HomeMy WebLinkAbout11-20-2012 c4 lease agreement ccan for calle joaquinag reserveC 4
Meeting Dat e
11-20-1 2
Jtem Number
`counci l
'
agenOa nepont
C I T Y O F S A N L U I S O B I S P O
FROM :
Michael Codron, Assistant City Manage r
Prepared by :Freddy One, City Biologis t
SUBJECT :LONG TERM LEASE OF A PORTION OF THE CITY'S CALLE JOAQUI N
AGRICULTURAL RESERVE TO CENTRAL COAST AGRICULTURA L
NETWORK TO PROVIDE FOR ONGOING MANAGEMENT O F
AGRICULTURAL OPERATIONS ON THE SITE .
RECOMMENDATIO N
1.Approve the proposed long term lease with Central Coast Agricultural Network (CCAN) t o
manage and operate the Calle Joaquin Agricultural Reserve (CJAR).
2.Authorize the Mayor to execute the lease and to amend the lease to include two additiona l
parcels once the related title dispute is fully resolved .
DISCUSSION
Backgroun d
The proposed lease is an implementation mechanism of the Calle Joaquin Agricultural Master Pla n
(Master Plan). The Master Plan was adopted by the City Council on March 15, 2011 . Throughout
the process of developing the Master Plan, it was envisioned that a non-profit entity would provid e
oversight of the operations of the CJAR . (See excerpts from the Master Plan, Attachment 1 .)
City staff used a stakeholder process to develop the Master Plan, consulting with communit y
members and farmers who could help guide development of the plan . Through this process, CCA N
emerged as a potential operator with an interest in implementing the Master Plan . In 2011, the
Mayor and Natural Resources Manager wrote letters of support for CCAN's grant application to th e
Specialty Crop Block Grant Program administered by the California Department of Food an d
Agriculture . The application was successful, allowing CCAN to hire an executive director and wor k
towards the development of a program for the reserve .
Over the past several months, the City has worked closely with CCAN to create a lease tha t
implements the vision of the Master Plan . The lease is an important tool to clearly define roles an d
responsibilities of the parties, and to protect the interests of both the City and CCAN . The lease is a
20-year agreement that includes milestone requirements, annual reporting, City approval of sub -
lease agreements to farmers, and gives the City the ability to terminate the lease if its provisions ar e
not being met .
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Lease Detail s
The proposed lease with CCAN is attached (Attachment 2). Some of the key provisions of th e
Master Plan implemented or otherwise accommodated by the lease include :
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Calle Joaquin Agricultural Reserve Lease
Page 2
•1.Establishment of a non-profit entity to operate and/or oversee the agricultural operations a t
CJAR and provide agricultural education opportunities to citizens ;
2.Potential for development of one or more buildings to properly house certain aspects of th e
agricultural production or education programs ;
3.Development of a formal trail crossing the property from Calle Joaquin to Oceanaire Driv e
for pedestrians and bicyclists (including a crossing of Prefumo Creek), with ultimat e
extension of the trail to Madonna Road and/or Dalidio Drive ;
4.Enhancement of the riparian corridor of Prefumo Creek with native vegetation ;
5.Possible creation of a wetland at the low-lying southerly end of CJAR, and planting o f
native vegetation on the fill area adjacent to it ;
6.Placement of protective fencing along the edge of the riparian areas of Prefumo Creek to
protect sensitive resources in those locations .
Key provisions of the lease to ensure adequate City oversight and CCAN accountability include :
A.Milestone requirements with specific dates to accomplish the goals outlined in the Maste r
Plan (See Attachment 2 : Section 2, Purpose).
B.The initial term of the lease is 20 years . It is anticipated that, if CCAN is successful in
developing an educational center and installing improvements, the term of the lease would
be extended .
C.The proposed rent for the CJAR is $1 per year, consistent with the City's Communit y
Partnerhsip program and other leases of City land and facilities when the land is being use d
by a non-profit organization for a specific public purpose . Similar examples include th e
Children's Museum, the Little Theatre, the Museum of Art, and the Railroad Museum .
D.Construction of improvements on the property as envisioned in the CJAR include a ligh t
processing facility, educational center and other ancillary structures . Attachment 3 includes
a concept plan for the facility . Ultimately, CCAN is required to apply for all require d
entitlements and pay all costs associated with development, including permit fees, water ,
sewer and traffic impact fees, and other associated costs . Prior to the commencement of an y
approved construction, performance bonds are required to ensure that the project is carrie d
through to its completion, or that the site is returned to its natural state .
E.The City will use its best efforts to coordinate with the owner of the Target project to have
an agricultural well installed on the site . The requirement to install a well is a mitigatio n
measure associated with the Target project and early discussions indicate that the installatio n
of the well can be accomplished with the funds available ($45,000).
F.The lease provides opportunities for early termination by either the City or CCAN unde r
several and varied circumstances .
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Calle Joaquin Agricultural Reserve Lease
Page 3
•Expansion of Premise s
The current lease identifies two of the four parcels that would ultimately become part of CCAN's
leasehold . At this time, the City does not have clear title for Parcels 053-152-007 and 00 8
("Disputed Parcels") due to a title dispute with a third party who held a pre-existing deed of trus t
on those Disputed Parcels, which was not cleared when the property was conveyed to the City i n
2006 .However, the City and the third party have agreed to the principal terms of the settlement an d
currently, are working on documents to reduce the terms of the settlement agreement to writing ,
which include the City obtaining clear title to the Disputed Parcels . Staff is recommending that the
City Council authorize the Mayor to execute an amendment expand the lease to include Dispute d
Parcels once the City obtains clear title to the parcels through the anticipated settlement agreement .
CONCURRENCE S
General Plan Conformity Repor t
The Planning Commission will review the proposed lease for consistency with the General Plan o n
November 14,2012 .This report is distributed on November 13 `h the day prior to the Plannin g
Commission meeting . Once the result of the Planning Commission's review is known, staff wil l
provide the City Council with an update via agenda correspondence .
FISCAL IMPAC T
The proposed lease has a neutral fiscal impact on the City . The City has expended some resource s
•over the years it has owned the CJAR to patrol and monitor the property, and provide for th e
continued health of the soil by having cover crops planted and harvested . Purchase of the cover cro p
seed mix and the planting/disking of the material has cost up to $5,000 and has been covered unde r
the Natural Resources Program operation budget . These resources have primarily been in the for m
of the staff time associated with these activities . Staff will continue to have ongoing responsibilitie s
to oversee the lease, however, the day to day management of the property will transition to CCAN .
ALTERNATIVE S
1.The City Council can modify the proposed lease provisions .The City Council can direct staff
to make revisions to the proposed lease to address any identified concerns or issues .
2.Direct staff to issue an RFP for a farm operator .The City Council can direct staff to issue a
request for proposals to determine if another non-profit organization would be interested i n
managing the property and executing the lease . This alternative is not recommended becaus e
during the process to create the Master Plan for the Calle Joaquin Agricultural Reserve, no othe r
non-profit group was identified that had an interest in participating with the City to achieve th e
vision identified in the Master Plan . Staff is not aware of another organization in the Count y
with a mission that matches the City's needs for management of CJAR and implementation o f
the Master Plan vision (See Attachment 3 for additional information about CCAN).
