HomeMy WebLinkAbout2017-074N
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
a. s CALIFORNIA, APPROVING THE FINAL RELOCATION PLAN F"`
a s€r, ��
THE
s. e s CAROUSEL
_ F�r � � � _ g -. MALL
� 3 � CLOSURE
: � € _rROJECg AND
APPROVING
O,a IN ERTAIN RELATED
._D
ACTIONS
pursuant to Health and Safety Code (the "HSC") § 34172 (a) (1), the
Redevelopment agency of the City of San Bernardino was dissolved on February 1, 2012; and
A ! .. _�i ! ! ! ! i _.Mayor
Successor�� and Common Council of the City of San Bernardino elected to serve in the capacity of the
Agency to the RedevelopmentAgency • . the C of
San Bernardino (the"Successor
I Agenc "); ant
the Oversight Board for the Successor Agency ("oversightBoard") has
been established pursuant to HSC § 34179 to assist in the wind -down of the dissolved
i
WHEREAS, on September 15, 2015, the Successor Agency Oversight
Board -approved Long -Range Property Management Plan (the "LRPMP") P") to the California
Department of Finance (the "DOF")9 and
LRPMP and notified the Successor agency that pursuant to HSC § 34191.3, the approved
LRPMP shall govern, and supersede all other provisions relating to the disposition and use of all
the real property assets of the former redevelopment agency; and
WHEREAS, the approved LRPMP, which addresses # ., disposition # - of the reproperty assets held by the Successor .
Agency, grouped
six (46) separate sites, eighteen (18) of which were designated as government use sites, seven
(7) of which are designated as future development sites and twenty-one (21) of which were
designated to be sold; anii,
per oF's letter of May 17, 2016, on august 1, 2016, the Mayor and
Common Council adopted Resolution No. 2016-165, which authorized the transfer from the
Successor Agency and the acceptance by the City of the seven (7) sites Identified within the
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_LRPMP as future development sites (the "Future Development Sites") subject to the City
accepting all of the Successor Agency's obligations to comply with the applicable provisions A
I the HSC governing the later transfer of future development -designated real property to third -
party entities, just as though said real property had never been transferred to the City by the
Successor Agency in the first place; and
WHEREAS, consistent with the foregoing, the Successor Agency transferred the
Future Development Sites to the City via quitclaim deed on August 16, 2016 and the City is now
responsible for compliance with the applicable provisions of the HSC governing the later
1, transfer of the Future Development Sites to third -parties; and
WHEREAS, consistent with the foregoing, the City is the owner of record as to that
I certain real property consisting of approximately 40.08 acres of land located at 144 Carousel Mall,
120-295 Carousel MalL, 322-344 N. "E" Street and 396 N. "E" Street, San Bernardino, California
WHEREAS, within the L1 P, the Property is: i) identified as Site No. 20; ii) described
as the Carousel all; iii) designated for future development; and iv) more fully described within
Exhibit "A" attached hereto which is an excerpt frons rom the LRPMP; and
WHEREAS, other than 18 small-scale shop tenants (the "Remaining Tenants"), the
WHERIFUS, due to its high vacancy rate, the Carousel Mall is now financially insolvent in
I I that its limited rental income is insufficient to fund its operating expenses; and
` I
2�EREAS, due to its financial insolvency, it has become necessary to close the Carousel
I I Mall in the future; and
WHEREAS, the ultimate closure of the Carousel Mall will require that the existing tenants
WHEREAS, on September 19, 2016, the Mayor and Common Council adopted Resolution
No. 2016-199 approving rules and regulations for relocation assistance consistent with applicable
State and Federal laws for persons and/or businesses displaced by a City project; and
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WHEREAS, prior to closing the Carousel Mall it is necessary to engage a relocation
consultant to work With the affected tenants, staff and legal counsel to ensure compliance with the
1, policies established by Resolution No. 2016-199; and
WHEREAS, on October 17, 2016, the Mayor and Common Council adopted Resolution
No. 2016-220 approving a vendor services agreement with Overland, Pacific & Cutler, Inc. (the
"CPC") to provide relocation advisory services with respect to the Carousel all Closure Project
I (the "Project"); and
WHEREAS, as a part of its scope of work, CPC was tasked with preparing a relocation
plan for the Project (the "Relocation Plan"); and
WHEREAS, consistent with the City's rules and regulations for relocation assistance, OPC
prepared the Relocation Plan and on February 6, 2017 a draft was made available for public review
and comment for a 30 -day period; inclusive of providing copies of the draft Relocation Plan to each
of the Remaining Tenants; and
ITAEREAS, on March 7, 2017, the 30 -day public comment period concluded during
which the City did not receive any comments with respect to the Relocation Plan; and
WHEREAS, consistent with the foregoing and in conformance with the City's rules and
regulations for relocation assistance, the Mayor and City Council may now consider the approval of
the Relocation Plan; ano]
WHEREAS, adoption of this Resolution will approve the Relocation Plan, a copy of
which is attached to this Resolution as Exhibit "B", and allow the Remaining Tenants to qualify for
the relocation payments provided for by the City's rules and regulations for relocation assistance;
M4
WHEREAS, this Resolution has been reviewed with respect to applicability of the
California Environmental Quality Act {"ECA"), the State CEA Guidelines (California Code of
Regulations, Title 14, § 15000 et seq., hereafter the "CEQA Guidelines"), and the City's
WHEREAS, this Resolution does not constitute a "project" for purposes of CEQA, as that
1[ term is defined by CEQA Guidelines § 15378, because this Resolution constitutes general policy
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and procedure making and organizational or administrative activity that will not result in a direct
or indirect physical change in the environment, per § 15378 (b) (2) and (5) of the CEQA
Guidelines; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have
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4
RESOLUTION
MAYOR
CALIFORNIA,
rHE
u CERTAIN
-
CAROUSEL
_ MALL CLOSURE i -i a, APPROVING _ }
RA - - �►� �a
a
%LCTIONS
[ HEREBY CERTIFYthat the foregoing Resolution was duly adopted by the Mayor and City
Council of the City of Sam Bernardino at a Joint rem meeting thereof, held on the 17th date, of
ADril, 2017, by the following vote, to wit:
Approved as to form:
Gary IDAttorney
By:
E
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
87
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
Address:
APNs:
333 N. “H”
Street
0134-182-04
396 N. “E”
Street
0134-221-43
144 Carousel
Mall
0134-181-28
322-344 N. “E”
Street
0134-231-28
120-295
Carousel Mall
0134-211-34
0134-211-38
0134-221-45
0134-231-27
0134-231-29
0134-231-31
0134-291-11
0134-301-20
0134-301-22
W. 2nd Street N. “H” Street W. 4th Street N. “E” Street N. “F” Street N. “G” Street
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
88
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
A. Permissible Use (HSC § 34191.5 (c) (2)):
Site No. 20 is the Carousel Mall and is proposed to be transferred to the City of San Bernardino for
future development pursuant to HSC § 34191.5 (c) (2).
B. Acquisition of Property (HSC § 34191.5 (c) (1) (A) and § 34191.5 (c) (1) (B)):
Property records indicate that the Carousel Mall was acquired by the Agency in several separate
transactions and carries a total Book Value of $18,935,874. The following table details the property
records:
0
APN Acquisition
Date Book Value Original APNs as
Acquired by Agency Historical Background
0134-221-45
June 1973
$68,824 0134-181-29
Part of an urban renewal
project California R-79
$137,649 0134-191-28
$13,356 0134-201-26
$192,709 0134-211-39
$141,779 0134-221-44
$4,817 0134-221-46
0134-231-31
$89,472 0134-231-30
$68,824 0134-264-18
$199,591 0134-271-31
$199,591 0134-281-21
$206,474 0134-291-12
$137,649 0134-301-28
0134-182-04 December
2014 $318,144
Donated by San Bernardino
Economic Development
Corporation
0134-221-43 December
2006 $706,995 --- ---
0134-181-28
May 2011 $16,450,000 --- ---
0134-211-34
0134-211-38
0134-231-27
0134-231-28
0134-231-29
0134-291-11
0134-301-20
0134-301-22
The Carousel Mall was acquired by the Agency in order to meet the revitalization goals of the City
and the Agency to alleviate the existence and spread of physical and economic blight. The
estimated current value (the “ECV”) of the Carousel Mall is approximately $10,650,000.
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
89
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
C. Site Information (HSC § 34191.5 (c) (1) (C)):
The Carousel Mall consists of thirteen (13) parcels totaling approximately 40.08 acres. The main
address of the Carousel Mall is 295 Carousel Mall. The following table describes the Carousel
Mall’s improvements:
Carousel Mall Improvements
APN Address Current (c) or
Former (f) Use
Type of Structure
/ Improvement
Year
Constructed
Square
Footage
0134-181-28 144 Carousel Mall Auto Repair (f) Masonry 1973 15,072
0134-182-04 333 N. “H” Street Vacant ---
0134-221-43 396 N. “E” Street Office/Retail (f)
3-Story
Unreinforced
Masonry
1941/1965 32,848
0134-211-34
120-295 Carousel
Mall
Retail (c) 2-Story Concrete
1973
36,243
0134-211-38 Retail (c) 2-Story Concrete 146,784
0134-221-45 Parking Lot (c) Asphalt/Concrete
Parking Structure 14,347
0134-231-27 Retail (c) 2-Story Concrete 33,190
0134-231-29 Retail (c) 2-Story Concrete 80,252
0134-231-31 Parking Lot (c) Asphalt/Concrete
Parking Structure 1,336,412
0134-291-11 Retail (c) 2-Story Concrete 168,716
0134-301-20 Retail (c) Concrete 76,949
0134-301-22 Retail (c) 2-Story Concrete 36,972
0134-231-28 322-344 N. “E”
Street Retail (c) Metal Frame/Stucco 1971-1972 7,644
The Carousel Mall zoned Commercial Regional-Downtown (CR-2) and Commercial General (CG-
1) in the City’s General Plan. The purpose of the CR-2 zone is to permit a diversity of regional-
serving uses in the Downtown area including local, county, and state governmental/administrative
uses, professional offices, cultural/historical and entertainment uses, convention facilities,
hotels/motels, financial establishments, restaurants, supporting retail and services, educational
institutions, public open spaces, and residential and senior housing. The purpose of the CG-1 zone
is to provide for the continued use, enhancement, and new development of retail, personal service,
entertainment, office, and related commercial uses along major transportation corridors and
intersections to service the needs of the residents; reinforcing existing commercial corridors and
centers and establishing new locations as residential growth occurs.
The Carousel Mall is located within the City’s “E” Street Strategic Area. “E” Street is a significant
north-south roadway located in the central portion of the City. “E” Street connects Downtown to
Baseline, Highland, and to the 30 freeway on the northern end, and Hospitality Lane to the south.
