The Abridged version:
- City of Citrus Heights is considering using new fees to urge landlords to eliminate blight on empty storefronts.
- The proposed “reoccupancy ordinance” would also apply to Sunrise Mall, which has shed many of its tenants over the years. The city is looking for a path forward to redevelop the mall.
- Last year, the city filed a lawsuit alleging that Sunrise Mall has become an “intolerable public nuisance.”
The city of Citrus Heights is looking to put more heat on landlords fix up vacant, blighted storefronts and find new tenants.
A proposed “reoccupancy ordinance” on commercial properties would use increased fees to pressure property owners into maintaining empty storefronts. The Citrus Heights City Council is set to vote on the proposed ordinance Wednesday evening.
Under the ordinance, landlords who own commercial properties that have been vacant for more than 60 days would be required to register with a monitoring program. The program sets fees of $2,222 to $6,667, depending on the size of the property, to cover the cost of monthly compliance inspections.
The inspections would only be required, however, for properties that don’t meet certain maintenance and safety standards. The fees would be waived for properties that are found to be in compliance with the city program, according to Meghan Huber, the city’s economic development and community engagement director.
“It’s intended to prevent blight,” Huber said. “We want to encourage them to reoccupy these sites.”
The ordinance is also intended to keep properties in better condition so that they “may attract tenants more readily,” even if market conditions are slow, according to the city.
Huber estimated that about 50 vacant storefronts could fall under the proposed ordinance.
Ordinance could affect increasingly vacant Sunrise Mall
The ordinance would also apply to Sunrise Mall, according to Huber. The mall has seen a steep drop in tenants over recent years and is falling into disrepair.
Vacant storefronts far outnumber the amount of stores with active tenants at Sunrise Mall. Stalls at the food court remain shuttered and portions mall’s south wing are fenced off to visitors. On a recent walkthrough of the mall, Abridged noted roughly 11 stores that appeared to be staffed and open.
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The city is looking into multiple ways to either force Sunrise Mall’s owners to maintain the property or incentivize them to take over and redevelop the mall.
In November 2021, the council adopted a formal plan to “re-imagine” the 100-acre site that includes Sunrise Mall.
The Sunrise Tomorrow plan describes an ambitious approach to turn the site into a “vibrant mixed-use village and showcase for the city.” The plan describes the addition of 2,200 housing units, three hotels, a tech hub and new office spaces, plus new restaurants and outdoor event spaces.
More than four years later, those plans still appear theoretical. Property owner Namdar Realty Group quietly began seeking buyers last June, the Sacramento Business Journal reported.
Public nuisance lawsuit, condemnation appraisal still pending
Last summer, Citrus Heights filed a lawsuit against Namdar Realty alleging that Sunrise Mall had become an “intolerable public nuisance.”
In the 39-page complaint, the city alleged the mall had significant water damage and places where homeless individuals were camping. The lawsuit also alleged that the site had drawn an uptick in crime and calls for service.
The lawsuit seeks a court order for Namdar Realty to pay $565,000 in unpaid fines owed to the city. The case is still pending a court hearing by a judge.
Representatives from Namdar Realty said they had “no comment at this time” on the lawsuit or proposed vacant property fees.
Citrus Heights is also midway through commissioning a condemnation appraisal, which could open the door to eventual eminent domain proceedings.
Huber declined to comment on the city’s next moves, including eminent domain and seeking a buyer for the mall.
“It’s an important step in doing our homework so we have all the information we need,” Huber said of the appraisal.
Felicia Alvarez is a reporter at Abridged covering accountability. She’s called Sacramento home since 2015 and has reported on government, health care and breaking news topics for both local and national news outlets.