ATTACHMENT S
•1 . Excerpts from the Master Plan for the Calle Joaquin Agricultural Reserv e
2 . Proposed lease agreemen t
3 .Additional information about Central Coast Agricultural Network
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Calle Joaquin Agricultural Reserve Lease Page 4
AVAILABLE FOR REVIEW IN THE COUNCIL OFFIC E
Master Plan for the Calle Joaquin Agricultural Reserv e
t. coon al agenda reports 2012 2012-11-20 lease agreement coon for calle Paquin ag reserve (ardran-tte) ag master plan lease (car).docx
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Attachment 1
Agricultural Master Pla n
for th e
City of San Luis Obispo's
Calle Joaquin Agricultural Reserv e
"This approximately I80-acre area of prime .farm land bounded by Madonna Road,
Highway 101, Central Coast Plaza, and Prefumo Creek is in three ownerships . The City
intends to preserve at least one-half of this signature working agricultural landscape a t
the southern gateway to San Luis Obispo as it existed in 1994."
---City of San Luis Obispo General Plan, Land Use Element, Policy 8.8
The above constitutes a vision statement for the ultimate preservation and sustainable utilization
of an important visual, cultural, agricultural and ecological asset to the City of San Luis Obispo .
The Agricultural Master Plan that follows spells out the actions and expectations involved i n
implementing this vision .
I .Introduction
The Calle Joaquin Agricultural Reserve is currently an area of approximately 25 acres located a t
the end of the street known as Calle Joaquin North in the City of San Luis Obispo (Figures 1, 2).
The property consists primarily of farmland that has been dedicated to the City of San Lui s
Obispo as the land surrounding it has been developed . The City of San Luis Obispo's 199 4
General Plan required that approximately 50% of the properties in this area be preserved a s
permanent open space and retained in agriculture . To date of this requirement has been the
creation of the existing 25 acre Calle Joaquin Agricultural Reserve, as two of the thre e
agricultural properties there have annexed into the City and been approved by the City Counci l
for commercial development .
The City General Plan's "50% preservation" requirement also extends to the third and larges t
property in the area, known as the Dalidio property (approximately 130 acres). Upo n
development of that property, an additional 65 acres will be potentially added to the Agricultura l
Reserve . The ultimate size of the Reserve is therefore anticipated to be approximately 90 acres .
Most, but not all, of this land is or was farmland . A portion of Prefumo Creek, plus a sizabl e
constructed drainage channel and large eucalyptus grove are included within the preservatio n
area required by the General Plan, so that ultimately this 90 acre site will include about 70 acre s
of land that is fanned or is farmable . The balance will be "wild" lands of the eucalyptus groves ;
the riparian corridor of Prefumo Creek and of the drainage channel . Therefore, the term "Maste r
Plan Area" as used in this document refers to the entire 90 acre site . The term "Calle Joaqui n
Agricultural Reserve" will refer to the existing 25 acre property currently in City ownership .
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Attachment 1
4.Agricultural Master Pla n
The overall goal of the Agricultural Master Plan is to retain as much as reasonably possible o f
the Master Plan Area in production agriculture, consistent with General Plan policy . This may
include but is not limited to : a private, community-supported agricultural operation ; individua l
garden plots ; "incubator" plots leased to individuals for small-scale operations ; and commercia l
scale agricultural operations . Lands not suited for agriculture or ultimately needed for othe r
purposes will be addressed independently, and they may be used temporarily for agricultural
operations if appropriate . Examples of such lands include the riparian corridor of Prefumo Cree k
and planned expansion thereof ; a possible wetland Swale in the southern corner of the site ; the
route of the Bob Jones Trail ; and management and maintenance of the eucalyptus groves and th e
drainage channel extending southwesterly from Dalidio Drive .
The Plan allows for agricultural operations to include one or more buildings to provide for "ligh t
processing" (i .e ., washing) of produce, storage, and a site for educational programs for th e
public . This will require a small parking facility and extension of urban services to thos e
buildings, which are currently available at the end of Calle Joaquin . (Use of untreated well wate r
for drinking water or "light processing" uses is not considered appropriate, since the site wil l
ultimately conduct public educational sessions, etc .)
Establishment and growth of the Calle Joaquin Agricultural Reserve will be predicated upo n
certain events over which the City does not have full control . Therefore, the Agricultural Maste r
Plan calls for a phased approach to the operations ; these are discussed in more detail below .
It is important to note that the City of San Luis Obispo does not anticipate being the primar y
operator of the Agricultural Reserve . That operation will be in the hands of a nonprofit entit y
which, pursuant to an agreement with the City of San Luis Obispo, will be responsible for th e
overall capital improvements, operation, and maintenance of the agricultural operations of th e
site . The City of San Luis Obispo will retain responsibility for the management and maintenanc e
of the Prefumo Creek area, the Bob Jones Trail, and other small areas not directly involved wit h
the agricultural operations .
In the event that the nonprofit entity should fail for any reason, the City of San Luis Obispo wil l
retain the right to take over operation of the property, assign the agreement with the nonprofi t
entity to another entity of the City's own choosing, or to temporarily or permanently close th e
facility . Details of this condition and its implementation would be spelled out in a forma l
agreement between the City of San Luis Obispo as owner of the land in question and th e
nonprofit entity which would be operating it .
4.1 Phasing Areas and Land Use Designation s
Phasing for the implementation of the Agricultural Master Plan is split in two main parts, Phas e
1 and Phase 2, and these phases are further split into sub-phases .
Phase 1 consists of lands currently owned or controlled by the City of San Luis Obispo ,
including the 3 acre portion with a cloud on title . This area totals about 25 acres .
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Attachment 1
•Phase IA constitutes the initial farming area . This area of approximately 20 acres will be leased
to a nonprofit entity whose primary purpose will be to return the site to production agriculture ,
and. to oversee and manage agricultural production and agricultural education programs an d
activities there . This would be done pursuant to a capital improvement, management an d
maintenance plan agreed to between the City of San Luis Obispo and the nonprofit entity . Th e
entity is expected to wish to pursue the development of an educational and "light processing "
facility that would permit the washing of produce for sale to local institutions such as schools o r
prisons . This facility is envisioned as a group of one or more structures following an agricultural
motif that ultimately would house areas for processing and storage of produce, a classroom o r
classrooms and small amphitheatre, a teaching kitchen, various demonstration gardens, an d
minor support facilities (office, restrooms, etc .). The facility is not expected to generat e
significant traffic volumes, as no on-site sales are anticipated . With up to ten seasona l
employees, occasional visits from schools groups, and no on-site sales, traffic volume i s
anticipated at 100 vehicle trips per day, or 12 vehicle trips per business hour with little vehicl e
traffic at other times .
Funding for the facility is expected to come through grants and other fundraising, with n o
significant expenditures planned by the City . Timing of these improvements is uncertain but it i s
expected to take up to ten years to fully fund and develop the site improvements .
The nonprofit entity may wish in the future to engage in on-site sales either seasonally or year -
round; however, the decision to do so shall constitute a request for amendment of this Plan an d
shall be subject to full analysis under the California Environmental Quality Act (CEQA )
•especially as to its potential traffic impacts, and may be subject to other City fees and charges ,
including but not limited to business license fees .
Phase 1B includes improvements and activities in areas that are City controlled or maintained .
These may include but are not limited to :
•Initial extension of the Bob Jones Bike Trail from Calk Joaquin to Oceanaire Drive via a
pedestrian/bicycle bridge over Prefumo Creek, with ultimate connection to eithe r
Madonna Road or Dalidio Drive (possibly both);
•Possible community garden or native plant nursery ;
•Possible wetland meadow at the southern corner of the property ; and
•Riparian enhancement plantings along Prefumo Creek and the fill area at the south end o f
the property, along with control of the date palms and other non-native vegetation .
