San Bernardino California - Urban Land - AN ADVISORY SERVICES PANEL REPORT - Future San Bernardino 2050
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A N A D V I S O RY S E R V I C E S PA N E L R E P O RT San Bernardino California Urban Land $ Institute
San Bernardino California Crossroads of the Southwest June 24–29, 2007 An Advisory Services Panel Report ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W. Suite 500 West Washington, D.C. 20007-5201
About ULI–the Urban Land Institute T he mission of the Urban Land Institute is to • Sustaining a diverse global network of local provide leadership in the responsible use of practice and advisory efforts that address cur- land and in creating and sustaining thriving rent and future challenges. communities worldwide. ULI is committed to Established in 1936, the Institute today has more • Bringing together leaders from across the fields than 38,000 members from 90 countries, represent- of real estate and land use policy to exchange ing the entire spectrum of the land use and develop- best practices and serve community needs; ment disciplines. Professionals represented include developers, builders, property owners, investors, • Fostering collaboration within and beyond architects, public officials, planners, real estate ULI’s membership through mentoring, dia- brokers, appraisers, attorneys, engineers, financiers, logue, and problem solving; academics, students, and librarians. ULI relies • Exploring issues of urbanization, conservation, heavily on the experience of its members. It is regeneration, land use, capital formation, and through member involvement and information sustainable development; resources that ULI has been able to set standards of excellence in development practice. The Insti- • Advancing land use policies and design prac- tute has long been recognized as one of the world’s tices that respect the uniqueness of both built most respected and widely quoted sources of ob- and natural environments; jective information on urban planning, growth, and development. • Sharing knowledge through education, applied research, publishing, and electronic media; and ©2007 by ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W. Suite 500 West Washington, D.C. 20007-5201 All rights reserved. Reproduction or use of the whole or any part of the contents without written permission of the copy- right holder is prohibited. Cover photo courtesy of San Bernardino Economic Develop- ment Agency. 2 An Advisory Services Panel Report
About ULI Advisory Services T he goal of ULI’s Advisory Services Program pants in ULI’s five-day panel assignments are is to bring the finest expertise in the real able to make accurate assessments of a sponsor’s estate field to bear on complex land use plan- issues and to provide recommendations in a com- ning and development projects, programs, pressed amount of time. and policies. Since 1947, this program has assem- bled well over 400 ULI-member teams to help A major strength of the program is ULI’s unique sponsors find creative, practical solutions for ability to draw on the knowledge and expertise of issues such as downtown redevelopment, land its members, including land developers and own- management strategies, evaluation of develop- ers, public officials, academics, representatives of ment potential, growth management, community financial institutions, and others. In fulfillment of revitalization, brownfields redevelopment, mili- the mission of the Urban Land Institute, this tary base reuse, provision of low-cost and afford- Advisory Services panel report is intended to able housing, and asset management strategies, provide objective advice that will promote the re- among other matters. A wide variety of public, sponsible use of land to enhance the environment. private, and nonprofit organizations have con- tracted for ULI’s Advisory Services. ULI Program Staff Each panel team is composed of highly qualified Marta V. Goldsmith Senior Vice President, Community professionals who volunteer their time to ULI. They are chosen for their knowledge of the panel Thomas W. Eitler topic and screened to ensure their objectivity. Director, Advisory Services ULI’s interdisciplinary panel teams provide a Cary Sheih holistic look at development problems. A re- Senior Associate, Advisory Services spected ULI member who has previous panel Matthew Rader experience chairs each panel. Senior Associate, Advisory Services The agenda for a five-day panel assignment is in- Carmen McCormick tensive. It includes an in-depth briefing day com- Panel Coordinator, Advisory Services posed of a tour of the site and meetings with spon- Romana Kerns sor representatives; a day of hour-long interviews Administrative Assistant, Advisory Services of typically 50 to 75 key community representa- Nancy H. Stewart tives; and two days of formulating recommenda- Director, Book Program tions. Many long nights of discussion precede the panel’s conclusions. On the final day on site, the Laura Glassman, Publications Professionals LLC panel makes an oral presentation of its findings Manuscript Editor and conclusions to the sponsor. A written report is Betsy VanBuskirk prepared and published. Art Director Because the sponsoring entities are responsible Martha Loomis Desktop Publishing Specialist/Graphics for significant preparation before the panel’s visit, including sending extensive briefing materials to Kim Rusch each member and arranging for the panel to meet Graphics with key local community members and stake- Craig Chapman holders in the project under consideration, partici- Director, Publishing Operations San Bernardino, California, June 24–29, 2007 3
Acknowledgments O n behalf of the Urban Land Institute, the of Supervisors for their dedication to revitalizing panel extends its thanks to the city and downtown San Bernardino. The panel is grateful county of San Bernardino for convening a to June Durr, Don Gee, Emil Marzullo, Jim Morris, panel to recommend strategies for revital- Maggie Pacheco, and Colin Strange for their hard izing downtown San Bernardino. The panel would work in preparing for the panel. Finally, the panel also like to express its appreciation to the City would like to thank the many community mem- Council, the Board of Supervisors, and the San bers who shared their expertise during the inter- Bernardino Economic Development Agency. view process. The panel sends special thanks to Mayor Patrick J. Morris and Chairman Paul Biane of the Board 4 An Advisory Services Panel Report
Contents ULI Panel and Project Staff 6 Foreword: The Panel’s Assignment 7 Market Analysis 11 Planning and Urban Design 17 Development Strategies 20 Implementation 30 Conclusion 36 About the Panel 37 San Bernardino, California, June 24–29, 2007 5
