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citrus heights In Citrus Heights, Public/Private Partnerships Offer Added Value

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by Jennifer von Geldern

A Conservative Fiscal Agenda Turns Citrus Heights Around

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by Laurie Lauletta-Boshart

Sunrise MarketPlace District Success Spotlights Public/Private Partnership

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by Kristen Lowrey-Larson

PHOTO BY: CHIP ALLEN

November 2014 | comstocksmag.com

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Citrus Heights

PHOTO: COURTESY OF THE CITY OF CITRUS HEIGHTS


In Citrus Heights, Public/Private Partnerships Offer Added Value by Jennifer von Geldern

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ince incorporation in 1997, the city of Citrus Heights has been participating in public/private partnerships — business ventures funded and operated through the collaboration of city government and private-sector companies. Goodwill and a helping hand from the city can get many projects off the ground that might otherwise fail. These partnerships can also help reinvigorate a city’s older commercial areas. “Citrus Heights is 98 percent built out,” says the city’s Community and Economic Development Director Rhonda Sherman. “The majority of our new business activity happens when

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comstocksmag.com | Novemb er 2014

property owners decide to redevelop. These types of developments can be challenging because we don’t have a blank slate, but are critical to the continued economic stability and growth of our city.” With the city’s help, an expanding business or one new to town may be just the match for bringing a blighted property back to productivity. Though Citrus Heights, with a population of about 84,000, has recently welcomed some larger companies, much of its fabric is made up of small businesses. “Almost 75 percent of existing businesses in Citrus Heights have fewer than 10 employees,” Sherman confirms. “It is im-


Citrus Heights

“Participating in public/private partnerships to help existing businesses upgrade or expand and to attract new businesses with varying offers of assistance is good for the city. Successful businesses provide jobs, provide revenue, help increase property values and enable citizens to shop locally for products and services.”

Offerings made by Citrus Heights to businesses in public/private partnerships vary but can include help with the cost of public improvements a project may require (such as road, traffic signal and sidewalk improvements), loans or grants, or relief from fees. “Through our economic development fund, we can offer immediate assistance, such as sewer connection fee credits or façade projects to make businesses more attractive,” says City Manager Henry Tingle. “However, we also may enter into — Henry Tingle, Citrus Heights City Manager. some longer-term revenue/tax sharing agreements, like we did with our local Honda dealership. The Honda corporation was making it attractive for them to move out of town, so the dealership approached us and, portant that these establishments remain economically competitive, and fostering small business growth is one through a 10-year agreement, we retained them as one of our top five sales tax generators.” of the goals of our economic development strategy.” With every partnership proposal, the city council A highly visible example of a partnership between analyzes the business’s viability, assessing whether the city and small businesses is the recent Auburn the product or service is unique or if there is enough Boulevard Revitalization Project from Sylvan Road to demand to keep the business successful. They also Antelope Road. The city has invested nearly $17 million calculate the revenue and jobs to be generated and to rebuild driveways and sidewalks, add bus pull-outs examine the business’s track record, if it has one. and bike lanes, plant hundreds of trees, put overhead “We’re also open to brand-new businesses if it’s utilities underground and enhance access to dozens an attractive proposal,” notes Tingle. If the business is of small businesses, making them more attractive to deemed a good investment, the council explores methpatrons. Such a boost from the city inspires business owners ods of helping to fund the project or provide financial to invest in themselves. The city’s $5 million investment relief. For some smaller agreements, the approval process may take only a couple of weeks, whereas larger in Sylvan Corners has resulted in more than $8 million projects may take months. of private investment in new businesses, expansions and renovations plus the creation of 50 new jobs. The city works closely with the Chamber of Commerce, as well as representatives of Sunrise MarketRISING ANEW Place and the Antelope Crossing Business Association. Stones Gambling Hall, opened in 2014, is a recent exSunrise MarketPlace is a 10-block area in the heart ample of Citrus Heights working efficiently and enthusiof Citrus Heights that consists of hundreds of stores, astically to help a business come to town. services and restaurants, including Sunrise Mall, MarBased in Southern California, Stones bought two ketplace at Birdcage, Lowe’s and Target. The Antelope older Citrus Heights card rooms, the Lucky Derby and Crossing Business Association focuses on breathing the Phoenix, and renovated two vacant buildings to new life into the commercial and retail centers at Interdevelop the entire package into one of the region’s state 80 and Antelope Road. premier gambling halls, at Interstate 80 and Antelope

