Folsom city leaders forced to pivot after loss of huge sports complex project

Folsom city officials are forced to make a dramatic pivot after developers of a huge sports complex slated to be built in Folsom Ranch pulled out of the Folsom plan and opted to target the Sunrise Mall area in Citrus Heights instead. Folsom Mayor Justin Raithel told The Folsom Telegraph he received a disappointing phone call Monday evening, March 2, from the developer group's attorney, Martha Lofgren, alerting him to their plan to announce the project was moving its focus to Citrus Heights. "We were all under the impression that it was moving forward," said Raithel. "We were waiting for the BID process (Business Improvement District) to go forward at Martha's request. Instead, we got the rug pulled out from underneath us." Incidentally, Lofgren is a Folsom resident and former city manager and attorney between 1994-2006; she acted as the liaison between project developers and city officials. Raithel said the city was in the process of working on the financing side of the project, but momentum stalled in the past year. The Folsom Ranch Sports Complex was planned for the northeast corner of Prairie City Road and Alder Creek Parkway. The project was expected to be 126,000 square feet with covered and lit turf fields, a multi-sport recreational and entertainment hub. A wide range of sports and entertainment opportunities were envisioned for the spot, including ice hockey, figure skating, lacrosse, rugby and live music. Folsom city officials were understandably excited over the project, as it was expected to attract more than 1 million visitors per year funneling more than $23 million in revenue from lodging, business, eateries and more. Yet on Friday, March 6, project developers Tallen Capital Partners and The Mettle Shop announced the project is now being planned in Citrus Heights, in the Sunrise Mall area. Joe Wagoner, Sacramento Republic FC co-founder and CEO of The Mettle Shop, posted the announcement, stating "After several years of planning and evaluating sites across the region, we're excited to announce that The Mettle Shop is bringing our sports and entertainment project to the Sunrise Mall site in Citrus Heights. This project will become Sunrise Sports Center (working title), a one-of-a-kind sports and entertainment destination designed to serve the entire Sacramento region year-round." Wagoner said the complex would include a 4,000-seat multi-use arena that would host sporting events and concerts with two NHL-sized ice sheets, a 126,000 square-foot covered turf fields and additional outdoor turf space. Mayor Raithel said while news of the project move to Citrus Heights was incredibly disappointing, he noted the two venues, Folsom Ranch and Sunrise Mall, are vastly different sites. One huge difference was infrastructure. "To put something like that down in Folsom Ranch and not collect the impact fees and not do the infrastructure improvements would just be a disaster," said Raithel. "And Citrus Heights, it looks like they've negotiated a five-year deferral of impact fees." Raithel said it's also his understanding the plan with Citrus Heights will likely involve $60 million in debt financing with the backstop being the city's general fund. This is not a scenario that would have been viable for the city of Folsom to offer. "I think we were looking at other finance potentials like the business improvement district and other things, but with our general fund being relatively tight and having $60 million in financing backed by the general fund would be tough," said Raithel. "I think that was not our first priority, to put up our general fund for bond financing as a backstop." Due to the dramatic differences of the two locations, the Sunrise Sports Center is no doubt going to be a much different project from what was originally planned in the Folsom Ranch area. Raithel points out the Sunrise Mall area presents a wide range of economic development opportunities, as it will be built within a well-established retail hub in Citrus Heights, whereas Folsom Ranch was more of a stand-alone location. "While it is disappointing, I think at the end of the day we've tried to move this project forward for about two years," said Raithel. "We've been working with the applicant for about two years, and there hasn't been much movement in the last year, and I think it's a very different project building on a site that needs redevelopment all around it." Now that the Folsom Ranch Sports project is no more, Raithel said his priority as mayor is to figure out other best uses for the site. He hopes to work with the city's recreational partners to see if there's other opportunities for similar facilities, but the city would certainly benefit from more entertainment and recreation-oriented project opportunities. Folsom City Communications Director Christine Brainerd added the city remains committed to supporting high-quality recreation opportunities for residents. "The City of Folsom appreciates the time and effort The Mettle Shop project team invested in exploring the Folsom Ranch Sports Complex proposal. While we are disappointed the project will not be moving forward in Folsom, we respect their decision and wish them success," wrote Brainerd. "We will continue working with partners to support projects that benefit our community and the broader region while remaining focused on the City's fiscal priorities and long-term financial sustainability."