Lincoln Property Company withdraws from Carousel Mall redevelopment

The Lincoln Property Company (LPC West) has withdrawn from the development group working to redevelop the Carousel Mall property.

In a letter addressed to the City of San Bernardino, LPC West Vice President Rob Kane stated, “Due to economic and other circumstances, it has become evident that Lincoln and the City will be unable to successfully negotiate a DDA (Development and Disposition Agreement). Lincoln hereby notifies the City of Lincoln’s election to withdraw and terminate any further participation under the ENA.”

The real estate market, largely due to spiking interest rates to finance projects, has slowed significantly in just the past few months.

“We wish to express our great appreciation to you, the City Council, and City staff for all of the City’s significant time, efforts and cooperation expended in this matter,” Kane continued in his letter. “We wish the City success in its efforts toward redevelopment of the property.”

Under the terms of the ENA, the San Bernardino Development Corporation (SBDC), often referred to as RD-ICO, has the right to re-assume its role are principal developer. The City is awaiting word from SBDC on how they plan to proceed.

“This is disappointing,” said City Manager Rob Field. “But it is just a setback. This project will keep moving forward.”

At the City Council’s direction, the City continues to work toward the demolition and clearing of the Carousel Mall site. Demolition firms recently submitted proposals through an RFP (request for proposal) process. Proposals are currently under review with a recommendation being presented to the City Council in the coming months.

“National market forces, especially interest rates, are impacting every project,” added Field. “But the housing market is still very tight in this region and the development opportunities in Downtown San Bernardino remain extremely attractive.”