“E” Street currently has the greatest number of transit trips in the Omnitrans system, which makes
it an ideal candidate for development.
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
90
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
D. Estimated Current Value (HSC § 34191.5 (c) (1) (D)):
To determine the ECV for the Carousel Mall, in January 2015, the Agency conducted a comparable
sales analysis through the National Data Collective.23 The comparable sales results were 28 years
old and therefore determined by the Agency to be irrelevant in determining the ECV of the Mall
Property and therefore the 2011 acquisition price of the main Carousel Mall structure ($16,450,000)
was used as the ECV. The ECV was then offset by two (2) significant cost issues: (i) the cost to
demolish the mall structure, while protecting the privately owned historic buildings in extreme
close proximity to the mall structure; and (ii) the cost for additional environmental studies as
recommended and studies that need to be conducted (i.e., lead-paint and asbestos survey and
abatement, investigation of recognized environmental concerns), along with the potential cost for
remediation. After accounting for the additional costs, the ECV was determined to be
approximately $10,650,000, as depicted below:
Comparable Sales Value: $16,450,000
Environmental Analysis/Remediation: ($1,000,000)
Demolition Costs: ($4,800,000)
ECV: $10,650,000
Currently, the Carousel Mall, as a whole, has three owners: the Successor Agency (as owner and
as successor in interest to the Agency, Monwar, Upham, and the Mall Developer), El Cortes Ingles
de Spain (as successor in interest to Harris’), and Pine Mountain Development, LLC (as successor
in interest to Penney’s and Upham) (collectively to be known as the “Parties of Interest”).
Factors that will affect the future development of the Carousel Mall are the restrictions and
easements that run with the land as found in the 1970 recorded Restriction and Easement
Agreement (the “1970-REA”) between the Agency, the City of San Bernardino (the “City”), J.C.
Penney Company (“Penney’s”), Monwar Property Corporation (“Monwar”), the Harris Company
(“Harris’), John S. Griffith & Co. and Curci-Turner Co. (the “Mall Developer” or the “Developer”),
Upham Development Company (“Upham”), and Connecticut General Mortgage and Realty
Investments. All covenants, conditions, restrictions, rights, reservations, easements, liens and
charges set forth in the 1970-REA inure to the benefit of the successors and assigns of the respective
parties to the 1970- REA.24
The 1970-REA is for a term of 50 years (first termination date December 24, 2020), but for no
longer than 99 years (December 24, 2069). At the termination of the 1970-REA, the Parties of
Interest may elect to exercise its option to purchase portions of the Agency parking parcels. A
breach of the 1970-REA by one of the Parties of Interest does not entitle that Party to cancel or
rescind or otherwise terminate the 1970-REA.25
Local factors were not taken into consideration in determining the ECV of this site. Therefore, the
actual value of the property may vary significantly from the ECV. The ECV is only a rough
23 www.ndcdata.com
24 1970 Restriction and Easement Agreement, pg. 71, as document recorded in the County of San Bernardino, Book 7580, Page 280 of Official Records
25 Ibid., pg. 69
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
91
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
estimate planning number and should not be relied upon as a basis for actual value. The real value
of the property cannot be determined without an appraisal.
E. Site Revenues (HSC § 34191.5 (c) (1) (E)):
The Carousel Mall generates revenues from several leases/rental agreements as the following table
indicates:
Carousel Mall Lease/Rental Revenues
Tenant
Agreement Type Agreement
Expiration
Date
Monthly
Payment*
Annual
Revenue
Received Lease Rental
Andreson Building (parking only) X June 2015 $624 $7,488
Alice's Antiques/Featherstone X $403 $4,836
Back Street Beauty X $309 $3,708
Bayside Watch X $244 $2,928
Carousel Coin & Jewelry Exchange X $921 $11,051
City Styles X $500 $5,998
Dale's Coin Chest X April 2015 $875 $10,494
Daniel’s Jewelers/Sherwood Mgmt. X December 2016 $4,466 $53,592
Democratic Luncheon Club X $323 $3,876
Express Cobbler X $140 $1,680
Fortune School X July 2015 $29,586 $355,028
KCAA Radio X $1,143 $13,718
Libreria del Pueblo X $920 $11,040
Lisa’s Threading X $455 $5,460
Mega Beauty Supply X $3,342 $40,103
Minuteman Press X $855 $10,260
Mr. You Chinese Restaurant X $1,823 $21,876
Nail Fashions X $967 $11,604
One Hour Photoland X $213 $2,556
Perfume Mart X $102 $1,224
Pro Jersey X $301 $3,612
Rose Alterations X $514 $6,168
Totals $49,025 $588,300**
* Tenant rent payment fluctuates monthly
** Amount fluctuates according to monthly rent payments
The revenues generated by the Carousel Mall are used for property maintenance.
F. History of Environmental Contamination (HSC § 34191.5 (c) (1) (F)):
In May 2010, Ninyo & Moore, Geotechnical and Environmental Sciences Consultants (“Ninyo &
Moore”) conducted and submitted a Phase I Environmental Assessment Carousel Mall Parking
Lot, 295 Carousel Mall, San Bernardino, California at the request of the Agency. Ninyo &
Moore’s conclusions and recommendations are as follows:
“This assessment has revealed the following RECs in connection with the site:
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
92
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
The existing clarifier (not addressed by the remediation efforts) at the former
J.C. Penney Service Center [not owned by the Agency].
Fifteen areas with historic site uses of auto repair, gasoline service stations,
drycleaners, metal plating, paint spraying, and degreasing.
The former Montgomery Wards Service Center at 144 Central City Mall, due
to reported impacts and to the lack of case closure from the Santa Ana
RWQCB.
The area of subsided, cracked pavement observed on the eastern side of the
bottom level of the multi-level parking structure representing a potential UST
and lack of records regarding this potential UST available for review.
Based on the above-mentioned opinions and conclusions, Ninyo & Moore
recommended the following additional environmental actions:
The former clarifier for the J.C. Penney Service Center should be closed in
accordance with all applicable local and state regulations [not owned by the
Agency].
A subsurface evaluation should be conducted at the site to evaluate whether
contaminants are present in the subsided, cracked pavement observed on the
east side of the bottom level of the multi-level parking structure representing
a potential UST. Due to the historical use of on-site former gasoline stations
and dry-cleaning facilities, the recommended evaluation should include
analysis for gasoline and hazardous waste (e.g., dry-cleaning solvents)
constituents.
A subsurface evaluation should be conducted at the site to evaluate whether
contaminants are present in site soil and soil gas due to historic site uses such
as auto repair, gasoline service stations, drycleaners, metal plating, paint
spraying, and degreasing.
The Supplemental Site Assessment and SVE Pilot Test Work Plan prepared by
Gannett Fleming in 2010 for proposed work at Montgomery Wards Service
Center at 144 Central City Mall should be conducted to complete delineation
of impacts from prior site use as well as soil gas extraction in a pilot test to
gather data necessary for the installation of a final remediation system.”
The Agency accepted Ninyo & Moore’s recommendations and prior to the dissolution of
redevelopment agencies in California, intended to initiate further environmental investigations.
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
93
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
G. Potential for Transit Oriented Development (TOD) and the Advancement of Planning Objectives
of the Successor Agency (HSC § 34191.5 (c) (1) (G)):
There is potential for a Transit Oriented Development in conjunction with the Carousel Mall. The
Carousel Mall is located approximately one block north of the San Bernardino Regional Transit
Center ("SB Transit Center"), which provides multi-modal access to the Carousel Mall through
both local and regional public transit systems, and provides direct transit access to and from three
major universities in the region. The $128 million SB Transit Center is under construction with
phase one opening in mid-2015 and phase two opening in mid-2016. The SB Transit Center brings
the following multiple modes of public transit, with an estimated 8,000 people passing through the
Transit Center daily:
Metrolink Regional Passenger Rail System (opening mid-2016). The Southern California
Regional Passenger Rail system (Metrolink) is being extended into downtown San Bernardino,
where three new rail platforms at the SB Transit Center will be the point origination and
termination for 50 passenger trains each day with service to and from downtown San
Bernardino to downtown Los Angeles (avg. 20,000 weekly riders) and to Orange County (avg.
7,500 weekly riders). Metrolink is the regional passenger rail system serving the 18 million
residents in the five-county Southern California region. The Project Site is one of the only
large, available properties adjacent to a main terminal station on the Metrolink system.
sbX High-Speed Bus Rapid Transit (BRT) System (opened April 2014). The sbX Bus Rapid
Transit (BRT) system commenced service in April 2014, the first high-speed BRT system
outside of Los Angeles in Southern California. This transit system directly connects the Project
Site along a sixteen-mile corridor with California State University, San Bernardino (17,000
students & faculty) at the north end and Lorna Linda University & Medical Center (8,000
students & faculty) at the south end. There is a sbX BRT center-lane station at the mid-point
on the eastern boundary of the Project Site.
Local Light Rail Transit System (opening 2018). A 9-mile light rail system connecting
downtown San Bernardino to downtown Redlands and the University of Redlands (4,000+
students & faculty) is currently under design and engineering. This transit system is
programmed to commence service in 2018. The light rail system is proposed to have six
stations with origination and termination at the SB Transit Center.
Local and Regional Bus Service (opening mid-2015). The SB Transit Center also contains 22
bus bays that bring together local and regional bus service from throughout San Bernardino
and Riverside Counties, serving over two million residents throughout Inland Southern
California.
The Downtown area plays a pivotal role in the City. It is the symbolic center as well as the social
and economic heart of San Bernardino. Within its boundaries are the City Hall, City Police
Headquarters, County Administrative Center, Law Library and Court House, Carousel Mall,
Federal building, State offices, California Theatre of the Performing Arts, Caltrans, Seccombe Lake
Recreation Area, Pioneer Memorial Cemetery, Sturges Auditorium, Radisson Hotel, and
Meadowbrook Park. There is an opportunity to capitalize and improve upon this role. According
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
94
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
to the Existing Economic Conditions and Trends Study prepared for the General Plan Update, “the
large cluster of existing multi-government offices in the City, particularly in the downtown area,
provide a sustained demand for business, retail, and professional services in the City.” The study
also indicates that some of the office demand in San Bernardino is likely to be met by infill
development in the Downtown area (approximately 170,000 square feet annually over the next
five years) and with the City’s long-term Downtown Revitalization strategy and possible expansion
of the government center. The increased employment in the Downtown area will then provide
additional support for retail and pedestrian oriented retail development. Opportunities for
downtown revitalization in the downtown area are new mixed-use residential and office
development projects, which will help support the addition of new retail space.26
The transfer of the Carousel Mall for future development to the City of San Bernardino advances
the planning objectives of the Successor Agency and the City in accordance with the City’s General
Plan, 2009-Downtown Core Vision & Action Plan, and the Agency’s Five-Year Implementation
Plan 2009/2010 through 2013/2014 in order to:
1. Investigate possible new uses at Carousel Mall as identified in the Downtown Core
Vision/Action Plan, including urban retail uses to complement existing retail;
2. Promote revitalization of the Carousel Mall through a mixture of land uses, such as
additional office and mixed-use space;
3. Focus on creating distinct, discernible “places” of varied sizes, functions, and complexity
to achieve greater private sector profit, public benefit, and sustainability;
4. Provide opportunities for private investment in the City by combining entertainment with
retail to compliment the future development of the Carousel Mall;
5. Encourage pedestrian friendly uses/developments;
6. Encourage an appropriate mix of revenue-generating land uses to maintain a competitive
edge and a strong sales tax base;
7. Maximize opportunities that generate taxable sales in targeted growth areas;
8. Work with Omnitrans to explore initiatives that promote development near transit stops in
order to encourage transit ridership, reduce vehicular trips, improve air quality, and
improve traffic congestion;
9. Recycle and/or develop underutilized parcels to eliminate blight and accommodate higher
and better economic uses while enhancing the City's financial resources.
