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Elk Grove's 'ghost mall' site sold to casino company

The sale formally ends Howard Hughes Corporation's plans for an outlet mall on the property.

ELK GROVE, Calif. — The site of the Elk Grove "ghost mall" was sold to a Las Vegas-based gaming company. City leaders announced the sale on Monday after the property was picked up by Boyd Elk Grove, LLC.

Officials said the 64-acre property along Promenade Parkway and Grant Line Road was sold by the Howard Hughes Corporation (HHC) and ends plans to develop an outlet mall on the property. 

The land itself idled for more than a decade in a partially completed state after the original developer, General Growth Properties, went bankrupt in 2007. HHC bought the property afterward but was never able to get the level of pre-leasing it needed to continue with construction.

RELATED: Demolition begins on Elk Grove ‘Ghost Mall,’ clearing the way for new casino and resort

By 2019, the company told city officials that it was abandoning the project. A month later, demolition started on the site of the ghost mall.

The land is next to a 36-acre property owned in a federal trust for the Wilton Rancheria Native American Tribe's casino project. City officials said Boyd Gaming partnered with the tribe to develop a gaming project on the nearby land, but the company hasn't indicated their plans for the property or a timeline for development.

“This investment demonstrates our continuing commitment to the Wilton Rancheria Tribe and the Elk Grove community,” Keith Smith, president and chief executive officer of Boyd Gaming said. “By acquiring this parcel, the tribe and Boyd Gaming believe we will have the most dynamic casino and hospitality development site in all of Northern California.”

RELATED: Elk Grove ‘Ghost Mall’: Four things to know after the City announces demolition

City officials said Boyd Gaming confirmed its desire to work with the city moving forward.

“While we are disappointed that HHC was unable to deliver on their mall project for our community, we are excited for the opportunity to work with Boyd Gaming to make the best use of this long-neglected property in our City,” said Elk Grove’s City Manager Jason Behrmann. “This sale offers a fresh start and a new opportunity to develop something with a group who shares the City’s vision for the site and its potential as a regional destination.” 

WATCH ALSO: Elk Grove 'Ghost Mall' demolition paves way for new casino, resort

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