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SAN BERNARDINO, CA— The City of San Bernardino has been notified that Lincoln Property Company (LPC West) is withdrawing from the development group working to redevelop the Carousel Mall property. The City Council had voted to add LPC West to the partnership developing the 43-acre site through an exclusive negotiating agreement (ENA) on August 3rd.
In a letter addressed to the City, LPC West Vice President Rob Kane stated, “Due to economic and other circumstances, it has become evident that Lincoln and the City will be unable to successfully negotiate a DDA (Development and Disposition Agreement). Lincoln hereby notifies the City of Lincoln’s election to withdraw and terminate any further participation under the ENA.”
The real estate market, largely due to spiking interest rates to finance projects, has slowed significantly in just the past few months
“We wish to express our great appreciation to you, the City Council, and City staff for all of the City’s significant time, efforts and cooperation expended in this matter,” Kane continued in his letter. “We wish the City success in its efforts toward redevelopment of the property.”
Under the terms of the ENA, the San Bernardino Development Corporation (SBDC), often referred to as RD-ICO, has the right to re-assume its role are principal developer. The City is awaiting word from SBDC on how they plan to proceed.
“This is disappointing,” said City Manager Rob Field. “But it is just a setback. This project will keep moving forward.”
At the City Council’s direction, the City continues to work toward the demolition and clearing of the Carousel Mall site. Demolition firms recently submitted proposals through a RFP (request for proposal) process. Proposals are currently under review with a recommendation being presented to the City Council in the coming months.
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“National market forces, especially interest rates, are impacting every project,” added Field. “But the housing market is still very tight in this region and the development opportunities in Downtown San Bernardino remain extremely attractive.”
Development activity continues to be strong in San Bernardino. In September, the City issued over 700 building permits, nearly matching the 736 permits issued in August. By comparison, prior to this year, no more than 450 permits were issued during any month in the past five years. In 2022, San Bernardino has exceeded that total in February, March, June, July, August, and September.
Just this week, the Planning Commission approved projects for a new Habit Burger Grill and Rally’s restaurant in Downtown San Bernardino, along with the expansion of the In- N-Out Burger on 5th Street. Also, County Supervisors were presented a plan to expand their presence in Downtown San Bernardino with a new 300,000 square foot building and parking structure.
