Home / Archive / Elk Grove: Balanced Buildout
Thursday, May 17, 2012
Regional Focus: August 2006
Balanced Buildout
With prudent planning, America’s fastest-growing city hopes to age gracefully
Story by Michelle Gamble-Risley
In a city once known for houses springing up overnight, Elk Grove’s residential development process has become methodical and well-planned. Neighborhoods no longer experience the fallout of quick city planning, which resulted in infrastructure problems such as too few schools. Now the city has embraced a policy of growth management that produces residential and retail developments that rival communities as famous as the San Fernando Valley.
City leaders have begun to build infrastructure (schools, sewers, schools and parks) before houses. The policy, intended to maintain Elk Grove’s quality-of-living standards, is attracting residents -— the city’s population grew by approximately 9,000 people in 2005.
“Elk Grove has a reputation for having an exceptional quality of life,” says Cody Tubbs, director of communications for the city. “The City Council has been very forward-thinking in terms of putting in funding mechanisms to ensure we develop new residential housing where we have the services in place such as police and [fire]. These funding mechanisms ensure we sustain that quality of life.”
Once considered little more than a small town south of Sacramento, Elk Grove has risen from the empty fields to become a diverse community with an old-fashioned downtown and historic district as well as winding suburbs and the peace and quiet of rural farmland.
“Elk Grove has a lot to offer,” says Greg Paquin, president of the Folsom-based Gregory Group. “There are really two Elk Groves now. We have the city from east of I-5 and east of Highway 99. Each offers two separate, distinct markets. One is more rural, without as many subdivisions and older retail establishments. The other market, which people refer to as Laguna, is more suburban, with master-planned communities and extensive retail.”
Families are moving into 10-year-old homes, purchasing new homes, and putting down payments on homes yet to be built. The increase in building permits demonstrates just how rapidly homes and businesses are being constructed: In 2004, 8,830 building permits were issued; 22,085 permits were issued in 2005.
This rapid increase makes sense, as the groundbreaking of the much-publicized Madeira master-planned community — with 7,700 new homes, an unprecedented amount of new parkland, a civic center and retail outlets — is imminent.
“We’re going to spend most of this year putting in Madeira’s infrastructure, and the homes primarily won’t go in until the early part of next year,” says Christine Crawford, planning director for the city.
Madeira will contain single-family homes, townhouses and condominiums available to rent or own. The homes will be arranged in villages with different home sizes and layouts. One of the major builders, Del Webb, will construct an adult community for residents age 55 and older.
Madeira’s most appealing feature may be its 234 acres of parkland and open space, similar to the parkways and greenbelts created by developers in Folsom and El Dorado Hills.
“It will have a park system that goes above and beyond what has been done before in terms of acreage and amenities,” says Crawford. “It will include trail systems and paseos [50- to 100-foot walkways through greenbelt areas] for jogging, bike riding and recreating. We want to create as many ways [as possible] to get to and from somewhere without having to get in a car.”
“There are really two Elk Groves now.”
— Greg Paquin, president, the Gregory Group
Paquin believes the slowing home market will play in Madeira’s favor. “The region’s price points got too aggressive, which is why sales slowed down,” he says. “The economy is still very good. While buyers may not want to invest in a $600,000 home, they may wait for new moderately priced homes to be built. This means Laguna and Madeira are very sustainable markets.”
Paquin expects the overall housing market to continue to flourish as well. “Elk Grove has always offered a diverse range in price points,” he says. “Condo conversions run $100,000 to $200,000, or buyers can purchase larger $1 million lots. Now that the market is adjusting, I expect to see prices level out. A greater supply also means keeping up with demand, which helps contain prices.”
Pricing may be affected by the kinds of residents settling in the new homes. Once dominated by Bay Area transplants looking to retire or own a home, the market has shifted. “The Bay Area influence is less than 10 to 15 percent,” says Paquin. “Bay Area interest dropped because Sacramento-area prices increased so rapidly, people didn’t feel like the market had the same value and they started looking to growing areas like Reno. Now we’re seeing more people who live in the region but want to move up into better homes coming to Elk Grove.”
Such demographic shifts impact the business environment. Many private and government agencies have begun relocating to the area, bringing high-paying, professional jobs with them.
“Last year we had our first state headquarters, the Department of Fair Employment and Housing, move to the city,” says Tubbs. “They actually surveyed their employees about where they ought to relocate their office. Many employees already lived in Elk Grove and wanted to work close to home, so the state moved the office. These jobs are solid, white-collar, stable jobs with good salaries. That is exactly the kind of model we expect to see down the road. We want to encourage a well-educated workforce as we go forward.”
A working population no longer interested in commuting to downtown or down the 50 corridor is leading many businesses to realize the value of moving to Elk Grove and leveraging the existing workforce. Sutter, for example, plans to build a new hospital that will employ executives and professionals. Auxiliary executive-level businesses are expected to spring up to support this population.
All of this growth and a 1,200-acre residential development south of Madeira prompt the question, “When will Elk Grove be built-out?” City officials and Paquin have the same answer: in 15 to 20 years. Should businesses be deterred by this growth? “Buildout is not necessarily a bad thing,” says Crawford. “I think the city will continue to thrive and be energetic.”
