REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 10, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
CARRIE HARMON, Director, Community Development and Housing Department
SUBJECT
Title
Amendment to Purchase and Sale Agreement and Joint Escrow Instructions for the Acquisition of Real Property in Colton
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 1 to Purchase and Sale Agreement No. 25-426 and Joint Escrow Instructions with Red Tile Inn, Inc., a California corporation, to extend the escrow closing date from January 3, 2026, to a date as soon as practical after the execution of the Amendment No. 1, but by no later than March 20, 2026, for the acquisition of approximately 1.53 acres of real property improved with two buildings consisting of a total of approximately 41,196 square feet, located at 1311 South Santo Antonio Drive in the City of Colton (commonly known as Assessor’s Parcel Number 0275-181-50-0000).
2. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustment to the 2025-26 budget as detailed in the Financial Impact Section (Four votes required).
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). There is no cost associated with the Amendment No. 1 to Purchase and Sale Agreement No. 25-426 and Joint Escrow Instructions (Amendment No. 1) with Red Tile Inn, Inc., a California corporation. The adjustments below are requested by the Community Development and Housing Department (CDH) for its portion of the $7,400,000 purchase price. CDH’s portion will be funded by the HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) and the Housing and Homelessness Incentive Program. The total purchase price was $12,345,100, with the remaining $4,945,100 funded through the Supporting Vulnerable Populations General Fund Reserve, as approved by the Board on June 10, 2025 (Item No. 101).
The following adjustments are requested for CDH 2025-26 budget:
|
Fund Center/Fund |
Commitment/ GL Account |
Description |
Action |
Amount |
Funded Program |
|
6210002493 |
40408955 |
State-Grant |
Increase |
$5,000,000 |
- |
|
6210002493 |
55305030 |
Operating Transfer out |
Increase |
$5,000,000 |
- |
|
6210002501 |
53003205 |
Public Assistance |
Decrease |
$2,400,000 |
- |
|
6210002501 |
55305030 |
Operating Transfer out |
Increase |
$2,400,000 |
- |
BACKGROUND INFORMATION
The County is pursuing a strategy to expand its emergency shelter beds and other forms of interim housing to address homelessness. As part of the strategy, CDH is identifying areas that are under resourced in sheltering resources and looking for opportunities to rapidly increase new shelters through various capital improvement program projects.
CDH has identified Rodeway Inn and Suites owned by Red Tile Inn, Inc. (Seller) located at 1311 South Santo Antonio Drive in the City of Colton, a property with two buildings consisting of a total of approximately 41,196 square feet (Property), as viable for conversion to interim housing. The Property is located within four miles of the downtown San Bernardino area and is conveniently located near County resources and various homeless service organizations. The acquisition of the Property will help provide shelter for some of the unhoused population of the County.
The purchase price of $12,250,000, which is based on an appraisal procured by the Seller, was determined by RESD to be within the fair market value range based on an appraisal review including an assessment of current market conditions. Additional acquisition costs include independent consideration of $100, escrow expenses and other fees of approximately $20,000; due diligence inspection costs of approximately $40,000; and administrative costs of approximately $35,000, for a total not to exceed cost of $12,345,100.
The operation of the Property will be supported by state Permanent Local Housing Allocation annual grant funds. Additional funding will be provided through the Cal-AIM program through Medi-Cal reimbursements and other sources provided by a contract operator.
On June 10, 2025 (Item No. 101), the Board approved a Purchase and Sale Agreement No. 25-426 and Joint Escrow Instructions with Seller for the acquisition of the Property and the parties opened escrow on June 25, 2025. As the anticipated closing date of January 3, 2026 approached, the Seller asked for an extension to the closing date, which the parties agreed should be no later than March 20, 2026, to accommodate their separate like-kind property exchange for their tax purposes. CDH did not object since the extension would give CDH additional time to complete required actions for the use of HOME-ARP funds. RESD has verified that the extended closing date has no impact on the Purchase Price, which is still within current market value range.
The project to acquire the Property was previously reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15326 - Acquisition of Housing for Housing Assistance Program (Class 26), which consists of actions by a redevelopment agency, housing authority, or other public agency to implement an adopted Housing Assistance Plan by acquiring an interest in housing units. RESD filed a Notice of Exemption as directed by the Board on June 10, 2025 (Item No. 101). Amendment No. 1 does not constitute a significant change to the proposed project. As such, it is covered by the previously filed Notice of Exemption and no further CEQA action is required at this time.
PROCUREMENT
The Property may be acquired pursuant to Government Code section 25350 and RESD has complied with the publication requirements of Government Code section 6063.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng and Suzanne Bryant, Deputies County Counsel, 387-5455) on January 27, 2026; Community Development and Housing (Carrie Harmon, Director, 382-3983) on January 7, 2026; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on January 6, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on January 7, 2026; and County Finance and Administration (Paul Garcia, 386-8392, and Eduardo Mora, 387-5285, Administrative Analysts) on February 6, 2026.
(BJO: 659-4676)