Phase 1C includes the three acres where City ownership is the subject of a title dispute . If this
matter is not successfully resolved by the time this plan is ready for implementation, Phase 1 C
will consist of simple additions to the adjacent crop areas, and, where the disputed area intersect s
Prefumo Creek, additional enhancements to the creek corridor, once the matter is finall y
resolved. In the meantime, either continued cover cropping, fallowing, or other benign activitie s
will take place there with no capital improvements placed thereon, so as not to prejudice th e
ultimate outcome of the dispute .
Proposed activities for the Phase 1 area are shown in Figure 7 . Proposed activities for Phase 2
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are not shown because of the uncertainty of timing and final details of Phase 2 .
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Attachment 2
AGRICULTURAL GROUND LEASE BETWEE N
THE CITY OF SAN LUIS OBISPO AN D
CENTRAL COAST AG NETWORK
This Agricultural Ground Lease ("Lease") is entered into this _ day of , 2012, b y
and between the City of San Luis Obispo (the "City") and Central Coast Ag Network, a California
public benefit non-profit corporation ("CCAN").
RECITAL S
A.The City owns certain agricultural land within City limits, commonly identified as th e
Calle Joaquin Agricultural Reserve, 0 Calle Joaquin, San Luis Obispo .
B.The City desires to : place portions of the land in active agricultural use in furtherance o f
the Land Use Element of its General Plan ; retain the land as open agricultural space and maintain th e
agricultural nature of the land ; provide educational opportunities ; support the health and wellnes s
benefits of local agriculture ; and have the land act as a gateway to the City in recognition of the City's
agricultural heritage .
C.The City developed an Agricultural Master Plan for the land dated January 201 1
("Premises Master Plan"). The Premises Master Plan expected that certain portions of the land woul d
be leased to a nonprofit entity primarily for sustainable production agriculture for local consumption ,
who would also oversee and manage on-site agricultural production and agricultural educatio n
programs and activities .
D.CCAN is a nonprofit corporation whose purpose is to champion a sustainable local an d
regional food system to ensure a nourishing, diverse and abundant supply of food that is resilient, saf e
and secure, and CCAN seeks to manage the on-site agricultural production and agricultural educatio n
and activities under sustainable agriculture practices .
E.Management of the land by CCAN in accordance with CCAN's purpose aligns with th e
City's expectations and desires to highlight the City's agricultural heritage .
AGREEMEN T
1 .PREMISES .City hereby leases to CCAN, and CCAN leases from City, for the term and rent ,
upon the terms and conditions below, and subject to the reserved rights and easements of record or se t
forth below, approximately 18 acres of agricultural land, consisting of portions of Assessor Parce l
Numbers 053-152-009 and 053-152-006 as shown shaded on Exhibit "A" attached and incorporated b y
this reference (the "Premises"). The Premises do not include the areas reserved for future bike lane s
and wetlands as shown on Exhibit "B" attached hereto and incorporated by this reference . City
reserves the right to remove acreage from the lease upon 90 calendar days written notice to facilitat e
development of the future bike lanes or to facilitate preservation of the wetlands ; provided, any
growing crops may be harvested prior to termination . CCAN shall access the Premises only from Call e
Joaquin Road .
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Attachment 2
2 .PURPOSE .The purpose of this agreement is to put the majority of the Premises into activ e
sustainable agricultural use, while permitting development of a portion of the Premises, not to excee d
the percentage allowable per zoning regulations, for facilities for the aggregation, light processing an d
distribution of agricultural products grown locally or on the Premises as part of a local food system a s
well as facilities to provide educational and agricultural support . Land management techniques on th e
Premises shall be in support of sustainable agriculture techniques . Crop support and protectio n
techniques shall be used in accordance with legal regulations . Livestock and poultry for the sol e
purpose of supporting sustainable agriculture techniques or education may be raised on the property .
CCAN may use the Premises for food production and education as described in this Section 2 ,
construction and use of the related Improvements, as well as events to raise funds for CCA N
("Permitted Uses"). CCAN shall not use the Premises or any portion thereof for any other purposes ,
unless the use is approved in advance in writing by the City and the rent increased to an amoun t
satisfactory to City . To fulfill the purpose of this Lease, CCAN agrees that it shall :
a. At all times during the term of this Lease, keep on file the contact informatio n
for the designated representative of CCAN who is responsible for managing CCAN's operation s
at the Premises as well as implementation of this Lease .
b . By January 31 of each year, CCAN shall submit an annual report to the Cit y
Manager or his or her designee, which describes the actions that CCAN undertook during th e
previous calendar year and actions that CCAN plans to take in the upcoming calendar year t o
further the implementation of the goals as set forth in the Premises Master Plan .
c . By December 31, 2013 :begin farming production on the Premises .
d . By December 31, 2015 :
i.Submit a plan for public programming and the demonstration garden s
consistent with the Premises Master Plan for approval by the City Manager or his or he r
designee which shall not be unreasonably withheld so long as said plan furthers and implement s
the goals of the Premises Master Plan, and secure the funding necessary to implement th e
planned public programing and demonstration gardens .
ii.
Establish and maintain food crops on a portion of arable land an d
maintain all arable land in good soil health .
e . By December 31, 2017 :
i.
Implement the public programming, which shall be maintained for th e
remainder of the term of the Lease .
ii.
Establish demonstration gardens, which shall be managed in a manne r
consistent with sustainable agriculture practices for the remainder of the term of the Lease .
iii .
Produce food crops on arable land .
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Attachment 2
iv.Submit long term agricultural plan consistent with the Premises Maste r
Plan and develop milestones for the second ten years of the Lease for approval by the Cit y
Manager or his or her designee, which shall not be unreasonably withheld so long as said plan
and milestones further and implement the goals of the Premises Master Plan .
v.Submit farmer programming consistent with the Premises Master Pla n
for approval by the City Manager or his or her designee, which shall not be unreasonabl y
withheld so long as said plan furthers and implements the goals of the Premises Master Plan ,
and secure the funding to implement farmer programming .
f. By December 31, 2022 :
i.Long term agricultural plan is implemented, which shall be maintaine d
for the remainder of the term of the Lease .
ii.Educational programming is implemented, which shall be maintained fo r
the remainder of the term of the Lease .
CCAN's failure to fulfill the obligations as set forth in this paragraph by the stated deadlin e
shall be a material breach of this Lease, and the City shall have the right to terminate this Leas e
pursuant to the terms set forth in paragraph 18 .
3.TERM .The term of this Lease shall be for twenty (20) year period commencing on and •
ending on , unless sooner terminated pursuant to the terms of this Lease .
4.RENT .In recognition of the benefits CCAN provides to the community, CCAN shall pay t o
City as annual rent for the Premises $1 per year, payable on July 1 of each year .
5.CONSTRUCTION OF IMPROVEMENTS BY CCAN .CCAN may construct improvements o n
the Premises that further the purposes of this Lease . CCAN shall obtain any and all governmenta l
approvals legally required to improve or alter the Premises . The improvements together with any othe r
alterations, additions or other improvements made to the Premises during the term of this lease, or an y
extension of the lease, are referred to as the "Improvements". The parties acknowledge that th e
Improvements may be modified by the City of San Luis Obispo acting in its governmental capacity, bu t
are subject to final approval by City acting in its proprietary capacity as City in accordance with Sectio n
5(e). In the event that CCAN undertakes construction of the Improvements, the following terms an d
conditions shall apply :
a.CCAN Cost .CCAN shall bear and pay the cost of all construction, reconstruction ,
demolition, alteration or improvements, including but not limited to permit, design and other fees .
