REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
TitleTitle
Agreement of Purchase and Sale and Joint Escrow Instructions with the City of Ontario
EndEnd
RECOMMENDATION(S)
Recommendation
1. Approve Appraisal No. 26-41 prepared by Michael Frauenthal & Associates, Inc. on May 18, 2026, a copy of which is on file with the Real Estate Services Department.
2. Adopt Resolution declaring that certain County-owned real property, totaling approximately 73.19 acres of land located at the northwest corner of Merrill Avenue and Bon View Avenue in the City of Ontario (Assessor’s Parcel Numbers 1054-051-01-0000, 1054-051-02-0000, 1054-061-01-0000, 1054-061-02-0000, 1054-251-01-0000, 1054-251-02-0000, 1054-301-01-0000, and 1054-301-02-0000), is no longer necessary for the uses and purposes of San Bernardino County and is surplus and available for disposal pursuant to County Policy No. 12-17, is not subject to the Surplus Land Act pursuant to Government Code section 54226(e), and authorizing the sale of the property to the City of Ontario in accordance with Government Code section 25365(a), upon payment of $95,000,000 plus an independent consideration payment of $100, less withholding from seller proceeds up to $250,000 for leasehold resolution costs.
3. Find that the approval of the Agreement of Purchase and Sale and Joint Escrow Instructions with the City of Ontario for the sale of the property referenced in Recommendation No. 2 is an exempt project under the California Environmental Quality Act Guidelines, Title 14 of the California Code of Regulations Section 15061(b)(3) (Common Sense Exemption) and Section 15312 (Surplus Government Property Sales).
4. Approve Agreement of Purchase and Sale and Joint Escrow Instructions with the City of Ontario for the sale of the property referenced in Recommendation No. 2 (Four votes required).
5. Authorize the Director of the Real Estate Services Department to extend the Closing Date as reasonably necessary pursuant to Section 2.3 of the Agreement of Purchase and Sale and Joint Escrow Instructions, to extend the two-year period for leasehold resolution costs as reasonably necessary pursuant to Section 10 of the Agreement of Purchase and Sale and Joint Escrow Instructions, and to execute escrow instructions and any other non-substantive documents necessary to complete this transaction, subject to County Counsel review.
6. Direct the Real Estate Services Department to file a Notice of Exemption in accordance with California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Foster Sustainable Development Through Strategic Partnerships.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The Chino Agricultural Preserve Special Revenue Fund 2734 (7800002734) will receive $95,000,100, including a $95,000,000 purchase price plus an independent consideration payment of $100, less withholding from seller proceeds up to $250,000 for leasehold resolution costs, for the fee conveyance because the property, totaling approximately 73.19 acres of land located at the northwest corner of Merrill Avenue and Bon View Avenue in the City of Ontario (Assessor’s Parcel Numbers 1054-051-01-0000, 1054-051-02-0000, 1054-061-01-0000, 1054-061-02-0000, 1054-251-01-0000, 1054-251-02-0000, 1054-301-01-0000, and 1054-301-02-0000) (Property) was originally acquired with Proposition 70 (Prop 70) funds. All administrative costs associated with the transaction, estimated at $20,000, will be paid out of the Chino Agricultural Preserve Special Revenue Fund 2734 (7800002734).
BACKGROUND INFORMATION
This item will adopt a resolution to declare that the Property is no longer necessary for the uses and purposes of the County and is surplus available for disposal pursuant to County Policy No. 12-17 and will authorize its sale to the City of Ontario (City) in accordance with Government Code section 25365(a) upon payment of $95,000,000 plus an independent consideration payment of $100 less withholding from seller proceeds up to $250,000 for leasehold resolution costs. It will also approve an Agreement of Purchase and Sale and Joint Escrow Instructions with the City for the sale of the Property, which Property is subject to a leasehold interest.
Prop 70, approved by California voters in June 1988, provided $776 million of general obligation bonds to fund the “acquisition, development, rehabilitation, protection, or restoration of park, wildlife, coastal and natural lands in California including lands supporting unique or endangered plants or animals.” San Bernardino County (County) received nearly $20 million of the Prop 70 grant funds for acquisition of land in the cities of Chino and Ontario within the boundaries of the Chino Agricultural Preserve (Ag Preserve). Throughout the 1990’s, the County used the funds provided by Prop 70 to purchase and manage nine operating dairies (Prop 70 Dairies) consisting of approximately 366.55 acres. While these properties constitute a significant amount of land, their non-contiguous nature failed to serve the intent of Prop 70 to maximize their benefit to the regional residents and visitors.
California Senate Bill 1124 (SB 1124) was enacted in 2010 to allow the County an avenue to sell or exchange the original Prop 70 Dairies to create a single continuous land mass better suited to meet the intentions of Prop 70. One of the primary components of SB 1124 was the requirement that the County prepare a detailed land plan outlining any proposed sales, exchanges, or acquisitions of lands or conservation easements. In 2012, the County submitted the 2012 Land Plan to California Department of Parks and Recreation (State Parks). State Parks provided written approval, with minor conditions, as of August 27, 2012, and the 2012 Land Plan received Board approval on November 6, 2012 (Item No. 95).
The 2012 Land Plan outlined the County’s intent to sell or exchange seven of the Prop 70 Dairies, totaling approximately 320.60 acres, while acquiring approximately 322.06 acres of property adjacent to Prado Regional Park. Additionally, the County intended to exchange approximately 40 (of the newly acquired 322.06) acres with the U.S. Army Corps of Engineers (USACE) for conservation easements over approximately 2,200 acres in Prado Regional Park leased from the USACE. The remaining two Prop 70 Dairies, totaling approximately 45.95 acres, were to be sold or replaced, by purchase or exchange. Thus, none of the original Prop 70 Dairies were expected to be retained following the implementation of the 2012 Land Plan.
