The most insane housing prices in California are in the SF Bay Area, which includes part or all of San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa, Solano, Napa, Sonoma, and .......... Marin Counties. Marin County is just across the Golden Gate Strait and Bridge from SF. If their parcel were 1/3 or 1/2 acres, I could understand there being some hassle over subdividing their property, but not for three acres! The county's costs would be limited to doing a proper survey and waving their paper wand to update their records. Costs like power, water, and sewer hook-ups and access would be borne by the the owners, with some permit fees.
This 20 years' delay and $40K shake-down reeks of NIMBY and corrupt politicians and bureaucrats.