Planning Commission Approves 300-Unit Housing Project on Former Scrap Metal Site

The Planning Commission on Thursday approved a plan to transform a former scrap metal site near Downtown into a 300-unit mixed-use housing development that would preserve and repurpose the historic Barley Mills Building.

The project will bring 291 residential units and nine live/work units to the 7-acre site along Commerce Street between Mission Inn Avenue and Fifth Street, according to a staff report.

The development would include a four-story apartment building and a separate two-story townhome structure with 51 studio apartments, 147 one-bedroom units and 93 two-bedroom units, along with nine live/work spaces facing Mission Inn Avenue. Units would range from 447 to 1,186 square feet.

The staff report said the project aligns with Riverside's goals for "transit-oriented, mixed-use, infill development" and would help meet the city's housing demand by adding high-density housing near Downtown jobs, schools and transit.

The site was formerly home to Riverside Scrap Iron & Metal, a scrap yard that operated for more than 45 years and left behind contaminated soil and underground storage tanks. The California Department of Toxic Substances Control identified the property as a brownfield site and approved a cleanup plan in 2024 calling for removal of roughly 30,000 cubic yards of contaminated soil.

As part of the redevelopment, the historic Barley Mills Building would be preserved and converted into a clubhouse and fitness center for residents. The proposal also would vacate an alley and part of Sixth Street to consolidate 12 parcels into a single development site.

The project, proposed by Iron Lofts LLC, would require multiple land-use changes, including amendments to the city's General Plan and Riverside Marketplace Specific Plan, as well as rezoning the site from industrial uses to mixed-use urban development.

A comment letter submitted on April 27 by the California Public Utilities Commission raised concerns about increased pedestrian and vehicle traffic near railroad crossings along the Commerce Street and Mission Inn Avenue intersection, and suggested the city include mitigation measures such as railroad preemption, installation of automatic pedestrian gates and channelization and installation of lighting at all quadrants of the crossing.

City staff said a traffic study by the Public Works Department found the intersection did not currently meet thresholds for signalization; however, the project's conditions of approval require new high-visibility crosswalks, rectangular rapid flashing beacons and ADA-compliant pedestrian improvements at the intersection.

There were no public commenters at the meeting.

Commissioners were generally supportive of the project, but some expressed concerns over parking.

The project also includes 388 parking spaces, but 474 units are being built.

Commissioner Johnny Wilder during the meeting questioned why the project's 388 parking spaces fell short of the 474 spaces required for a development of that size.

Senior Planner Judy Eguez noted the development qualifies for an exemption from local minimum parking requirements under AB 2097 because of its proximity to transit.

Planning Commission Chair Launa Wilson expressed her support for the project.

"I love this project. I live literally walking distance from the project site," she said. "I think it's going to be a dramatic improvement to that part of my neighborhood, in the neighborhood right behind there. So, I thank you for continuing to invest in our city, particularly in the Downtown [east side] area, and I really am excited to see this thing break ground."