Ultimately, only a portion of the 2012 Land Plan was enacted, primarily hindered by the inability to meet USACE’s requirements regarding conservation easements. Only 165.3 acres were sold or exchanged with Watson Land Company, and only 271.66 acres were acquired adjacent to Prado Regional Park, resulting in 201.25 acres of the original Prop 70 Dairies remaining.
On April 7, 2026 (Item No. 57), the Board approved the San Bernardino County 2026 Amended and Restated Land Plan (2026 Land Plan). The 2026 Land Plan authorizes the County to work with the City to create the desired, single continuous land mass that is best suited to meet the intent of Prop 70. The City has intention to develop a recreational and open space public facility in South Ontario, commonly known as the Grand Park. The Grand Park is envisioned as a 340-acre park for both active and passive use, of which the City currently owns only 120 acres within the anticipated Grand Park footprint. The 2026 Land Plan outlines the County’s intent to acquire property within the Chino Agricultural Preserve, which may include, but is not limited to property, conservatively estimated at 200 acres or more, to complete the City’s Grand Park for the uses authorized by SB 1124, or make investments in existing City park property, including but not limited to property associated with the Grand Park. The County may also acquire other property in the Chino Agricultural Preserve pursuant to the 2026 Land Plan for agricultural preservation or open space conservation purposes.
The 2026 Land Plan further authorizes the County to sell the Property to the City. Net proceeds from the direct sale will be deposited into the Chino Agricultural Preserve Special Revenue Fund 2734 and be used to begin identifying, appraising and acquiring land within the Grand Park footprint, or to invest in existing City park property as described in the 2026 Land Plan and for the purposes described in SB 1124.
By letter dated January 7, 2026, the California Department of Housing and Community Development determined that the Property is not subject to the Surplus Land Act pursuant to Government Code section 54226(e).
The Real Estate Services Department (RESD) obtained an appraisal prepared by Michael Frauenthal & Associates, Inc., dated May 18, 2026, and submitted it to State Parks for their concurrence, pursuant to SB 1124. State Parks’ concurrence with the appraisal is a closing condition of the Agreement of Purchase and Sale and Joint Escrow Instructions (Agreement). The value conclusion of $95,000,000 was determined to be fair market value and will constitute the Purchase Price paid by the City to the County for the Property, with seller proceeds to be net of any closing costs and withholding of up to $250,000 for leasehold resolution costs. Leasehold resolution costs are costs associated with the final resolution of tenant’s occupancy, including, as applicable, final termination of the leasehold, tenant’s surrender, removal, or eviction from the Property, removal of tenant personal property, and final payment, waiver, release, expiration, or other resolution of all tenant relocation-related claims, payments, assistance, or obligations arising from or relating to the leasehold, tenant’s occupancy, or termination of tenant’s occupancy.
On June 10, 2026, after reviewing the appraisal documents and in accordance with SB 1124, State Parks informed the County that it accepts the appraised fair market value for the Property.
The Agreement provides for the following salient terms: the City will submit an initial deposit of $100,000 to escrow which shall be applied to the Purchase Price at Closing, but shall be refunded if Buyer or Seller timely exercises any of their termination rights prior to Close of Escrow; a 60-day due diligence period will commence on the effective date of the Agreement; Buyer may extend the due diligence period by one 30-day period; the Closing Date shall occur 30 days after the later of: (i) the expiration of the Due Diligence Period (as may be extended) and (ii) Seller’s receipt of written concurrence from State Parks and satisfaction of all terms and conditions of SB 1124 (2010) have been met or waived by the respective party; and the Director of RESD may provide Seller’s agreement to Buyer to extend the Closing Date and to extend the two-year period for leasehold resolution costs, as reasonably necessary, but in no event will the Closing occur any later than 60 days after the expiration of the Due Diligence Period or any extensions thereof, unless agreed to by the Parties.
Approval of this item will authorize the Director of RESD to execute escrow instructions, to extend the two-year period for leasehold resolution costs as reasonably necessary pursuant to Section 10 of the Agreement, to extend the Closing Date as reasonably necessary pursuant to Section 2.3 of the Agreement, and to approve any other non-substantive documents as necessary to complete this transaction, subject to County Counsel review. The Director of RESD will not be authorized to execute any documents that would bind the County to any actions beyond the transaction authorized in this item.
The sale of the Property to the City was reviewed pursuant to the California Environmental Quality Act (CEQA) and was determined to be exempt from further review pursuant to CEQA Guidelines, Title 14 of the California Code of Regulations Section 15061(b)(3) (Common Sense Exemption), since it can be seen with certainty that the activity will not result in a significant effect on the environment, and Section 15312 (Surplus Government Property Sales).
PROCUREMENT
The County is authorized to declare the Property surplus pursuant to County Policy No. 12-17, to find that the Property is not subject to the Surplus Land Act pursuant to Government Code section 54226(e), and to sell the Property to the City pursuant to Government Code section 25365(a).
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, and Scott Runyan, Principal Assistant County Counsel, 387-5455) on June 2, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on May 19, 2026; and County Finance and Administration (Eduardo Mora, Administrative Analyst, 387-4376) on June 2, 2026.
(BJO: 659-4676)