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24-12291 Authorization to Initiate Reorganization Proceedings with the City of Highland for a .56 acre Parcel

Mayor and City Council
February 5, 2025

Document
24-12291 Authorization to Initiate Reorganization Proceedings with the City of Highland for a .56 acre Parcel
Meeting
February 5, 2025
Body
Mayor and City Council
Original file
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Text extracted from the city's file for reading and search. Open the original on sanbernardino.primegov.com. That file is the official record.

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 5, 2025
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Kenneth Chapa, Director of Economic Development
Department: Economic Development
Subject: Memorandum of Understanding Regarding Land
Designation of APN 0278-181-20 & a Portion of APN 0278- 191-30, Also Known as Palm Field and the Antil Plant Site (Ward 1)
Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California:

1. Adopt Resolution No. 2025-026 of the Mayor and City Council of San Bernardino, California, approving the redesignation of real property owned by the San Bernardino Municipal Water Department, generally located on the north side of East 6th Street, west of Pedley Road, also known as APN 0278-181-20 and a portion of 0278-191-30 as defined in Exhibit A attached hereto; and

2. Authorize the City Manager to execute the Memorandum of Understanding (MOU) Executive Summary
The recommended action will transfer approximately 13.8 acres of land currently designated to the San Bernardino Municipal Water Department to the City of San Bernardino for an agreed upon consideration amount of $2,650,000. The land is generally located on the north side of East 6th Street, west of Pedley Road, and is also known as ”Palm Field” and the ”Antil Plant Site“ (APN: 0278-181-20 & a portion of 0278-191-30). The land is being acquired by the City of San Bernardino for future development of affordable, supportive, and/or transitional housing.

Background
The San Bernardino Municipal Water Department currently owns two properties located on the north side of East 6 th Street, west of Pedley Road. The properties in question consist of two parcels, 0278-181-20 and a portion of 0278-191-30, also known 2 4
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as Palm Field and the Antil Plant Site, and total approximately 13.8 acres of land. The site currently maintains Water Department improvements that include a well site, buildings, pump boosters, water mainlines, and multiple easements for pipeline purposes.

On September 13, 2024, an independent appraisal was performed of the properties.

The market value was established at $2,650,000. Although the properties are currently zoned for ”Public Park and Public Facilities”, the appraisal was completed utilizing the highest and best use of Residential Medium Zoning (RM). Additionally, the site was appraised net of the area for the well facility and with the understanding that improvements consisting of the pump boosters, buildings, and mainlines to the south and southeast of the well area were to be removed. The pipeline easements will be preserved and may be relocated to accommodate development, in accordance with the Memorandum of Understanding.

On December 4, 2024, during a Special Meeting of the Mayor and City Council of the City of San Bernardino, City Council approved a Staff recommendation to allocate remaining ARPA funds as follows: $2,955,215 towards Street Segment Repairs and $2,650,000 towards the redesignation of Palm Filed and the Antil Plant Site.

Discussion
The redesignation of the aforementioned properties is being proposed to allow for the future development of affordable, supportive, and/or transitional housing. A Memorandum of Understanding outlining the actions has been developed by the San Bernardino Municipal Water Department and City staff, in conjunction with the City Attorney’s Office.

The Memorandum of Understanding will be presented to the Water Board Commissioners for approval on February 11, 2025. Upon receiving approval from the Water Board Commissioners, Staff is recommending that the Mayor and City Council of the City of San Bernardino approve the redesignation of the properties and authorize the City Manager, or his or her designee, to execute the Memorandum of Understanding. The recommended action is contingent upon the final approval of the San Bernardino Municipal Water Department’s Board of Commissioners on February 11, 2025.

The City of San Bernardino will issue payment to the San Bernardino Municipal Water Department in the amount of $2,650,000 from the allocated ARPA funds for the redesignation of the property. The disbursement of funds will occur immediately upon satisfaction of all conditions outlined in the Memorandum of Understanding. 2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No 3. Improved Quality of Life. This project will contribute to ensure that the City is clean and attractive though mitigating the effects of homelessness and provide the much-needed infrastructure designed for sustained success.
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Fiscal Impact
There is no fiscal impact to the General Fund associated with this item. The City of San Bernardino will process a payment to the San Bernardino Municipal Water Department in the amount of $2,650,000, from the American Rescue Plan Act (ARPA) Fund, for the redesignation of approximately 13.8 acres of land, commonly known as Plam Filed and the Antil Plant Site. This transaction is contingent upon the final approval of the Water Board Commissioners, which is scheduled for consideration on February 11, 2025.

Conclusion
It is recommended that the Mayor and City Council of San Bernardino, California:

1. Adopt Resolution No. 2025-026 of the Mayor and City Council of San Bernardino, California, approving the redesignation of real property owned by the San Bernardino Municipal Water Department, generally located on the north side of East 6th Street, west of Pedley Road, also known as APN 0278-181-20 and a portion of 0278-191-30 as defined in Exhibit A attached hereto; and

2. Authorize the City Manager to execute the Memorandum of Understanding (MOU) Attachments
Attachment 1 - Resolution No. 2025-026, Approving the Redesignation of Palm Field and the Antil Plant Site
Attachment 2 – Exhibit A
Attachment 3 - Memorandum of Understanding
Attachment 4 – Appraisal Report
Ward:

First Ward
Synopsis of Previous Council Actions:

December 4, 2024 The Mayor and City Council approved the ARPA Fund allocation of $2,650,000 for the redesignation of Palm Field and the Antil Plant Site.

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