City Acquires Arlington Village Property to Create New Redevelopment Fund

Purchase aims to revitalize neighborhood while providing temporary police space at busy intersection

City Acquires Arlington Village Property to Create New Redevelopment Fund
Mostly vacant storefronts at the Magnolia Ave. and Van Buren Blvd. intersection, with the former building purchased by the City visible on the far right.

The Riverside City Council voted unanimously last Tuesday to purchase a vacant commercial building in Arlington Village, marking the city's first step toward creating a dedicated redevelopment fund to support future revitalization efforts throughout Riverside.

City Manager Mike Futrell calls the $1.9 million acquisition of the former auto parts store at the corner of Van Buren and Magnolia "unique" and potentially transformative for the Arlington area.

"This is something unique that this city, and I don't believe many cities have done since the dissolution of the redevelopment agency well over 10 years ago under Governor Brown," Futrell said. "That is proactively take a piece of privately owned property which is in such distress that it will never change absent some outside force acting upon it."

The 8,550-square-foot building at 9518 Magnolia Avenue sits at what many consider the busiest intersection in Riverside, where Magnolia Avenue meets Van Buren Boulevard. The property includes 65 dedicated parking stalls and features 74 feet of frontage on Magnolia Avenue.

The council approved $1,895,000 for the purchase price and an additional $300,000 for associated costs, including tenant improvements. The funds came from the General Fund Infrastructure Reserve.

Miranda Evans, Deputy Community and Economic Development Director, explained the multifaceted approach behind the acquisition.

"This really arose as a confluence of needs and shared goals," Evans said during the council meeting. "The city has been very engaged in the Magnolia Resilience, Reinvestment, and Revitalization, or fondly called Mag3R Initiative, which identified Arlington Village as a key place making priority area."

The property sits within what officials call a "corridor of opportunity" and will temporarily house Riverside Police Department personnel while serving as a catalyst for broader revitalization efforts. This dual-purpose approach aligns with the city's Envision Riverside 2025 Strategic Plan, particularly its focus on community well-being and safe neighborhoods.

"Creating operational space for RPD at 9518 Magnolia Avenue will not only enhance law enforcement operations but also provide a more visible, accessible presence in Arlington Village," according to city documents. "The police presence in this high-priority area will contribute to public safety and instill confidence among residents and local businesses."

"This can help pave the way for additional projects and business types that will further enhance our community," Evans said. "It provides a first step to decrease this very high vacancy rate in Arlington Village."

According to Evans, the retail vacancy rate in Arlington Village fluctuates between 9% and 11%, the highest in the city.

Councilmember Sean Mill, who represents Ward 5 where the property is located, strongly supports the purchase.

"The Arlington community is starving to see some revitalization," Mill said during the February 25 council meeting. "The community supports us. At my community meeting last week, we had 60 residents there. Everybody in attendance was excited to hear about this."

Mill noted at the meeting that he recently visited the area with the city manager and logged 56 vacant retail spaces within just a few blocks of the property.

In an exclusive interview following the vote, Mill elaborated on the historical challenges facing the area.

"For more than 30 years Arlington Village has been allowed to fall by the wayside with little attention from City leadership," Mill told our publication. "As a result, the area has become blighted and has the highest rate of vacant retail and commercial properties in the city."

He pointed to additional factors contributing to the area's decline, including nearby county facilities.

"The County of Riverside facilities nearby, including social services and mental health, negatively impact Arlington leading to higher levels of vagrancy," Mill explained in the interview. "By the City of Riverside stepping up and acquiring the property, a property adjacent to the busiest intersection in the region, it signals to the community and potential investors that the City is serious about the revitalization of Arlington Village."

The acquisition has already garnered enthusiastic support from local residents, according to Mill.

"The residents and business community are thrilled with the action taken by Council," he said in our interview. "I have received over a dozen calls, texts and emails thanking me for making Arlington a priority and for cleaning up the area after years of neglect from City Hall."

Although the building will initially serve as temporary police department space, Mill sees the acquisition as having immediate positive impacts beyond that specific use.

"We are already seeing the benefits, because the purchase of this property is a signal of the City's commitment to Arlington Village," Mill told us. "Our ownership of the property will be a major step forward in addressing the blight that has long plagued the area."

Mill believes this project could be the spark needed to transform the neighborhood. "I believe that this will be the catalyst for others to come into the area. The years of idle talk and inaction are over, it's time to get to work. My office is committed to making it happen," he added.

The acquisition launches what city officials call a "city-initiated redevelopment fund." Since losing redevelopment agencies under Governor Brown in 2011, cities have had limited tools to address blighted properties.

In a follow-up interview, Evans elaborated on how this approach fits into Riverside's broader strategy.

"While the State's elimination of redevelopment agencies presented challenges, Riverside is adapting by focusing on strategic placemaking investments in key areas such as Arlington Village, including blighted neighborhoods," Evans told The Raincross Gazette. "By acquiring properties in these areas, the city is able to lay the groundwork for future development, leveraging resources in a way that fosters long-term growth."

"This provides us an opportunity to be able to hold this real property asset, eventually sell it in the future, and then to be able to reinvest those funds into other revitalization efforts throughout Riverside," Evans explained.

The building will temporarily house police department personnel, addressing immediate space needs while the city works toward building a new police headquarters.

"The Police Department added 74 officers last year, you might imagine there are crammed for space," Futrell said. "I understand they've taken some storage closets and turned them into offices. So this will give them a little breathing room until we get that new headquarters built."

Futrell emphasized that the acquisition is not intended as a long-term solution for the police department.

"It is not a long-term hold by any stretch of the imagination," he said. "We are not into leaseholding in the long term and this is just a unique situation where we can turn this neighbourhood around right away."

The city will conduct thorough due diligence during a 45-day period, including comprehensive site inspections of the building exterior, pavement, drainage, and signage. Officials will also perform a Phase 1 environmental assessment to identify any potential contamination risks, and a property condition assessment focusing on the building's structural systems, mechanical systems, and regulatory compliance.

"As part of this action, staff is requesting $300,000 for site and tenant improvements to create a work environment for RPD personnel," Evans explained. "After the site inspection and property condition assessment are completed, additional capital may be needed to improve the site to its necessary condition."

Security measures will also be a priority, with plans to secure the building for police operations by reinforcing windows and the roof.

Councilmember Philip Falcone, while supporting the purchase, sought assurance that it wouldn't impact future police facility funding.

"I want a verbal commitment from the City Manager and a verbal commitment from our CFO that this does not affect the police department's budget in any way," Falcone said. "This does not hinder any funding for the police department in the future for both facilities, as well as other means for the police department."

Futrell confirmed the purchase won't impact plans for a new police headquarters or a proposed substation in Ward 4.

"This has nothing to do, nor does it slow down our drive to replace the police headquarters, nor does it have anything to do, nor slow down our drive to provide a substation up in the Ward 4 area," Futrell said.

The city expects to eventually sell the property to a private developer once revitalization efforts take hold, recouping its investment while directing proceeds to future redevelopment projects throughout Riverside.

By utilizing the General Fund Infrastructure Reserve for this acquisition, the city is positioning itself to have greater impact on local neighborhoods that need economic intervention. City officials believe this approach represents a creative use of municipal resources in the absence of traditional redevelopment funding tools.

During the council meeting, Futrell characterized the approach as innovative. "We are thinking out of the box, but I think for some of our areas in town, it's time for some out-of-the-box thinking and trying something new," he said.

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