Abandoned Banning Business Center To Be Demolished, Finally

BANNING, CA — It's been eyesore for years, but Banning City Manager Doug Schulze announced that a Jan. 9 judge's ruling has paved the way for demolition of the Banning Business Center.

The burned out and abandoned 9-acre property at 649 West Lincoln Street had been in receivership and was slated for demolition since 2017, but a last-ditch effort by the property's owner stalled the long-standing effort. By filing bankruptcy, the property's owner sought relief to prevent receivership.

However, over the last several months, city staffers and legal counsel from Silver & Wright worked to convince the federal bankruptcy court judge to allow the receiver to move forward with the demolition under a state court's order, Schulze said.

On Thursday, the judge ruled in the city's favor, so the receiver can move forward with demolition and site restoration, Schulze confirmed.

On October 6, 2017, in the case of City of Banning v. Zukaza LLC, et alii, case number RIC1700904, the city was successful in petitioning the Riverside Superior Court to appoint a court receiver to take possession and control of the Banning Business Center. The site, often referred to as "The Compound," has been the site of multiple fires and transient encampments.

During the 2017 court hearing on the receiver's appointment, the court found that the Banning Business Center was a hazardous public nuisance and posed a danger to the safety and well-being of the Banning community.

There is no specific date for the demolition start, but Schultz expects it to begin within the next 30 to 60 days, he said.