ULI Panel and Project Staff Panel Chair Sue Southon Principal William H. Hudnut III Strategic Planning Services Senior Resident Fellow/Joseph C. Canizaro Bloomfield Hills, Michigan Chair for Public Policy ULI–the Urban Land Institute Nathan Watson Washington, D.C. President Watson Developments New Orleans, Louisiana Panel Members Agnes Artemel ULI Project Director President Artemel & Associates, Inc. Michael Pawlukiewicz Alexandria, Virginia Senior Research Director, Asia Daniel Brents Houston, Texas ULI On-Site Coordinator Carmen McCormick Christine M. Burdick Panel Coordinator President Tampa Downtown Partnership Tampa, Florida Richard F. Galehouse Principal Sasaki Associates, Inc. Watertown, Massachusetts Richard T. Reinhard Deputy Executive Director Downtown DC BID Washington, D.C. John Shumway Principal The Concord Group Newport Beach, California 6 An Advisory Services Panel Report
Foreword: The Panel’s Assignment Location map. T he city of San Bernardino is located in the ORE GON I DAHO San Bernardino Valley, about 65 miles east of the city of Los Angeles. The valley is at the base of the San Bernardino Mountains in Southern California. The city of San Bernardino C A L IF O R NIA and San Bernardino County are part of the “Inland N E VADA Empire,” which is a geographic area generally U defined as the area inland from Los Angeles and Sacramento Orange counties and encompassing all of River- San Francisco side and San Bernardino counties. The Inland San Jose Empire is a fast-growing, major economic force Fresno within Southern California and the nation with a current population of more than 4 million and fore- casted population growth of an additional 2 million Bakersfield by 2020. Los Angeles San Bernardino Once a thriving central business district (CBD) P A C Long Beach Irvine IF and center of government activity for the region, IC A O surrounded by middle-class residential neighbor- C E A San Diego N hoods, San Bernardino’s downtown has declined ME XI CO over the past 20 years. The downtown area is still a major employment center but has declined in naming it Fort San Bernardino. The community vitality because of the prevalence of marginal or thrived, and in 1854 the city of San Bernardino failed businesses, commercial vacancies, decen- was officially incorporated. The population at the tralized government offices, and predominantly time was 1,200, 900 of whom were Mormons. In substandard housing stock. Although unsubstan- 1857, Brigham Young recalled his Mormons to tiated by crime statistics, the general public per- Salt Lake City, but in the six short years that the ception is that downtown San Bernardino is un- Mormons had been in San Bernardino, they estab- safe because of empty streets, vacant storefronts, lished schools, stores, and a plan for the city’s and blighted conditions. streets that is still reflected in San Bernardino’s street grid. History of San Bernardino In the latter part of the 19th century, the Santa When Spanish missionaries first settled in the Fe, the Union Pacific, and the Southern Pacific region, they chose the fertile valley at the foot railroads all converged on the city, making it the of a mountain range as an outpost for their travels hub of their Southern California operations. When throughout the California territory preaching to the Santa Fe Railway established a transconti- the various Indian tribes. In 1819, the mission- nental link in 1886, the already prosperous valley aries established Rancho San Bernardino. exploded. Settlers flocked from the East, and the In 1851, a company of about 500 Mormons arrived population doubled—from 6,150 in 1900 to 12,779 in the valley. The Mormons purchased 35,000 acres in 1910, the year that the San Bernardino Cham- of Rancho San Bernardino and built a stockade, ber of Commerce was first organized. San Bernardino, California, June 24–29, 2007 7
K 15 KERN 14 SAN BERNARDINO Regional map. 58 58 14 138 Lancaster 40 247 V Palmdale 18 138 L OS ANGE L E S Santa Clarita 15 247 Valley O Glendale 215 Pasadena 30 San Bernardino T 62 Los Angeles Inglewood Riverside 62 15 10 RIVERSIDE Anaheim Torrance Corona 55 5 Long Beach Santa Ana 405 Irvine Huntington Beach ORANGE 74 Costa Mesa 1 371 In its heyday, from the 1920s to the 1980s, the cen- State Route 210 serve the transportation needs of tral business district included major shopping op- the city and the region. portunities; service businesses, such as barbers The downtown core thrived until the 1980s and and salons; banks and insurance companies; car7 has since been in decline. The events that precipi- dealerships; restaurants; public and private schools; tated the downtown decline are complex and in and, most prominently, government offices. As the some cases regional in nature. They include the seat of San Bernardino County government, the closing of Norton Air Force Base (AFB), with downtown area was home to city, county, state, and the loss of 10,000 jobs over a five-year period; the federal government offices and service centers. construction of Interstate 15 from Ontario to the Cajon Pass, which directed Los Angeles traffic Rich water resources and a strategic location at away from San Bernardino to Ontario; the loss the crossroads of two of the three major railways of the Kaiser Steel plant in Fontana, which cost into Southern California made the city of San the manufacturing jobs of several thousand of Bernardino the economic hub of the Inland Em- San Bernardino Valley residents; the relocation pire. The railroads all had facilities within or close of a major maintenance facility for the Atchison, to the downtown core. Rail lines crossed many Topeka and Santa Fe Railway from San Bernar- areas of downtown from the San Bernardino depot dino to the Midwest, with a loss of about 2,000 jobs; area on their course to industrial or agricultural and the development of the Hospitality Lane area sites in the east San Bernardino Valley, the Los south of downtown and adjacent to Interstate 10, Angeles basin to the west, or areas farther north which drew shoppers and businesses out of down- and east. town San Bernardino. Finally, the real estate re- cession of the 1990s resulted in substantial deval- U.S. Route 66, extending from Chicago to Los An- uation of property. geles, runs through San Bernardino. This famous “mother road” was the major transport route for logistics and regional migration into California for The Study Area almost 40 years. Today, Route 66 is mostly a rem- The Downtown District Focus Area defined for nant of the past, and Interstates 10 and 15 with this study is bounded by Interstate 215 (I-215) to 8 An Advisory Services Panel Report
Baseline Street Study area. 9th Street EE DD UU CC AA TT II OO NN 215 PP AA RR KK 7th Street Arrowhead Avenue SS EE CC CC OO MM BB EE Sierra Way LL AA KK EE H Street G Street D Street E Street 5th Street 5th Street CC OO UU NN TT YY CC OO MM PP LL EE XX Court Street To Santa Fe Depot CC AA RR OO UU SS EE LL MM AA LL LL 3rd Street 2nd Street 2nd Street Rialto Avenue Waterman Avenue BB AA LL LL PP AA RR KK Mill Street Key: Downtown Central Business District the west, Waterman Avenue to the east, Baseline of-way of the proposed light rail extension to Red- Street to the north, and Mill Street to the south. lands (see study area map). Within that downtown focus area, the central business district is historically defined as bounded The Panel’s Assignment by I-215 in the west, Sierra Way in the east, 5th The panel was asked to recommend strategies, Street to the north, and Rialto Avenue to the policies, and actions for the city and the county to south. For the purpose of this study, the CBD ex- pursue with respect to land use, transportation, tends to just south of Rialto Avenue, to the right- lifestyle, urban design, commerce, and govern- San Bernardino, California, June 24–29, 2007 9