26 City of San Bernardino General Plan, November 1, 2005, page 2-66
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
95
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
H. History of Previous Development Proposals and Activity (HSC § 34191.5 (c) (1) (H)):
On November 20, 2014, the City issued a Solicitation of Interest (the “SOI”) for the Carousel Mall
identified as a 43-acre Transit-Adjacent Site in the Downtown Core. Responses to the SOI have
been received by the City and are currently under review. The response selected by the City will
help determine the future development direction of the Carousel Mall.
APN 0134-182-04
This parcel is located at 333 N. “H” Street, and is currently a vacant lot. The site formerly contained
a gym and health club. That building was demolished in 2010 by the City Code Enforcement.
Located south of 4th Street at the intersection of “H” Street and “G” Street, just east of I-215, it is
strategically located at the west end of the Carousel Mall. The property is also located within the
Downtown Core Vision Plan and the plan for the redevelopment of the Carousel Mall. There have
been no other development activities or proposals.
APN 0134-221-43
This parcel is located at 396 N. “E” Street, and is currently vacant. The building on site is known
as the Woolworth Building and was one of America’s original “five and dime” stores. The
Woolworth Building was constructed in 1936, and with the opening of the Carousel Mall in 1972,
a second Woolworth’s store was opened within the Mall. In 1976, the Woolworth Building closed.
Since then the building has been occupied by other businesses including San Bernardino County
Child Protective Services. The Building is currently used as storage for the Successor Agency.
The property is situated at the northeast corner of N. “E” Street and 4th Street, which makes it the
northeasterly corner of the Carousel Mall. The Building is also located within the Downtown Core
Vision Plan and the plan for the redevelopment of the Carousel Mall. There have been no other
development activities or proposals. There have been no other development activities or proposals.
I. Disposition of Property:
The City’s policies and procedures for property disposition, located in Exhibit “A” Section II, will
guide the disposition of the Property.
The ECV of the Carousel Mall is approximately $10,650,000.
The following process was used in determining the ECV of the Carousel Mall:
Date of estimated current value – January 2015
Value Basis – The ECV was determined by a comparable sales analysis using the National
Data Collective subscription service. The ECV is approximately $10,650,000.
Local factors that may affect land value were not taken into consideration. Therefore, the actual
value of the property may vary greatly from the ECV. The ECV is only a planning number
and should not be relied upon as a basis for actual value.
Successor Agency to the Redevelopment
Agency of the City of San Bernardino
Long-Range Property Management Plan
September 2015
Amended December 2015
Site No. 20: Carousel Mall
96
IV. Property to be Transferred for Future Development
Site No. 20 – Carousel Mall
J. Implementation of the Long-Range Property Management Plan:
The Carousel Mall will be transferred to the City of San Bernardino for future development
subsequent to securing an HSC § 34180 (f) (1) compensation agreement (the “Compensation
Agreement”) with the affected taxing entities, or as may otherwise may be provided by the HSC.
The Carousel Mall Closure Project
FINAL RELOCATION PLAN
Prepared for:
City of San Bernardino
300 North D Street, 6th Floor
San Bernardino, CA 92401
(909) 663-2279
Prepared by:
Overland, Pacific & Cutler, Inc.
1 Jenner, Suite 200
Irvine, CA 92618
(949) 951-5263
March 14, 2017
TABLE OF CONTENTS
INTRODUCTION 1
I. PROJECT DESCRIPTION 2
A. REGIONAL LOCATION 2
B. PROJECT SITE LOCATION AND DESCRIPTION 2
C. GENERAL DEMOGRAPHIC & HOUSING CHARACTERISTICS 3
II. ASSESSMENT OF RELOCATION NEEDS 4
A. SURVEY METHOD 4
B. FIELD STUDY DATA – COMMERCIAL 4
1. Current Occupants 4
III. RELOCATION RESOURCES 5
A. METHODOLOGY 5
B. REPLACEMENT COMMERCIAL SITES AVAILABILITY 5
IV. THE RELOCATION PROGRAM 6
A. ADVISORY ASSISTANCE 6
B. COMMERCIAL RELOCATION BENEFITS 7
1. Payment for Moving and Related Expenses 8
2. Self Moves 10
3. Fixed Payment In Lieu 10
4. Personal Property Move Only (Storage) 11
C. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS11
D. RELOCATION TAX CONSEQUENCES 12
E. PROGRAM ASSURANCES AND STANDARDS 12
V. ADMINISTRATIVE PROVISIONS 13
A. NOTICES 13
B. PRIVACY RECORDS 14
C. GRIEVANCE PROCEDURES 14
D. EVICTION POLICY 15
E. CITIZEN PARTICIPATION 16
F PROJECTED DATE OF DISPLACEMENT 16
G. ESTIMATED RELOCATION COSTS 16
LIST OF TABLES
TABLE 1: 2010 Census Population – City of San Bernardino & Impacted Tract 3
TABLE 2: Available Commercial Replacement Sites 5
LIST OF EXHIBITS
EXHIBIT A: Sample Informational Statement A-1
EXHIBIT B: Sample Notice of Eligibility B-1
EXHIBIT C: Sample Notice to Vacate C-1
EXHIBIT D: Resolution 2016-199 D-1
EXHIBIT E: Public Comments & Responses E-1
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INTRODUCTION
The City of San Bernardino (the “City”) has authorized the preparation of a Relocation Plan to
be undertaken in connection with the planning of the proposed mall closure called the Carousel
Mall Closure Project (the “Project”). The City owns the property located at 295 Carousel Mall,
San Bernardino, CA 92401 (the Mall Office). All site addresses owned by the City are: 120-290
Carousel Mall, San Bernardino, CA 92401 (enclosed Mall & Ward’s Building); 322-344 North
“E” Street, San Bernardino, CA 92401 (“E” St. business spaces); and 707 3rd Street, San
Bernardino, CA 92401 (Ward’s Auto Center Building), all of which are commonly known as the
Carousel Mall (the “Mall”).
The Mall is now obsolete and economically insolvent. The cost of keeping the Mall’s doors open
now significantly exceeds the revenue it generates. As a consequence, the City is unable to
subsidize its operation and has decided to close the Mall and plan for the future reuse of the site.
At this time, the Mall is only being closed, and all existing tenants will be permanently relocated.
Once all of the tenants have been relocated, the Mall property will be secured, except for the
parking structure, which serves certain adjoining or nearby business operations. Although it is
anticipated the Mall’s improvements will be demolished one day, the City has not committed any
funding for demolition and does not have any schedule for such demolition. There are no
developer agreements in place, and the ultimate specific reuse of the site is unknown, at this
time. The City will utilize local funds for costs associated with the Mall closure and tenant
relocations.
All current Project occupants will need to be permanently relocated. The needs and
characteristics of the occupants to be displaced, available relocation resources, and the City’s
program to provide assistance to each affected person are general subjects of this Relocation Plan
(the “Plan”). This Plan conforms to the requirements of California Government Code 7260 and
Title 25 of the California Code of Regulations.
The Plan is divided into five sections:
1. Project description (SECTION I);
2. Assessment of the relocation needs of persons subject to displacement (SECTION II);
3. Assessment of available replacement commercial sites within the City of San Bernardino
(SECTION III);
4. Description of the City’s relocation program (SECTION IV);
5. Description of the City’s outreach efforts, Project timeline and budget (SECTION V).
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I. PROJECT DESCRIPTION
A. REGIONAL LOCATION
The Project is located in the City of San Bernardino within San Bernardino County. San
Bernardino is located approximately 60 miles east of Los Angeles and is easily accessible by
Interstates 215 and 10 and Highway 210. Adjacent communities include Rialto, Redlands,
Highland, Loma Linda and Colton. (See Figure 1: Regional Project Location)
Figure 1: Regional Project Location
B. PROJECT SITE LOCATION AND DESCRIPTION
The Project site is located at 295 Carousel Mall, San Bernardino, CA 92401 and is generally
bordered by W. 2nd Street to the south, N. “G” Street and “H” Street to the west, W. 4th Street to
the north and N. “E” Street to the east. (See Figure 2: Project Site Location)
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Figure 2: Project Site Location
The City-owned portion of the Project area is 11 parcels, totaling approximately 39.84 acres and
is improved with eight commercial buildings and one parking structure. An additional three
parcels (3.98 acres) and three buildings (the former Penney’s and its Auto Center and Harris
Company buildings) are part of the overall site but are not owned by the City. In addition, the
Andreson Building, located at 320 N. E Street, is privately owned and is not a part of the Mall.
C. GENERAL DEMOGRAPHIC CHARACTERISTICS
According to the 2010 U.S. Census, the population of the City of San Bernardino is 209,924 and
the population of the impacted Census Tract 57.01 is 2,216 (see Table 1.)
Table 1: 2010 Census Population – City of San Bernardino & Impacted Tract
Population Tract 57.01 % City %
Total Population 2,216 100.0% 209,924 100.0%
White 885 39.9% 95,734 45.6%
Black or African American 269 12.1% 31,582 15.0%
American Indian or Alaska Native 64 2.9% 2,822 1.3%
Asian 151 6.8% 8,454 4.0%
Native Hawaiian or Other Pacific Islander 1 0.0% 839 0.4%
Some Other Race 751 33.9% 59,827 28.5%
Two or More Races 95 4.3% 10,666 5.1%
Hispanic or Latino (of Any Race) 1,314 59.3% 125,994 60.0%
Source: U.S. Census Bureau, DP-1. Race, Hispanic or Latino, and Age: 2010
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II. ASSESSMENT OF RELOCATION NEEDS
A. SURVEY METHOD
To obtain information necessary for the preparation of this Plan, personal interviews with the
business owners to be permanently displaced were conducted in December 2016 and January
2017 by OPC staff. Based on information provided by the property owner and collected via on-
site inspections and interviews, there are 15 business tenants on the Project site to be relocated.