CCAN shall determine whether prevailing wage applies to any contracts related to the construction ,
reconstruction, demolition, or alteration of the Improvements .
b.Indemnity Against Claims .CCAN shall keep the Premises and Improvements free and
clear of all mechanics' liens and other liens . CCAN shall defend, indemnify and save harmless City an d
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Attachment 2
the Premises from and against any and all liability, loss, damage, claims, costs, attorneys' fees and othe r
expenses of any type arising out of work performed, or materials or equipment used, on the Premises o r
in easements and rights-of-way for or by CCAN, including but not limited to, claims for liens o f
contractors, subcontractors, material men, laborers, architects, engineers or other design professionals .
City shall have the right, but not the duty, to pay or otherwise discharge, stay, or prevent the execution o f
any judgment or lien, or both . CCAN shall reimburse City for all sums paid by City under this paragraph ,
together with all of City's reasonable attorneys' fees and costs, plus interest on all sums expended at th e
rate of ten percent (10%) per annum from the date paid by City to the date paid by CCAN .
Notwithstanding CCAN's obligations as set forth in this Lease, City and CCAN acknowledge that all o r
part of the Premises are currently leased for farming by City . CCAN is willing to enter into this Leas e
and allow the current lessee to remain on the Premises until the current crop is harvested, removed an d
the ground tilled following harvest . City hereby agrees that CCAN shall have no liability whatsoever ,
and shall have no duty to defend or indemnify City, for any act or failure to act of such lessee .
c.Conceptual Development Plans .Prior to applying for a building permit, CCAN shal l
deliver to City a set of conceptual development plans of all off-site and on-site improvements, includin g
exterior architectural appearance of the buildings, including design, color and materials, prepared by a n
architect or engineer, as applicable . The conceptual development plan and all parts thereof are subject t o
City's approval . City shall notify CCAN in writing of its approval or disapproval of the conceptua l
development plan .
d.Preliminary Plans and Specifications .Prior to beginning construction, CCAN shal l
deliver to City a set of preliminary development plans, including construction plans and specifications o f
all off-site and on-site improvements, including exterior architectural appearance of buildings, includin g
design, color and materials, prepared by an architect or engineer, as applicable, licensed to practice a s
such in California . In addition to all items required by City acting in its regulatory capacity, the plans an d
specifications shall include, but are not limited to : preliminary grading and drainage plans ; soil tests ;
utilities, sewer and service connections ; designs and locations of buildings, curbs, gutters, sidewalks ,
parking areas, exterior lighting, outdoor signs, storage areas, landscaping, and ingress and egress to an d
from public streets, in sufficient detail to enable potential contractors and subcontractors to mak e
reasonably accurate bid estimates and to enable City to make an informed judgment about the design an d
quality of construction . All on-site improvements shall be constructed within the exterior property line s
of the Premises . The plans and specifications and any modifications thereto, including exterio r
architectural appearance of buildings, including design, color and materials, are subject to City's
approval .
e.Final Plans .CCAN shall prepare final working plans and specifications conforming to
preliminary plans approved by City, submit them to the appropriate governmental agencies for approval ,
and deliver to City one complete set as approved by the governmental agencies, together with writte n
evidence of how it will obtain the funds necessary to complete the construction of the Improvements i n
accordance with the approved plans and specifications . Changes from the preliminary plans shall b e
considered to be within the scope of the preliminary plans if they are made to comply with requirement s
of a governmental agency or official in connection with the application for permit or approval and do no t
noticeably affect the exterior appearance or layout of the Premises . Any substantial or material change s
or any changes affecting the size, design, layout or exterior appearance of the Improvements require th e
prior written approval of City.
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Attachment 2
f.Bonds .Upon City's request, CCAN shall furnish City with a performance bond and labo r
and materials bond, irrevocable letter of credit or other security acceptable to City, each in an amount no t
less than one hundred percent (100%) of the estimated cost of the Improvements, in a form and with a
company acceptable to City, prior to constructing Improvements or repairs on the Premises . The bonds o r
other security shall remain in effect until forty-five (45) days after recording of a notice of completion, o r
until the entire cost of the work shall have been paid in full, whichever last occurs . If bonds are used ,
each bond shall be issued by a corporate surety licensed to do business in California and shall remain i n
effect until the cost of the Improvements shall be paid in full . The bond shall state the following :
i.That it is conditioned to secure the completion of the proposed construction, i n
accordance with the plans and specifications approved by City, free from all liens and claims of
contractors, subcontractors, mechanics, laborers, and materialmen ;
ii.That the construction work shall be completed by CCAN, its general contractor, or o n
either's default, the surety ;
iii.That upon default in such completion and payment, such part of the amount of th e
bond as shall be required to complete the work shall be paid to City as liquidated and agreed damages for
the nonperformance of CCAN's agreements, it being agreed that the exact amount of City's damages i s
difficult and impractical to ascertain ;
iv.That the surety will defend and indemnify City against all loss, cost, damage, expense ,
and liability arising out of or connected with the work of improvement ; and
v.At City's option, that uncompleted construction be removed and the Premises restore d
to a condition satisfactory to City .
g.Notice of Non-Responsibility .At least ten (10) days prior to initiation of any
improvement, or delivery of any materials to the Premises, CCAN shall notify City of same . City shal l
have the right to post, and/or publish, and record a Notice of Nonresponsibility .
h.Permits .CCAN shall procure and comply with all then applicable codes, ordinances ,
regulations and requirements for permits and approvals, including but not restricted to a grading permit ,
building permits, zoning, environmental and planning requirements, subdivision and parcel maps, an d
approvals from various governmental agencies and bodies having jurisdiction .
i .Builder's Risk Insurance .CCAN shall deliver to City a certificate(s) of insuranc e
evidencing coverage for "builder's risk" and "course of construction" insurance on the Improvements the n
in place or under way, including coverage against collapse, vandalism and malicious mischie f
j .Soil Conditions .City makes no covenants or warranties respecting the condition of th e
soil or subsoil or any other condition of the leased land . CCAN may enter onto the land before th e
commencement date of the lease term to make surveys and soil and structural engineering tests tha t
CCAN considers necessary. All such surveys and tests made by or on behalf of CCAN shall be a t
CCAN's sole expense, without liability or expense to City. Copies shall be furnished to City upon
request . In the event existing soil conditions on the Premises are not suitable for CCAN's development ,
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or necessitate environmental cleanup for pre-existing conditions, City shall use its best efforts to provid e
CCAN with an alternate site for CCAN's development .
k .Diligence .CCAN shall with reasonable diligence prosecute to completion al l
construction of Improvements, additions or alterations . All work shall be performed in a good and
workmanlike manner, shall substantially comply with plans and specifications submitted to City a s
required by this Lease, and shall comply with all applicable governmental permits, laws, ordinances an d
regulations .
1.Parcel or Subdivision Map .If a parcel map or subdivision map of the Premises is require d
by the City of San Luis Obispo in connection with this Lease or the Improvements or use of the Premises ,
CCAN shall either terminate this Lease without any further liability to City, or prepare and process th e
same for the City's approval, at CCAN's expense, including all fees, security bonds, deposits ,
engineering, surveying and improvement costs . If a map is required to be approved and filed, the tim e
required for commencing construction of the Improvements and reaching milestones shall be extended b y
the time required to process and record the map .
6 .