ment that will bring vitality and economic well- • Extend the linear park system to embrace being back to San Bernardino’s central business close-in neighborhoods. Include safe pedestrian district. In addition, the panel was asked to pre- ways and bike trails to facilitate access to down- scribe clear proposals for implementing its recom- town. mendations. • Continue revitalization of the surrounding near- downtown residential neighborhoods with code Summary of Recommendations enforcement, infill housing, and streetscape im- The following briefly summarizes the recommen- provements. dations that the body of the report describes in • Relocate the proposed site of the Arrowhead more detail: Credit Union corporate headquarters closer to • Engage the citizens of San Bernardino in the downtown, adjacent to the north side of the process of envisioning and developing the fu- Arrowhead Credit Union Park. ture of the downtown. • Locate only a bus stop at the intermodal bus • Take steps to clean and maintain the downtown transfer center site and not the bus transfer area and enhance the aesthetics of the streets station. with plantings and other amenities. • Designate an arts and entertainment district • Increase police patrolling to reverse the percep- that encompasses the existing theaters and his- tion of insecurity and danger. toric buildings on E Street and buildings along Court and 4th streets. • Attract people to the downtown through special events and other sorts of regular and frequent • Redevelop the area to the north of the study programming. area, bounded by 6th and 9th streets and G and D streets, to create an Education Park. • Establish a Business Improvement District (BID) to take on the long-term management of • Partner with private sector business leaders the downtown environment. and developers so the city and county become known as a development-friendly community. • Develop the San Bernardino County Govern- ment Center as a campus on the existing 36- • Hire a chief development officer (champion), ei- acre site between North Arrowhead Avenue ther on staff or as a consultant, whose job is to and North Sierra Way. ensure that downtown development projects stay on track and on time. • Clear the site of the existing Carousel Mall, and restore the city’s historic street grid through • Adopt and enforce design standards and guide- the site. lines to ensure an appealing downtown environment. • Redevelop the site of the Carousel Mall as a contemporary mixed-use urban village with • Invest public funds in the revitalization process. supporting retail, office, and residential uses. • Celebrate the waters of the city of San Bernardino by creating a linear park and stream system that restores existing natural streams previously diverted to underground pipes or culverts. Extend canals and fountains beyond the natural systems to provide cool “green pedestrian streets” for residents to walk or bike downtown. 10 An Advisory Services Panel Report
Market Analysis T he city of San Bernardino serves as a county and logistics activities. It connects California’s seat and governmental center for San Ber- coastal ports with cities such as Albuquerque, nardino County. The city’s excellent freeway New Mexico; Kansas City, Missouri; and Chicago, system, rail terminals, and abundance of Illinois. The city hosts the Burlington Northern groundwater were instrumental in its once being Santa Fe Railroad’s intermodal yard, the Yellow a thriving business center for the Inland Empire Freight Systems’ cross-docking trucking center, region of Southern California. Historically, the and Pacific Motor Trucking. Large warehousing city has numerous associations with Hollywood operations are under development next to the San movie stars as well as with the westward expan- Bernardino International Airport, including those sion of the United States. The city has suffered in for Stater Bros. grocery stores, Mattel, Medline, recent years, however, as it lost jobs and housing Pep Boys, and Kohl’s. The city’s Hospitality Lane stock and as the downtown deteriorated. district is home to new Class A office space, big- box retailers, restaurants, and hotels. The city’s The regional economy is strong and growing, and location at the junction of the I-10 and I-215 free- San Bernardino is well positioned to capture a share ways positions it at a key focal point of the Inland of that growth. Unfortunately, downtown has not Empire region. been successful, despite some major investments by the city. Repositioning downtown to capture The area is home to California State University, a portion of the regional market will take some San Bernardino, and San Bernardino Valley Col- effort but is entirely possible. lege as well as the St. Bernardine Medical Center, San Bernardino Community Hospital, and the Regional Economy Robert H. Ballard Rehabilitation Hospital. The national economic slowdown is currently af- With a once-thriving downtown, San Bernardino fecting Southern California. The UCLA Anderson has been hit hard in the last two decades, expe- Forecast says the national economy is close to riencing the consecutive loss of major employers, recessionary conditions, with real gross domestic such as Norton AFB (10,000 jobs) and a major product growth of 1.8 percent for 2007; growth is railroad maintenance facility with about 2,000 jobs; forecast to return to a more normal 3 percent by the recession of the 1990s; and the migration of mid-2008. The housing sector, however, will con- downtown employers to the Hospitality Lane dis- tinue to be weak for some time, causing a slow- trict. The loss of Kaiser Steel at Fontana, Califor- down in consumer spending and affecting the nia, also affected San Bernardino because many retail sector. Homebuilders have slowed construc- Kaiser employees lived in the city. tion plans because potential homebuyers are hav- ing a harder time qualifying for mortgages. Because of the job losses and the economic down- turn, many homeowners either sold out or lost The Inland Empire is a growing region, with a their homes through foreclosure. This situation population of more than 4 million and an economy led to deterioration of the housing stock, an in- with 1.25 million jobs. crease in investor ownership rather than individ- ual homeownership, and an increase in rental The Economy of the City housing. The city’s location close to the Cajon and San From 1998 to 2004, San Bernardino’s economy Gorgonio passes has made it a center for railroad grew by 26,217 jobs—a 37 percent increase—to San Bernardino, California, June 24–29, 2007 11