(Three additional tenants are storing personal property remaining from businesses previously
operating on the site.)
The interviewer was successful in interviewing all but three of the tenants. (The tenants storing
personal property on site did not respond to multiple attempts to interview them in person and
via written requests.) The data in this section of the Plan are based solely on the unsubstantiated
responses of the individuals who participated in the survey.
Inquiries made of the commercial occupants included: the type and description of the business,
number of employees, annual revenues, specialty equipment, permits and licenses, hours of
operation, special needs related to the relocation of the business and preferred area to relocate.
B. FIELD SURVEY DATA - COMMERCIAL
1. Current Occupants
There are 15 commercial occupants on the Project site with operating businesses, and there
are three additional tenants who store personal property on site. Seven of the tenants are
service-oriented businesses; seven businesses sell goods; two businesses sell goods and
services; one tenant holds meetings for local members of a political party; and one tenant is a
restaurant.
Current rental rates for the units range from $260 - $2,700/mo. and $0.08/SF - $0.91/SF on
the Project site. The occupied unit space sizes range from 500 SF – 9,000 SF. All tenants are
currently on month-to-month leases.
Statistics provided by the business owners indicate the total number of full-time employees
and part-time employees impacted by the Project is 24 and 11, respectively.
Special replacement site requirements for the businesses stated by the owners include
proximity to major arterials, street frontage, high visibility, secure parking, proximity to
existing customers, and accessibility to foot traffic. In addition, one business owner requires
specific zoning allowing a pawn business. Many of the business owners expressed an interest
in relocating within San Bernardino, although several are also considering Redlands, Colton,
Riverside and Highland.
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III. RELOCATION RESOURCES
A. METHODOLOGY
For potential, replacement, commercial sites, a resource survey was initially conducted to
identify available units for rent within a five-mile radius from the Project site and then expanding
throughout San Bernardino. The following sources were utilized:
-- Contacts with real estate/property management companies serving the community
-- Internet sources for rental opportunities, including the Multiple Listing Service
-- Classified rental listings from local newspapers and For Rent publications
B. REPLACEMENT COMMERCIAL SITES AVAILABILITY
The businesses that are to be displaced should be able to relocate in the San Bernardino area or
surrounding communities. When searching for replacement locations, zoning and other
regulatory issues must be considered carefully.
Table 3 below provides a sample of the 46 retail spaces and 21 office spaces available in San
Bernardino as of the date of this Plan.
Table 3: Available Commercial Replacement Sites
Property Type Square Feet Rent
Retail 500 – 2,700 (30) $0.40 - $2.40/SF
Retail 4,000 – 9,000 (16) $0.65 - $3.65/SF
Office 2,500 – 3,500 (19) $1.10 - $2.15/SF
Office 8.500 – 9,500 (2) $0.85 - $1.80/SF
At the time of displacement, ongoing referrals to the business owners will be provided through
contacts with local newspapers, property management companies, the multiple listing service
and commercial real estate brokers. One business owner also indicated a desire to possibly
purchase a replacement site. When relocation assistance is initiated, referrals to replacement sites
will be customized to the type and location desired by the business owner.
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IV. THE RELOCATION PROGRAM
The City’s Relocation Program is designed to minimize hardship, respond to unique project
circumstances, maintain personal contact with all affected individuals, apply all regulatory
criteria to formulate eligibility and benefit determinations and conform to all applicable
requirements.
The City has entered into a contract with Overland, Pacific & Cutler, Inc. (“OPC”) to administer
the Relocation Program. OPC has worked on more than 4,000 public acquisition and relocation
projects over more than 37 years. Additionally, OPC has an extensive resume of redevelopment
and public works projects undertaken in the City of San Bernardino and other Southern
California communities. Experienced City staff will monitor the performance of OPC and be
responsible to approve or disapprove OPC recommendations concerning eligibility and benefit
determinations and interpretations of the City’s policy.
OPC Relocation Staff can be contacted at (800) 400-7356 from 8:00 AM to 5:00 PM Monday
through Friday, and they are also available via voicemail and/or cellular phones after hours. The
OPC Relocation Office is located at 2280 Market Street, Suite 200, Riverside, CA 92501.
The Relocation Program consists of two principal constituents: Advisory Assistance and
Financial Assistance.
A. ADVISORY ASSISTANCE
Individuals who will need to relocate existing businesses and/or personal property will receive
advisory assistance. Advisory assistance services are intended to:
• inform displacees about the relocation program
• help in the process of finding appropriate replacement accommodations
• facilitate claims processing
• maintain a communication link with the City
• coordinate the involvement of outside service providers
To follow through on the advisory assistance component of the relocation program and assure
that the City meets its obligations under the law, OPC Relocation Staff will perform the
following functions:
1. Distribute appropriate written information concerning the City’s relocation
program;
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2. Inform eligible project occupants of the nature of, and procedures for, obtaining
available relocation assistance and benefits (See Exhibit A);
3. Determine the needs of each displacee eligible for assistance;
4. Provide referrals to available commercial sites for the business tenants;
5. Maintain an updated database of available commercial resources, and distribute
referral information to displacees for the duration of the Project;
6. Supply information concerning federal and state programs and other
governmental programs providing assistance to displaced persons;
7. Make benefit determinations and payments in accordance with applicable law and
the City’s adopted relocation guidelines;
8. Assist eligible occupants in the preparation and submission of relocation
assistance claims;
9. Assure that no occupant is required to move without a minimum of 90 days
written notice to vacate;
10. Inform all persons subject to displacement of the City’s policies with regard to
eviction and property management;
11. Provide additional reasonable services necessary to successfully relocate
occupants;
12. Inform the displacees of the City’s formal grievance procedure for use by
displaced persons seeking administrative review of the City’s decisions with
respect to relocation assistance; and
13. Provide assistance that does not result in different or separate treatment based on
or due to an individual’s sex, marital status, race, color, religion, ancestry,
national origin, physical handicap, sexual orientation, and/or domestic partnership
status.
B. COMMERCIAL RELOCATION BENEFITS
As a function of a comprehensive relocation assistance program, OPC Relocation Staff will
provide the displaced business owners with required technical and advisory assistance and
distribute all required notices and the informational statement (Exhibit A). Close contact will be
maintained with the business owners.
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Relocation Plan
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The City will provide relocation benefits in accordance with California Government Code 7260
and Title 25 of the California Code of Regulations. The City will pay benefits to the claimants
upon submission of required claim forms and documentation in accordance with the City’s
approved procedures.
Eligible businesses will have two options with respect to claims for relocation assistance
benefits:
1) compensation for actual reasonable and necessary moving and related expenses
(including a self-move); or
2) a fixed payment in lieu not to exceed $20,000.
1. Payment for Actual Reasonable and Necessary Moving and Related Expenses
Any business, which qualifies as a displaced person, is entitled to payment for such
actual moving expenses, as the City determines to be reasonable and necessary,
including expenses for:
a. Transportation of persons and property from the present location to the
replacement location (transportation costs for a distance beyond 50 miles are not
eligible, unless the City determines that relocation beyond 50 miles is justified);
b. Packing, crating, uncrating and unpacking personal property;
c. Disconnecting, dismantling, removing, reassembling and installing relocated and
substitute machinery, equipment and other personal property, including
connection to utilities available nearby and modifications necessary to adapt such
property to the replacement structure or to the utilities or to adapt the utilities to
the personal property;
d. Storage of personal property for a period not to exceed 12 months, unless the City
determines that a longer period is necessary;
e. Insurance of personal property while in storage or transit and the replacement
value of property lost, stolen, or damaged (not through the fault or negligence of
the displaced person) in the process of moving, where insurance is not readily
available for the displacee;
f. Any license, permit, or certification required by the displaced business, to the
extent that the cost is necessary for reestablishment at the replacement location
(these costs may be pro-rated based on the remaining useful life of any existing
license, permit or certification);
g. Reasonable and pre-authorized professional services, including, but not limited to,
architects', attorneys', engineers' fees, and consultants' charges) necessary for
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planning the move of the personal property, moving the personal property or
installing the relocated personal property at the replacement location;
h. The purchase and installation of substitute personal property limited to the lesser
of: (1) an amount equal to the reasonable expenses that would have been required
to relocate the property, as determined by the City, subject to certain limitations,
or, (2) the replacement cost, less any proceeds from its sale or trade in;
i. The modification of machinery, equipment or other personal property necessary
to adapt these to the replacement location or to utilities available at the
replacement location;
j. Relettering signs and replacing stationary on hand at the time of displacement that
is made obsolete, as a result of the move;
k. Actual direct losses of tangible personal property resulting from moving or
discontinuing a business or non-profit organization, not-to-exceed the lesser of:
(1) the fair market value of the property for continued use at its location prior to
displacement, less any proceeds from sale of the property; or (2) an amount equal
to the reasonable expenses that would have been required to relocate the property,
as determined by the City, subject to certain limitations;
l. Actual and reasonable expenses incurred in searching for a replacement business
or non-profit organization location, not-to-exceed $1,000, and including
compensation for transportation expenses; time spent searching for a reasonable
location and meals and lodging associated therewith; real estate broker or agent
fees; time spent in obtaining permits and attending zoning hearings; and time
spent negotiating the purchase of a replacement site;
m. Low Value/High Bulk: when the personal property to be moved is of low value
and high bulk, and the cost of moving the property would be disproportionate to
its value in the judgment of the City, the allowable moving cost payment shall not
exceed the lesser of: (1) the amount which would be received if the property were
sold at the site or (2) the replacement cost of a comparable quantity delivered to
the new business location. Examples of personal property covered by this
provision include, but are not limited to, stockpiled sand, gravel, minerals, metals
and other similar items of personal property, as determined by the City;
n. A Reestablishment allowance of up to $10,000, available to farms, nonprofit
organizations and small businesses with no more than 500 employees.
Reestablishment allowance payments are made in addition to compensation
provided for actual, reasonable and necessary moving expenses. Reestablishment
allowance expense categories include but are not limited to the following:
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1) Repairs or improvements to the replacement property as required
by Federal, State or local law, code or ordinance;
2) Modifications to the replacement property to accommodate the
business operation or make replacement structures suitable for
conducting business;
3) Construction and installation costs for exterior signage to advertise
the business;
4) Redecoration or replacement of soiled or worn surfaces at the
replacement site, such as paint paneling or carpeting;
5) Advertisement of replacement location;
6) Estimated increased costs of operation during the first two years at
the replacement site for items such as:
a. Lease or rental charges.
b. Personal or real property taxes.
c. Insurance premiums, and
d. Utility charges, excluding impact fees.
7) Connection to available nearby utilities from the right-of-way to
improvements at the replacement site;
8) Impact fees or one-time assessments for anticipated heavy utility
usage;
9) Professional services performed prior to the purchase or lease of a
replacement site; and
10) Other items essential to the reestablishment of the business.
