Project Elevate Could Remake Downtown

Elk Grove’s Project Elevate has moved from concept to a signed development deal, putting a long-delayed downtown-style district back on track. (elkgrove.gov 1) (elkgrove.gov 2) The city owns the 20.45-acre site north of District56, bounded by Elk Grove Boulevard, Big Horn Boulevard, Civic Center Drive and Big Timber Drive. About 17 acres are considered developable under the June 25, 2025 staff report. (elkgrove.gov) City leaders approved a concept vision for the project on August 12, 2020, then sought developers through an offering memorandum issued on January 13, 2022. Six proposals came in over two rounds. (elkgrove.gov 1) (elkgrove.gov 2) The first version fell apart. Houston-based Hines Interests ended its exclusive negotiation agreement on May 15, 2023, after city staff said the company could not move forward on terms and a timeline acceptable to Elk Grove. (elkgrove.gov) (elkgrovenews.net) Elk Grove then pivoted to CenterCal Acquisitions, an El Segundo developer, through a letter of intent approved on April 24, 2024. The City Council approved a purchase and sale agreement with CenterCal on June 25, 2025. (elkgrove.gov) (elkgrove.gov) What the city is now describing is less a single building than a district plan. The current program includes a four-story boutique hotel with at least 100 rooms, at least 100,000 square feet of retail, restaurants and entertainment, plus 10,000 square feet of second-floor space for retail, office or housing. (elkgrove.gov) (elkgrovelagunanews.com) The plan also includes an approximately half-acre “village lawn,” buildings ranging from one to four stories and about 950 parking spaces. Housing is still optional, with the city saying it wants residential uses included if market conditions allow. (elkgrove.gov) The city says the goal is to add retail, dining and entertainment options that Elk Grove does not already have, while creating a walkable public gathering space near District56. CenterCal has cited open-air centers such as Roseville’s Fountains and Folsom’s Palladio as reference points. (elkgrove.gov) (elkgrovelagunanews.com) The deal is still not the final land-use approval. City records say CenterCal must secure entitlements and permits, and the council’s June 2025 action did not itself approve a project under the California Environmental Quality Act. (elkgrove.gov) (elkgrove.gov) Elk Grove amended the purchase agreement again on January 14, 2026, revising milestones, updating the legal description and applying affordable-housing restrictions to both parcels in the property. (elkgrove.gov) If the schedule holds, construction could begin as soon as summer 2027. For a project first pitched in 2020 and derailed once in 2023, that is the clearest sign yet that Elk Grove still wants this site to anchor a new downtown-style hub. (elkgrove.gov)