97,139. This upswing represents a recovery from ley Municipal Water District. City Hall is also a the loss of more than 9,200 jobs after the closure major employer downtown. of Norton AFB. Government was both the largest and the fastest-growing employment sector, reach- San Bernardino city has 958,500 square feet of ing close to 20,000 jobs in 2004. Other significant Class A office space, 1.8 million square feet of sectors were retail (16,000 jobs) and education Class B space, and 550,000 square feet of Class C (13,200 jobs). The city’s average payroll per job space. CoStar Realty Information reports that was $35,705 in 2004, higher than for the Inland downtown San Bernardino contains 127 office Empire overall ($32,097). Government jobs aver- buildings and 2.22 million square feet of office aged $49,076 in 2004, demonstrating the impor- space, numbers that have held constant since at tance of the government sector. least 1996. This space includes all classes as well as some space in nonoffice buildings, such as the San Bernardino’s retail sector is highlighted by the 1 million-square-foot Inland Center Mall. The Carousel Mall and the Mervyns space. Some space Carousel Mall in the CBD is in steep decline and in these buildings is leased to public sector tenants, nearly closed; current tenants include several including two county agencies. office users rather than retailers. The new Hospi- No new buildings have been built since 1998, when tality Lane area contains a restaurant row as well 7,000 square feet were added to the inventory. An- as a number of big-box retailers. The Highland nual net absorption is low to negative. Avenue shopping district offers Wal-Mart, Ross, and Mervyns. Retail sales from 1998 to 2005 in- Historical vacancy rates hit a high of 17.1 percent creased at an annual rate of 7.6 percent, faster in the third quarter of 2004 but came down steadily than in California as a whole. Per capita sales have throughout 2005 and 2006, although they are creep- also increased faster than inflation since 1998. Nev- ing up again, reaching 8.6 percent in the first quar- ertheless, in 2005 San Bernardino ranked below ter of 2007. CBD rents are considerably lower than Ontario, Temecula, Victorville, Loma Linda, Colton, regional rents, currently averaging $16.27 per and Riverside in per capita sales. square foot per year. The automotive sector has a very large share of the city’s overall retail sales, followed by service, Retail uses in the CBD include the Fairview industrial, lumber, and logistics firms. Department Ford dealership, Stater Bros. grocery store, the stores, general merchandise stores and small re- 20-screen cinema, and several auto-oriented busi- tailers, and the restaurant sector were smaller nesses. Of the 31 food-service establishments, only components of the retail sector. one is a full-service restaurant; the rest are lim- ited, mostly offering breakfast and lunch service. The downtown area claimed a Ford dealership, gas stations, minimarts, and fast-food establish- ments, primarily along Baseline Street. The CBD Commercial Market in the CBD had almost no shopper-oriented stores but does Downtown San Bernardino’s office space is marked have several auto-oriented businesses. by a few older buildings, several of which appear to be empty. The office space is scattered between The Economy of the CBD E Street and Mountain View Avenue, primarily Downtown functions as a governmental center, north of Rialto to about 10th Street. Property hosting the federal Internal Revenue Service and owners report that their tenants are primarily Department of Homeland Security, the Mexican small firms (with two to four employees), such consulate, a 14-story office building for the Cali- as accountants. San Bernardino’s office space is fornia Department of Transportation (Caltrans), among the least expensive in the region, averag- San Bernardino County administrative offices and ing $15.50 per square foot per year in the down- courts, the San Bernardino Associated Govern- town and $21.36 per square foot per year in the ments, and the offices of the San Bernardino Val- Hospitality Lane area. 12 An Advisory Services Panel Report
No new office construction has taken place in the middle ground, and Redlands has the highest CBD; San Bernardino’s office demand is being price ranges. captured by other areas, primarily Hospitality Office Lane and areas closer to the airport. One promis- ing opportunity is Arrowhead Credit Union’s in- CoStar defines the Inland Empire as two markets, terest in building an operations center just south east and west, that contain 46.7 million square feet of downtown. of office space in 3,298 class A, B, and C buildings. The Inland Empire west market, including the air- Downtown San Bernardino has steadily lost retail port, San Bernardino West, and San Bernardino and restaurant uses. The Carousel Mall is largely North, totals 14.8 million square feet. The vacancy empty or underused, with ground-floor space rate in the first quarter of 2007 was reported at rented to public sector tenants. Despite the large 7 percent for the Inland Empire west, down from numbers of public sector workers in the area, down- a high of almost 11 percent in the fourth quarter town restaurants have for the most part closed of 2004. From mid-2003 to early 2007, 264 office because of lack of evening and weekend business. buildings were added for a total of 2.4 million square feet. In the first quarter of 2007, 75 build- Downtown San Bernardino offers only the 230-room ings were under construction, for a total of 1.77 Clarion (formerly Radisson) Hotel and a small million square feet. Holiday Inn Express. The Clarion also advertises a convention center, which consists of a 19,000- In the comparable market of the Inland Empire square-foot ballroom and ten small meeting rooms. east, which includes Riverside, the most recent vacancy rate was 10 percent, the highest level San Bernardino is within 30 minutes of 22 public since the first quarter of 2001. From mid-2003 to and private colleges with 158,000 students. Al- early 2007, 277 office buildings were added for a though not in the CBD, California State Univer- total of 4.6 million square feet. In the first quarter sity, San Bernardino, and San Bernardino Com- of 2007, 148 buildings were under construction, for munity College are significant players in San a total of 3.74 million square feet. Bernardino’s economy, with 16,400 and 12,600 students, respectively. Quoted rent rates increased rapidly in both mar- kets. Inland Empire west increased from $17.74 The county of San Bernardino occupies 671,400 to $24.61 per square foot per year, and the Inland square feet on a 36-acre site that includes the Empire east increased from $18.43 to $25.81 per County Government Center and Courthouse. The square foot per year. county also leases space in locations in the CBD. According to a 2004 Gensler study, the county Retail owns 40 buildings in the city totaling 1.4 million New shopping centers are being built throughout square feet and leases 766,000 square feet in 49 the region, most notably in Redlands, as well as privately owned buildings. Additional public sec- in Riverside and other communities. These shop- tor space is found in the Caltrans Building, and ping centers offer easy access, new stores, na- the city of San Bernardino occupies the City Hall tional brands, and a pleasant environment. They building and the police headquarters. provide a center of attraction that continues to divert the middle class away from downtown Commercial Market: Regional Trends San Bernardino. Commercial demand in the Inland Empire contin- Hospitality ues to grow, spurred by an eastward expansion The region is not known for hosting major conven- from Los Angeles and Long Beach and the avail- tions or conferences, and the hotel sector is proba- ability of large tracts of land at reasonable prices. bly underbuilt. A number of historic hotels exist, San Bernardino and its satellite cities such as such as the Mission Inn in Riverside, and when Fontana represent the low price points in the the Lake Arrowhead Resort reopens, it will refo- Inland Empire. Ontario and Riverside occupy a cus attention on San Bernardino. San Bernardino, California, June 24–29, 2007 13