WATER .
a.Water Additional .The annual rent does not include the cost of any water . City well
water is available at no cost to CCAN, provided it is used consistent with the terms and conditions o f
this Lease . CCAN may purchase potable water, recycled water and/or access to the sewer system a t
rates available to the general public .
b.Installation of New Well .If an existing well needs to be repaired or improved or a ne w
well is needed prior to CCAN's entry onto the Premises, City shall use its best efforts to have the wel l
installed by the owner of the Target project, who is required to do so as a mitigation measure for th e
Target project, as soon as possible after the execution of this Lease . If the Target project owner fails t o
install the new well as required, the City shall pay for the new well installation so long as the costs d o
not exceed $45,000 . If the bids for the well installation exceed $45,000, either City or CCAN ma y
terminate this lease unless CCAN pays the costs in excess of $45,000 to City prior to award of th e
construction contract . CCAN shall be liable for any damage caused by CCAN, its employees, officers ,
directors, contractors, subtenants or others acting for or on its behalf, to the well system . Both the
City and CCAN agree to use best efforts to cooperate with respect to installation of a new well .
c.Non-Exclusive Use of Well Water .CCAN shall have a non-exclusive right to us e
reasonable quantities of City well water for use on the Premises, except as otherwise specificall y
provided in this Lease . City shall not be liable for any interruptions or failures in well water delivery ,
nor for the quality of water . CCAN shall be responsible for securing a backup water supply at CCAN's
sole cost and expense, if desired . CCAN shall not sell any water obtained from any source on th e
Premises nor use or permit the use of water from the Premises on any other lands, including but no t
limited to, adjoining properties .
d.Non-Exclusive Use of Water Facilities .CCAN shall have the non-exclusive use of any
water wells, pumps, water storage ponds, water storage tanks and irrigation lines which may be locate d
on the Premises at the time of execution of this Lease .
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e.Payment for Pumping charges .CCAN shall pay for all utility or other charge s
associated with operating the pumps on any well as long as CCAN or its subtenants are the sole user o f
the City well. City reserves the right to use well water for its own purposes, and to allow others to us e
the well water, so long as there remains sufficient water to meet the agricultural and other on-site need s
of CCAN . In the event City or any other person with City's consent uses City well water, the cost s
shall be prorated among the users based on usage .
f.Maintenance of Pumps .CCAN shall also maintain the City well pumps in a first clas s
condition, ordinary wear and tear excepted . CCAN shall contract with a firm approved by City t o
maintain the City well . If CCAN fails to do so, City may contract with a firm to provide maintenanc e
of the well pumps and engines, and such maintenance costs shall be additional rent, due and payabl e
immediately to City on demand . All rights and remedies available to City for non-payment of rent shal l
apply to the maintenance costs for the well pumps and engines . In the event City or any other perso n
with City's consent uses City well water, the maintenance costs for the well pumps and engines shall b e
prorated among the users based on usage .
g.Prevention of Escape of Irrigation Water .Except for normal drainage of irrigation tai l
waters through existing drainage channels, CCAN shall irrigate the Premises in accordance with al l
laws and regulations . CCAN shall pay all damages occasioned by its failure to comply with applicabl e
laws and regulations .
If the use of any impervious or semi-impervious surface coverings (such as plastic) increase s
storm water runoff to the extent that any portion of the Premises or any other property(ies) is or are
eroded, CCAN shall repair the eroded areas, and prevent any subsequent erosion or else cease the us e
that is creating the erosion . Should CCAN fail to do so within fifteen (15) days of notice from City ,
City shall have the right to terminate this Lease upon thirty (30) days' written notice to CCAN . In the
event of any such termination, CCAN shall still be obligated to repair any eroded areas . Nothing herei n
shall be deemed to make CCAN responsible for an act of God wherein storm waters are of such volum e
or velocity that the damage would have been caused regardless of the impervious or semi-imperviou s
surface covering s
7 .
PROHIBITED USES .CCAN shall not use or permit use of the Premises, or any portion s
thereof, for any of the following purposes :
a.No retail sale of crops or livestock, unless approved by the City .
b.Use any portion of the Premises contrary to or in violation of the directives, rules o r
regulations of the City, or any governmental entity or agency having jurisdiction, as such directives ,
rules or regulations now exist or may exist in the future ; provided, however, that if any directive, rul e
or regulation adopted in the future unreasonably impairs CCAN's ability to grow crops on th e
Premises, then CCAN shall have the right to terminate this Lease on sixty (60) days' written notice t o
City delivered no later than thirty (30) days after the effective date of the directive, rule or regulation .
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c.Store on the Premises any property or articles, or conduct any activities or operation s
which are not directly related or incident to the Permitted Uses . Any storage not incident to the
Permitted Uses requires prior written consent of City's City Manager .
d.Erect any structure except fences and gates on the Premises without complying wit h
City's permitting and review processes and obtaining City approval .
e.Conduct any use or activity which would affect safe air navigation, or would b e
hazardous to safe operation of aircraft, including but not limited to : use or location on the Premises o f
any material which would cause sunlight to be reflected toward an aircraft on initial climb or fina l
descent ; any use or activity which would direct steady or flashing lights at aircraft, on initial climb or
final descent; any use or activity which would generate smoke or attract large concentrations of birds .
f.Store any hazardous or toxic materials on the Premises, except as approved by City i n
writing and in accordance with the terms and conditions of all required permits .
g.Permit any residential use or overnight camping or occupancy .
h.CCAN shall not commit, or suffer or permit waste, noise, odors, dust or any othe r
nuisance on the Premises or any activity constituting an unreasonable interference with members of th e
public or persons living or working in the vicinity of the Premises .
i.Conduct any use other than the Permitted Uses .
8.UTILITIES .City shall have no responsibility to provide any further utility extensions o f
any kind to the Premises beyond those that exist currently, and any such extension, including but no t
limited to, lateral extensions to existing utilities and/or connections to existing utilities infrastructure b y
CCAN, shall be at CCAN's sole cost and expense after obtaining City permits .
9.TAXES, LICENSES .CCAN shall pay before delinquency any and all taxes ,
assessments, fees or charges, including possessory interest taxes, and real property taxes which may b e
imposed, levied or assessed upon any leasehold or possessory interests of CCAN, and persona l
property, improvements or fixtures owned, controlled or installed by CCAN and used or located on th e
Premises or used in CCAN's business . CCAN shall also secure and maintain in force during the term o f
this Lease all licenses and permits, which are required by law for the conduct of CCAN's business o r
operations .
10.ASSUMPTION OF RISKS .CCAN has inspected the Premises and accepts th e
condition of the Premises and fully assumes all risks incidental to the use of the Premises . City shal l
not be liable to CCAN's agents, employees, visitors, guests or invitees from any cause or conditio n
whatsoever . City makes no warranty of the suitability of the Premises for the purpose contemplated b y
CCAN or that the leased Premises are zoned for the uses permitted .
11.INDEMNITY .CCAN shall defend (with counsel acceptable to City), protect, indemnify
and hold harmless City, its elected and appointed officials, officers, employees, agents an d
representatives, and the Premises (collectively "City") at all rimes from and against any and al l
liabilities, proceedings, liens, actions, penalties, losses, expenses, claims or demands of any nature ,
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including costs and expenses for legal services which City may incur, sustain or be subjected t o
(collectively "Liabilities") arising out of or in any way connected with : the acts or omissions of, CCA N
and/or any subtenant, or either of their officers, agents, employees, guests, customers, visitors o r
invitees (collectively "CCAN"); or CCAN's operations on, or use or occupancy of, the Premises . Th e
foregoing indemnification excludes only Liabilities caused by the sole active negligence of City or it s
willful misconduct .