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Road. This 25,000-square-foot, state-of-the-art gaming facility features two separate card rooms, the Tavern and the Saloon; as well as Sammy’s, an upscale, full-service restaurant and bar; and a private room for meeting and events. “The city’s permitting process went smoothly, but Stones needed some approvals from the state gaming commission,” Tingle says. “Citrus Heights was able to assist them in that process by providing legal assistance. Our attorney provided interpretation and clarification of the city council’s intent to ensure that the project could gain the commission’s approval.” Stones partner Kermit Schayltz had owned Lucky Derby, one of the original Citrus Heights card rooms, and has been a key player in the successful partnership with the city. As a business owner, he was part of the incorporation effort and developed a strong relationship with the city over decades. “Citrus Heights has accomplished so much — a balanced budget every year, money in the bank and payment for everything in cash. It was an eye-opener for my partners in Stones to see how efficient the approval process was in Citrus Heights. “State-level hurdles were still there,” continues Schayltz, “but the city was amazing. The city attorney went to bat for us, appearing before the state commission against some deputy attorney generals who opined that our ordinances were not in compliance. The commission agreed with us, based on the Citrus Heights attorney’s arguments. The city has gone above and beyond for us, and for many other local businesses. They bend over backward to help.” The assets Stones brought to the city include 400 jobs and the clean-up of a blighted area, Schayltz says. “We took vacant buildings and remodeled them inside and out, making them modern, attractive and productive. The city also wanted an upscale restaurant, and Stones provided that. We provide a product that the city appreciates and have also helped the businesses around us increase their bottom line.”

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BUSINESS-FRIENDLY FUTURE Large retailers, such as Walmart and Costco, have brought hundreds of jobs to Citrus Heights since incorporation, and the city is always looking for new ways to enhance the quality of life for residents. Lowe’s is an example of a business that the city viewed as beneficial. “We market the city through trade shows and by providing demographic information to attract new businesses,” says Tingle. “We create economic development strategies and offer economic incentives.” Partnering with businesses is a calculated risk for a city. “We could make a major investment and a company may not survive, but that’s the risk we have to take for progress, and we put all due diligence into making those decisions. There’s no question that we’ve been very successful with these partnerships so far.” Citrus Heights has seen major reinvestments in many of its major retail centers by property owners because they continue to see Citrus Heights as a viable and productive environment. The city has also improved property values through infrastructure reinvestment. Since incorporation, they’ve spent close to $100 million rebuilding their major thoroughfares and intersections for improved safety, access, and landscaping. The city is currently working on a collaboration to bring the first large medical office building to Citrus Heights. “We’re in our second year of working out details, and it’s by far the largest public/private partnership we’ve ever undertaken,” Tingle says. “It’s about a $50 million project that involves relocating and building a new city hall to make way for the medical facility. We have no major medical provider right now, and this would bring 50 doctors and 120 support personnel to Citrus Heights. It should come to the city council in early 2015 for final consideration. “Our goal is to keep the city viable, flourishing and growing as a community — enhancing the experience of living in Citrus Heights,” concludes Tingle. Through a business-friendly attitude and public/private partnerships, Citrus Heights is achieving that goal. n

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A Conservative Fiscal Agenda Turns Citrus Heights Around by Laurie Lauletta-Boshart

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itrus Heights City Manager Henry Tingle has a fiscal philosophy that has set his city apart from others in the Capital Region. Having worked for decades in counties, cities and districts throughout the Bay Area, Tingle has plenty of experience with overextended budgets, irrational spending and unsustainable compensation packages. So when he stepped in to lead Citrus Heights, he arrived with a plan for economic change. Fifteen years later, his city is debt free, has healthy reserves and has paid cash for every project completed under his watch. Those projects have included nearly

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$100 million in infrastructure building and $30 million in road construction. But that wasn’t always the case. When Tingle took over the reigns as city manager in 1999, the municipality was in a state of flux. According to Tingle, the city was reeling from a burdensome revenue neutrality agreement with the county of Sacramento. The agreement, which by law requires new cities to compensate the county for lost revenue due to cityhood, was weighing them down. The amount of money the city was giving the county was substantial and prevented them from moving forward with infrastructure and development projects. The city pushed back; the county filed a