Industrial Market: Regional Trends The general impression is of vacant buildings sur- rounded by large surface parking lots. This situa- The Inland Empire absorbed almost 21 million tion has led to a widespread perception that down- square feet of industrial space in four quarters town has crime and that no one wants to live spanning 2005–2006. The region’s transportation there. Consequently, no one does. infrastructure, available land, and low space and labor costs are able to serve the growing demand Nevertheless, San Bernardino has many advan- to support international trade through the ports of tages: a Mediterranean climate, beautiful scenery, Los Angeles and Long Beach. San Bernardino is and ample water resources make it a standout benefiting from the boom in demand for industrial location in Southern California. It has numerous and logistics space. It is supporting that demand area attractions: California Theater, Lake Arrow- through the recent runway expansion at San head Resort, Sturges Center for the Fine Arts, Bernardino International Airport and Hillwood’s San Manuel Indian Bingo and Casino (Highland), construction of logistical and warehouse space and the San Bernardino County Museum. near the airport. In the year ending March 2006, The National Orange Show and Route 66 Rendez- San Bernardino absorbed 17 million square feet of vous inject some temporary excitement to the area. industrial space. Although industrial space trans- A Renaissance Fair had been held in the spring lates to fewer jobs per square foot than other months but has relocated. sectors, it is nevertheless a strong force in San Bernardino’s economy. The city has a 5,000-seat stadium for the Inland Empire Sixty-Sixers baseball team. The city hosts Education the nationally televised Western Region Little League Championship that draws teams from The presence of several universities and colleges several western states. The city also hosts presti- in the region is a positive factor. Many will seek to gious soccer tournaments, such as the U.S. Soccer expand, and the possibility exists of attracting a Club’s Region E Championship, and offers 17 soc- downtown or branch campus to San Bernardino. cer fields in its soccer complex. Extensive transportation facilities, including a Government comprehensive network of freeways and two San Bernardino County is conducting studies for mountain passes, favor San Bernardino as a expansion of its facilities. It requires 450,000 square business location. feet of office space and more than 3,000 parking Regional demand is strong too, but San Bernard- spaces. A new courthouse has been approved with ino’s downtown is not capturing any of that de- more than 30 courtrooms in 351,000 square feet; mand. Instead, Hospitality Lane has become the additional courtrooms are to be retained in ex- center of economic activity for the office and re- isting space. tail sectors, as has the area near the airport for the industrial sector. Shopping center develop- Improving the Competitiveness of the ment is taking place in Redlands and Riverside, CBD as well as other surrounding communities such as Rancho Cucamonga, Ontario, Fontana, Banning, What is holding the CBD back? Despite strong re- and Beaumont. gional demand in all sectors of the economy, the San Bernardino CBD has consistently lost busi- Downtown San Bernardino must be repositioned nesses, buildings, and people in the last 20 years. to capture the available regional demand. Meeting Although the city has implemented a number of this goal will require an exciting new plan for down- projects and has acquired blighted properties, town that capitalizes on San Bernardino’s strengths business closures continue unabated. The CBD is and the back-to-the-city movement now evident now largely devoid of appealing shops and restau- throughout the United States, as well as specific rants. Downtown also has very little housing. initiatives to overcome negative perceptions. 14 An Advisory Services Panel Report
Residential Market whom would likely work in Los Angeles County and the Inland Empire area. A prospect exists San Bernardino’s population is growing; in 2006, that 312 new residential units will be built around it reached 202,000, comprising 60,000 households. Seccombe Lake. The city is the second largest of the Inland Em- pire’s communities. San Bernardino is considered Residential Demand in San Bernardino the center of an 850,000-person market that in- Residential construction and existing home sales cludes the communities of Colton, Fontana, Grand have slowed in the last six months because of a Terrace, Highland, Loma Linda, Redlands, Rialto, nationwide pullback in the housing sector. Re- and Yucaipa. gional growth patterns indicate that demand In 2005, the city’s median income was reported should resume in the next year. In the foothills as $38,470. Almost 56 percent of the city’s resi- and in neighborhoods outside the downtown, San dents classify themselves as Hispanic, above the Bernardino should continue to experience hous- 47.5 percent reported in 1990, and higher than the ing growth. 44 percent share in San Bernardino County. The Residential Demand in the CBD population tends to be young, with 60.2 percent At present, no demand exists for residential uses of residents under 35 years of age in 2005. Only 15.3 percent of the population was over 55. Only downtown. Downtown has acquired a negative about 46.9 percent of the population is in prime image. In the absence of shops and restaurants, homebuying age, 25 to 64. little attracts residents. The public sector office workers prefer to live elsewhere and commute The greater downtown has 4,077 households, of to the CBD. which 42 percent have incomes under $15,000; an- other 20.1 percent have incomes between $15,000 Nevertheless, downtown has the potential to be a and $25,000. The CBD has only 309 households. superior residential location. The back-to-the-city movement is strong and can be tapped as part of a Compared with Los Angeles and the coastal com- coordinated development plan for a large part of munities, San Bernardino offers the option of downtown. Redevelopment of the Carousel Mall in single-family homes at a reasonable price. In the an urban mixed-use form including residential is first quarter of 2006, the city’s median price for essential to revitalizing downtown. existing homes was $313,300. Interestingly, until the housing boom that started in 2001, existing Creating residential demand in downtown will home prices rarely exceeded $100,000. New require