2. Self-Moves
If the displaced business elects to take full responsibility for the move of the business, the
City will make a payment for the business’s moving expenses in an amount not to exceed
the lower of two acceptable bids or estimates submitted to the City. At the City’s
discretion, a payment for a low cost or uncomplicated move may be based on a single bid
or estimate.
3. A Fixed Payment in Lieu of a Payment for Actual Reasonable Moving and
Related Expenses
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The option to claim a fixed payment enables both for-profit and non-profit businesses to
receive relocation assistance compensation without providing documentation of bids and
actual expenses. The payment amount available to any individual business is based on an
average of annual net earnings over a two year period. For businesses which have not
been in operation for two years, income figures can be annualized. The method for
establishing income is through tax returns and/or certified financial statements. The
payment to an eligible business may not be less than $1,000 or more than $20,000.
To qualify for this payment, it must be determined that, a displaced business:
• owns or rents personal property, which must be moved in connection with such
displacement and, for which, an expense would be incurred in such move;
• is not operated at the displacement site solely for the purpose of renting the
dwelling or site to others;
• cannot be a part of a commercial enterprise having at least three other
establishments which are not being acquired by the City and which is under the
same ownership and engaged in the same or similar business activities;
• must not be able to relocate without substantial loss of patronage; and
• contributed materially, as defined by the City, to the income of the displaced
person during the two taxable years prior to displacement.
4. Personal Property Move Only (Storage)
Eligible displaced persons include those that must relocate personal property from the
Project site. The owner of the personal property is entitled to reimbursement for expenses
related to the relocation of the personal property as described in B (1) (a- e) above.
C. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION
BENEFITS
Claims and supporting documentation for relocation benefits must be filed with the City no later
than 18 months after the date of displacement. The procedure for the preparation and filing of
claims, and the processing and delivery of payments, will be as follows:
1. Claimant(s) will provide all necessary documentation to substantiate eligibility for
assistance;
2. OPC Relocation Staff will review all necessary documentation including, but not
limited to, tax returns, invoices, lease documents and escrow material before
reaching a determination as to which expenses are eligible for compensation;
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3. Required claims forms will be prepared by OPC Relocation Staff and presented to
the claimant for review. Signed claims and supporting documentation will be
returned to OPC Relocation Staff and submitted to the City;
4. The City will review and approve claims for payment or request additional
information;
5. The City will issue benefit checks to claimants as securely and expeditiously as
possible;
6. Final payments to displacees will be issued after confirmation that the Project
premises have been completely vacated; and
7. Receipts of payment and all claims materials will be maintained in the relocation
case file.
D. RELOCATION TAX CONSEQUENCES
In general, relocation payments are not considered income for the purpose of Division 2 of the
Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of
1986 (Title 26, U.S. Code), or for the purpose of determining the eligibility or extent of
eligibility of any person for assistance under the Social Security Act (42 U.S. Code 301 et seq.)
or the Personal Income Tax Law, Part 10 (commencing with Section17001) of the Revenue and
Taxation Code, or the Bank and Corporation Tax Law, Part II (commencing with Section 23001)
of Division 2 of Revenue and Taxation Code. The above statement on tax consequences is not
intended as tax advice by the City or OPC. Displacees are responsible for consulting with their
own tax advisors concerning the tax consequences of relocation payments.
E. PROGRAM ASSURANCES AND STANDARDS
There are adequate funds to relocate the businesses. Services will be provided to ensure that
displacement does not result in different or separate treatment of displacees based on race,
nationality, color, religion, national origin, sex, marital status, familial status, disability or any
other basis protected by the Federal Fair Housing Amendments Act, the Americans with
Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the C ivil Rights Act of
1968, the California Fair Employment & Housing Act and the Unruh Act, as well as any other
arbitrary or unlawful discrimination.
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V. ADMINISTRATIVE PROVISIONS
A. NOTICES
Each notice, which the City is required to provide to a Project tenant, shall be personally
delivered or sent by certified or registered first-class mail, return receipt requested and
documented in the case file. Each notice will be written in plain, understandable language.
Persons who are unable to read and understand any notice will be provided with appropriate
translation and counseling. Each notice will indicate the name and telephone number of a person
who may be contacted for answers to questions or other needed help.
There are three principal notices:
1) the Information Statement,
2) the Notice of Relocation Eligibility, and
3) the 90-Day Vacate Notice.
The Informational Statement is intended to provide potential relocatees with a general written
description of the City’s relocation program and basic information concerning benefits,
conditions of eligibility, noticing requirements and appeal rights (see Exhibit A).
A Notice of Relocation Eligibility (NOE) will be distributed to each relocatee (see Exhibit B).
The NOE to the commercial tenants includes a description of the benefits categories for which
the business owners are eligible. The NOE will be issued to any eligible permanent displacee
once the Project has been approved and Project funding is in place.
No lawful tenant will be required to move without having received at least 90 days advance
written notice of the earliest date by which the move will be necessary (see Exhibit C). The 90-
day notice will state either a specific date as the earliest date by which the tenant may be required
to move or that the tenant will receive a further notice indicating, at least 30 days in advance, the
specific date of the required move. (The pawn shop will require at least a 120-day notice to
vacate per applicable regulatory requirements).
In addition to the three principal notices, City staff will issue timely written notification in the
form of a Reminder Notice, which discusses the possible loss of rights and sets the expiration
date for the loss of benefits to those persons who:
1) are eligible for monetary benefits,
2) have moved from the Property, and
3) have not filed a claim for benefits.
Reminder Notices will be issued periodically throughout the qualification period. An attempt
shall be made to make written contact with all non-responsive relocatees no later than within the
last six months prior to the filing expiration date.
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B. PRIVACY OF RECORDS
All information obtained from displacees is considered confidential and will not be shared
without consent of the displacee or the City. OPC Relocation Staff and the City will comply with
federal regulations concerning safeguarding of relocation files and their contents.
C. GRIEVANCE PROCEDURES
A person who is dissatisfied with a determination as to eligibility for benefits, a payment amount
or the City’s property management practices may file a Relocation Assistance Appeal Form or
any other written form of appeal with the City and have the right of administrative review. The
City’s appeal policies will follow the standards described in Article 5, Section 6150 et seq., Title
25, Chapter 6, State of California, Department of Housing and Community Development
Program (HCD) guidelines.
An appeal of the City's determination regarding relocation assistance may be filed within 90 da ys
of written notice to the aggrieved party of the City's decision. The administrative appeals process
consists of the following two steps, as may be necessary:
1. If an aggrieved party wishes to appeal the determination made by the applicable
relocation advisor assigned to the aggrieved party's case, the aggrieved party may appeal
to the affected City Department Head or in the absence thereof, to the designated acting
department head. The hearing office for the administrative appeal process is located at
201 N. E Street, Suite 301, San Bernardino, CA 92401 (or such other location as may be
designated by the City); and
2. If the aggrieved party is not satisfied with the determination of the affected City
Department Head or acting department head, then the matter may then be appealed to the
City Manager, or designee, which shall constitute the final administrative appeal.
If the aggrieved party is not satisfied with the determination of the City Manager, then the
aggrieved party may appeal the matter to the superior court in accordance with applicable laws.
The grievance procedure is more particularly described in resolution No. 2016-199 of the City’s
Mayor and Common Council, a copy of which is attached as Exhibit D.
An aggrieved party may obtain the forms and receive assistance in the appeals process from OPC
Relocation Staff. The City will adhere to the timelines for appeals set forth in federal and state
law.
All requests for review will receive written responses from the City within three weeks of their
receipt. If an informal appeal is denied, appellants will be entitled to file a written request for a
formal hearing before an impartial and independent hearing officer.
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Although the City recommends that an appellant exhaust the City’s administrative grievanc e
procedure prior to seeking relief from other appropriate authorities, an appellant is not required
to do so. In that regard, an appellant may seek relief from the superior court or the California
Department of Housing and Community Development (“HCD”) at any time.
Further, any person and/or organization directly affected by the relocation plan may petition the
HCD to review the relocation plan. The HCD is located at 2020 West El Camino Avenue,
Sacramento, California 95833.
More details concerning the appeals process will be provided upon request. Appellants will
retain their appeal rights for up to 18 months following the date of displacement from the Project
premises or receipt of final payment for relocation benefits, whichever is later.
D. EVICTION POLICY
Eviction will cause the forfeiture of a displacee’s right to relocation assistance or benefits.
Relocation records will be documented to reflect the specific circumstances surrounding any
eviction action.
Eviction may be undertaken for one, or more of the following reasons:
(a) Failure to pay rent, except in those cases where the failure to pay is due to the
owner’s failure to keep the premises in habitable condition, is the result of
harassment or retaliatory action, or is the result of discontinuation, or a substantial
interruption, of services;
(b) Performance of a dangerous, and/or illegal act in the unit;
(c) A material breach of the rental agreement, and failure upon notification to correct
said breach within 30 days of notice;
(d) Maintenance of a nuisance, and failure to abate such nuisance upon notification
within a reasonable time following notice;
(e) A requirement under State, local law or emergency circumstances that cannot be
prevented by reasonable efforts on the part of the City; or
(f) A failure to vacate by the end of the 90-Day notice period.
E. CITIZEN PARTICIPATION
A community meeting with the current Mall tenants was held on November 17, 2016 to discuss
the proposed Mall closure and to introduce OPC Relocation Staff. The overall relocation process
and types of benefits and assistance available to the tenants were discussed at the meeting.
As the process for considering the Project moves forward, the City will observe the following
protocol:
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1. Provide affected tenants with full and timely access to documents relevant to the
relocation program (all tenants were provided with Informational Brochures
regarding the relocation program and provided access to the Relocation Plan).
2. Encourage meaningful participation in reviewing the relocation plan and monitoring
the relocation assistance program (all business owners received an Advisory Notice
indicating where to submit comments or questions related to the Relocation Plan
and/or to request assistance in understanding the contents of the Relocation Plan),
including the Project tenants, neighborhood groups and community organizations
forming a relocation committee, if applicable (a relocation committee was not
formed, because there will be no residential displacements).
3. Provide technical assistance necessary to interpret elements of the Relocation Plan
and other pertinent materials.
4. Issue a general notice concerning the availability of the Plan for public review, as
required, 30 days prior to its proposed approval.
5. Include written or oral comments concerning the Plan as an attachment (Exhibit E),
when it is forwarded to the City of San Bernardino’s Mayor and Common Council for
approval.
F. PROJECTED DATE OF DISPLACEMENT
The City anticipates that date specific Notices to Vacate will not be issued prior to mid-March
2017. No tenant will be required to vacate without a minimum of 90 days’ notice. However, a
tenant may choose to vacate prior to a vacate notice being issued, once they have received their
Notice of Eligibility, and be assured they will receive any relocation assistance to which they
may be entitled.
