Elk Grove is rethinking its auto mall. Here’s what city officials envision
City officials are developing a long-term plan to modernize the Elk Grove Auto Mall, an economic driver for the city that generates about one-third of its sales tax revenue, as officials prepare for changes in the automotive industry.
The city is reviewing proposals from consulting firms to develop a master plan for improvements to the auto mall after the application period ended May 26, according to Darrell Doan, Elk Grove’s economic development director.
In its request for proposals, the city said expected outcomes include optimizing vehicle and pedestrian circulation, improving signage, enhancing streetscape design, incorporating environmental sustainability and improving safety. The selected firm will identify specific improvements and develop a plan to implement it.
Doan said a goal of the strategy is to prepare the auto mall for changes in the industry, including the rise of electric and autonomous vehicles.
As more consumers shop for vehicles online and automakers invest heavily in electric technology, dealerships nationwide are rethinking how their properties are designed and used. Industry analysts at one market research firm, Boston Consulting Group, say dealerships are investing more in digital retail platforms and service operations, while Dealer Marketing magazine has reported that some experts envision dealership campuses functioning less as sprawling vehicle lots and more as hubs for customer service and delivery of new models.
“We need to be able to prepare the auto mall for a future that may look different,” Doan said.
Doan said the plan is needed because of the significant contribution the Elk Grove Auto Mall makes to the city’s sales tax revenue, pegged at roughly $40 million annually according to city staff reports. He estimated that about one-third of the city’s sales tax revenue comes from vehicle sales at the auto mall, as well as fuel and other automotive-related purchases, making it a critical part of the city’s budget.
“As the auto mall goes, so does our discretionary revenue,” Doan said. “We can’t take the auto mall for granted.”
Doan said he expects the city to select a consulting firm within the next 30 days. There is no estimate for the cost of improvements because the consulting firm will first develop a plan and identify proposed projects before costs can be determined, Doan said.
“The key thing is to get the plan done,” Doan said. “The plan will tell us what improvements to make.”
Doan said he expects the changes to be implemented over the next five years, with smaller projects completed first and larger improvements phased in later as funding becomes available.
This story was originally published June 11, 2026 at 7:00 AM.
