HomeMy WebLinkAbout10/01/1996, 2 - AUTHORIZATION TO ACQUIRE REAL PROPERTY INTEREST: (1) MAINO BROTHERS' PROPERTY (2) GUIDETTI RANCH (WEST PORTION) council °°X.0
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CITY OF SAN L U I S O B I S P O
FROM: John Dunn, City Administrative Officerc:��
Ken Hampian, Assistant City Administrative Officer
Prepared By: Neil Havlik, Natural Resources Manager
SUBJECT: AUTHORIZATION TO ACQUIRE REAL PROPERTY INTEREST:
(1) MAINO BROTHERS' PROPERTY
(2) GUIDETTI RANCH (WEST PORTION)
CAO RECOMMENDATION
Adopt resolutions authorizing the Mayor to execute agreements, subject to non-substantive
changes approved by the City Attorney, to acquire:
1. Fee title to the Maino Brothers' property at an agreed purchase price of$950,000, subject
to the grant of a conservation easement on the property to the Land Conservancy of San
Luis Obispo County and other conditions; as outlined in the staff report; and
2. A conservation easement on the Guidetti Ranch (west portion) at an agreed purchase price
of $400,000, subject to other conditions outlined in the staff report.
REPORT-IN-BRIEF
Pursuant to Council direction at meetings in May and August 1996, staff have negotiated two
open space acquisitions, one with Charles and Vernon Maino and the other with John Guidetti.
The Maino acquisition covers a 75-acre property on the slopes of San Luis Mountain adjacent
to the City's current 43-acre open space property. The agreed purchase price is $950,000. The
Mainos will donate a conservation easement to the Land Conservancy of San Luis Obispo County
to legally restrict the use of the land to open space purposes.
The Guidetti acquisition covers the placement of a conservation easement over the 1,448-acre
Guidetti Ranch (west portion), located in the Davenport Hills south of San Luis Obispo and
owned by John Guidetti. The agreed purchase price is $400,000. The easement will permit
continued agriculture and servicing thereof, but any changes will require City review and
approval, in addition to formal review undertaken by the County. Certain changes will require
a more detailed and involved review. These include the right to develop homes on the property
in accordance with current zoning (which would allow two homes per parcel) and the right to
undertake subsurface mineral exploration and extraction. Conditions in the easement restrict both
of these rights but do not deny them. No public access is conveyed by the easement; however,
the City retains the right to access the property in reasonable manner for easement compliance
purposes.
Council Agenda Report - Authorization to Acquire Real Property Interest
Page 2
DISCUSSION
Introduction and Background
Since completion of the "Saving Special Places" report by the Land Conservancy of San Luis
Obispo County in July 1995, the City and Land Conservancy have continued to work together
to solicit participation of interested landowners in the Greenbelt program. Several properties were
identified as priority projects and initial work was done on those projects. After weighing factors
such as the resources of the properties, visibility, degree of landowner commitment to the
program, potential for creating further interest by neighboring owners, risk of development, and
what could be acquired relative to the amount of funding allocated to the project, staff developed
recommended priorities for the currently available funds. Following Council review of these
projects in April 1996, two projects, the Maino Brothers' property and the Guidetti Ranch (west
portion), emerged as priorities.
Pursuant to direction arising from that review, staff completed appraisals and conducted
negotiations with the landowners and returned to the Council in executive session on August
20th. Council then directed that staff continue to move forward with the transactions, with a goal
of completing them for consideration in public session on September 17, 1996. Some delays
postponed the matter until the October 1st Council meeting. Although minor provisions are still
being worked out at the time of distribution of this staff report, and may not be fully be
completed by the October 1st meeting, the major issues have been resolved to the point where
staff can recommend specific action to complete acquisition on the two properties.
The acquisition projects before the City Council have been difficult and complex transactions.
In both cases there have been lengthy negotiations on matters considered by the sellers to
fundamentally affect their property rights or tax situation. Major aspects of each transaction are
outlined in the attached fact sheets and discussed in detail below.