G. ESTIMATED RELOCATION COSTS
The total budget estimate for relocation-related payments, including a 10% contingency, is
$558,000.
This estimate should not be interpreted as firm, “not to exceed,” or actual entitlement costs. The
estimate is based on the data obtained through the tenant interviews, current project scope,
replacement site availability, moving costs, reestablishment costs and the judgment and
experience of OPC staff. The estimate does not include any payments related to property
acquisition, leasehold interests, loss of business goodwill or any compensation for improvements
pertaining to realty. In addition, the budget does not consider the cost of any services necessary
to implement the Plan and complete the relocation element of the Project.
If the Project is to be implemented, and circumstances arise that should change either the number
of displaced tenants, or the nature of their activity, the City will authorize any additional
compensable funds that may need to be appropriated. The City pledges to appropriate, on a
timely basis, the funds necessary to ensure the successful completion of the Project.
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EXHIBIT A
INFORMATIONAL STATEMENT
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Relocation Assistance
Informational Statement
For Business, Farm & Nonprofit
(CA State)
Displacing City:
City of San Bernardino
Project Name:
Carousel Mall Closure Project
Displacing City Representative:
Overland, Pacific & Cutler, Inc.
2280 Market Street, Suite 200
Riverside, CA 92501
Phone: (800) 400-7356
Spanish speaking agents are available. Si necesita esta información en español, por favor llame a su agente.
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Informational Statement for Business, Farm & Non -Profit
(CA State)
Introduction
The property on which you now conduct your business is in an area to be closed by the Displacing City.
If and when the project proceeds, and it is necessary for you to move from the property, you may be
eligible for certain benefits. You will be notified in a timely manner as to the date by which you must
move. Please read this information, as it will be helpful to you in determining your eligibility and the
amount of the relocation benefits you may receive under the law. You will need to provide adequate
and timely information to determine your relocation benefits. The information is voluntary. But if you
do not provide it, you may not receive the benefits for which you are eligible, or it may take longer to
pay you. We suggest you save this informational statement for reference.
The Displacing City entered into a contract with the professional firm of Overland, Pacific & Cutler,
Inc. (OPC) to provide relocation assistance to you. OPC is available to explain the program and
benefits. Their address and telephone number is listed on the cover.
PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE THE PROPERTY.
However, if you desire to move sooner than required, you must contact your agent at OPC, so you will
not jeopardize any benefits. This is a general informational brochure only, and it is not intended to give
a detailed description of either the law or regulations pertaining to the Displacing City’s relocation
assistance program.
Please continue to pay your rent, otherwise you may be evicted and jeopardize the
relocation benefits to which you may be entitled to receive.
Summary of Available Relocation Assistance:
A. Advisory assistance to explain the relocation process, the related eligibility requirements and the
procedures for obtaining reimbursement for moving expenses and to provide referrals to suitable
replacement locations.
B. Payment for your moving expenses. You may receive one of the following options:
Option 1: A Payment for Actual, Reasonable Moving and Related Expenses; or
Option 2: A Fixed Payment In Lieu of a Payment for Actual Moving and Related Expenses.
C. Other help to reestablish your business and minimize the impact of the move including help in
preparing claim forms to request relocation payments.
If you disagree with the Displacing City's decision as to your right to a relocation payment, or the
amount of the payment, you may appeal that decision.
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GENERAL RELOCATION QUESTIONS
1. How will I know I am eligible for relocation assistance?
If you were an occupant of Carousel Mall on the date of the first tenant meeting on November17,
2016, you may be eligible subject to a written Notice of Eligibility. Therefore, you should not move
before receiving a notice of eligibility without pre-authorization from the Displacing City. If you do,
you may not be eligible for relocation assistance.
2. How will the Displacing City know how much help I need?
You will be contacted at an early date and personally interviewed by an agent of the Displacing City,
OPC Relocation Staff. The interviewer will want to get information about your current operation, as
well as identify movable personal property and non-movable improvements, determine your needs
and preferences for a replacement location, estimate the time required to v acate the premises and
your need for advance payments. During the interview, you may want to discuss other issues relative
to your move. It is to your advantage to provide as much information as possible so that the
Displacing City, through its relocation agent, can assist you in moving with a minimum of hardship.
The information you give will be kept in confidence.
3. How Soon Will I Have to Move?
Every reasonable effort will be made to provide you with sufficient time to find a suitable
replacement location and reestablish your business. If possible, a mutually agreeable date for the
move will be worked out. Unless there is an urgent need for the property (e.g., your occupancy
would present a health or safety emergency), you will not be required to move wit hout at least 90
days advance written notice. It is important, however, that you keep in close contact with OPC
Relocation Staff, so that you are aware of the time schedule for carrying out the project and the
approximate date by which you will have to move.
4. Will I Have to Pay Rent to the Displacing City Before I Move?
Yes, you will be required to pay rent and other lease-required payments to the Displacing City until
you move. Your rent and the terms of your tenancy will be the same as in the prior arrangement.
5. How Will I Find a Replacement Location?
OPC Relocation Staff will provide you with current and continuing information on available
replacement locations that meet your needs. You will also be provided with the names of local real
estate agents and brokers who can assist you in finding the type of replacement location you require.
However, you are urged to take an active role in identifying, and relocating to, a location of your
choice. No one knows your needs better than you do. You will want a facility that provides sufficient
space for your planned activities. You will also want to ensure that there are no zoning or other
requirements which will unduly restrict your planned operations. Your relocation agent will explain
which kinds of moving costs are eligible for reimbursement and which are not, which will enable you
to carry out your move in the most advantageous manner.
6. What Other Assistance Will Be Available to Help Me?
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In addition to help in finding a suitable replacement location, OPC Relocation Staff will help you
secure the services of outside specialists, as necessary, to plan the move, as well as provide
assistance during the actual move and in the reinstallation of machinery and/or other personal
property. The range of services depends on the needs of the business being displaced. You should
ask OPC Relocation Staff to tell you about the specific services that will be available to you.
7. I Have a Replacement Location and Want to Move. What Should I Do?
Before you make any arrangements to move, notify OPC Relocation Staff, in writing, of your
intention to move. This should be done at least 30 days before the date you begin your move. OPC
Relocation Staff will discuss the move with you and advise you of the relocation payment(s) for
which you may be eligible, the requirements to be met, and how to obtain a payment.
8. I Plan to Discontinue My Business Rather than Move. What Should I Do?
If you have decided to discontinue your business rather than reestablish it, you may still be eligible
to receive a payment. Contact OPC Relocation Staff and discuss your decision to discontinue your
business. You will be informed of the payment, if any, for which you may be eligible, the
requirements to be met, and how to obtain your payment.
9. What Kinds of Payments for Moving Expenses Will I Receive?
Every business is eligible for a relocation payment to cover the reasonable cost of moving. Assuming
you meet certain eligibility criteria, you may choose one of the following options:
Option 1: A Payment for Actual, Reasonable Moving and Related Expenses; or
Option 2: A Fixed Payment In Lieu of Moving and Related Expenses.
These payment options are described below:
Option 1: Payment for Actual, Reasonable Moving and Related Expenses
If you choose a Payment for Actual, Reasonable Moving and Related Expenses, you may claim the
cost of:
1. Transportation of personal property from your present location to the replacement location.
(Generally, transportation costs are limited to a distance of 50 miles. If you plan to move
beyond 50 miles, discuss your planned move with OPC Relocation Staff).
2. Packing, crating, uncrating and unpacking personal property.
3. Disconnecting, dismantling, removing, reassembling, and reinstalling relocated machinery,
equipment, and other personal property, and certain substitute personal property. This
includes connection to utilities available within the building. It also includes modifications to
the personal property, including those mandated by Federal, State or local law, code or
ordinance, necessary to adapt it to the replacement structure, the replacement site, or the
utilities at the replacement site and modifications necessary to adapt the utilities at the
replacement site to the personal property.
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4. Storage of the personal property determined to be necessary by the Displacing City, not to
exceed 12 months, unless the Displacing City determines that a longer period is warranted.
5. Insurance for the replacement value of the personal property in connection with the mov e
and necessary storage.
6. The replacement value of property lost, stolen or damaged in the process of moving (not
through fault or negligence of the displaced person, his or her agent or employee), where
insurance covering such loss, theft or damage is not reasonably available to the displacee.
7. Any license, permit, fees or certification required of your business at the replacement
location. However, the payment may be based on the remaining useful life of the existing
license, permit, fees or certification.
8. Reasonable and preauthorized professional services, the Displacing City determines to be
necessary for (i) planning the move of the personal property, (ii) moving the personal
property and (iii) installing the relocated personal property at the replacement location.
9. Re-lettering signs and replacing stationary on hand at the time of displacement that is made
obsolete, as a result of the move.
10. Actual direct loss of personal property incurred, as a result of moving or discontinuing your
business. The payment will consist of the lesser of:
(i) The fair market value in place of the item, as is for continued use at the displacement
site, less the proceeds from its sale. (To be eligible for payment, you must make a
good faith effort to sell the personal property, unless the Displacing City determines
that such effort is not necessary. When payment for property loss is claimed for goods
held for sale, the fair market value will be based on the cost of the goods to the
business, not the potential selling price.), or
(ii) The estimated cost of moving the item, as is, with no allowance for storage, or for
reconnecting a piece of equipment if the equipment is in storage or not being used at
the Project site. (If you elect to discontinue your business, the estimated cost will be
based on a moving distance of 50 miles).
11. Purchase of substitute personal property. If an item of personal property which is used as
part of your business is not moved but is promptly replaced with a substitute item that
performs a comparable function at the replacement site, you will be entitled to payment for
the lesser of:
(i) The cost of the substitute item, including installation costs at the replacement site,
minus any proceeds from the sale or trade-in of the replaced item, or
(ii) The estimated cost of moving and reinstalling the replaced item but with no allowance
for storage. At the Displacing City’s discretion, the estimated cost for a low cost or
uncomplicated move may be based on a single bid or estimate.
12. The reasonable cost incurred in attempting to sell an item that is not relocated.
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13. Searching for a replacement location. Your business is entitled to reimbursement for actual
expenses, not to exceed $1,000 as the Displacing City determines to be reasonable, which
are incurred in searching for a replacement location including:
§ Transportation expenses;
§ Time spent searching for a replacement location, based on a reasonable salary or
earnings;
§ Reasonable fees paid to real estate agents or brokers to find a replacement location (not
fees related to the purchase of a site); or
§ Meals and lodging away from home.
OPC Relocation Staff will explain all eligible moving costs, as well as those which are not. You must
be able to account for all costs that you incur, so keep your receipts. OPC Relocation Staff will inform
you of the documentation needed to support your claim.
