Elk Grove News

Elk Grove’s ‘ghost mall’ to be demolished by developer, city announces

Elk Grove’s “ghost mall” will be demolished after over a decade of sitting empty and incomplete along Highway 99, according to the City of Elk Grove.

The Outlet Collection at Elk Grove, as it’s formerly known, is owned by the Howard Hughes Corp. Construction stopped in the midst of economic recession, and the mall has faced hardships since.

In a news release sent out Tuesday evening, the city of Elk Grove said the Howard Hughes Corp. has notified the city that it “intends to abandon plans” to build the shopping center and will demolish the existing, partially constructed mall.

“The city did everything within its power to move the project forward, but all decisions on the development of the mall ultimately rest with HHC,” said Elk Grove Economic Development Director Darrell Doan in the release.

“While we are disappointed that HHC was not able to complete the project, we are excited for the opportunity to potentially partner with a new developer who shares the City’s vision for the site and its potential as a regional destination.”

According to previous Bee reporting, there has been no activity on the property for years. In November, a deal between the city and Howard Hughes that would have allowed the corporation to keep a percentage of sales tax expired.

Elk Grove made the deal in in 2014 as an attempt to incentivize the developer to begin construction. It would have stayed in effect until the mall reached a threshold of 21 tenants and 400,000 square feet, according to previous reporting.

While the mall project won’t continue, a nearby project by the Wilton Rancheria tribe to build a major $400 million casino is still underway. When completed, it will be Sacramento’s nearest casino, and include a hotel and convention center.

“There are no current changes – we’re on track for what we’ve planned to do,” said Wilton Rancheria Chairman Raymond Hitchcock. “Our project does not hinge on what Howard Hughes does or doesn’t do on the Outlet Collection site.”

“If they have some different type of plan to alter the Outlet Collection mall, or sell to another developer who would put in potential retail, that would be the best preference,” Hitchcock said.

The Wilton Rancheria project would build a resort and casino just north of the mall site. Construction is slated to begin this year, Hitchcock said, though he could not specify when.

“The zombie mall is kind of a bad eyesore, and we can’t wait to see those (structures) torn down,” Hitchcock said.

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