REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
NOEL CASTILLO, Director, Department of Public Works - Special Districts
SUBJECT
Title
Acceptance and Improvement Agreements for Interim Road, Crosswalk, and Basin Improvements - Speedway Commerce Center II Development Project in the Fontana Area
End
RECOMMENDATION(S)
Recommendation
1. Approve Acceptance and Improvement Agreement for road improvements and crosswalks with Speedway SBC Development, LLC, providing for County’s acceptance of such improvements in an interim condition, subject to the Developer’s obligation to complete the improvements in accordance with approved plans, within the time specified in the agreement, and secured by performance security acceptable to the County, with the agreement to remain in effect until final completion and acceptance of the improvements and satisfaction of all secured obligations for the Speedway Commerce Center II development project in the Fontana area.
2. Approve Acceptance and Improvement Agreement for basin improvements with Speedway SBC Development, LLC, for basin improvements associated with the Speedway Commerce Center II development project, providing for the County’s acceptance of such improvements in an interim condition, subject to the Developer’s obligation to complete the improvements in accordance with approved plans, within the time specified in the agreement, and secured by performance security acceptable to the County, with the agreement to remain in effect until final completion and acceptance of the improvements and satisfaction of all secured obligations for the Speedway Commerce Center II development project in the Fontana area.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Create, Maintain, and Grow Employment Opportunities and Economic Value in the County.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Community Facilities District (CFD) No. 2025-01 (Commerce Center II) (District) is funded by revenues from special taxes. All costs associated with the maintenance of the road improvements, sidewalks, and basins will be paid by the District. The District is expected to collect a total of $1,826,094 through fiscal year 2025-26, which includes $178,765 from a developer deposit approved by the Board on May 6, 2025 (Item No. 48), and $1,647,329 in special assessments for 2025-26 approved by the Board on August 5, 2025 (Item No. 63).
BACKGROUND INFORMATION
On October 25, 2022 (Item No. 102), the Board of Supervisors (Board) approved Tentative Parcel Map 20478 for the Speedway Commerce Center II development (development). As a condition of approval, Speedway SBC Development, LLC (Developer) entered into multiple improvement agreements with the County on June 11, 2024 (Item No. 55), requiring the construction of road, storm drain, and related public improvements in accordance with County-approved plans.
The required improvements include roadway infrastructure, crosswalks, and a storm drain detention basin designed to serve the development. These improvements are being constructed in phases. While substantial progress has been made, certain components cannot yet be completed in their final configuration due to project sequencing constraints, including material procurement delays affecting crosswalk components and pending grading and acquisition of the adjacent Phase 2 property, which are delays attributable to the Developer and impact completion of the final basin work.
For the road improvements and crosswalks, the Developer has constructed required roadway improvements, including crosswalks along Jeff Gordon Drive. Due to delays in the delivery of specified breakaway poles, the crosswalks have been installed in an interim condition using alternative materials. Final completion requires replacement of interim components and associated modifications to meet approved traffic signal and striping plans.
For the basin improvements, the Developer has constructed a storm drain detention basin. However, final construction cannot be completed until adjacent Phase 2 land is graded. Constructing the basin in its final configuration at this time would create drainage conflicts, including potential flooding conditions on the adjacent property. As a result, the Developer proposes an interim condition, with a temporary outlet configuration, that may require modification if and when the Phase 2 grading is completed.
For the basin improvements, final completion depends on whether the adjacent Phase 2 land is graded in accordance with the Mass Grading Plans by June 1, 2027. If the Phase 2 land is graded by that date, the Developer remains responsible for completing the Basin Finalization Work in accordance with the approved plans.
If the Phase 2 land is not graded by June 1, 2027, the Interim Basin Condition will be deemed to satisfy the final design and construction requirements applicable to the basin, and the Developer will have no further obligation to complete the Basin Finalization Work. In that event, the security posted for the Basin Finalization Work will be released to the County within ten days. The County may use that security for any purpose, including, without limitation, completing or causing completion of the Basin Finalization Work if the County later determines that such work is necessary or appropriate.
The proposed agreements allow the County to provide acceptance of these improvements in their interim condition solely to allow interim use of the roadway improvements and crosswalks; and allow the CFD to assume interim maintenance responsibilities for the basin and related facilities.
The agreements condition acceptance of the improvements in their interim condition expressly upon requiring the Developer to complete all remaining work necessary to bring the improvements into full compliance with approved plans, do so within specified timeframes for the crosswalk improvements by November 20, 2026 and for the basin improvements by June 1, 2027, unless expressly extended in writing by the County, and provide security equal to 100% of the estimated completion cost, $39,000 for crosswalk and $31,500 for basin, to guarantee performance.
If the Developer fails to perform any required work before the applicable deadline, the County retains the right to draw upon the security and complete the work and recover any additional costs. To support ongoing maintenance, the Board previously approved the formation of Community Facilities District No. 2025-01 (Commerce Center II) and authorized a special tax to fund maintenance and operations of public improvements. The CFD’s assumption of maintenance responsibilities is contingent upon County acceptance of the improvements, which these agreements facilitate on an interim basis pending completion of required work or satisfaction of the conditions set forth in the agreements.
Approval of these agreements allows the County to accommodate project sequencing and operational needs while maintaining protection of County interests by conditioning acceptance on defined completion requirements, securing performance through financial guarantees, preserving enforcement rights and remedies, and ensuring the basin security is released to the County if the Phase 2 grading does not occur by the agreed deadline.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on June 9, 2026; and County Finance and Administration (Matthew Dalton, Administrative Analyst, 387-5005) on May 4, 2026.