HomeMy WebLinkAbout01-27-2022 Lease Amendment No. 2 City Farm SLO (Calle Joaquin Agricultural Reserve)AMENDMENT NO. 2
AGRICULTURAL GROUND LEASE BETWEEN
THE CITY OF SAN LUIS OBISPO AND
CENTRAL COAST AG NETWORK
This Amendment No. 2 (“Amendment No. 2”) to the Agricultural Ground Lease (“Master
Lease”) is entered into on ______________________________, by and between the City of San
Luis Obispo (the "City") and Central Coast Ag Network, a California public benefit non-profit
corporation ("CCAN", d.b.a. City Farm SLO).
RECITALS
A. The City owns certain agricultural land within City limits, commonly identified as
the Calle Joaquin Agricultural Reserve, 0 Calle Joaquin, San Luis Obispo (the “Premises”).
B. CCAN is a nonprofit corporation whose purpose is to strengthen San Luis Obispo’s
food system by providing affordable land to small sustainable farmers; to promote health, success,
and environmental stewardship through farm-based education, especially for at-risk and under-
served youth; to serve as a model of regenerative and sustainable agricultural practices, seeking to
improve the long-term health and productivity of farm land; and to foster a community of people
from diverse ethnic, racial and socio-economic backgrounds who come together around food and
farming.
C. On January 7, 2013, the City and CCAN entered into the Master Lease for the
purpose of putting the majority of the Premises into active sustainable agricultural use, while
permitting CCAN’s development of a portion of the Premises, not to exceed the percentage
allowable per zoning regulations, for facilities to provide educational and agricultural support.
D. In 2021, CCAN reached a series of milestones set forth in the Master Lease as well
as other important goals, including the establishment of public programming, demonstration
gardens, on-site solar energy generation, a produce cooler, orchard, and livestock shed. In 2021,
CCAN adopted an updated strategic plan that affirmed four major goals: (1) providing affordable
land for small sustainable farms, (2) offering farm-based education for at-risk and under-served
youth, (3) modeling regenerative agricultural practices, and (4) fostering a diverse community
focused on food and farming. To continue improving the quality of their educational offerings and
better support their farmer tenants, as defined by CCAN’s 2021 Strategic Plan, CCAN has secured
funding for a capital investment. This project includes a 30 x 40-foot barn to house equipment,
tools, a wash-pack station, field kitchen and meeting space, electrical upgrades, and road
improvements. These investments will enable CCAN to activate the “long term agricultural plan”
and “farmer programming” mentioned in the Master Lease.
E. The granting agencies and individual donors who have committed to funding this
capital investment require evidence of a longer-term entitlement to the land. For this reason,
CCAN requests an extension of the Master Lease (which is set to expire on December 31, 2032)
for 40 years from the present. This lease extension would further assist CCAN in accomplishing
its nonprofit mission, while at the same time realizing the City’s stated intention in creating the
Calle Joaquin Agricultural Reserve: to maintain the land in agriculture in perpetuity.
DocuSign Envelope ID: B17381D7-B4F3-49BB-8D7B-1F2B65C4AED3
1/27/2022 | 10:49 PM PST
F. In addition to the lease extension, the City, in collaboration with CCAN, suggests
additional lease amendments, which are reflected in the AGREEMENT section of this lease
amendment. These changes align the lease with recent updates in local and state legislation
governing water use, agricultural and building permits, and development review processes.
AGREEMENT
1. Paragraph 3, TERM, of the Master Lease is hereby amended to extend the term of the lease
for forty (40) years from the date entered above of this Amendment No. 2.
2. The first sentence of Paragraph 2, PURPOSE, of the Master Lease is hereby amended to
read that “The purpose of this agreement is to put the majority of the Premises into active
sustainable agricultural use, while permitting development of a portion of the Premises,
not to exceed the percentage allowable per zoning regulations, for facilities to provide
educational and agricultural support.”
3. Paragraph 2(g), PURPOSE, of the Master Lease is hereby added, and shall read as follows:
“As outlined in their 2021-2024 Strategic Plan, CCAN shall work to promote the health,
success and environmental stewardship of at-risk and underserved youth through a variety
of farm-based education programs.”
4. Paragraph 2(h), PURPOSE, of the Master Lease is hereby added, and shall read as follows:
“By January 1, 2024, CCAN shall develop and begin implementing a Carbon Farm Plan
and leverage the educational garden as a model for regenerative, climate-positive
agriculture. Both parties agree that as a model farm, CCAN shall demonstrate holistic
nutrient and pest management procedures, carbon-sequestering land management practices
that maximize organic matter and minimize soil disturbance, drought-appropriate irrigation
methods and water use protocols, climate-appropriate crop selection, and economic
decisions that support living wages and healthy workers.”
5. Paragraph 2(i), PURPOSE, of the Master Lease is hereby added and shall read as follows:
“By January 1, 2025, all available land under the Master Lease that is not being used for
CCAN educational or farming activities shall be subleased to small-scale, minority, or
beginning farmers (as defined by CCAN) for the remainder of the term of the Lease.”
