El Cajon is eyeing a blockbuster real estate move: a potential purchase of Parkway Plaza, the county’s largest enclosed mall, in a bid to keep the sprawling center from sliding into long-term decline. City Manager Graham Mitchell did not sugarcoat it, warning the council that the deal would likely be the most complicated acquisition any city staff in California has ever handled. City leaders say the goal is to explore whether the aging retail giant can be reborn as a mixed-use hub with homes, parks and revamped shopping.
Council advances study of a city purchase
The City Council voted this week to let staff dig into what it would actually take for El Cajon to buy Parkway Plaza, including possible purchase structures, financing tools and development partners, as reported by The San Diego Union-Tribune. Council members stressed this is an exploratory step, not a green light to cut a check, and asked staff for options that could involve public-private partnerships or special financing districts. Councilmember Phil Ortiz said the city has decided it cannot sit back and instead must lead the conversation on what Parkway Plaza becomes.
Planning money is already in place
The city is not starting from scratch. A recent cycle of TransNet Smart Growth funding included $650,000 for a Parkway-focused planning effort, according to a SANDAG release. Regional coverage last fall detailed how that money helped launch early community outreach in late 2025, as noted by East County Magazine. City officials say the grant is aimed at strengthening transit connections and positioning the site to attract future private investment.
Consultants laid out redevelopment options
A city-commissioned market study came back with two big-picture visions for Parkway’s makeover. One concept would shrink the traditional mall interior and weave in new housing and parks. The other would preserve a tighter retail core while surrounding it with mixed-use development. Hunden Partners, which helped craft those scenarios, projected that a successful redevelopment could boost El Cajon’s annual revenues by at least $10 million. The same analysis warned that substantial financing gaps are likely, which would probably require public gap funding or tax-increment tools.
Price tag, multiple owners and hurdles
Parkway Plaza spans roughly 80 acres and is operated by Pacific Retail, which lists the center and its address on its property page, according to Pacific Retail. A 2021 appraisal pegged the property’s value near $150 million, and El Cajon has already brought in outside help. The city signed a one-year contract worth about $35,000 with NHA Advisors to scout funding strategies, details reported by The San Diego Union-Tribune. Layered on top of the price are multiple landowners, long-term leases and potential bankruptcy-related complications, all of which make any purchase or large-scale overhaul a legal and financial maze.
Why the city is pushing now
City leaders say they feel the clock ticking. Continued retail losses could erode one of El Cajon’s key sales-tax engines if Parkway Plaza keeps fading. The planning grant and community workshops give the city a framework to pursue transit-oriented redevelopment and new housing near the Arnele Avenue station, as outlined by the City of El Cajon. Supporters argue that if the city plays a strategic role early, it has a better shot at drawing strong private partners while protecting local jobs and public services.
What comes next
For now, staff will keep talking with property owners, sharpening financing options and gathering public feedback before bringing concrete recommendations back to the council. Officials say community input from late 2025 and early 2026 will feed into a specific plan for the site and inform any negotiation strategy. City leaders have been clear that they are looking for partners rather than rushing into a full buyout. If the council eventually decides to move ahead, residents should expect a multiyear slog of legal work, financing deals and land-use approvals before any cranes hit the skyline.