efforts at many levels: homes in the foothills command much higher prices, and because much of new home construc- • Overcoming the perception that downtown is tion has been in such areas, the city’s median new dangerous; home price reached $505,000 in 2006, lower than • Providing a desirable environment in which to in Rancho Cucamonga but higher than in River- side or Ontario. live, including shopping and entertainment op- portunities and green open space; and New home sales reached 700 units in 2003, a his- torical high, and have decreased since, although • Working with a developer who is entrepreneur- the housing boom was not over. In 2007, new home ial, well financed, and able to take on a large absorption has slowed dramatically. mixed-use project. Downtown San Bernardino has few housing units The current population of San Bernardino is not and only small new construction projects. ANR necessarily the target market for new housing has built the Meadowbrook project on the edge of development. To revitalize the CBD, San Ber- downtown. LNR purchased the Carousel Mall and nardino will have to attract a middle-class popula- proposed to build 500–700 residential units aimed tion downtown. To the extent that these new resi- at young families, singles, and couples, many of dents can be homeowners rather than renters, the San Bernardino, California, June 24–29, 2007 15
downtown will benefit, because homeowners have Market Timing a greater stake in the appearance of their property. Currently, no market demand exists downtown New residential construction in downtown should other than that of the public sector. Putting in be aimed at key market segments, such as young place the elements that will lead to creation of de- singles who like a more-urban lifestyle; two-income mand will take a year or more. During that time, couples who are not afraid of density and who are the housing market should regain strength and attracted by mixed uses, lots of activities, transit be poised to deliver. availability, and a beautiful setting; and people whose children are no longer in school and who Even when redevelopment begins, however, it can now feel free to live in a more-urban housing will take some time to overcome the elements that product. Other segments of interest would be peo- have been holding back downtown. Development ple in arts-related occupations and college and uni- will start slowly at first, and as investors gain con- versity students. A variety of building types and fidence in the downtown, development, sales, and densities will be required to meet the needs of leasing will begin to take off. When San Bernardino’s these diverse residents. A mixed-use approach CBD has reached a threshold of interest, drawing that provides quality retail and restaurants, en- people from outside the city in the evenings and tertainment options, open space, and urban style weekends, the CBD’s desirability will increase and amenities is necessary. further development proposals will be initiated by numerous private sector actors with less and less The housing products for these segments would city intervention. be townhouse, stacked flats, condominiums of various types, and upscale apartments. The new population of downtown will look for vibrancy and activity in their surroundings. Thus, a compre- hensively planned approach to providing housing centered on the focal points of an arts and enter- tainment district with links to rail and bus rapid- transit transportation alternatives and close to quality retail and restaurant venues is essential. 16 An Advisory Services Panel Report
Planning and Urban Design P lanning and design should be based on rec- something like the front porch of San Bernard- ognizing the assets and resources of a com- ino where citizens can find a common meeting munity and seeing how they can be brought ground and an environment for civic activities. to bear on its problems and issues. San Bernardino certainly has problems and issues of • Provide an alternative contemporary urban life- long standing; nevertheless, the assets that down- style complementing San Bernardino’s existing town San Bernardino can assemble to resolve its traditional neighborhoods. The back-to-the-city problems and build a solid future are impressive. movement is a strong trend across the country Among the assets that the panel has recognized in cities of every size. San Bernardino must take are the following: advantage of this phenomenon to bring people • San Bernardino has an extraordinary history back into the downtown. and the historical resources to prove it. Among these are several historic buildings, some desig- Urban Design Concept nated and some not, and the street grid laid out by the Mormons in the 19th century. To facilitate the accomplishment of these goals, the city should adopt the following urban design • An extraordinary unrealized opportunity is pre- concepts: sent in the natural streams and watercourses, many of which have been channelized or buried. • Create an urban, mixed-use, pedestrian-friendly • Extensive surface parking serves as a land bank live/work urban core. Use this principle to at- until this potentially valuable land can be devel- tract projects closer to the core to enhance oped or redeveloped. The panel suggests that walkability and access to the center. the City Hall parking lot, for example, could one day become a town square or green space in • Celebrate the city of San Bernardino’s distinctive which people can congregate and socialize. abundance of water and thermal resources by creating a linear park system—enhanced with • The city has spectacular mountain views along water features—that reaches out to the adjoin- the north-south axis. The Mormon grid on which ing neighborhoods, providing “green pedestrian they city was planned can be used to focus at- streets” for residents to reach downtown. tention on landmarks such as historic buildings. San Bernardino should Goals celebrate its abundant water resources as a The planning and design team focused on three symbol of the city’s goals in attempting to envision the revitalization rebirth. Waterways and of downtown San Bernardino: fountains can be extended • Develop an urban environment that supports beyond the natural sys- activities such as government, and arts and en- tems to provide cool tertainment that function best consolidated in “green pedestrian streets” an urban center. for residents to walk or bike downtown. • Provide a social and civic hub for all of San Ber- nardino’s citizens. Make the downtown into San Bernardino, California, June 24–29, 2007 17
