Carousel Mall Case Against the City of San Bernardino Dropped By State Agency

The California Department of Housing and Community Development (HCD) has informed the City of San Bernardino that it has closed their case against the City involving alleged violations of the Surplus Land Act (SLA) related to the redevelopment of the Carousel Mall property.

In a letter dated May 24, 2023, HCD stated that it has determined that the City is not in violation of the SLA following its termination of the exclusive negotiating agreement with the San Bernardino Development Company to redevelop the Carousel Mall.

“HCD considers this matter closed,” said HCD Deputy Director David Zisser in the letter.

San Bernardino Mayor Helen Tran, upon learning of the case being closed, responded, “This is excellent news. We can now move forward.”

In March, San Bernardino received a notice from HCD, alleging several violations of the Surplus Land Act, a California law that requires public agencies to make property it intends to sell available for developers of affordable housing. HCD claimed the City of San Bernardino did not follow the proper steps, a claim the City disputed.

The City Council voted on May 3 to terminate the City’s exclusive negotiating agreement with the San Bernardino Development Company, formerly known as RD-ICO, to redevelop the 43-acre Carousel Mall site. The action was anticipated to clear the way for the City to restart the development process in the near future.

Demolition of the Carousel Mall, which began in April, is currently underway. The City will evaluate additional infrastructure improvements that may expedite the future development of the Mall site.

It is not known at this time how quickly San Bernardino will once again seek development proposals at the Carousel Mall site under the Surplus Land Act.