CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 3, 2026
To: Honorable Mayor and City Council Members
From: Eric Levitt, City Manager
Department: Economic Development
Subject: Proposed Acquisition of the Smart Technology Building for $3,667,740.13 Located at 793 N. “E” Street, San
Bernardino, California (Ward 1)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-058:
1. Approve the purchase of the Smart Technology Building located at 793 N. “E” Street, San Bernardino, California, for a purchase price not to exceed $3,667,740.13, funded by the City’s General Fund; and
2. Authorizing the Director of Finance and Management Services, or designee, to amend the FY 2025/26 Operating Budget in the amount of $3,667,740.13 from the General Fund – Fund Balance to support the acquisition of the Smart Technology Building; and
3. Authorize the City Manager, or designee, to execute a Purchase and Sale Agreement and all related escrow and closing documents, in a form approved by the City Attorney, necessary to complete the acquisition; and
4. Authorize staff to proceed with all required due diligence activities, including but not limited to title review, ALTA/NSPS survey, environmental assessments, engineering and structural evaluations, code and ADA compliance review, and mechanical, electrical, plumbing, and fire/life safety assessments, and to take all actions reasonably necessary to complete the purchase in accordance with Council direction.
City Manager's Comments
The City Manager recommends approval. This multiple benefits to the City and Police Department including being the facility to house the Regional Fusion Center. The purchase of $3,667,740 would be paid from the General Fund - fund balance.
Executive Summary
The proposed purchase of the Smart Technology Building from the San Bernardino City Unified School District is intended for use by the San Bernardino Police Department.
Located at 793 N. “E” St., the facility will house the Department’s Regional Fusion Center and PEACE Teams, and will support personnel and training functions. During Closed Session on April 2, 2025, the City Council approved the acquisition in concept utilizing the City's General Fund and authorized staff to proceed with negotiating and preparing the Purchase and Sale Agreement.
Background
The Smart Technology Building, located at 793 N. “E” Street and owned by the San Bernardino City Unified School District (SBCUSD), has been the subject of intermittent discussions regarding potential City acquisition for several years. These discussions occurred between staff and, at times, individual Councilmembers; however, the matter was not previously presented to the City Council as a body for authorization to evaluate the property, conduct due diligence, or negotiate acquisition terms.
The concept for the transaction evolved over time. Initial discussions contemplated a possible donation of the building to the City. Subsequently, the proposal shifted toward a negotiated acquisition that included consideration of offsetting the purchase price through the waiver of development impact fees (DIFs) associated with a separate School District development project downtown, as those fees increased.
Upon review, the City Attorney’s Office raised concerns regarding the proposed DIF offset structure, noting that waiving DIFs could create a General Fund obligation unless the City could demonstrate a clear nexus between the acquisition and mitigation of impacts for which the fees are collected. Legal counsel further advised that establishing such a nexus would be difficult. Additionally, the City does not concur with the School District’s position that it may bypass local zoning or fee requirements. Based on these considerations, staff advanced the matter to the City Council for formal direction.
On April 2, 2025, during Closed Session, the City Council approved the acquisition of the Smart Technology Building utilizing the City’s General Fund, expressly in lieu of permit or development impact fee waivers, and authorized staff to proceed with negotiations and preparation of a Purchase and Sale Agreement.
Discussion
The proposed acquisition of the Smart Technology Building at 793 N. “E” Street supports the City’s public safety and operational needs by providing an existing facility suitable for Police Department use with minimal anticipated modification. The property offers a cost- effective alternative to new construction or long-term leasing and includes on-site parking that will alleviate current departmental constraints.
The transaction structure, utilizing General Fund resources rather than development impact fee waivers, mitigates legal and policy risks associated with fee nexus requirements and preserves the City’s regulatory authority. This approach also provides budgetary certainty and avoids setting precedent related to fee offsets.
Overall, the proposed acquisition aligns operational needs with risk management considerations and balances timely occupancy with appropriate safeguards to protect the City’s financial and legal interests.
The proposed acquisition is structured as an “as-is” purchase, subject to completion of a defined due diligence period. Consistent with legal recommendations, due diligence includes, but is not limited to, review of title, ALTA/NSPS survey, environmental assessments, engineering and structural analyses, code and ADA compliance review, and mechanical, electrical, plumbing, and fire/life safety evaluations.
The San Bernardino Police Department has identified the facility for public safety use, including housing a Regional Fusion Center, Personnel and Training functions, and PEACE Teams. The Department anticipates using the facility largely in its existing condition, with limited interior modifications funded separately through grant resources.
The property’s on-site parking is also expected to significantly alleviate existing departmental parking constraints.
The School District has indicated its intent to begin vacating the building in mid-June.
Staff is proceeding to complete due diligence and advance the transaction in accordance with Council direction while ensuring the City’s legal, financial, and operational interests are protected.
2021-2025 Strategic Targets and Goals
Declaration of the Properties as surplus land aligns with Key Target 4: Economic Growth and Development by supporting the strategic reuse of land in a manner that promotes economic activity, enhances service delivery, and positions the City to better leverage its real property assets to meet evolving community needs.
Fiscal Impact
The proposed acquisition has a purchase price not to exceed $3,667,740.13, to be funded by the City’s General Fund. Due diligence costs will also be funded through the general fund. No major capital improvements are anticipated at this time, and limited interior modifications will be funded through external grant resources.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-058:
1. Approve the purchase of the Smart Technology Building located at 793 N. “E” Street, San Bernardino, California, for a purchase price not to exceed $3,667,740.13, funded by the City’s General Fund; and
2. Authorizing the Director of Finance and Management Services, or designee, to amend the FY 2025/26 Operating Budget in the amount of $3,667,740.13 from the General Fund – Fund Balance to support the acquisition of the Smart Technology Building; and
3. Authorize the City Manager, or designee, to execute a Purchase and Sale Agreement and all related escrow and closing documents, in a form approved by the City Attorney, necessary to complete the acquisition; and
4. Authorize staff to proceed with all required due diligence activities, including but not limited to title review, ALTA/NSPS survey, environmental assessments, engineering and structural evaluations, code and ADA compliance review, and mechanical, electrical, plumbing, and fire/life safety assessments, and to take all actions reasonably necessary to complete the purchase in accordance with Council direction.
Attachments
Attachment 1 Resolution No. 2026-058
Attachment 2 Purchase Agreement
Attachment 3 Exhibit A – Legal Descriptions of Properties Attachment 4 Exhibit B – Vicinity Maps and Zoning Descriptions Attachment 5 PowerPoint Presentation
Ward:
First Ward
Synopsis of Previous Council Actions:
April 2, 2025 During closed session, the City Council approved the acquisition of the Smart Technology Building using the City’s General Fund, in lieu of permit or development impact fee waivers, and authorized staff to proceed with negotiations and preparation of a Purchase and Sale Agreement.
CC: Eric Levitt, City Manager