Maino Brothers Property AcgwsMon
This 74.94-acre property on the slopes of San Luis Mountain is visible from much of the City
of San Luis Obispo. It is adjacent to existing City-owned open space, contains scenic and
valuable grassland and brushland habitat, and is regularly used by hikers, runners, and persons
engaged in nature study. The Maino family has consistently demonstrated a strong interest in
having this property retained in its natural state as a legacy to the community. Due to the high
visibility of the site, its strategic location, and the Mainos' long history in the community, this
project was considered the highest priority. The appraisal report by our consultant firm,
Schenberger,Taylor, McCormick & Jecker, concluded that the property has a current fair market
value range between $900,000 and $1,200,000. In several meetings we have reached the
following major points of agreement:
1. City to acquire fee title, with the purchase price to be $950,000 in cash at close of
escrow, or approximately $12,666 per acre;
2. The family will donate the development rights to the Land Conservancy of San Luis
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Council Agenda Report- Authorization to Acquire Real Property Interest
Page 3
Obispo County prior to the sale. This will memorialize the monetary value of the
donation and will legally restrict the use of the land to park and open space purposes,
precluding any large buildings or any resale of the property for any purpose other than
open space.
3. The property will be named the "Charles A. and May R. Maino Open Space," in honor
of the Maino brothers' parents.
With regard to #2 above, the family was concerned that the sale was at a value below that which
they felt the property was worth and that they were surrendering significant future development
value. Thus, the family insisted upon an accompanying grant of a conservation easement to the
Land Conservancy that would memorialize a certain gift value (and thus offer tax advantages),
and would ensure to the highest degree possible that the land would forever be used as open
space. In crafting this arrangement, it was determined that a near-simultaneous transaction,
whereby the conservation easement is granted while the property is sold at the low end of the
appraised "pre-easement" value, would best serve all parties' needs. Thus, the Maino property
transaction is technically one of the City buying property that has been stripped of some of its
value; however, the fact is that the sale and grant of the conservation easement are inexorably
intertwined. The sale would simply not take place at the agreed upon price without the
conservation easement and vice versa. The City makes no representations or warranties as to the
tax consequences of the transaction.
The proposed Maino easement and agreement are provided as Attachments 3 and 4.
Grddedi RwwJz (west portion)
This 1,488-acre ranch occupies a small valley, hill lands, and significant area of oak woodland
and chaparral including the top of Indian Knob, which at 887 feet elevation is the highest point
in the hills south of San Luis Obispo. Portions of the property lie within the identified Greenbelt.
While Indian Knob lies beyond, it is still highly visible from the community and forms part of
the skyline to our south. Mr. Guidetti approached the City and Land Conservancy in April of
1996 regarding possible sale of development rights to the property and stated that he was
interested in participating in the program for business reasons. The property is one of the largest
holdings within the Greenbelt and consists both of valuable grazing land and significant natural
resources and scenic character. Because of its large size, its availability, the potential for this
transaction to attract the interest of other members of the agricultural community in the greenbelt
program, and the possibility of further acquisitions, this project was rated as the second highest
priority.
In discussions with Mr. Guidetti and his colleagues,the following major points of agreement have
now been reached:
1. City to acquire a conservation easement over the entire property, with the purchase price
to be $400,000 in cash at close of escrow, or approximately $270 per acre. The appraisal
by Schenberger, Taylor, McCormick & Jecker concluded that the easement has a current
fair market value of$365,000. It is generally thought that 10% below or above appraised
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Council Agenda Report - Authorization to Acquire Real Property Interest
Page 4
value represents a reasonable range for negotiation. Given the nature of the proposed
easement negotiated with Mr. Guidetti, staff believes that the high end of this range is
appropriate.
2. The easement will be a restrictive one,prohibiting or restricting certain uses. The primary
prohibited uses are further subdivision of the property; all uses not consistent with
agricultural zoning as County zoning ordinances stand on the date of close of escrow; any
amendment of the County General Plan in the future that would increase development
potential; any density bonus for clustering; surface mineral development (i.e., strip
mining); commercial cutting of firewood; outdoor advertising; and certain activities
normally allowable in agricultural zones but considered industrial or traffic-generating in
character.
Uses permitted but requiring review and approval include the right to develop five
principal residences and five subsidiary residences on the property, one each for each
legal parcel as currently permitted by County regulations, access to and development of
subsurface mineral exploration and extraction, adjustment of existing lot lines, and
intensification of agriculture or agricultural improvements, such as new barns, vineyards,
or a winery.
Uses not requiring review include fencing or water development to meet needs of existing
agricultural uses, remodeling of existing structures, harvesting of wood for personal use,
and sale or lease of mineral rights (as separate from mineral exploration or extraction).
