REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 14, 2022
FROM
DAVID DOUBLET, Director, Land Use Services Department
SUBJECT
Title
Amendment to Tolling Agreement and Surety for Tract No. 10608-2, in the Community of Lake Arrowhead with the Project Subdivider, Oakridge Estates Grand Finale, LLC
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 6 to the Tolling Agreement with the project subdivider, Oakridge Estates Grand Finale, LLC, and the surety, Travelers Casualty and Surety Company, for Tract No. 10608-2, that extends the terms of the Tolling Agreement by one year, from July 2, 2022 to July 2, 2023.
(Presenter: David Doublet, Director, 387-4431)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The existing securities for this development, as listed in the table below, are adequate for the construction of the required improvements. These securities will remain in effect until released by the Board of Supervisors (Board) or the Chief Executive Officer.
|
Improvement |
Performance |
Labor and Materials |
|
Road and Drainage |
$1,275,000 (Surety) |
$637,500 (Surety) |
|
Sewer |
$2,354,000 (Surety) |
$1,177,000 (Surety) |
|
Water |
$2,265,000 (Surety) |
$1,132,500 (Surety) |
BACKGROUND INFORMATION
The current Tolling Agreement with the original subdivider, Oakridge Estates Grand Finale, LLC and the surety company, Travelers Casualty and Surety Company, expires on July 2, 2022. The Tolling Agreement extends any applicable statute of limitations period associated with the current improvement agreements and securities. Amendment No. 6 to the Tolling Agreement will extend the applicable statute of limitations period to July 2, 2023.
On June 4, 2016 (Item No. 72), the original Tolling Agreement was approved by the Board for the period of July 2, 2016 through July 2, 2017. Thereafter, on June 13, 2017 (Item No. 55), June 12, 2018 (Item No. 53), June 11, 2019 (Item No. 36), June 23, 2020 (Item No. 50), and July 27, 2021 (Item No. 28), the Board approved Amendment Nos. 1 through 5, respectively, to the Tolling Agreement that extended the term of the agreement to July 2, 2022.
The original subdivider is in a partnership with Rancho Mirage Tourism, LP (Rancho Mirage Tourism) whom intended to develop the property after revising the project’s improvement plans and posting replacement securities acceptable to the County. Rancho Mirage Tourism has now sold the property to another buyer who intends to own acreage, rather than develop the subdivision. The original subdivider is requesting an extension for another year while the new owner process a Tentative Tract Map to revert Tract 10608-2 to acreage. The new owner intends to submit the Tentative Tract Map within the next year.
Extending the Tolling Agreement to July 2, 2023, will allow time for the new owner to process the Reversion to Acreage which will discharge the requirement for the improvement agreement and required securities.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Jason Searles, Deputy County Counsel, 387-5455) on May 23, 2022; Finance (Erika Rodarte, Administrative Analyst III, 387-4919) on May 20, 2022; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on May 20, 2022.