A PUBLIC HEARING TO CONSIDER A RESOLUTION APPROVING A PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BY AND BETWEEN THE CITY OF ONTARIO AND ARCHIBALD PROPERTY, LLC.

The City is selling the property for $15,972,678. If approved, the revenue from the land sale proceeds will be included in the Economic Development Activities Fund at a future quarterly budget update to City Council for approval as needed.

The City of Ontario is committed to expanding access to high-quality dining, retail, and commercial amenities. In 2018, approximately 25 acres north of I-10 at the southwest corner of Archibald Avenue and Inland Empire Boulevard were acquired by a major furniture retailer for development of a retail store. Following the COVID-19 pandemic, the retailer instead proposed a distribution center at the site as a response to the increase need to serve the Southern California market. Because a distribution center was not a permitted use and was inconsistent with the City’s vision for the area, City Staff did not support the proposed change in use. The City subsequently acquired the property to facilitate development consistent with the Specific Plan and ensure a high-quality project at this prominent location.

The City Council is being asked to approve a Purchase and Sale Agreement and Joint Escrow Instructions (“PSA”) between the City of Ontario (“Seller”) and Archibald Property, LLC. (“Buyer”) for 8.64 acres of vacant real property located at 2350-2630 East Inland Empire Boulevard ("Property"). The Property is located within an area designated by the Meredith International Specific Plan (“Specific Plan”) for a mix of high-end dining and retail uses complemented by resort-style residential development.

The proposed commercial project has been fully entitled and consists of three, two-story buildings totaling approximately 50,000 square feet. The buildings are located adjacent to Inland Empire Boulevard, and organized around a central plaza and interconnected outdoor gathering spaces, creating a walkable, pedestrian-oriented environment. Building entrances, outdoor dining areas, landscaped walkways, plazas, and pedestrian paseos are designed to activate Inland Empire Boulevard and connect the development internally.  Surface parking is primarily located along the southern portion of the site and adjacent to the I-10 Freeway, reducing its visibility from Inland Empire Boulevard and allowing the buildings, landscaping, and pedestrian spaces to define the project frontage.

The proposed development advances the Specific Plan’s vision for a distinctive commercial destination featuring high-quality dining, retail, and pedestrian-oriented gathering spaces. It also builds upon the positive economic development momentum in the area, including the completion of the recent 256-key Hyatt House/Hyatt Place, the addition of new auto dealers such as Genesis of Ontario, and soon the expanded entertainment district, Capital City, at the Toyota Arena.

The proposed deal points include:

• Purchase Price for approximately 8.64 acres: $15,972,678. This property will serve as the location for the 50,000 SF of commercial.
• This Property will serve as the location for the 50,000 square foot commercial development, surface parking, and digital billboard sign.   

Economic Opportunity Statue: California law gives cities the authority to acquire and dispose property for the benefit of economic opportunity.

This Agreement has been noticed pursuant to California Government Code, Sections 52200.2(b) and 52201, and findings show that it will result in the creation of economic opportunity through temporary construction jobs, permanent commercial jobs, property tax, sales tax and new visitors. As used in this statute, “economic opportunity” means any of the following:

(a) Development agreements, loan agreements, sale agreements, lease agreements, or other agreements that create, retain, or expand new jobs, in which the legislative body finds that the agreement will create or retain at least one full-time equivalent, permanent job for every thirty-five thousand dollars ($35,000) of city, county, or city and county investment in the project after full capacity and implementation.

(b) Development agreements, loan agreements, sale agreements, lease agreements, or other agreements that increase property tax revenues to all property tax collecting entities, in which the legislative body finds that the agreement will result in an increase of at least 15% of total property tax resulting from the project at full implementation when compared to the year prior to the property being acquired by the government entity.

In this case, the Economic Summary Report, prepared  in conformance with Government Code Section 52201(a)(2), was made available for the public's review and demonstrates that 1) the City is not subsidizing the sale or proposed project development and 2) approximately 725 jobs (permanent and temporary) will be created and tax revenue to all tax collecting entities will be increased by at least 15% at full project implementation which compared to the year before the City acquired the Property.

Environmental Review: The environmental impacts of this project were previously reviewed in conjunction with an Addendum to the Meredith International Centre Specific Plan Environmental Impact Report (State Clearinghouse No. 2014051020) adopted by City Council on June 16, 2026, in conjunction with File No. PSPA25-005. This Application introduces no new significant environmental impacts.

The PSA is in substantially final form subject to minor changes by the City Manager with concurrence from the City Attorney.  As such, Staff recommends approval of the Agreement.