EE DD UU CC AA TT II OO NN 7th Street Arrowhead Avenue 215 PP AA RR KK SS EE CC CC OO MM BB EE Sierra Way LL AA KK EE H Street G Street D Street 5th Street E Street CC OO UU NN TT YY CC OO MM PP LL EE XX Court Street CC AA RR OO UU SS EE LL MM AA LL LL 3rd Street To Santa Fe Depot 2nd Street Rialto Avenue Waterman Avenue BB AA LL LL PP AA RR KK Key: Light Rail Extension to Redlands Downtown Area Boundary Water Features Bus Rapid Transit Key Nodes Land use strategy. M Planning and Urban Design should be constructed to be visible from the freeway. Recommendations The accompanying land use strategy map identi- • Clear the site of the existing Carousel Mall and fies the key components of the panel’s plan and restore the city’s historic street grid through the site. Restoring the grid will improve connec- strategy for downtown. The circle is a ten-minute tivity and ease pedestrian movement through- walk centered on the intersection of E Street and out the community. Court Street. The panel urges that continued revi- talization and renewal efforts also be targeted at • Redevelop the site of the Carousel Mall as a the near-downtown neighborhoods. Every city contemporary, mixed-use urban village with needs strong, economically diverse communities supporting retail, office, and residential uses. close to downtown. This type of urban environment will be attrac- tive to empty nesters, students, young adults, Other recommendations illustrated on this map commuters tired of dealing with congested are the following: highways, and seniors. • Develop the San Bernardino County Govern- • Celebrate the waters of the city of San Ber- ment Center as a campus (“County Complex”) nardino by creating a linear park and stream on the existing 36-acre site between North system that reaches out to the adjoining down- Arrowhead Avenue and North Sierra Way. The town neighborhoods and by restoring existing system of waterways and streams should be natural streams that had previously been di- brought through the campus to enhance it. An verted to underground pipes or culverts. Ex- iconic landmark, such as a clock tower or spire, tend canals and fountains beyond the natural 18 An Advisory Services Panel Report
systems to provide cool, green pedestrian streets that replaces the unproductive and underperform- for residents to walk or bike downtown. ing asset that the mall is. • Extend the linear park system to embrace The panel suggests building on this scheme to close-in neighborhoods. Include safe pedes- complete restoration of the grid. Furthermore, trian ways and bike trails to facilitate access the community green concept should be extended to downtown. Bike trails can be extended south beyond the site to connect other neighborhoods to meet other bike trails that extend across and serve a larger purpose than simply enhancing Southern California. a development project (see development strategy map). Finally, the residential densities proposed • Continue revitalization of the surrounding by LNR must be higher, so that the entire project near-downtown residential neighborhoods with will have about 700 units. code enforcement, infill housing, and street- scape improvements. The original grid established by the Mormons ex- tends throughout the San Bernardino area and be- • Relocate the Arrowhead Credit Union corpo- yond. The panel recommends that the city con- rate headquarters closer to downtown, adjacent sider prioritizing the streets on the grid so that to the north side of Arrowhead Credit Union some will serve to move traffic while others will Park. serve primarily to provide a safe, quiet, and pleas- ant experience for pedestrians downtown. • Locate the intermodal bus transfer center in a different location so that the E Street Metro- link station will be more attractive for transit- Illustrative Plan oriented development. The development strategy map illustrates the overlay of the linear green system on the street • Designate an arts and entertainment district grid to show a comprehensive system of move- that embraces the existing theaters, historic ment that offers choices of ways to get around buildings on E Street, and buildings along the city. In addition, in the east is the system of Court and 4th streets. This district would also lakes, trails, and parks that link the neighborhoods be a good place for restaurants and other types and beyond. This green system should be linked of after-show entertainment. through the new county campus and extended • Redevelop the area to the north of the study area, into areas that are now used only for parking. The network of green space should be extended onto bounded by 6th and 9th streets and G and D E Street. E Street will become the center of activ- streets, to create an Education Park, as proposed. ity in the new downtown. E Street will be the cor- ridor for the bus rapid transit, and it should proba- Design Strategies bly be the retail center for downtown, too. Here, the panel focuses on a vision of what San The green system should be extended across the Bernardino can become that is comprehensive, freeway and into the neighborhoods to the west of long term, sustainable, and coordinated. To build the downtown the vision, the panel began with the LNR proposal for redevelopment of the Carousel Mall site. LNR Finally, the plan shows a new gateway to down- proposes to partially restore the original street town San Bernardino at I-215 and 3rd Street, grid through the site and introduce a community framed by two parks. The gateway will celebrate green to create a sense of place as well as a loca- the rebirth of San Bernardino and leave an im- tion for people to assemble and connect with one pression of green, water, and pride in a wonderful another. This kind of meeting place creates com- place to live. munity and a sense of belonging in the urban vil- lage. Finally, by linking the grid with the green space, the LNR plan creates a space with identity San Bernardino, California, June 24–29, 2007 19
Development Strategies S ingle development projects set down here landmarks are created within view of the 250,000 and there in downtown San Bernardino are automobiles passing by daily. The image of San not likely to slow the spiraling disintegra- Bernardino will be transformed with a vibrant tion of this once-thriving city center. The center in a highly visible location. regional draw a city center should command, the developer and investor attention that should be Uniqueness realistic, and the pride and identity a community Great cities have unique qualities and features not should enjoy in its downtown will not happen in easily replicated by shopping centers and boringly San Bernardino in its present state. In addition, similar strip developments, bland suburban office the city’s inner-ring suburbs similarly suffer from buildings, and condominium blocks that are two disinvestment, blight, and low-income demograph- exits away from the CBD. Pasadena has its Cali- ics. Attention must be focused on all these prob- fornia Mission–style architecture, Beverly Hills lems, but the revitalization of San Bernardino be- has its glitz, and San Bernardino’s downtown gins with its heart—the downtown! needs to capitalize on its special attribute—a city built above an endowment of water in a desertlike Downtown San Bernardino Needs a environment. Features highlighting the city’s rich Grand Vision resource of underground geothermal water should be incorporated in key public spaces, including Far-reaching action is required to change the dynamics of San Bernardino’s downtown. The primary interstate entrances and civic spaces. establishment of a grand vision that conceives of Safety the central business district as an attractive place The measure of San Bernardino downtown’s suc- to live, work, and play will begin the