City-state flap clouds demolition party for IE mall

A highmark of bad taste: A ceremony trumpeting the demolition of a half-century-old mall in San Bernardino as the state accuses the city of breaking laws in planning its redevelopment.

That was the opinion of one city official before demolition of the Carousel Mall began Monday at 295 Carousel Mall, the Inland Valley Daily Bulletin reported.

The demolition festivities came as city officials grapple with how to skirt state fines as a result of allegedly violating four state laws in planning the mall makeover two years ago. A top city official contends San Bernardino skirted only one of those laws.

The city has until May 15 to resolve the matter or risk heavy fines.

“I feel at this moment in time … it is in bad taste to hold a celebratory ceremony for this demolition,” Councilman Ben Reynoso, who supports razing the zombie mall to prevent further fires and use of city resources, said in a text message.

Resource Environmental, based in Cerritos, began leveling the two-story mall on Monday, April 24, with the $8 million demolition expected to take weeks. The fire-damaged mall, which opened in 1972 with 53 stores, closed in August 2017.

Some residents implored city leaders to call off the demolition because they say the contractor’s plan to crush and grind the demolished materials on-site for soil stabilization and draining violates city law. Across the street is a 74-unit affordable complex for seniors.

City staffers and Resource Environmental officials said any crushing would occur more than 1,000 feet away from the nearest homes.

Last month, the state Department of Housing and Community Development alleged the city had failed to negotiate with affordable housing developers who had expressed interest in acquiring the land.

The department said the city erred in negotiating with prospective developers before declaring the 43-acre mall property surplus land. It said city officials withheld pertinent information in paperwork submitted to the state agency as part of the redevelopment process.

City officials maintain they operated within the law in pursuing an exclusive negotiating agreement with a developer interested in overhauling the shuttered shopping center.

The state department rescinded its previous approval of the city’s plans and gave officials until May 15 to cure all violations – or be assessed penalties on any proceeds from the sale of the Carousel Mall property.

Renaissance Downtowns USA and ICO Real Estate Group, both based in Los Angeles, along with LIncoln Property in Dallas, were selected to redevelop the mall into a mixed-use residential, entertainment, commercial and office complex.

But in October, Lincoln withdrew from the revamp project, citing “economic” reasons.

— Dana Bartholomew