Citrus Heights City Council shuts down Sunrise Mall redevelopment amended proposal

CBS News

24-04-2025

CITRUS HEIGHTS -- The Citrus Heights City Council shut down an amended proposal presented by Conrad Properties that suggested the city approve six fast food drive-thru restaurants and a The Home Depot on the property that was once the bustling Sunrise Mall.
The project, called "Sunrise Tomorrow," has been in development for nearly a decade but picked up traction in the last five years after extensive community feedback for the vision of the space.
The agenda item, added to the regular city council meeting, was meant to give the council and community an opportunity for comments and questions, as well as to hear the latest proposal from developer Ethan Conrad, who owns 25 acres of the land and says he's in escrow for the remaining 50 acres.
There was no formal vote on Wednesday night, but the council moved not to go forward with the amended proposal and suggested Conrad take in the comments from the community. The other options they could've taken were to direct Conrad Properties to submit a formal application or request significant changes before considering a formal application.
The four-and-a-half-hour council meeting, focused mostly on this subject, ended with Councilmember Tim Schaefer telling Conrad: "We've been here 4.5 hours and you haven't heard a word we said."
From retail powerhouse to redevelopment target
Sunrise Mall, located at the high-traffic intersection of Sunrise Boulevard and Greenback Lane — the second busiest in Sacramento County — once generated $2 million annually in sales tax revenue. Today, that number has plummeted to just $400,000.
In its heyday around 2000, the mall was a crown jewel of Citrus Heights retail. But with the rise of the Roseville Galleria, the Great Recession, and competition from newer developments like the Palladio, its relevance declined.
COVID-19 only accelerated that downward trend.
Developer pitch: Drive-thrus, Home Depot, and housing
Developer Conrad Properties submitted a revised plan in 2024, which included big-box retail, quick-service drive-thrus, and even a bowling alley.
Following feedback from the city and public, they made some modifications: reducing the number of proposed drive-thrus from eight to six, and adding a Phase 2 that includes more housing and an open-space event area.
Concerns from the community noted that the city's vision for redevelopment included 30-40% open space compared to Conrad's, which offered 1% open space.
Councilmembers and community speakers agreed that the revised proposal clashes with key elements of the city's original vision for the site — a walkable, mixed-use community focused on housing, entertainment, and pedestrian-friendly design.
Conrad's updated proposal outlines several potential tenants, including IKEA, Chick-fil-A, Dick's Sporting Goods, Nordstrom Rack, BJ's Restaurant and Brewhouse, Peet's Coffee, Philz Coffee, and Dunkin'.
He told the council that in speaking with multiple proposed businesses, they expressed that they would only move forward if The Home Depot was the anchor tenant, which is the center of the amended proposal.
City policies intentionally banned drive-thrus and landscape/building supply stores in the original plan, citing concerns over traffic, noise, and incompatibility with housing and public space.
Conrad Properties maintains that The Home Depot is a necessary anchor tenant.
"Market demand dictates redevelopment," said Ethan Conrad. "Home Depot is the catalyst. Most other tenants won't commit without them."
Representatives from The Home Depot and In-N-Out also spoke at the meeting, emphasizing their interest in being part of the project, but offered few specifics. A representative from In-N-Out noted it would create 80 jobs, and The Home Depot representative noted it would create more than 100 jobs.
What's next for Sunrise Tomorrow?
At the end of the meeting, the council did not immediately move forward with any one option, instead signaling a desire for continued review. But the stakes are clear: Sunrise Mall remains the single largest potential site for economic development and housing in Citrus Heights.
Packed house at the Citrus Heights City Council meeting tonight. What's on the agenda? Sunrise Mall development plans. @CBSSacramento pic.twitter.com/J1CTziYPt7 — Madisen Keavy (@madisenkeavy) April 24, 2025