The Guidetti Ranch transaction has always been perceived as an easement, in which the
fundamental purpose was to preserve the integrity of the natural habitat and agricultural values
of the site. The easement does not convey any public access to the property. It does, however,
permit access by the City or its designee, upon reasonable notice, to the property for purposes
of monitoring in compliance with the terms of the easement. No attempt was made to try to
purchase the property in fee or to prohibit residential development or mineral development that
is currently allowable under County regulations. These two major considerations occupied most
of our discussions and are further detailed below.
Residential development County regulations currently allow two dwellings per legal lot in
agricultural areas; at the Guidetti Ranch there are five legal lots. Because of cost considerations,
no attempt was made to purchase existing development rights. Instead, staff worked with Mr.
Guidetti to craft an easement that encourages clustering of this development on a portion of the
property which appears well-suited to it and is adjacent to existing development (see map,
Attachment 8). The easement also "purchases" any density bonuses allowed by clustering,
thereby restricting residential or estate development to the currently allowed two units per legal
lot. If Mr. Guidetti chooses not to undertake clustering, the easement requires consultation in
which the City retains the right of review and approve house locations to protect the conservation
values of the easement.
Subsurface Mineralk County regulations allow mineral exploration and extraction with a use
permit, and the use permit application may or may not require extensive environmental review.
Council Agenda Report - Authorization to Acquire Real Property Interest
Page 5
Past studies have indicated that a major oil reservoir exists in the area, locked in "tar sands" and
capable of being extracted, although at high cost. Oil exploration on the Guidetti property in the
past has proven the existence of recoverable amounts of oil; however, those high costs have led
to the abandonment of extraction efforts under current oil prices. This created perhaps the most
difficult matter for our negotiations. The mineral rights were not appraised, and it was
understood that a right to explore for, and extract oil resources, would remain with Mr. Guidetti.
A request to restrict access to subsurface mineral rights to off the property was met with strong
refusal on the argument that such a restriction was tantamount to denying access.
What was finally agreed upon was a "zoning" arrangement similar to that for the housing. A
portion of the property, not visible from the community but close to the oil-bearing strata, was
identified as an area where exploration and extraction could occur with notification (see map,
Attachment 8). Exploration and extraction would be prohibited on the ridgetop areas of the
property. If proposed on the remainder of the property, a consultation process similar to that for
the housing would be instituted. Under this process the City again retains the right of review and
approval of exploration and extraction locations to protect the conservation values of the
easement.
Key Reasons for Talung These Actions Now
These two actions are being recommended at this time for the following-reasons:
1. The City has had funding set aside since 1990 for exactly the kind of transactions now
finally being presented to the City Council. The delay in bringing transactions to the City
is in part attributable to a lack of an adequate open space policy basis and a sense of
priorities. We now have the adopted Open Space Element of the General Plan which sets
forth our open space policies. Priorities have been established through the "Saving
Special Places" report adopted by Council in 1995 and through follow-up discussions with
Council since that time. These two actions are entirely consistent with our policies and
priorities, and thus it is time to make use of funds set aside over six years ago for open
space purposes;
2. These two actions complement each other very well; a fee acquisition fairly "close in,"
in an area desirable for, and even currently being used for, passive recreation and
continued agriculture, plus a conservation easement protecting agricultural land and its
agricultural viability while serving to protect a scenic backdrop to the community. Staff
feels that we now have two excellent, precedent-setting projects;
3. The Maino property is visible from many parts of San Luis Obispo, already receives
considerable passive recreational use, and is desired by the Mainos to be preserved as an
open space legacy for the community;
4. An antiquated subdivision on the Maino property, known as the Linda Vista Addition and
approved by the City Council in 1922, permitted 189 lots on the property. Several
parksite lots, and lots on the Brizzolara Addition bring the total to 194 lots (see map,
Attachment 5). There is an ongoing legal debate as to the validity of these and other old
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Council Agenda Report - Authorization to Acquire Real Property Interest
Page 6
lots under California law. The range in this case, according to the appraisal, is between
3-4 lots (low end) to 195 lots (high end). The sellers have not made an issue of the old
subdivision in our negotiations, but under adversarial circumstances the subdivision could
be a major point of contention. Apart from the old subdivision, other possible projects
have been discussed over the years, including a County Government Center and a
convalescent hospital.