You may minimize the amount of documentation needed to support your claim, if you elect to "self-
move" your property. Payment for a self-move is based on the amount of an acceptable low bid or
estimate obtained by you or OPC Relocation Staff, if requested. If you self-move, you may move
your personal property using your own employees and equipment or a commercial mover. If you and
the Displacing City cannot agree on an acceptable amount to cover the cost of the self -move, you
will have to submit full documentation in support of your claim.
You may elect to pay your moving costs yourself and be reimbursed by the Displacing City or, if you
prefer, you may have the Displacing City pay the mover directly. In either case, let the Displacing
City know before you move. Select your mover with care. OPC Relocation Staff can help you select a
reliable and reputable mover.
When a payment for "actual direct loss of personal property" or "substitute personal property" is
made for an item, the estimated cost of moving the item may be based on the lowest acceptable bid
or estimate obtained by you or OPC Relocation Staff, if requested. If not sold or traded-in, the item
must remain at the old location and ownership of the item must be transferred to the Displacing City
before you may receive the payment.
In addition to the reimbursable expenses described above, a small business, farm or non-profit
organization may be eligible to receive a payment of up to $10,000 for expenses actually incurred in
relocating and reestablishing such operation at a replacement site. Eligible expenses must be
reasonable and necessary, as determined by the Displacing City. They may include but are not
limited to the following:
1. Repairs or improvements to the replacement real property as required by federal, state or
local law, code or ordinance.
2. Modifications to the replacement property to accommodate the business operation or make
replacement structures suitable for conducting the business.
3. Construction and Installation costs for exterior signage to advertise the business.
4. Provision of utilities from right-of-way to improvements on the replacement site.
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5. Redecoration or replacement of soiled or worn surfaces at the replacement site, such as
paint, paneling or carpeting.
6. Licenses, fees and permits where not paid as part of moving expenses.
7. Feasibility surveys, soil testing and marketing studies.
8. Advertising of replacement location.
9. Professional services in connection with the purchase or lease of a replacement site.
10. Estimated increased costs of operation during the first 2 years at the replacement site, for
such items as:
• Lease or rental charges;
• Personal or real property taxes;
• Insurance premiums;
• Utility Charges (excluding impact fees).
11. Impact fees or one-time assessments for anticipated heavy utility usage.
12. Other items that the Displacing City considers essential to the reestablishment of the
business.
The following is a non-exclusive listing of reestablishment expenditures not considered to be
reasonable, necessary or otherwise eligible:
§ Purchase of capital assets, such as, office furniture, filing cabinets, machinery or trade
fixtures.
§ Purchase of manufacturing materials, production supplies, product inventory or other items
used in the normal course of the business operation.
§ Interior or exterior refurbishment at the replacement site, except as otherwise provided fo r
under the business reestablishment payment.
§ Interest costs associated with any relocation expense or the purchase of replacement
property.
§ Payment to a part-time business in the home which does not contribute materially to the
household income.
Option 2: Fixed Payment In Lieu of a Payment for Actual , Reasonable Moving and
Related Expenses
A displaced business, non-profit organization or farm may be eligible to choose a fixed payment in
lieu of the payments for actual moving and related expenses and actual, reasonable reestablishment
expenses. The payment may not be less than $1,000.00 or more than $20,000.00. For a business or
farm, the payment is based on the average annual net earnings before Federal, State and local
income taxes during the 2 taxable years immediately prior to the taxable year in which it was
displaced. For a non-profit organization, the payment is based on the average of 2 years annual
gross revenues less administrative expenses.
In order to qualify for this payment, the Displacing City must determine that:
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A displaced business:
1. Is not operated solely for rental purposes.
2. Cannot be relocated without a substantial loss of its existing patronage, based on a
consideration of all pertinent circumstances including such factors as the typ e of business
conducted, the nature of clientele, the relative importance to the displaced business of its
present and proposed location, and the availability of a suitable relocation site.
3. Is not part of a commercial enterprise having no more than three (3) other establishments
which are not being acquired for a project and which is engaged in the same or similar
business activities.
4. Had average annual gross receipts of at least $5,000.00 during the two taxable years prior to
displacement; the business had average annual net earnings of a least 1,000.00 during the
two taxable years prior to displacement; or the business contributed at least 33 1/3 percent
of the total gross income of the owner(s) during each of the two taxable years prior to
displacement.
A displaced nonprofit organization:
1. Cannot be relocated without a substantial loss of its existing patronage (the term “existing
patronage” as used in connection with a nonprofit organization includes the membership,
persons, community or clientele served or affected by the activities of the nonprofit
organization); and
2. Is not a part of an enterprise having more than three (3) other establishments not being
acquired, which is engaged in the same or similar activity.
For a qualified non-profit organization, gross earnings may include membership fees, class fees, cash
donations, tithes and receipts from sales or other forms of fund collection that enables the non-profit
organization to operate. Administrative expenses are those for administrative support such as rent,
utilities, salaries, advertising and other like items as well as fund raising expenses. Operating
expenses for carrying out the purposes of the non-profit organization are not included in
administrative expenses. The monetary receipts and expense amounts may be verified with certified
financial statements or financial documents required by public agencies.
OPC Relocation Staff will inform you as to your eligibility for this payment option and the
documentation you must submit to support your claim. Remember, when you elect to take this
payment option you are not entitled to reimbursement for any other moving expenses, i.e. Option A
described above.
10. How do I File a Claim for a Relocation Payment?
You must file a claim for a relocation payment. OPC Relocation Staff will provide you with the
required claim forms, assist you in completing them and explain the type of documentation that you
must submit in order to receive your relocation payments. If you must pay any relocation expenses
before you move (e.g., because you must provide a security deposit if you lease your new location),
discuss your financial needs with OPC Relocation Staff. You may be able to obtain an advance
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payment. An advance payment may be placed in "escrow" to ensure that the move will be completed
on a timely basis.
If you are a tenant, you must file your claim within 18 months after the date you move. However, it
is to your advantage to file, as soon as possible, after you move. The sooner you submit your claim,
the sooner it can be processed and paid. If you are unable to file your claim within 18 months, the
Displacing City may extend this period.
You will be paid promptly after you file an acceptable claim. If there is any question regarding your
right to a relocation payment or the amount of the payment, you will be notified, in writing, of the
problem and the action you may take to resolve the matter.
11. Non-Discrimination
No person shall on the grounds of race, color, national origin or sex, be excluded from par ticipation
in, be denied the benefits of, or be subjected to discrimination under the Displacing City’s relocation
assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights
Act of 1968, and applicable state and federal anti-discrimination laws. You may file a complaint if you
believe you have been subjected to discrimination. For details contact the Displacing City.
12. Appeals
Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized
by the Displacing City’s Relocation Assistance Program may have the appeal application reviewed by
the Displacing City in accordance with its appeals procedure. Complete details on appeal procedures
are available upon request from the Displacing City or OPC Relocation Staff.
13. Tax Status of Relocation Benefits
California Government Code Section 7269 indicates no relocation payment received shall be
considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with
Section 170 01) of Division 2 of the Revenue and Taxation Code or the Bank and Corporation Tax
law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code.
Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment
received under this part (Part 24) shall be considered as income for the purpose of the Internal
Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. No
federal dollars are anticipated for this project. Therefore, federal regulations may not apply and the
IRS may consider relocation payments as income.
The preceding statement is not tendered as legal advice in regard to tax consequences, and
displacees should consult with their own tax advisor or legal counsel to determine the current status
of such payments.
(IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform
you that any tax advice contained in this communication (including any attachments) was not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related
penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another
party any matters addressed herein).
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14. Additional Information
If you have further questions after reading this brochure, contact OPC Relocation Staff and discuss
your concerns with your relocation agent.
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EXHIBIT B
NOTICE OF ELIGIBILITY
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Notice of Eligibility
Business (CA State)
<<DATE>>, 2017
<<OWNER’S NAME>>
<<BUSINESS NAME>>
<<ADDRESS>>
San Bernardino, Ca 92401
Dear <<OWNER’S NAME>>:
The City of San Bernardino (called here the “Displacing City”) is proceeding with the project
known as Carousel Mall Closure Project (the “Project”). To carry out this Project, it will be
necessary for you to relocate from the property on which you conduct your business (called herein
“business”) at <<ADDRESS>>, San Bernardino CA 92401.
This is a notice of eligibility for relocation assistance. As an eligible tenant of the property,
you are eligible for certain benefits in accordance with the California Relocation Assistance and Real
Property Acquisition Guidelines and the Displacing City’s Relocation Assistance Program.
The Displacing City has retained the firm of Overland Pacific & Cutler, Inc. (OPC) to provide you
with assistance in reestablishing your business. You will not be required to move without at
least 90 days advance written notice of the day by which you must vacate. However, you
can contact us at any time for assistance with your move and to receive the benefits for which you
are eligible.
The relocation program includes advisory services as well as reimbursement for either, actual moving
and reestablishment expenses OR a fixed payment in lieu of a payment for actual moving and
reestablishment expenses. These benefits are outlined below. It is important that you understand the
conditions described below which must be met before any payments can be made.
1. RELOCATION ADVISORY ASSISTANCE:
OPC Relocation Staff will assist you in your relocation by providing information regarding available
replacement sites and typical real estate purchase or rental costs. We will personally meet with you
to discuss your needs and preferences regarding the details of your move, explain your rights and
help you obtain the relocation payments for which you are eligible.
2. PAYMENT FOR MOVING AND RELATED EXPENSES:
Every business is eligible for a relocation payment to cover the reasonable cost of moving. Assuming
you meet certain eligibility criteria, you may choose one of the following options:
Option A: A Payment for Actual, Reasonable Moving and Related Expenses, or
Option B: A Fixed Payment In Lieu of Moving and Related Expenses.