CCAN shall also indemnify and hold City harmless from and against any Liabilities includin g
third party claims, environmental requirements and environmental damages, costs of investigation an d
cleanup, penalties, fines, and losses (including, without limitation, diminution in value of the Premise s
or the improvements thereon or property or improvements in the vicinity of the Premises) of whateve r
kind or nature, which result from or are in any way connected with the release, receipt, handling, use ,
storage, accumulation, transportation, generation, discharge, or disposal (collectively "Release") of an y
toxic or hazardous materials which occurs in, on or about the Premises as the result of CCAN's
activities . CCAN shall notify City immediately of any Release of any toxic or hazardous material o n
the Premises . CCAN shall not be responsible for any hazardous or toxic material on the Premise s
which predates CCAN's occupancy of the Premises .
12.INSURANCE .CCAN shall, at CCAN's sole cost and expense, secure and maintain i n
full force and effect at all times during the term of this Lease, and any extension, insurance meetin g
City's standard insurance requirements, plus farm equipment liability and automobile liabilit y
insurance for all mobile equipment and vehicles used on or about the Premises ,
City shall be named as an additional insured in each policy required herein without offset to an y
insurance policies of the City . CCAN shall provide City with copies of all insurance certificates issue d
by the insurer, including in each instance an endorsement or certificate providing that such insuranc e
shall not be cancelled or coverage reduced except after thirty (30) days' written notice to City . The
types of coverage and liability limits of all insurance may be changed or increased at the option of City ,
in the exercise of its reasonable discretion in evaluating its liability exposure, upon giving CCAN a t
least thirty (30) days' prior written notice of the increased limits . CCAN shall also provide City with a n
endorsement for the contractual liability insurance .
13.ALTERATIONS/OWNERSHIP OF IMPROVEMENTS/REMOVAL .Except a s
expressly permitted herein, CCAN shall make no Improvements on the Premises without City's prio r
written consent . All Improvements made by CCAN, during the Lease, shall be CCAN's property durin g
the term . Upon expiration or termination of the Lease, all Improvements shall, unless City elect s
otherwise in writing at least 90 days prior to termination or expiration of this Lease, become th e
property of City, and shall remain upon and shall be surrendered with the Premises without disturbance ,
molestation, or injury . If City elects by written notice to CCAN that all or a designated portion of th e
Improvements made by CCAN shall be removed, then CCAN shall at CCAN's expense remove (prio r
to expiration of the Lease) such Improvements, or such portion thereof designated by City, and restor e
the Premises to at least its former condition, reasonable wear and tear excepted, and repair any damage
resulting from such removal . These provisions shall survive the expiration or termination of the Lease .
14.LIGHTING, SECURITY/FENCING .City has no obligation to provide security guards ,
lighting or fencing .
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15 .MAINTENANCE .
a.CCAN's Duty to Maintain .CCAN shall, at CCAN's sole cost and expense, keep an d
maintain the Premises, and all Improvements on the Premises in good, safe, sanitary and clean order ,
condition and repair at all times in accordance with all applicable laws, rules, ordinances, orders an d
regulations of any governmental agency or body having jurisdiction . CCAN waives all rights to mak e
repairs at the expense of City . CCAN shall keep the Premises, at CCAN's expense, clean and free fro m
litter, garbage, refuse and debris at all times . CCAN shall take reasonable measures to protect th e
Premises from infestation of birds, insects, rodents and other pests . CCAN shall maintain all landscapin g
at all times . CCAN shall comply with all reasonable orders and instructions of City's General Manager or
designee in the use of the Premises in accordance with the Permitted Uses, which the City Manage r
deems to be in the best interest of the City, the public or for their safety and welfare .
If CCAN fails to maintain or make repairs as required herein, City shall have the right, bu t
not the obligation, of making necessary corrections after a reasonable written notice from City of it s
intent to do so . All costs incurred by City in making said corrections, including but not limited to the cos t
of labor, materials, equipment and administration, shall be additional rent, and CCAN shall pay the sam e
within fifteen (15) days of receipt of a statement of City's costs . City may, at its option, choose othe r
remedies available herein as allowed by law .
Nothing in this section defining the duty of maintenance shall be construed as limiting an y
right given elsewhere in this Lease to alter, modify, demolish, remove, or replace any Improvement, or a s
limiting provisions relating to condemnation or to damage or destruction during the final years of th e
Lease term . No deprivation, impairment or limitation of use resulting from any event or wor k
contemplated by this section shall entitle CCAN to any offset, abatement, or reduction in rent nor to any
termination or extension of the Lease term .
b.Damage to and Destruction of Improvements .Except as provided below, CCAN shal l
promptly and diligently repair, restore, and replace as required to maintain in accordance with the
immediately preceding paragraph, or to remedy all damage to or destruction of all or any part of th e
Improvements on the Premises . The completed work of maintenance, compliance, repair, restoration o r
replacement shall be equal in value, quality, and use to the condition of the Improvements before th e
event giving rise to the work, valued as if the Improvements had been maintained in accordance with th e
Lease. City shall not be required to furnish any services or facilities or to make any repairs or alteration s
of any kind in or on the Premises . City's election to perform any obligation of CCAN under thi s
provision after CCAN's failure or refusal to do so shall not constitute a waiver or any right or remedy fo r
CCAN's default . CCAN shall promptly reimburse, defend and indemnify City against all liability, loss ,
cost and expense arising from it .
c.Duty on Termination .In the event the Lease is terminated pursuant to the provisions o f
subparagraph (b), above, CCAN shall comply with all of the following conditions prior to terminatio n
and all rent for the period following compliance by CCAN with all of the following conditions shall b e
abated :
(1)
CCAN delivers possession of the Premises to City and quitclaims all right, titl e
and interest in the Premises by a recordable quitclaim deed executed by CCAN and delivered to City .
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(2)CCAN removes (or deposits the cost of removing as estimated by City) all fixture s
and Improvements as specified by City to be removed and returns the Premises to City in a clean, graded •
condition .
(3)CCAN effectively relinquishes and transfers to City all insurance proceed s
resulting from the casualty to the extent of the value of the Improvements immediately prior to thei r
damage or destruction, appraised at its replacement value .
16.ACCEPTANCE/SURRENDER .On the expiration or sooner termination of this Lease ,
CCAN shall promptly surrender the Premises to City in the same condition as when received ,
reasonable wear and tear excepted, damage by acts of God or by the elements excepted, subject to th e
provisions of the ALTERATIONS/IMPROVEMENTS/REMOVAL paragraph .
17.CONDEMNATION .In the event of any taking or damage of all or any part of th e
Premises or any interest therein by reason of any exercise of the power of eminent domain, whether b y
a condemnation proceeding or otherwise, or any transfer of all or any part of the Premises or an y
interest therein made in avoidance of an exercise of the power of eminent domain (all of the foregoin g
being hereinafter referred to as "appropriation") during the term of this Lease, this Lease shal l
terminate as of the date of such appropriation, the rental shall be prorated to the date of termination ,
City shall be entitled to the entire award made with respect to such appropriation of the land and Cit y
improvements, including but not limited to the City wells, and CCAN hereby assigns to City all o f
CCAN's interest, if any, in such award as to the land and City improvements . Nothing herein shall b e
deemed to constitute a waiver or transfer of any award due CCAN associated with the loss of any of it s
crops or improvements installed by CCAN .
