(November 8) The county has initiated foreclosure proceedings against a Hesperia-based investment and development company for 23 acres in the Baldy Mesa area.
Real Estate Diversified Funds I, LLC,  located at 15461 Ash Street in Hesperia, in July 2005 obtained tract map approval for the creation of nine residential lots for lot sales only on 23 acres located north of the California Aqueduct between Braceo Street and Joshua Road in the Baldy Mesa area.
The tract conditions were revised and approved by the county’s land use services division  on August 15, 2007, to change from lot sales to developer build-out. On November 20, 2007, the board of supervisors accepted the road and drainage as well as water performance agreements and securities, in the amounts of $152,000 (bond) and $84,000 (bond), respectively, to guarantee the required construction of the road and drainage and water improvements for Tract 17231.
For the final map for Tract 17231 recorded on November 21, 2007 Real Estate Diversified Funds originally agreed to complete the required road, drainage and water improvements for Tract 17231 by November 20, 2009.
According to Gerry Newcombe, the director of the county public works division, “The county has sent several default notices to the Real Estate Diversified with requests to bring the agreement to current status. However, the principal has not responded with the required documentation and securities to maintain the agreement. A letter dated July 26, 2013, from the principal, indicates that the principal wishes an additional six month extension to implement a plan to comply with the county’s requirements.
“The county’s ability to take legal action on the road and drainage and water improvement agreements expires on November 20, 2013, pursuant to California Code of Civil Procedure Section 337,”  Newcombe continued. “As of this date, none of the required road and drainage and water improvements have been started, according to the approved plan. The existing property has not been disturbed and is currently owned by Real Estate Diversified Funds I, LLC.”
In accordance with Newcombe’s recommendation, the board of supervisors initiated foreclosure on the road and drainage as well as the water improvement agreements and performance securities and authorized county counsel to file an action against Real Estate Diversified and the its surety company, SureTec Insurance Company, to collect sufficient monies to pay for any damages incurred by the county as a result of Real Estate Diversified’s breach of the road and drainage and water improvement agreements. While the board’s action initiated reversion to acreage proceedings for Tract 17231 pursuant to the California Subdivision Map Act (Government Code sections 66499.11 et seq.) and the San Bernardino County Code (County Code sections 87.04.070 et seq.), the initiation of those proceedings does not in and of itself accomplish the proposed reversion, that is, restore the property to its previous configuration before Tract 17231 was recorded. The county surveyor will now be tasked to obtain all information necessary to accomplish the proposed reversion, including evidence of title to the real property within Tract 17231 and evidence sufficient to enable the board to make all of the determinations and findings required by Government Code section 66499.16. The county surveyor is also being called upon to prepare a final map which delineates the reversion to acreage, including the vacation of dedications which had been required under Tract 17231. Additionally, the county surveyor and the director of the land use services department have been told to prepare a report delineating an accounting of all costs incurred by the county in the processing of the reversion to acreage which shall be recovered from the securities identified in conjunction with the property and a report delineating the return of fees and deposits to the current owner of the property and the release of securities minus the fees to be recovered by the county for processing the reversion to acreage.
According to County Code section 87.04.070(b), a hearing on the proposed reversion to acreage must first be scheduled before the planning commission. The planning commission renders its decision on the reversion to acreage map in the form of a written recommendation to the board of supervisors. Upon receipt of the recommendation of the planning commission, the board holds a public hearing. The board may approve the reversion to acreage map only if it finds that all of the findings required by Government Code section 66499.16 are true. If the board ultimately approves the reversion to acreage, the map is then delivered to the county surveyor and takes effect after it is recorded.