6. Paragraph 5, CONSTRUCTION OF IMPROVEMENTS BY CCAN, of the Master Lease
is hereby substituted with paragraph 7(d) to take into account modifications of relevant
City policies instituted since 2013, and thus Paragraph 5 shall read as follows: “CCAN
shall not erect any structure except fences and gates on the Premises without complying
with the City’s permitting and review processes and obtaining City approval.”
DocuSign Envelope ID: B17381D7-B4F3-49BB-8D7B-1F2B65C4AED3
7. Paragraph 6(g), WATER, Prevention of Escape of Irrigation Water, of the Master Lease is
hereby amended to add, following the last full sentence of the first paragraph, the
following: “Applicable laws and regulations include, but are not limited to, the “General
Waste Discharge Requirements for Discharges from Irrigated Lands” (Order No. R3-2021-
0040 set forth by the Central Coast Region of the California Regional Water Quality
Control Board).”
8. Paragraph 6(h), WATER, Sustainable Groundwater Management Act (SGMA) Regulatory
Compliance and Drought Conditions, of the Master Lease is hereby added, and shall read
as follows: “CCAN shall comply with all existing and forthcoming Sustainable
Groundwater Management Act (SGMA), San Luis Obispo Valley Groundwater
Sustainability Plan (GSP) regulations and requirements, City of San Luis Obispo General
Plan Water Element policy, and City Council ordinances and resolutions, as may be
applicable.
Compliance may include, but is not limited to, the following provisions:
(1) scheduled entry by City staff for well metering and monitoring purposes, and (2)
changes to CCAN’s and its subtenants’ allowed water use as mandated by state, regional,
and local policy if the City of San Luis Obispo is experiencing water shortages as defined
by the City’s Water Shortage Contingency Plan, or if the San Luis Obispo Subarea of the
San Luis Obispo Valley Groundwater Basin displays exceedances of the minimum
thresholds defined within the San Luis Obispo Valley Groundwater Sustainability Plan.
Water use restrictions during periods of a declared water shortage, or if the San Luis Obispo
Subarea is out of compliance with SGMA, may include but are not limited to a per-acre of
ground quota for CCAN water use or a requirement for CCAN to reduce its water use by a
designated percentage.
The City will require entry onto the Premises on the 15th of each month, or the last weekday
preceding or first weekday following the 15th, to measure and record groundwater levels
and water use from the onsite City well. CCAN’s use of the well shall cease between 12:00
AM and 12:00 PM on the date of each monthly site visit. The City shall provide a written
schedule of monthly site visits on or before January 1 of each calendar year. Should the
City request modification of the site visit schedule, including modification of the regularly
scheduled access date of the 15th of each month, the City shall provide 30 calendar-days
written notice to CCAN, including an updated schedule of proposed access dates and times.
If a non-scheduled entry is needed, a minimum of 72 hours’ notice will be given to CCAN
staff. The City will make best efforts to minimize disruptions to CCAN’s well water use to
the greatest extent practical and feasible while administering SGMA regulations and
requirements, and for any other unforeseen circumstances that may arise. Nonetheless, as
set forth in Paragraph 6(c), CCAN shall be responsible for securing a backup water supply
at CCAN’s sole cost and expense, if desired.
DocuSign Envelope ID: B17381D7-B4F3-49BB-8D7B-1F2B65C4AED3
9. Paragraph 6(j), WATER, Potable Water, of the Master Lease is hereby added, and shall read
as follows: “CCAN is responsible for providing potable water for staff and guests,
including purchasing and maintaining any filtration equipment necessary to ensure that the
on-site well water meets legal requirements.”
10. Paragraph 7(a), PROHIBITED USES, of the Master Lease is hereby deleted, so as to permit
the retail sale of crops and livestock via an on-site Farm Stand, which is a legal agricultural
use.
11. Paragraph 21, ASSIGNMENT AND SUBLETTING, of the Master Lease, is hereby
amended to read as follows: “CCAN may sublet any portion of the Premises for sustainable
agricultural cultivation. CCAN shall provide the City with copies of all subleases within
30 days of execution, and such subleases shall specifically incorporate the terms of this
lease and be subject to it. Revenue derived from any sublease of the Premises shall be used
by CCAN to further the purposes of this lease. The City reserves the right to audit the
records of CCAN to monitor compliance with this paragraph.”
12. All other terms and conditions of the Master Lease remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first written above
CITY OF SAN LUIS OBISPO CENTRAL COAST AG NETWORK, a
California public benefit non-profit corporation
____________________________ __________________________________
Mayor Erica A. Stewart Steven Marx, President
ATTEST:
____________________________ __________________________________
Teresa Purrington, City Clerk Linda Halisky, Secretary
Approved:
____________________________
Derek Johnson, City Manager
Approved to as form:
____________________________
J. Christine Dietrick, City Attorney
DocuSign Envelope ID: B17381D7-B4F3-49BB-8D7B-1F2B65C4AED3