18.TERMINATION BY CITY .City, in addition to any right of termination as a matter o f
law or any other right herein given to City, may at its option cancel and terminate this Lease an d
agreement upon any default, by written notice given to CCAN and a ten (10) day opportunity to cure ,
upon or after the occurrence of any of the following events :
a.Filing by or against CCAN of a voluntary or involuntary petition in bankruptcy or fo r
reorganization, or taking of CCAN's assets pursuant to a proceedings under the Federal Reorganizatio n
Act, or the adjudication of CCAN as a bankrupt, or the appointment of a receiver of CCAN's assets, o r
divestiture of CCAN's assets or estate herein by operation of law or otherwise, or assignment b y
CCAN of its assets for the benefit of creditors .
b.The breach by CCAN or failure of CCAN to keep, observe or perform any of th e
covenants, terms, conditions or provisions herein contained on the part of CCAN to be observed, kep t
or performed .
c.Dissolution or liquidation of CCAN of all or substantially all of its assets .
d.The transfer, in whole or in part, of CCAN's interest in this Lease or in the premises, o r
any rights hereunder, by operation of law, whether by judgment, attachment, execution, process o r
proceeding of any court or any other means .
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19 .EARLY TERMINATION OF LEASE .
a.CITY'S RIGHT TO EARLY TERMINATION .Notwithstanding any other provisio n
contained in this Lease, at any time prior to the construction of the Improvements, City shall have th e
right to terminate this Lease, as to all or any portion of the Premises, without liability to CCAN o r
anyone claiming through CCAN, if City gives CCAN at least one (1) year's written notice . Thi s
termination right may be exercised only in the event City's Council, in the exercise of its sole
discretion, either : (i) authorizes the sale of the Premises or any portion thereof and directs City staff t o
market the same for sale, or (ii) authorizes the lease of the Premises or any portion thereof for any us e
or purpose other than sustainably grown crops and directs City staff to market the same for lease, o r
(iii) grants an easement over the Premises that is incompatible with the permitted uses, or (iv )
determines that termination of all or a portion of the Lease is required by any governmental agency o r
entity as a mitigation measure of condition of development on any City property, or (v) determines it i s
in the City's best interests to terminate . The term of this Lease shall then expire and come to an end o n
such date, as fully and completely as if that date were the day definitely fixed for expiration of th e
term .
After construction of the Improvements, City shall have the right to terminate only upon City's
payment to CCAN, of CCAN's out of pocket costs of the Improvements, less depreciation (flat lin e
depreciation over 20 year extended term), and less any outstanding indebtedness remaining from th e
construction of the Improvements, which indebtedness City shall pay off to the appropriate lender(s).
City shall have no obligation to pay for any value of the Improvements above their depreciated cost o f
construction .
b.CCAN's RIGHT OF EARLY TERMINATION .
CCAN may terminate this Lease if it is unable to sub-lease the Premises to a sustainabl e
farming operation within twelve (12) months from the date of execution of this Lease, or if it should b e
unable to sub-lease the Premises during any subsequent twelve (12) month period following an initia l
sub-lease of the Premises .
20 .
NOTICES .All notices required herein shall be in writing and may be given by persona l
delivery or by registered or certified mail, postage prepaid, and addressed to City at , and t o
CCAN at . Either party may at any time change its address for such notice by giving writte n
notice of such change to the other party . Delivery of any notice shall be deemed complete upon bein g
deposited as aforesaid at any United States Post Office or branch or substation .
21 .ASSIGNMENT AND SUBLETTING .Except as specifically provided in this paragraph ,
CCAN shall not assign, mortgage, encumber, transfer, sublet or grant control of this Lease or any
interest, right or privilege therein . Any such assignment, mortgage, encumbrance, transfer, sublet o r
grant of control shall be void and, at the option of City, shall terminate this Lease . CCAN may suble t
any portion of the Premises for sustainable agricultural cultivation with the prior written consent of th e
City, which consent shall not be unreasonably withheld . CCAN shall provide City with copies of al l
subleases, which shall specifically incorporate the terms of this lease and be subject to it . Each subleas e
is required to be approved by City's Manager in writing . Revenue derived from any sublease of th e
Premises shall be used by CCAN to further the purposes of this Lease . City shall have the right to
audit the records of CCAN to monitor compliance with this paragraph .
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22.RIGHT OF ENTRY.City, the County of San Luis Obispo, any government entit y
having jurisdiction and any utility company shall have the right to enter the Premises at any reasonabl e
time for inspections, to make repairs, or to show the Premises to prospective buyers or at any time i n
case of emergency .
23.ATTORNEYS' FEES .In the event either party commences any legal action o r
proceeding against the other party arising out of or related to this Lease, the party prevailing in suc h
action shall be entitled to recover court costs and a reasonable attorney's fee to be fixed by the court
(including the reasonable value of services rendered in such action by City's City Attorney).
24.COMPLIANCE WITH LAWS .CCAN shall comply with all applicable and valid laws ,
rules, regulations and orders of federal, state and local governments and governmental agencies ,
including, but not limited to, any and all regulations concerning air quality and/or water quality, th e
environment or endangered species ; fire and/or occupational safety ; or accessibility ; hazardous or toxi c
materials, which may apply to the conduct of CCAN's business or CCAN's improvements .
25.GENERAL .
a.Each term and each provision of this Lease performable by CCAN shall be construed t o
be both a covenant and a condition . Time is of the essence of each term, covenant, condition an d
provision of this Lease .
b.One or more waivers by City of any covenant or condition shall not be construed as a
waiver of a subsequent breach of the same or any other covenant or condition . City's consent to or
approval of any act by CCAN requiring City's consent or approval of any act by CCAN requirin g
City's consent or approval shall not be deemed to waive or render unnecessary City's consent to o r
approval of any subsequent similar act by CCAN . No act or thing done by City or City's employees or
agents shall be deemed an acceptance of a surrender of the premises, and no agreement to accept suc h
surrender shall be valid unless in writing signed by City .
c.This lease and CCAN's rights hereunder are subject and subordinate to all conditions ,
reservations, restrictions, easements, rights, rights—of—way, and encumbrances affecting the Premise s
now of record or hereafter granted, caused or suffered by City . City specifically reserves the right t o
grant easements across the Premises .
d.Captions appearing herein are for convenience of reference only and shall not gover n
the construction of this Lease .
e.If any provision of this Lease shall be held by a court of competent jurisdiction to b e
invalid, the remainder of this Lease shall continue in full force and effect and shall in no way b e
affected or invalidated thereby . This Lease contains all of the agreements and conditions made betwee n
the parties and may not be modified orally or in any other manner than by an agreement in writin g
signed by the parties to this Lease . No provision of this Lease shall be deemed to have been waived b y
City unless such waiver is in writing signed by City's City Manager .
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26.INTERPRETATION AND VENUE .This Lease is to be interpreted in accordance wit h
the laws of the State of California . Any legal action relating to this Lease shall be brought in the cour t
of appropriate jurisdiction in the county of San Luis Obispo, State of California .
27.CITY'S REMEDIES .City shall have the following remedies if CCAN breaches th e
Lease, which remedies are not exclusive ; they are cumulative in addition to any remedies specified herei n
or to any remedies now or later allowed by law :
a.City can continue this Lease in full force and effect, and the Lease will continue in effec t
as long as City does not terminate CCAN's right to possession, and City shall have the right to collect ren t
when due . During the period CCAN is in default, City can enter the Premises and relet them, or any par t
of them, to third parties for CCAN's account . CCAN shall be liable immediately to City for all costs Cit y
incurs in reletting the Premises, including, without limitation, brokers' commissions, expenses o f
repairing the Premises in accordance with this Lease, and like costs . Reletting can be for a period shorte r
or longer than the remaining term of this Lease . CCAN shall pay to City the rent due under this Lease o n
the dates the rent is due, less the rent City receives from any reletting . No act by City allowed by thi s
paragraph shall terminate this Lease unless City notifies CCAN that City elects to terminate this Lease .
