San Bernardino’s plans to redevelop the 43-acre site of the former Carousel Mall remain stalled, with city officials facing legal and regulatory obstacles that could delay construction for several years.
The city envisions a mixed-use development including office, residential, and retail spaces on the property located just east of Interstate 215. Officials hope such a project will attract people to downtown San Bernardino for work and shopping, reversing years of decline in the area. However, no concrete plans have been established, and the city is still searching for a new developer after ending its agreement with Renaissance Downtowns USA and ICO Real Estate Group in 2021.
The termination led Renaissance/ICO to file a breach of contract lawsuit against San Bernardino in 2024. The developers allege that the city ended their agreement unfairly and without cause, causing them significant financial hardship. While San Bernardino paid $100,000 to exit the agreement, the lawsuit remains unresolved.
In addition to legal challenges, redevelopment efforts were slowed by state regulations. In 2023, the California Department of Housing and Community Development found that San Bernardino violated aspects of the Surplus Land Act when preparing initial redevelopment plans. The act requires cities to set aside some surplus land for affordable housing and mandates notification procedures before selling or leasing public property. The department stated that San Bernardino began negotiations over the mall site without formally declaring it surplus or notifying affordable housing providers.
To move forward, San Bernardino must select a new master developer and ensure compliance with both environmental requirements under the California Environmental Quality Act and provisions of the Surplus Land Act regarding affordable housing.
“We still have to set aside land, we just have to figure out how much,” said Councilman Theodore Sanchez, who represents the district where the former mall is located. “It’s living legislation, meaning it’s constantly changing, adjusted, and being amended. We hope to bring on a couple of experts that we can contract with, and they will help us get through that process, and get the most out of the property.”
Sanchez also noted that resolving ongoing litigation is essential for progress: “The litigation is what’s slowing us down right,” he said. “We’re trying to close the case and get it out of the courts, but we haven’t been able to do that. Until we do it’s going to stay bogged down.”
Originally opened as Central City Mall in 1972 with anchor tenants Montgomery Ward, The Harris Company, and JCPenney among more than 50 stores, Carousel Mall underwent major renovations in 1991 but declined during subsequent decades due to competition from Inland Center mall (opened in 1966), loss of tenants, disrepair, and safety concerns. By its demolition in 2023 only 17 stores remained.
While large commercial parcels like this are rarely available within major cities’ downtowns—a fact which could appeal to developers—the combination of unresolved legal issues and complex regulatory requirements has limited interest so far.
“As far as seeing steel go into the ground and buildings being built, that’s at least three to five years away, maybe longer,” Sanchez said. “There’s no way we start building anything sooner than that, which is unfortunate. But a downtown project as large as this one takes a long time to build.”
Alan Stanly—who owns several commercial properties downtown—said he supports a mixed-use approach but criticized city processes: “The city seems to be going for a live-work scenario, and that’s not a bad approach,” Stanly said. “But the city council and the planning department are ineffective and slow; I hear that all of the time from people who are trying to do business in San Bernardino. It’s so difficult it’s not worth trying.”
