City Council approves agreement between city and Brewcaipa LLC

Brewcaipa is located at 35058 Yucaipa Blvd.

The Yucaipa City Council met on July 8 for a special city council meeting and Housing and Economic Development Analyst Caroline Velarde told the council that staff is recommending it approve the exclusive negotiating agreement with Brewcaipa, LLC to negotiate the potential purchase of a portion of city owned property next to that business and authorize City Manager Ray Casey to execute the necessary documents to complete the agreement process.

In 2014, city council approved the purchase and sale of this property as well as several other properties on the northwest corner of Yucaipa Boulevard and California Street in the Uptown for the development of the Yucaipa Performing Arts Center. The purchase included the then vacant building located at 35058 Yucaipa Blvd. and on Jan. 26, 2015 council directed staff to proceed with the design and rehabilitation of the building to secure a tenant. Later that year, city council approved a two-year lease agreement with Brewcaipa, LLC to occupy the building, however due to an extended construction and tenant improvement period, Brewcaipa did not occupy the building until March 2017.

In March 2018, city council approved an amendment to the lease terms and a Purchase and Sale Agreement (PSA) with Brewcaipa for the acquisition of the building and land, as well as a land lease and Exclusive Negotiations Agreement (ENA) for a portion of the city property to the east of 35058 Yucaipa Blvd. The amended lease allowed Brewcaipa to occupy the building while fulfilling the terms of a PSA for the land and building. The land lease for a portion of the adjoining property supported Brewcaipa’s efforts in expanding its successful brewery operation with a temporary food facility, additional seating and a beer garden, while the ENA allowed Brewcaipa the opportunity to research and prepare conceptual plans for the future expansion and development of adjoining land for the city’s consideration.

In February 2019, the parcel was split into two parcels in order to facilitate the sale of the building. One parcel includes the building and land Brewcaipa sits on, and the land east of the building extending to the Uptown Park and Plaza. In April of that year, the land lease and purchase and sale of the building was completed and conceptual plans were prepared by Brewcaipa and submitted to staff for review that depicted the preliminary development proposal. Over the past year, economic circumstances and the COVID-19 pandemic impacted Brewcaipa’s ability to meet the terms of the previous ENA for the adjoining land it was interested in. Although the land lease and the ENA for the subject site have expired, Brewcaipa is committed to completing the project under the terms of a new ENA which would afford Brewcaipa an additional opportunity to continue preparing a development concept for the land adjacent to its building.

Velarde said, “The subject site of the ENA is approximately 0.46 acres in size and identified as a portion of APN 0303-253-41 because it excludes the city’s easement on the public driveway located along the eastern segment of the parcel.”

The ENA affirms that the city will not negotiate with any other developer for the development of the site during the duration of the agreement. After it is approved by the planning commission, Brewcaipa must unconditionally accept the conditions of approval imposed in the CUP (Conditional Use Permit). If Brewcaipa does not agree to the final draft of the CUP conditions of approval in a timely manner, the city manager may terminate the ENA.

“This ENA is intended to lead to a development and disposition agreement (DDA) which would detail the price and terms of payment for the land, development obligations for the site and property use restrictions that the city council deem appropriate for this location,” said Velarde.

Casey added, “Just to make sure it is very clear, council may wish to add a stipulation in the ENA recognizing that the city would be required to go through the surplus property disposition process during this ENA period.”

Councilmember Bobby Duncan motioned to move for approval of this item. Mayor Pro Tem Denise Allen seconded and it passed 5-0.

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