Citrus Heights council authorizes manager to pursue Sunrise Sports Center agreement

The Citrus Heights City Council voted unanimously to authorize the city manager to enter an economic development and participation agreement (EDP) with the Metal Shop to support redevelopment of a portion of the Sunrise Tomorrow site for the proposed Sunrise Sports Center.

City Manager Ash Feeney told the council the EDP is an early step to enable a private developer to assemble financing and advance land-use entitlements. "This is not a bond that is going to be assessed on people's property tax bills," Feeney said, clarifying the financing staff described would be repaid from the project’s own revenues rather than by a citywide property-tax assessment.

Why it matters: Staff and the development team portrayed the center as a catalytic project to revive the 100-acre Sunrise Mall property by bringing a year-round, multiuse sports and events campus that could attract regional visitors, new businesses and lodging. Developers estimate the project cost at about $120 million, to be funded roughly 50% by private equity and up to $60 million in bonds backed by project revenues; entitlements and CEQA review would occur later.

Presentation highlights: Joe Wagner, CEO of the Metal Shop, described a 322,000-square-foot complex that would include a 4,000-seat arena with NHL-size ice that can convert for other sports, a secondary sheet of ice, and a covered turf field of roughly 126,000–156,000 square feet. Wagner said the design emphasizes community programming — lessons, adaptive sports and youth recreation — in addition to ticketed events.

Martha Lofgren, land-use attorney for the development team, summarized an economic study included in the staff packet by Dr. Dan Rascher that estimated roughly 1.2–1.29 million visits per year to the facility, of which the study projected about 967,500 would originate from outside Citrus Heights. The study’s conservative economic-impact summary cited approximately $26.2 million in annual economic output and projected full-operation employment near 352 full‑time-equivalent jobs (at four years of operation); construction-period job impacts were presented as about 130 full-time-equivalent construction roles. Lofgren and staff emphasized those numbers are study estimates contained in the report attached to the staff report.

Community reaction: Dozens of written submissions and several public speakers praised the project’s potential to bring jobs and visitors. A large subset of commenters conditionally supported the proposal while urging the city and developer to preserve space for Royal Stage Performing Arts, a community theater currently located in Sunrise Mall. Tammy Warta, who identified herself as Royal Stage’s owner in a written comment read into the record, asked the council and developers to ensure the nonprofit can remain in the redevelopment or be assisted with relocation if necessary.

Council questions and safeguards: Council members pressed staff on the financing structure, public cost exposure and timing. Feeney and staff reiterated the EDP would include security measures (a first deed of trust and financial assurances) and that the city’s role at this stage was to authorize the manager to enter the agreement; land-use entitlements, environmental review (CEQA) and technical studies (traffic, noise, parking, utility demand) will be evaluated and returned to the planning commission and council in future hearings.

Vote and next steps: Vice Mayor Middleton moved to authorize the city manager to execute the EDP; the motion passed unanimously on roll call. The motion authorized staff to proceed with the financing plan and technical studies; staff said they will file entitlement applications, coordinate CEQA analysis and return with environmental and land-use items for public hearings. The council recessed briefly for a ceremonial photo after the vote.