Enrique Martinez Redlands

Fate of packing house rests with council

REDLANDS - Preservation or development?

That's the question that the Redlands City Council will attempt to tackle at their next meeting, scheduled for July 5.

Meeting as the Redevelopment Agency (RDA), the five council members will discuss the options for the 29,159-square-foot, 107-year-old Mutual Orange Distributors (MOD) Packing House, located at 330 N. Third St.

The RDA purchased the packing house in 2006 for $940,000. They now have the option of selling it to George Krikorian, who has offered $260,000 and wants to build a gourmet grocery store, or to Clara Mae Clem, who has offered an undisclosed amount, said to be more than Krikorian's offer, and wants to in turn donate it back to the city to house the Redlands Historical Museum.

"We are equally anxious to complete the purchase transaction of the MOD packing house," Krikorian said in December. "Our plans include development of a 25,000-square-foot Sprouts Gourmet Market, Bakery and Deli ... This will well serve the needs of the community."

"I wish to purchase the MOD Packing House," Clem said in May. "My plan is to acquire the property and to transfer the packing house for the Redlands Historical Museum. ... My offer is all cash. We must preserve this building for Redlands."

In addition, the group responsible for purchasing and preserving the Mitten Building has offered $350,000 and is interested in adapting the building to use as a restaurant and retail area.

"We know that type of building can be adaptively reused, and that's what we want to see here," Sherli Leonard, executive director of the Redlands Conservancy, said in May. "We don't really care who buys it, we just maintain it must not be demolished."

Robert Dawes, president of the Conservancy, said earlier this month that two architects examined the packing house and found "no insoluble problems," meaning that they believe the building can be reused.

Records have shown that "good faith" negotiations between the city and Krikorian have taken place, and that Sprouts has signed a letter of intent with Krikorian.

"(Sprouts) has signed a letter of intent with us and they're trying to build a Sprouts store, which I think is a very good thing," Krikorian said earlier this month.

But the city says that no project proposal has been filed, meaning that no project is set to take place.

"Currently, there is no development project proposed for the property," City Manager N. Enrique Martinez said on June 20.

Council expected to continue packinghouse agreement to July 5

A joint public hearing on the proposed agreement before the City Council also acting in its capacity as the City’s Redevelopment Agency Board has been scheduled for the June 21 meeting. However, continuance of the item has been recommended to allow for the full Council to be present during the discussion. Council Member Jon Harrison had previously indicated that he would be out of town for the June 21 meeting. The Redevelopment Agency originally purchased the property Sept. 5, 2006, for $940,000, as part of the Downtown Redevelopment area in order to further the Agency’s goals of stimulating economic growth, creating employment opportunities and eliminating blight. For more than a year, the City has been involved in “good faith” negotiations with Showprop Redlands LLC over the purchase of the property. The developer has indicated he would propose a retail project that would consist primarily of a grocery store, however no project proposal has yet been filed. Under the proposed agreement, the developer must bring a project to the City. Once City staff receives the project it will then be subject to applicable City, State and Federal regulations, which include, but are not limited to, the California Environmental Quality Act (CEQA), National Historic Preservation Act and Socio-Economic Cost/Benefit Analysis. The project would also require review before the Historic and Scenic Preservation Commission, the Planning Commission and, potentially, the City Council, before opening escrow on the sale of the packinghouse property. The entire process would allow for public participation and input. In addition, the agreement also provides that if demolition is permitted, it applies only to a grocery store and that it must be conducted in such a way as to preserve and incorporate, to the extent possible, as much of the original building as possible and construct the project in such a way as to retain the characteristics or replicate elements of an early-20th century packinghouse. Under the agreement, if any other project is proposed, it may not include any proposal to demolish the existing building.

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