process of cess will in large part result from the change in change. The vision must include the characteris- perception of how safe it is to live in and visit tics that will make the CBD successful. These are the area. Higher densities of residential develop- well known and are found in successful down- towns everywhere. ment will make public spaces, including streets and parks, feel safer as more people frequent the area Vitality and make use of the existing and future amenities. The downtown should be a lively, active place from Defensible design of streets and buildings will re- early in the morning as people leave their homes inforce safe environments. and arrive for work and through the day and eve- ning when streets and sidewalks fill with residents and workers walking, dining, and meeting. Res- Significant Strengths and Strategic taurants and entertainment destinations should Advantages activate the streets on weeknights and weekends. The downtown district of San Bernardino has Visibility significant strengths upon which to build a vital San Bernardino’s downtown should be visible and downtown core. At present, a number of opportu- welcoming from the expanding I-215 freeway. nities exist, which, if taken together, can provide Downtown’s draw in a region dominated by auto- the catalyst for significant redevelopment of the mobile travel will be increased as high-quality new downtown. The following sections discuss some of development, accessible public space, and civic these opportunities. 20 An Advisory Services Panel Report
Development strategy. 7th Street Arrowhead Avenue 215 Sierra Way H Street G Street D Street E Street 5th Street Court Street 3rd Street 2nd Street Rialto Avenue Key: Green Space Housing/Retail/Office Mixed Use Light Rail Extension to Redlands Water Features County Offices Bus Rapid Transit Mill Street Housing/Retail/ Metrolink Extension/Light Rail Office Mixed Use B Assembled C Large Parcels of Land Abundant Natural Resources The city government has had the foresight to The city is blessed with spectacular views of the identify and acquire a number of large tracts of San Bernardino Mountains. Unlike many of the land within the target area. By controlling this communities in the region, San Bernardino has land, the city will be able to both encourage devel- plentiful natural water sources lying just beneath opment and influence the form that investment the surface. This natural bounty provides the chance to create an urban environment inter- will take. spersed with distinctive water features, such as Inexpensive Land with High-Value Potential small lakes and streams. San Bernardino’s current land values are more af- Transit Hub fordable than are many of its suburban neighbors’. The Metrolink extension coupled with the pro- Within the context of a growing population base in posed E Street transit corridor, linking the down- the region, this situation affords the city the op- town with the universities and neighborhoods portunity to attract new investment that will yield both north and south, makes the downtown a nat- high value with lower development costs. ural location for entertainment venues and restau- San Bernardino, California, June 24–29, 2007 21
rants. The new transit lines will also assist the city though this view is not borne out by statistics, in attracting a resident population—young profes- which show the downtown as an area relatively sionals who seek an urban environment and empty free of crime, the perception hampers the city’s ef- nesters who will enjoy the amenities of downtown forts to market the area and its attractions. Com- living and the convenience of transportation ac- munity leaders express skepticism that the down- cess, enhanced by attractive green space. town can be transformed into a vibrant, attractive place to work, play, and live. Downtown Employment Center Downtown has a weekday population of more Code Enforcement and Blight than 15,000, creating a customer base for restau- Some view current code enforcement efforts as rants and retail. Attracting additional business insufficient to create an attractive urban environ- downtown will continue to increase the demand ment. Cleanup is needed around the downtown for goods and services convenient to downtown buildings. Moreover, a scrap yard with inadequate employers. screening sits at one of the major gateways to downtown. Development Challenges Centralized Social Services Downtown Downtown San Bernardino has significant chal- To lure investment, visitors, and residents to the lenges to overcome before it can achieve its goals downtown area, the city would be well served in of revitalization and prosperity. The panel believes decentralizing the social services and ex-offender that many of these challenges can be conquered programs currently located downtown. Placing by realignment of resources to take advantage of these services strategically throughout the com- the opportunities presented by downtown’s loca- munity will make the services more accessible to tional advantages. those who need them. Lack of Downtown Residents The lack of a “24/7” resident population down- Development Opportunities town makes attracting and retaining retail and Many important areas of development have poten- restaurant establishments difficult. Most cannot tial and will ultimately contribute greatly to the survive on lunchtime traffic only, and with the loss downtown renaissance. Several pressing develop- of many downtown restaurants in recent years, ment opportunities, however, are of such size that, downtown employees have fewer reasons to ven- if thoughtfully integrated, they will redirect mar- ture downtown during their lunch hour or before ket forces to downtown San Bernardino. These and after work. signature projects are the redevelopment of the Carousel Mall and the creation of a County Gov- No Consistent Marketing Program ernment Campus. Many people view downtown as a place “with noth- ing to do.” Although in the past the city has spon- Carousel Mall sored concerts and outdoor events downtown, A large-scale comprehensive redevelopment of drawing large numbers of attendees, much of this the Carousel Mall area is needed because it is one activity has decreased in recent years. The Route 66 of the two largest elements of the downtown’s re- Rendezvous is the largest event centered down- naissance. The panel recommends that the site be town; it draws hundreds of thousands of visitors developed to its fullest potential as a mixed-use from throughout the United States. Recently, the residential and retail development. This develop- Operation Phoenix Foundation has initiated down- ment provides the means of establishing a down- town concerts and events. This type of program- town population sufficient to attract additional ming and events should be an important priority. retail and services and to serve as a catalyst for new investment. Negative Perceptions A perception exists that the downtown is plagued The panel has reviewed the development plans with crime problems and unsafe after dark. Al- submitted by the mall owner—LNR—and has 22 An Advisory Services Panel Report
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