Elk Grove’s Project Elevate moves from concept to contract.
After years of delays and a failed partnership with a national developer, the City of Elk Grove is officially moving forward with a new vision for Project Elevate—a long-planned, high-profile development on city-owned land next to District56.
On June 25, the City Council voted to approve a new Purchase and Sale Agreement with CenterCal Acquisitions, LLC, a Southern California–based developer known for upscale, experience-driven retail centers.
The deal allows CenterCal to acquire 17 buildable acres for $4 million and develop a walkable district featuring ground-floor retail, restaurants, a boutique hotel, and a public “village lawn” space. Though the project may eventually include housing, it’s no longer a guaranteed component.
“This project has had a long and winding road,” said Darrell Doan, Elk Grove’s economic development director, during his presentation to the council. “But I believe this is ten times better than anything else we have in the city right now, and that’s why we should do it.”
Project Elevate has been in motion since 2016, when the city first began exploring options to develop the site—a 20.45-acre parcel it acquired for free as part of the Laguna Ridge Specific Plan.
Originally imagined as a lifestyle center with fountains and boutique retail akin to Palladio in Folsom, the vision evolved in 2019 into a denser, mixed-use district. The goal: a vibrant, vertical urban hub that complements District56 and offers locals a place to “dwell, dine, and be entertained.”
Elk Grove initially struck a deal with Houston-based Hines Interests in 2022, envisioning a project with hundreds of apartment units, office space, retail, and a hotel. But after months of negotiations, the city and Hines parted ways. “We worked with Hines for a good six months. We could not come to an agreement on terms of development and timeline,” Doan explained.
Enter CenterCal. Known for properties like The Village at Totem Lake in Washington and 2nd & PCH in Long Beach, CenterCal was selected after the city re-opened its search for a development partner.
The centerpiece of the new plan includes 100,000 square feet of retail, a 100-room hotel, and roughly 10,000 square feet of second-floor flexible space. While early versions of Project Elevate were heavy on housing, the residential component is now optional—something the market will have to prove viable.
“The type of residential that this project deserves is a dense urban vertical product that you find in downtown areas,” said Doan. “We believe strongly that by building this project, we will create the market that brings the residential to the site.”
Under the agreement, CenterCal will place a refundable $200,000 deposit and has up to 28 months to secure permits and entitlements. If successful, escrow will close within 30 days, and construction must begin within one year of the closing date.
To allow flexibility, the deal includes up to five one-year extensions, with option payments rising each year. The city retains the right to repurchase the land if construction doesn’t commence within the timeline or if major components—like the retail core or hotel—aren’t built by 2029.
“It may seem like a long time,” Doan said of the 2029 target, “but for a project of this scope and scale, that is fast.”
Mayor Bobbie Singh-Allen and the council appeared optimistic, emphasizing the project’s potential to create a regional draw.
In the end, while Project Elevate may not fully realize the lofty aspirations first imagined in 2020, city leaders see it as a strategic step toward reshaping Elk Grove’s urban identity. As Doan summed it up: “This is not run-of-the-mill. This is not basic retail shopping.”
