City Council Poised to Approve $4 Million Land Deal With CenterCal for Elk Grove’s 'Project Elevate'
Project Elevate, as it is now known, will compete with the adjacent shopping centers, The Ridge and The Village, for retail tenants.
When Elk Grove City Council meets on June 25, it is expected to approve a purchase-and-sale agreement that will transfer a 20.45-acre city-owned parcel at Elk Grove Boulevard and Big Horn Boulevard to El Segundo, Calif.-based CenterCal Acquisitions for $4 million.
The land is earmarked for “Project Elevate,” a so-called mixed-use development featuring at least 100,000 square feet of elevated retail and dining, a 100-room boutique hotel, and a half-acre village lawn, with heights ranging up to four stories and roughly 952 parking spaces.
Project Elevate, as it is now known, will compete with the adjacent shopping centers, The Ridge and The Village, for retail tenants.
Among the key points in the agreement, CenterCal will place a $200,000 refundable deposit applicable to the $4 million price. The developer has up to 28 months to secure entitlements, and construction must start within a year of closing.
CenterCal may buy up to five one-year extensions by paying option fees that escalate from $100,000 in years 1–2 to $500,000 in year 5. All option payments are credited against the purchase price.
If construction hasn’t reached 70,000 square feet of ground-floor retail (plus 10,000 square feet above) by May 30, 2029, or the hotel isn’t substantially complete by September 30, 2029, the city can repurchase the affected pad at a prorated price plus documented improvements. The city and developer will split up to $250,000 in conceptual-planning expenses.
story continued below
Is $4 million a taxpayer giveaway?
According to research conducted on ChatGPT, the city is providing a bargain for CenterCal to develop Project Elevate.
This is the analysis of the purchase price compared to other parcels:
"The city’s price works out to roughly $196,000 per gross acre, or about $235,000 per developable acre (17 acres of the site can be built upon). By comparison, active commercial land listings in Elk Grove average $326,700 per acre. landsearch.comCountywide averages run $350,306 per acre. landsearch.com
A recent 0.84- to 1.63-acre commercial offering on Waterman Road is priced between $805,000 and $1.07 million per acre. loopnet.com
Even after adjusting for the city’s obligation to relocate utilities and its right to claw back the land if benchmarks are missed, the sale sits 25-40 percent below prevailing market metrics—raising questions about whether taxpayers are leaving money on the table."
If approved, CenterCal would begin the entitlement process this summer. Closing could occur as soon as late 2027, but the developer can extend that date to 2032 by exercising all five extensions, provided that “commercially reasonable” progress continues.
Skeptics counter that the discounted land price resembles a subsidy and that Elk Grove’s history of unanimous votes breeds complacency. History shows that if an item is placed on the city council agenda, it is as good as approved.