Citrus Heights

To smoothly transition Citrus Heights from county-run law enforcement to cityowned, Tingle’s first order of business was to hire Christopher Boyd, the city’s inaugural police chief, in late 2005. Boyd was tasked with forming the city’s first police department from the ground up. “I was given complete autonomy to build a police department that fit our vision and values, but I also had full leadership and financial support from the city,” Boyd says. — Citrus Heights Police Chief Christopher Boyd Tingle’s fiscally responsible approach allowed Boyd to plan ahead, creating a stable and predictable work environment, even during the downturn. lawsuit. Citrus Heights ultimately settled, agreeing to give “Because we knew what to expect, we were able to the county their property tax revenue through 2022 but position the city for the future and create an atmosphere nothing more. of stability,” he says. While other cities were laying staff “Once we settled the lawsuit and knew what to off to make ends meet, Citrus Heights was able to make a expect, we were able to look at our operations and comguarantee of no layoffs to their employees. “That allowed plete a comprehensive evaluation of our contracts and us to keep our workforce intact and to build trust and services,” Tingle says. confidence in the community.” They found it made more sense to bring some serBecause Citrus Heights is a built-out city, there’s not vices in-house and move others out of house. By bringing a lot of opportunity for growth and revenue, so Tingle did law enforcement under city jurisdiction, Citrus Heights not structure the city’s budget based on that. He came up was able to save $2.5 million per year. They also found it was more cost effective to contract out for street services. with a different game plan. “We established a conservative planning and debt-free philosophy, and as a result, “Overall, we saved millions just through this one exerwe now have substantial reserves,” says Tingle. “We can cise, which allowed us to start building up our reserves,” use the reserves to fund public infrastructure projects, Tingle says. which entice developers and businesses to come to Citrus But building up reserves took time. The city saved for Heights.” 10 years before having enough reserve money to move And come they have. John Stock, owner of Stock forward with a community center. The center was built and paid for with cash and quickly became self-sustaining, Ranch, some of the only undeveloped property in Citrus Heights, has worked with Tingle on a number of projects, drawing no resources from the city’s general fund. A including the development of a Walmart and Costco, brand new police station and city hall followed, all develSmall Business Administration regional office, a resioped without debt. dential housing development, community park and the “We took our time building up our reserves and rent40-acre Stock Ranch Preserve. ed space for quite a while,” Tingle says. “When the timing The city also recently completed the $15 million was right and the money was there, we moved forward.” Stones Gambling Hall project, which employs 300 people. Citrus Heights has paid for more than $100 million in Kermit Schayltz, a partner with Stones developer Kings infrastructure improvements without loans or bonds; the same goes for road improvements, including a $20 million Casino LLC, waited for the Citrus Heights location to become available for years. When it finally hit the market, project on Auburn Boulevard that moved all overhead he and his partners jumped on it. lines under the street and added inviting sidewalks and “Once we were ready to go, it was a smooth process curbs. to work with the city staff,” he says. “They are very profes“The excitement of becoming a new city can be very sional but also business friendly, which I really appreciate. dangerous,” Tingle says. “The natural thing is to go right And Tingle is just head and shoulders above others that I into debt and build the infrastructure. But once you get have worked with.” n into debt, it’s difficult to get out of it.”

“We were able to position the city for the future and create an atmosphere of stability. That allowed us to keep our workforce intact and to build trust and confidence in the community.”

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Sunrise MarketPlace District Success Spotlights Public/Private Partnership by Kristen Lowrey-Larson

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ublic/private partnerships have a history of favorable outcomes in Citrus Heights, and the Sunrise MarketPlace Property Business Improvement District has exemplified this collaborative success. Shortly after Citrus Heights incorporated, a group of property owners approached the city to form the Sunrise MarketPlace PBID and a nonprofit organization to manage its assessment. The district covers 11.9 million square feet of retail space, bordered by some of the most traveled streets in the Sacramento region, with more than 70,000 cars passing through the intersection of Sunrise Boulevard and Greenback Lane each day. 102


“The PBID ensures the 10-block area is clean and safe, and it has invested millions of dollars in the district to generate awareness and drive traffic to our businesses,” said Sunrise Mall General Manager Christi Woodards, who also sits on the PBID’s board of directors. Recently, the Sunrise MarketPlace PBID received its third renewal approval for a 7-year assessment, and with more than 400 businesses participating, the PBID renewal stands to make a strong impact. “For us, the PBID is about marketing. It’s our way of creating a destination and a brand,” said Kathilynn Carpenter, executive director of Sunrise MarketPlace.


