Business & Real Estate

Elk Grove hopes tap rooms can help slow ‘retail leakage’

Rendering of the proposed Elk Grove Brewery
Rendering of the proposed Elk Grove Brewery

The city of Elk Grove is working with a Sacramento developer on a proposed 30,000-square-foot “brew hall” project that would house multiple craft brewers and serve as a showcase public drinking and eating destination.

The initial proposal, which was presented to the City Council in late January, would be on a nearly 10-acre site in the industrial area on East Stockton Boulevard along Highway 99, just north of Grant Line Road.

Rachel Brown, economic development manager for Elk Grove, noted that it’s early in the process, and she’s working with the developer on the proposed site.

“With brewers sharing space, we’re looking at options for tasting rooms, a brew house, a restaurant…maybe a wine-tasting room,” she said. “We’re still working to iron out the details, but I’m excited and looking forward to the next steps.”

Brown said the city is working with Fite Properties in Sacramento. A Fite rendering shows four brewers and three taprooms, but as many as seven brewers on site have been considered.

Brown said Monday that the proposed craft brew destination evolved as a byproduct of the city examining possible spaces for individual breweries. Brown said the problem, however, was there that “were very few options…The more we started looking, we thought about the possibility of several brewers sharing (space), and what if we make it more experiential.”

The working title of the project is “Brewspace.”

“Brewspace” was just one part of a comprehensive overview of current retail numbers and future possibilities in Elk Grove presented to the city council on Jan. 24. Economic development Director Darrell Doan’s report also noted that staff also is evaluating the “potential for development of a lifestyle shopping center project on city-owned land (approximately 20 acres) along Elk Grove Boulevard just north of the city’s Civic Center, which is currently under construction.”

The report said the “project envisioned by staff would be similar in concept to The Fountains (at) Roseville and would consist of an elevated mix of entertainment, restaurants and shopping.”

Doan’s report said that “Elk Grove is experiencing significant ‘retail leakage,’ meaning Elk Grove residents are purchasing large quantities of taxable retail goods outside of the city limits…(and) Elk Grove lacks the available retail space necessary to compete regionally for higher quality tenants. At the end of (the third quarter of) 2017, Elk Grove had approximately 5 million square feet of existing retail space in shopping centers, while the region contained approximately 48.5 million square feet.”

The report said development staff hopes to seek council authorization of the proposed “Brewspace” and shopping center projects “possibly in the first half of 2018.”

Mark Glover: 916-321-1184, @markhglover