For Immediate Release
City Retakes Ownership of Former San Gorgonio Inn Property
The City has finalized an agreement that puts the property back under the City’s control and will allow the City to move forward with seeking new economic development opportunities.
Banning, CA – The City of Banning gained a step forward in improving the downtown community. As part of an agreement with Banning Office Venture, LLC and Vanir Group of Companies, Inc. (Vanir), the City of Banning has retaken ownership of the parcel of land right across from City Hall, also known as the former San Gorgonio Inn property.
Plans for the site under Vanir called for commercial office space, but tenants for the space were never able to be secured. After several delays with no action, the Banning City Council initiated formal legal action to force development. In response, both sides were able to negotiate a settlement agreement that would give Banning an opportunity to seek new economic opportunities for the property.
“This is good news for Banning,” said Acting City Manager and Chief of Police Alex Diaz. “Now that we control this property’s destiny, we can be very selective in choosing the right project for this prime downtown location.”
Under the terms of the agreement, the City has 36 months to sell the property, including two extensions. The City would be reimbursed after the sale of the property for the City’s legal costs and costs to sell the property. Vanir would receive the remaining sale proceeds. Approximately $1 million was previously paid by Vanir to the City in August 2016 for the note on the property.
The City is currently in the process of appraising the property and determining the best course of action for seeking economic development opportunities.