Council hears update on mall redevelopment, Sears parcel negotiations and Fountainhead retail activity

Unidentified staff updated the council that Pacific Retail Capital Partners continues strategic planning for the mall and is working to secure funding that would allow it to initiate the CEQA process for a comprehensive site redevelopment. Staff said the firm is still negotiating with note holders and that significant financing and a CEQA effort will be required before a large‑scale project moves forward.

Staff also reported there is an initial proposed offer for the Sears parcel and that the city is conducting due diligence; staff cautioned that they are still evaluating whether the Sears proposal pencils out. At the same time, staff said negotiations with a DICK'S store and other retailers are ongoing and likely would not be affected by broader mall financing discussions.

Separately, Martin Alvarez and council members described active development north of Lowe’s by a commercial developer called Fountainhead, which includes a Chick‑fil‑A project, approvals for two hotels and several additional retail users nearing construction. Council members emphasized the mall’s importance to city revenue and urged staff to protect commercial tax streams and prioritize revenue continuity.

What’s next: staff said it will prepare follow‑ups on the Sears offer, continue due diligence, and return with proposals and recommended next steps when the financing and CEQA plan clarify.