The portion from Boulevard to near the Imperial County line was included in the California Highway Commission budget for 1965–1966. A extension from Mountain Springs west to what was then known as Road J-35 was given $3.3 million (about $ in dollars) in funding by the Highway Commission in May 1965. The section in between this one and the Mountain Springs pass section was in planning by that September, and was scheduled to begin the building phase shortly thereafter, with the section extending west of Boulevard to follow. That section, from Crestwood to Boulevard, was to begin construction soon after the $3 million (about $ in dollars) contract was given out in January 1966. The coming of the freeway from both west and east of Jacumba was projected to be a significant event in the history of the town. Cafes and gas stations went out of business once the freeway bypassed the town; however, many retirees relocated into the town since the high traffic levels were gone. The labeling of the town Boulevard as Manzanita on I-8 signs raised controversy and forced the Division of Highways to obscure the name on the signs until the issue was resolved.