After CCAN's default and for as long as City does not terminate CCAN's right to possession of th e
Premises, if CCAN obtains City's consent CCAN shall have the right to assign or sublet its interest in thi s
Lease, but CCAN shall not be released from liability . City's consent to a proposed assignment o r
subletting shall not be unreasonably withheld .
b.City can terminate CCAN's right to possession of the Premises at any time . No act by
City other than giving notice to CCAN shall terminate this Lease . Acts of maintenance, efforts to rele t
the Premises, or the appointment of a receiver on City's initiative to protect City's interest under thi s
Lease shall not constitute a termination of CCAN's right to possession .
c.In addition to any other remedy City may have under this Lease or by operation of law ,
City shall have the right, in the event of CCAN's nonpayment of rent, or in the event of any other default
by CCAN in the performance or observance of any of the terms or condition of this Lease, or if CCA N
shall abandon or vacate the Premises, to terminate this Lease upon written notice to CCAN and reente r
the Premises and eject all persons and remove all Premises from the Premises or any part of the Premises .
Any property removed from the Premises upon re-entry by City under this paragraph may be stored in a
public warehouse or elsewhere at the cost of and for the account of CCAN, and City shall have n o
liability therefor .
d.If CCAN is in default of this Lease City shall have the right to have a receiver appointe d
to collect rent and conduct CCAN's business . Neither the filing of a petition for the appointment of a
receiver nor the appointment itself shall constitute an election by City to terminate this Lease .
e.City, at any time after CCAN commits a default, can cure the default at CCAN's cost . If
City at any time, by reason of CCAN's default, pays any sum or does any act that requires the payment o f
any sum, the sum paid by City shall be due immediately from CCAN to City at the time the sum is paid ,
and if paid at a later date shall bear interest at the rate set forth in subparagraph g, below, from the dat e
the sum is paid by City until City is reimbursed by CCAN . The sum, together with interest on it, shall be
additional rent.
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28 .DISCLAIMER OF PARTNERSHIP.The relationship between the parties is one o f
landlord and tenant only . This Lease does not constitute a partnership or joint venture or agenc y
agreement between the parties .
CITY OF SAN LUIS OBISP O
Mayo r
ATTEST :
City Clerk
Approved :
City Manager
• Approved to as form :
City Attorney
CENTRAL COAST AG NETWORK, a California public benefit non-profit corporatio n
President
Secretary
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Exibit A
Parcels
Attachment 2
*Map Not to Scale oLy of san }WS omsp o
SLO
Exibit B Attachment 2
Areas Reserved
Board of Directors
Eric Veiu m
Presiden t
Co-Founder ,
Stockman's Energ y
Hunter Francis
Vice Presiden t
Director of Cente r
for Sustainability ,
Cal Pol y
Cindy Jeline k
Secretary
Retired Director of
Advising, Cal Poly
Elaine Genasc i
Treasure r
Co-Founder, Felin e
Network of th e
Central Coas t
Michael Metzge r
Developmen t
Directo r
Financial Adviser ,
Merrill Lynch Wealt h
Managemen t
Dr . John Phillip s
Directo r
Professor Emeritus ,
Cal Poly Horticulture
and Crop Scienc e
Departmen t
Staff and Volunteers
Jenna Smit h
Executive Directo r
and Vice Chair, SL O
Food Systems
Coalitio n
Lila Henr y
Administrative
Assistan t
Thomas Lagie r
Website
Administrato r
Lee Daneshaysk e
Development Inter n
Lacey Ingrao
Program Intern
Attachment 3
Calle Joaquin Agricultural Reserve Projec t
Central Coast Ag Network (CCAN), established in 2003, is a fundamenta l
source of sustainable local food education and advocacy in San Lui s
Obispo County . The Central Coast's unique micro-climates and year -
round growing season support agriculture which remains our county's to p
industry. This project will directly impact new farmers, which is o f
increasing importance given the average age of farmers in our county i s
59 years of age . CCAN envisions the Calle Joaquin Ag Reserve as a
conduit to a dynamic local food system rooted in proactive education fo r
new farmers, school children, and the general public .
CCAN's Missio n
CCAN champions a sustainable local and regional food system to ensur e
a nourishing, diverse, and abundant supply of food that is resilient, safe ,
and secure .
CCAN's Vision
To restore people's connection with the land and the food it produces i n
order to nourish the bodies, minds, and spirits of our community, and t o
sustain the landscape that supports us .
CCAN's Core Value s
Sustainability-Committed to moving toward economically viable ,
environmentally sound, and socially responsible food systems .
Innovation-Maintaining a responsibility for testing assumptions ,
remembering proven practices, and exploring new ideas .
Collaboration-Creating healthier communities by building communit y
coalitions .
Central Coast Ag Network - P .O . Box 3736 San Luis Obispo, CA 93403 -(805)769-834 4
www .Centralcoastgrown .org
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Attachment 3
PHASE I- PROJECT ACCOMPLISHMENT S
•Worked with the City of San Luis Obispo to develop the adopted Ag Master Plan fo r
the Calle Joaquin Agricultural Reserve site .
Sought and secured financial support from the United States Department o fAgriculture, the Federal Home Loan Bank, the Community Foundation, and th eCounty Board of Supervisors .Cal Poly Sustainable Tourism class : This class developed the best practices for tour sand educational programs related to the site . Final presentations were attended b yNeil Havlik, Jenna Smith, and Board members .Cal Poly Architecture class : This class produced preliminary renderings for th efacilities. An example of such renderings can be found in the Ag Master Plan on pag e21.Cal PolyAg Business class- This class conducted a Feasibility Study as one of th edeliverables of the AHEAD grant .
PHASE II- CALLE JOAQUIN AG RESERV E
PROJECT GOAL SThe site will be the place for agricultural production on historic agricultural land, whil e
simultaneously providing educational opportunities for the general public, children of al l
ages, and for both current and future farmers .
Associated outcomes include : develop an integrated network of for-profit loca l
agricultural enterprises in order to stimulate economic activity, create training and job s
•in agriculturally related industries, and improve public health . The Calle Joaqui n
Agricultural Reserve will be the model for future community farm sites and act as th e
main facility for educational training, workshops, and incubation programs .
CURRENT INIATIVE S
.Public Land Survey : Identifies agriculturally viable land making it available for ne w
agricultural enterprises .
.Food Shed Assessment : Seed to table assessment of our local food syste m
identifying community needs in processing, distribution, and food access .
CURRENT PROJECT FUNDIN G
.Access to Housing and Economic Assistance for Development (AHEAD)- Awarde d
$20,000
.California Department of Food and Agriculture (CDFA)- Awarded 3 years/ $250,00 0
CCAN COMMUNITY PARTNERSHIPS
.Healthy Eating Active Living San Luis Obispo (HEAL-SLO)- partner organization s
include Community Action Partnership of SLO County, Inc ., First 5 Commission of
SLO, and YMCA of SLO County .
.San Luis Obispo Food Systems Coalition (SLO-FSC)- partner organizations includ e
•San Luis Obispo Food Bank, Farm Bureau, and SLO Community Foundation .
Central Coast Ag Network - P .O .Box 3736 San Luis Obispo, CA 93403 -(805)769-834 4
www .Centralcoastgrown .org
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