Developer terminates purchase of Arden-Guthrie…
Developer terminates purchase of Arden-Guthrie property in San Bernardino
In May 2020, Mark Development agreed to buy the 17.4-acre site just south of the 210 Freeway for $4.5 million
Dry vegetation and patches of sunflowers is seen on a vacant lot at the intersection Highland Avenue and Arden Avenue near the 210 Freeway in San Bernardino on Tuesday, May 19, 2020. San Bernardino is on the cusp of selling the 17-plus acres land to the developer of the long-stalled Arden-Guthrie project. (Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)
By Brian Whitehead | bwhitehead@scng.com | The Sun
PUBLISHED: June 14, 2021 at 11:04 a.m. | UPDATED: June 15, 2021 at 10:49 a.m.
The Redlands-based developer that agreed to purchase the Arden-Guthrie property for $4.5 million last year has terminated the pact, yet another setback for the future of more than 17 acres of vacant land southwest of East Highland and Arden avenues in eastern San Bernardino.
In accordance with state law, the City Council on Wednesday, June 16, is expected to declare the 17.4-acre site just south of the 210 Freeway surplus land, giving affordable housing sponsors and public entities first crack at indicating interest in purchasing it.
Such exclusivity lasts 60 days, after which the city may sell the property as it wishes.
Proposed nearly two decades ago, plans for Arden-Guthrie called for redeveloping underutilized land in a crime-plagued neighborhood to create jobs for low- and moderate-income residents.
The site has sat vacant for years, however, as the statewide dissolution of redevelopment agencies in 2012 and ultimate loss of Home Depot as the planned shopping center's anchor tenant stalled development.
In any event, San Bernardino has been using a portion of annual Community Development Block Grant funds to pay down debt on a $7 million U.S. Department of Housing and Urban Development loan obtained in 2006 to help acquire the 7th Ward property, relocate residents and demolish structures and roadways.
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Arden Guthrie nightmare
In May 2020, Mark Development – which to that point had kept the project alive through myriad fits and starts – agreed to purchase the property for $4.5 million.
The proceeds of the sale were to go toward paying off the remaining balance on the HUD loan, city officials said at the time, thus freeing up about $770,000 in yearly CDBG funds for other projects around town.
Escrow was expected to close this summer, with construction slated to begin in October.
This time last year, elected officials were told national credit tenants and a national hotelier had expressed interest in leasing space at the planned shopping center. Approximately 215 full-time jobs were expected at build-out, of which no fewer than 109 were to be made available to low- and moderate-income residents.
According to a staff report prepared for the City Council meeting Wednesday, Mark Development indicated its intent to terminate the purchase and sale agreement last month.
Escrow was subsequently canceled.
While the staff report did not say why the developer backed out of the deal, Mark Sandoval, president of Mark Development, said in an email Tuesday, June 15, that the firm pulled out "because the city would not give us any more time.
"Building a shopping center this size is not speculative, we need commitments from retailers and one of our main retailers wanted other soft good retailers to join them. …
"The city played hard ball, where they could of worked with us since we were 50% there. We needed 1-2 more retailers of 15,000 square feet or larger to make it a go.
"The city's loss."
The City Council meets at 7 p.m. Wednesday via web conference.
Brian Whitehead | Reporter
Brian Whitehead is a reporter for The San Bernardino Sun, covering Colton, Fontana, Grand Terrace, Rialto and San Bernardino. He previously covered prep sports and the cities of Buena Park, Fullerton and La Palma for The Orange County Register. A Grand Terrace native and Riverside Notre Dame alumnus, he earned his journalism degree from Cal State Fullerton in 2010. Since joining The Sun in late 2017, he has reported on development, education, homelessness, marijuana, political strife and the myriad issues facing San Bernardino post-bankruptcy.
bwhitehead@scng.com
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