy’s.”

During his presentation, Conrad said, “It is certainly unfortunate that the current (Citrus Heights Sunrise Tomorrow) Specific Plan, although it may look attractive, is not designed to provide the needed components for it to be a successful project. In particular, with the current specific plan showing all the buildings are demolished and the new buildings are built, it is not only wasteful, it’s cost prohibitive and it’s simply not needed in order for the project to be attractive as well as successful.”

Conrad continues to redevelop the 25 acres he already owns at the southern end of the mall, a piece that includes the closed Sears store building and several acres of parking.

Construction of an electrical vehicle charging station has begun and Sunrise Montessori is planning to occupy an existing vacant building, located adjacent to the former Sears building. The center will provide daycare, preschool, kindergarten and child development classes for students ages 2 to 12, according to city documents.

The Citrus Heights City Council chambers were filled to standing room only as members deliberated the future of Sunrise Mall. Discussion continued past 10:30 p.m. April 23 as Conrad rebutted feedback from council and offered to request only The Home Depot and In N Out Burger as a compromise. 

The Home Depot was proposed to be located on the southeast corner of the mall and an In-N-Out Burger along Sunrise Boulevard, near the mall’s southwest corner. Those specific uses are not allowed under the city’s Sunrise Tomorrow plan as it is currently adopted, according to Community Development director Casey Kempenaar.

Here is the front of the former Sears from Sunrise Boulevard.

Councilmembers and community speakers generally agreed that Conrad’s revised proposal clashed with key elements of the city’s original vision for the site: a walkable, mixed-use community focused on housing, entertainment and a pedestrian-friendly design.

Many community members, including residents who live near the mall, multiple former City Council members, the Citrus Heights Chamber of Commerce executive director, and representatives from the Sacramento County Board of Education and Sacramento Area Council of Governments, encouraged the council to “keep the faith” and adhere to the original specific plan’s vision.

“We are not interested in amending the specific plan at this time,” Mayor Jayna Karpinski-Costa said before adjourning the council meeting.

Representatives from The Home Depot and In-N-Out spoke in support of Conrad’s proposal, emphasizing their interest in being part of the project but offered few specifics.

“Market demand dictates redevelopment,” said Conrad. “Home Depot is the catalyst. Most other tenants won’t commit without them.”

Sunrise Tomorrow, a city-driven plan which was adopted in 2011, would redevelop Sunrise Mall into a property with a mix of uses, including a central “main street” retail area, more housing, a hotel, coworking space and open space.

In creating the Sunrise Tomorrow Specific Plan, Kempenaar said, the community strongly supported the inclusion of a central gathering space, a mix of retail, dining and entertainment options, diverse employment opportunities, housing and green space. The plan also included flexible office space options.

Sunrise Mall is located at the high-traffic intersection of Sunrise Boulevard and Greenback Lane. 

The proposal submitted by Conrad Properties, as presented, does not align with that vision, Kempenaar said.

Several council members emphasized the city’s past collaboration with Conrad, including approval of the Sunrise Montessori preschool and an electric vehicle charging station.

Mayor Karpinski-Costa praised the specific plan and encouraged Conrad to review it thoroughly. Karpinski-Costa, along with other councilmembers, noted her support for the proposed businesses but suggested they be located elsewhere.

Conrad said he had no problem with the plan but he didn’t believe a developer would emerge to carry it out before the mall degraded further.

Conrad was further advised by members of the Citrus Heights Council to take in the comments and feedback received from the community at the meeting before moving forward with a formal application at a later date.

“For you, this is another property in your portfolio,” Councilmember Porsche Middleton said to Conrad during the meeting. “This is a once-in-a-generation opportunity for us.”

In an email statement sent by the city to the newspaper, Mayor Karpinski-Costa said the council and the community continue to stand behind Sunrise Tomorrow.

“We truly believe this plan represents the best path forward for future generations in Citrus Heights,” Karpinski-Costa said. “As we move ahead, we welcome property owners who share in this vision and are ready to help bring it to life. We encourage any future amendment requests to stay true to the goals and spirit of the plan.”

City officials say they are committed to continue working with all mall property owners on reinvestment that brings Sunrise Mall toward the plan vision.

Toward the meeting’s conclusions, council members told Conrad they were unlikely to support the amendment and that he should look at implementing the existing plan instead, either by himself or with a partner.

“This not working with us is the problem,” said Councilmember Tim Schaefer. “We are the visionaries here.”

Huber said that the city “remains committed to working with all property owners to encourage reinvestment that aligns with the adopted vision for a vibrant, mixed-use destination at the Sunrise Mall site. There has been consistent communication from the city with the Namdar Group focused on site security, property maintenance and resolving code-enforcement matters. Both the council and community members clearly reaffirmed their commitment to the adopted vision of the Sunrise Tomorrow Specific Plan, a walkable, mixed-use regional destination.”