Your OPC Relocation Agent
Name: Angie Luna
Phone: 951-801-6826
Your Case ID: CBR-002
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These payment options are described on the following page:
Option A - Payment for Actual, Reasonable Moving and Related Expenses
You are eligible for such actual moving expenses as the Displacing City determines to be reasonable
and necessary, including expenses for:
a. Transportation of personal property. Transportation costs for a distance beyond 50 miles are
not eligible, unless the Displacing City determines that relocation beyond 50 miles is justified.
b. Packing, crating, unpacking and uncrating of the personal property.
c. Disconnecting, dismantling, removing, reassembling and reinstalling relocated machinery,
equipment, other personal property, and certain substitute personal property. This includes
connection to utilities available within the building. It also includes modifications to the
personal property, including those mandated by Federal, State or local law, code or
ordinance, necessary to adapt it to the replacement structure, the replacement site or the
utilities at the replacement site and modifications necessary to adapt the utilities at the
replacement site to the personal property.
d. Storage of the personal property for a period generally not to exceed 12 months, as
determined by the Displacing City to be necessary in connection with relocation.
e. Insurance for the replacement value of the personal property , in connection with the move
and necessary storage.
f. Any license, permit, fees or certification required of your business at the replacement
location. However, the payment may be based on the remaining useful life of the existing
license, permit or certification.
g. The replacement value of property lost, stolen or damaged in the process of moving (not
through the fault or negligence of your own, your agent or employee), where insurance
covering such loss, theft or damage is not reasonably available.
h. Reasonable and preauthorized professional services as the Displacing City determines to be
necessary for: (i) planning the move of the personal property, (ii) moving the personal
property and (iii) installing the relocated personal property at the replacement location.
i. Re-lettering signs and replacing stationary on hand at the time of displacement that is made
obsolete, as a result of the move.
j. Actual direct loss of tangible personal property incurred, as a result of moving or
discontinuing the business. The payment shall consist of the lesser of:
(i) The fair market value of the item, as is for continued use at the displacement site,
less the proceeds from its sale. (To be eligible for payment, you must make a good
faith effort to sell the personal property, unless the Displacing City determines that
such effort is not necessary. When payment for property loss is claimed for goods
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held for sale, the fair market value will be based on the cost of the goods to the
business, not the potential selling price.); or
(ii) The estimated cost of moving the item as is, with no allowance for storage; or for
reconnecting a piece of equipment if the equipment is in storage or not being used at
the acquired site. (If you elect to discontinue your business, the estimated cost will be
based on a moving distance of 50 miles).
k. Purchase of substitute personal property. If an item of personal property which is used as
part of a business is not moved but is promptly replaced with a substitute item that performs
a comparable function at the replacement site, you will be entitled to payment for the lesser
of:
(i) The cost of the substitute item, including installation costs at the replacement site,
minus any proceeds from the sale or trade-in of the replaced item; or
(ii) The estimated cost of moving and reinstalling the replaced item but with no allowance
for storage. At the Displacing City’s discretion, the estimated cost for a low cost or
uncomplicated move may be based on a single bid or estimate.
l. The reasonable cost incurred in attempting to sell an item that is not to be relocated.
m. Searching for a replacement location. A displaced business is entitled to reimbursement for
actual expenses, not to exceed $1,000 as the Displacing City determines to be reasonable,
which are incurred in searching for a replacement location including:
(i) Transportation.
(ii) Meals and lodging away from home.
(iii) Time spent searching, based on reasonable salary or earnings.
(iv) Fees paid to a real estate agent or broker to locate a replacement site,
exclusive of any fees or commissions related to the purchase of such site.
n. When the cost of moving any item of personal property of low value and high bulk
(junkyards, stockpiles, sand, gravel, minerals, metals and similar property) would be
disproportionate in relation to its value, the allowable reimbursement for the expense of
moving such property shall not exceed the difference between the cost of replacing the same
with a comparable item available on the market and the amount which would have been
received for such property on liquidation.
o. Other moving related expenses as the Displacing City determines to be reasonable and
necessary.
In addition to the payments described above, a business with 50 employees or less may be eligible
to receive a payment, not to exceed $10,000, for expenses actually incurred in relocating and
reestablishing its operation at a replacement site. Reestablishment expenses must be reasonable and
necessary, as determined by the Displacing City. They may include, but are not limited to, the
following:
a. Repairs or improvements to the replacement real property as required by Federal, State or
local law, code or ordinance.
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b. Modifications to replacement property to accommodate the business operation or make
replacement structures suitable for conducting the business.
c. Construction and installation costs for exterior signage to advertise the business.
d. Provision of utilities from right of way to improvements on the replacement site.
e. Redecoration or replacement of soiled or worn surfaces at the replacement site, such as
paint, paneling or carpeting.
f. Licenses, fees and permits, when not paid as part of moving expenses.
g. Feasibility surveys, soil testing and marketing studies.
h. Advertisement of replacement location.
i. Professional services in connection with the purchase or lease of a replacement site.
j. Estimated increased costs of operation during the first two years at the replacement site, for
such items as:
1) Lease or rental charges,
2) Personal or real property taxes,
3) Insurance premiums, and
4) Utility charges, excluding impact fees.
k. Impact fees or one time assessments for antic ipated heavy utility usage.
l. Other items that the Displacing City considers essential to the reestablishment of the
business.
The following is a non-exclusive listing of reestablishment expenses not considered to be eligible for
reimbursement:
§ Purchase of capital assets, such as office furniture, filing cabinets, machinery or trade
fixtures.
§ Purchase of manufacturing material, production supplies, product inventory or other items
used in the normal course of the business operation.
§ Payment to a part-time business in the home which does not contribute materially to the
household income.
§ Interest on funds borrowed to accomplish the move.
CAUTION: In order to qualify for reimbursement of the above-described expenses, you MUST:
1. Provide OPC Relocation Staff with a list or inventory of the items to be moved at least thirty
(30) days in advance of the start of your move;
2. Notify OPC Relocation Staff at least fifteen (15) days in advance of the date of the start of
your move or disposition of your property;
3. Permit OPC Relocation Staff to monitor the move; and
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Relocation Plan
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4. Permit OPC Relocation Staff to make reasonable and timely inspections of the personal
property at both the displacement and replacement sites.
Failure to comply with any of the above four (4) requirements m ay result in your losing
part or all of your benefits.
As a matter of information, you should also be aware that you are not entitled to payment under the
Relocation Assistance Program for:
§ Cost of moving any structure or other real property improvement in which you reserved
ownership;
§ Interest on a loan to cover moving expenses;
§ Loss of Goodwill;
§ Loss of profits;
§ Loss of trained employees;
§ Personal injury; or
§ Costs for storage of personal property on real property owned or leased by the displaced
person.
You may move either by commercial mover or take full responsibility for all or part of the move. If
you elect a "self-move," you or OPC Relocation Staff must first obtain at least two (2) acceptable bids
or estimates.
- OR-
Option B - A Fixed Payment In Lieu of Moving and Related Expenses
If your business qualifies, you may choose a fixed payment instead of payment for actual moving
and reestablishment expenses. You may elect to receive an amount equal to the average annual net
earnings of your business, but not less than $1,000 nor more than $20,000. You may be eligible for
this payment if the Displacing City determines that:
a. Is not operated solely for rental purposes.
b. Cannot be relocated without a substantial loss of its existing patronage, based on a
consideration of all pertinent circumstances including such factors as the type of business
conducted, the nature of clientele, the relative importance to the displaced business of it s
present and proposed location and the availability of a suitable relocation site.
c. Is not part of a commercial enterprise having no more than three (3) other establishments
which are not being acquired for a project and which is engaged in the same or similar
business activities.
d. Had average annual gross receipts of at least $5,000.00 during the two taxable years prior to
displacement; the business had average annual net earnings of a least 1,000.00 during the
two taxable years prior to displacement; or the business contributed at least 33 1/3 percent
of the total gross income of the owner(s), during each of the two taxable years prior to
displacement.
The average annual net earnings of your business will be based on one-half of its net earnings
before Federal, State and local income taxes, during the two taxable years immediately prior to the
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Relocation Plan
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taxable year in which you move. You must provide the Displacing City with proof of net earnings
through income tax returns, certified financial statements or other reasonable evidence, as the
Displacing City determines is satisfactory.
If you lease or rent from the Displacing City, failure to pay necessary rental payments to the
Displacing City may reduce the relocation payment which you will receive.
If you are a tenant, you must file your claim within 18 months after the date you move. If you own
the property, you must file within 18 months after the date you move or the date you receive the
final acquisition payment, whichever is later. If you are unable to file your claim within 18 months,
the Displacing City may extend this period.
If you owe rent to the Displacing City, the amount owed will be deducted from any relocation
payment(s) for which you are eligible.
The Relocation Assistance Program is very complex. It is important that you carefully read and
understand the matters explained in this notice and in the Informational Statement which was
provided to you. Any person aggrieved by a determination as to eligibility for, or the amount of, a
payment authorized by the Displacing City’s Relocation Assistance Program may have the appeal
application reviewed by the Displacing City in accordance with its appeals procedure. Complete
details on appeal procedures are available upon request from the Displacing City.
If at any time you have questions or need assistance, please conta ct your OPC relocation agent:
Angie Luna
Senior Relocation Agent
Overland, Pacific & Cutler, Inc.
2280 Market Street, Suite 200
Riverside, Ca 92501
Phone 951-801-6826
Sincerely,
Hernando Avilez
Project manager
Overland, Pacific & Cutler, Inc.
ACKNOWLEDGMENT
I was personally contacted by the Relocation Agent for the Displacing City. I have been given a copy of this notice and I
have had the available services and entitlements explained to me. I have been advised that the Relocation Agent will be
available to assist me if any questions arise or assistance is needed.
Name: Signature: Date:
Carousel Mall Closure Project
Relocation Plan
C-1
EXHIBIT C
NOTICE TO VACATE
Carousel Mall Closure Project
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90-Day Notice to Vacate
<<DATE>>, 2017
<<OWNER’S NAME>>
<<BUSINESS NAME>>
<<ADDRESS>>
San Bernardino, CA 92401
Dear <<OWNER’S NAME>>:
The City of San Bernardino (called here the “Displacing City”) acquired the property which you
occupy at <<ADDRESS>>, San Bernardino, CA (called here the “Premises”). The Displacing City has
now determined that it will be necessary for you to vacate the Premises.
Notice is hereby given that the Displacing City elects to terminate your
tenancy in ninety (90) days beginning <<DATE>>, 2017 and ending
<<DATE>>, 2017 and you are hereby to quit and deliver up possession of
the property you occupy on or before <<DATE>>, 2017. If you do not
vacate the Premises by that date, the Displacing City will initiate legal
proceedings to recover possession of the Premises, along with any rents and
damages.
During this period, Overland, Pacific & Cutler, Inc. will be available to provide assistance with
referrals to replacement sites, coordination with movers and other vendors, the processing of
relocation benefit claim forms and other tasks to help facilitate your relocation. Please contact your
relocation agent listed below if you have any questions regarding this notice or the relocation
process. Upon vacating your unit, you are responsible for removing all of your personal property,
delivering the Premises in satisfactory condition and turning in the keys to your relocation agent.
Sincerely,
Hernando Avilez
Project Manager
Overland, Pacific & Cutler, Inc.
3750 Schaufele Ave. Suite 150
Long Beach, CA 90808
Phone (800) 400-7356
_________________________ Delivered on/by: ___________/____________
Received by
X________________________ Posted on/by: ___________/______________
Recipient’s Signature
_________________________ Mailed/receipt received on: _______/_______
Date
Your OPC Relocation Agent
Name: Angie Luna
Phone: (800) 400-7356
Case ID:
Carousel Mall Closure Project
Relocation Plan
D-1
EXHIBIT D
RESOLUTION NO. 2016-199
Carousel Mall Closure Project
Relocation Plan
E-1
EXHIBIT E
PUBLIC COMMENTS & RESPONSES
No public comments were received during the 30-day public review and comment period between
Monday, February 6, 2017 and Tuesday, March 7, 2017.