The corporation began planning a new city and buying up desert land as early as 1956. The chief purchase was a big chunk centered by the Mendiburu and Rudnick farming interests. The M&R Ranch as it was known, grew large expanses of cotton and alfalfa watered by nine large capacity water wells.
By March 1958 the company had purchased 82,000 acres and work was begun on the first subdivision. Planning was accomplished by Wayne R. Williams, a master planner from South Pasadena. The first unit of 876 lots were sold out within days after they became available in May. Total original investment was $500,000. Lots were originally priced under a thousand dollars.
In June 1958, the second unit of 427 lots sold out quickly. Construction started on the first 20 homes and a recreation center. Also in that month, the California City Community Services District covering more than 100,000 acres in and around the city, was approved by the Kern County Board of Supervisors, to provide municipal services. Property sales that month amounted to over 900 lots adding to $1 million dollars, by month's end.
The company tried all sorts of innovative sales techniques to lure buyers out to the High Desert. Busloads of prospective buyers were brought in from all over the west. At one point a DC-3 was flown in and landed on a crude desert landing strip near the present corner of Neuralia and California City Blvd.
During July, grading on the first 23 miles of road was completed in three weeks by the Fremont Construction Company. Also, a civil engineer and water expert, O.R. Angelillo, was hired to check out the nine wells that came from the ranch and also report on the water potential of the area. The report came in that there was a virtual lake of water under the City that was fed by fissures from the Sierra Nevada. In August, the development company donated 10 acres to the Mojave Unified School District for the City's first school. The Robert P. Ulrich Elementary School was built later and was completed in 1966.
In September, the first 20 homes were completed with 28 more under construction. Property sales passed the $2 million mark with the opening of the 5th tract. By October, 45 miles of city streets were completed and the 6th section of property opened for sale.
In November, the first family, Mr and Mrs Marion Lee and their three children moved into their new home becoming the first permanent residents of the new city. As 1958 was coming to a close, a Gold Ribbon Days was proclaimed with the opening of the new recreation center complete with swimming pool, motel, restaurant, and test gardens to see what would grow in this area. An administration building also opened at Neuralia and California City Blvd. At that time, CCB was called Randsburg-Mojave Road.
In January 1959, there were 36 families either living in the city or about to move in. There were 65 homes either completed or under construction. The 11th tract was opened for sale and over 3,000 property owners had invested in the new city. Total sales had passed the $4 million mark.
In February, Mr Angelillo issued his report showing more than a million acre feet of water available annually in deep rock fissures under Boron Valley. In March, total property sales soared past $5 million. The Company started an ambitious 1,000 tree planting program which called for 100,000 trees over a ten year period. Trees included modesto ash, elm, and fruitless mulberry.
By April, Construction was underway on a market, gas station, 18 unit motel, and four stores to make up the City's first shopping center. By mid month some 60 miles of city streets and water lines were completed and 67 new homes were under construction. By month's end property sales exceeded $7 million. Nat Mendelsohn had a great month of ribbon cutting and posing for cameras at new openings. In June the City's population passed the 100 mark and there were over 5,000 investors owning $8 million in property. Construction began on 20 more homes. July saw the organization of the California City Community Club to foster civic improvements. The volunteer fire department was formed and plans were laid for a city museum. In August the 18 unit motel opened for business.
In September amid much fanfare, plans for a huge 60 acre Central Park were unveiled. Centerpiece of the park was a planned 20 acre lake for boating and fishing, a 40 foot waterfall, an 18 hole golf course, picnic grounds, sport areas, tennis courts, a riding trail, tavern-on-the-green and a motel.
By October, 90 families had moved in raising the population to 250. Property investments soared past the $10 million mark. Dr Paul Hwang opened an office to become the community's first doctor. Towards month's end a Richfield service station opened for business.
Borg's Market opened in November becoming the town's first supermarket. Marion Lee opened the first barber shop. Mr Lee and family were also the first residents of California City, having moved in a year earlier in 1958.
December saw the first telephone service and the California City nursery opened. By January 1960, giant earthmovers were shaping the proposed lake and golf course. It would be another 5 years before the city grew to size, to incorporate in 1965. James Riley became the first elected mayor.