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“The Sunrise MarketPlace Property Business Improvement District ensures the 10-block area is clean and safe, and it has invested millions of dollars in the district to generate awareness and drive traffic to our businesses.”

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visitors to the area in the past three years. “Events are successful because they bring people out who don’t normally come out here,” Carpenter said. “That’s the goal of a regional event, to draw outside our trade zone.” Sunrise MarketPlace also works with the police on public safety issues including homelessness, blight and economic development. — Sunrise Mall General Manager Christi Woodards These efforts and goals aim to create a business-friendly environment in which Citrus Heights residents can work and shop, “Our mission is to increase traffic and awareness to the keeping their dollars within the city. area and our businesses.” “The challenge is we are an inner-ring suburb. So, With an annual sales revenue of $450 million, the district has increased awareness of the area through an since we’ve formed, we’ve invested $8 million back into the area.” Carpenter said. “It’s a fairly vibrant area integrated marketing program that includes advertiscompared to other similar, aging business cores.” ing, social media, a dynamic event program, improved Due to this “inner-ring” location, Carpenter said signage and traffic-event activation to draw customers the city has had to be thoughtful about reusing existing from its secondary trade zone. properties and structures. The district is recognized as “The PBID has formulated a unique marketing a strong area in which to do business and continues to strategy that is continually evolving. Companies both attract national retailers, including Steinmart, HD Suplarge and small derive great benefit from its efforts,” ply, Party City and Wal-Mart Neighborhood Market. said Jason Bollinger, asset manager of Citrus Town HD Supply will be taking over the old Circuit City Center. building on Greenback Lane. There is a large-truck Businesses have the opportunity to join the PBID’s ordinance in place near the store, and under previous board of directors, which governs the district and deregulations, HD Supply wouldn’t be able to receive determines which projects will be funded by the assessliveries from big trucks. The PBID worked with the city ment dollars. The city of Citrus Heights holds a seat and police to add a street to the approved truck route. on the board as an advisory member. The bylaws also This problem-solving success story is one among account for seats of the other major stakeholders such many in the PBID’s 15-year history. as Macy’s and Sears; this year, Lowe’s was also added When Bollinger rebranded the Citrus Town Center, to the board as a major contributor to the assessment. he wanted to install a rooftop sign, something that was “I wanted to make sure that my business and my prohibited by city ordinance. The PBID worked with the customers were realizing the benefit of being part of city to find a solution, lobbied the solution and drafted the PBID,” said A.J. Lloret, a store manager at Lowe’s. a signed exception ordinance that would allow for an “Before I was a member of the board, I had little knowlappeal process to allow for a rooftop sign. edge of the PBID or the ways that my business was “The PBID has been helpful in connecting our combeing supported. Since joining, we have not only been pany with various city agencies to promote progress,” more able to realize those benefits, but we have also Bollinger said. “Our recent remodel of Citrus Town been able to help shape them.” Center was truly a group effort: City council, planning, Successful projects developed as a result of the building and economic development all played imporPBID include the Sunrise Boulevard and Greenback tant roles in the successful development.” n Lane median beautification projects, holiday décor and special events, such as the Sacramento Capitals tennis matches. These events combined have brought 50,000


We are celebrating 15 years of improving and transforming the Sunrise/Greenback business corridor. Since 2000, the Business Improvement District has transformed and elevated the area’s image and its physical and social environment. Over the past 15 years, our property owners have invested $8,000,000, brought thousands of visitors and generated millions of media impressions. Together, we created a cost-effective, collaborative resource that benefits all members, large and small.

Together We Succeed

Located in a 10 block area along Sunrise Blvd. and Greenback Lane in Citrus Heights

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SHOPPING

CONVENIENCE

DINING

Sunrise Mall is the centerpiece of the Sunrise MarketPlace shopping district at Sunrise and Greenback in Citrus Heights, featuring over 80 great retailers including Macy’s, JCPenney and Sears.

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Plenty of time to shop. Only minutes to park.