5. The Mainos' interest in preserving the property as open space, along with the conservation
easement donation, allows the City to acquire the property at the low end of the appraised
value range;
6. The Guidetti easement would serve to "freeze" the 1,488-acre parcel in its current legal
capability and would restrict both agricultural and residential development in a manner
that would permanently protect the scenic, ecological, and agricultural values of the
property for the community. Although higher than the appraised value, the easement
remains very reasonable in price on a per acre basis of $270 per acre;
7. The Guidetti easement would demonstrate to the agricultural community that the City can
work with agriculturalists to protect agricultural land while also protecting the operational
needs of that land;
8. These two actions will not preclude others; in fact, staff believes that they will spur
greater interest in the program, draw in additional participants, and expand the scope of
potential funding sources.
9. These two projects have come forward as the result of willing sellers wishing to
participate in the program and to work cooperatively to overcome differences in opinion,
structure and price.. While other projects have been and continue to be investigated, none
have advanced nearly to the point of either of the transactions currently before the
Council. When property ownership changes someday (and it will), the new owners may
be less accessible or have different views about the property.
10. Finally, both actions are visionary. In the short tern, there are compromises that have
been made as a part of the negotiation process, and each agreement is not "perfect" from
every standpoint. However, 20 or 30 years from now these actions will stand out as
examples of proactive planning and vision.
Environmental Review and Hazardous Materials Studies
Both properties are being subjected to so-called "Phase I" environmental studies, looking at the
potential occurrence of environmentally hazardous substances on either of the properties. The
results of these studies are expected to be available prior to the City Council meeting and will
be reported on at that time.
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Council Agenda Report - Authorization to Acquire Real Property Interest
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Final Agreements and Other Documents
There is time sensitivity associated with these actions, especially due to certain requirements of
Mr. Guidetti. Consequently, staff did not wish to delay these actions further due to minor
language issues still being worked out at the time of report distribution (a delay beyond October
1st would push the matter to October 22nd, since the Council will not be meeting on October
15th due to the League of Cities Conference). Therefore, the attached documents are technically
considered to be in "draft form." It is hoped that final documents will be available by October
1st. If not, however, staff is asking that the Mayor be authorized to execute the documents when
they are finalized, subject to minor non-substantive revisions approved by the City Attorney.
CONCURRENCES
On September 11, 1996, the Planning Commission unanimously found the Maino and Guidetti
open space protection actions to be consistent with the General Plan.
FISCAL E%1PACT
$600,000 was set aside in the 1989-91 Financial Plan for open space acquisition purposes.
Another $900,000 was raised in 1990 for the same purpose through the sale of certificates of
participation. Thus, a total fund of$1.5 million was established for open space acquisitions. Of
this amount,approximately $150,000 has been spent, in part to acquire property for the expansion
of Mission Plaza, leaving a balance of just over $1.35 million. The recommended actions will
therefore utilize the rest of the funds remaining for open space. Any additional funding will
largely depend upon the outcome of Measure O and State Proposition 218.
ATTACHAOENTS
Maino Property
1. Fact Sheet and Map
2. Resolution
3. Conservation Easement
4. Sale and Purchase Agreement
5. Linda Vista Subdivision (Old Property Subdivision)
Guidetti Property
6. Fact Sheet and Map
7. Resolution
8. Conservation Easement
9. Sale Purchase Agreement
10. Greenbelt/Guidetti and Maino Property Maps
NOTE: The legal descriptions and formal maps are not included in the packet, but are available
for review in the City Clerk's Office.
MAINO PROPERTY FACT SHEET
Property Resources
The Maino property includes almost 75 acres and is located in a very identifiable location
at the foot of Cerro San Luis Obispo on the west side of Highway 101 at the Marsh Street
exit. The acquisition of this property is of importance for several reasons. The most
important reason is that it provides a scenic entrance to the City. It can be seen from
Highway 101 going both north and south. It is also very developable. The property
contains almost 20 acres of level land and, for example, has been proposed over the
years as a County government center and retirement residential community. In addition,
it contains over 190 legal lots. These lots date back to a subdivision approved by the
City and the County in 1922. Another important consideration is that it is located
immediately adjacent to City-owned property at the base of Cerro San Luis Obispo, and
thus open spaces can be consolidated and public access improved.
The Goal
The City's goal in this acquisitions to protect an important scenic property for public use.
Many residents of the community already use this land as a hiking trail. It is the desire
of the Maino family as well as the City to maintain this property in its natural open space
condition for informal recreation. No intensive or active recreational uses are planned.
The Transaction
The appraised value of the property ranges from $900,000 to $1,200,000. The Maino
family is selling the property for $950,000. The appraisal recognizes that while it would
be possible that 194 homes could be built on the old subdivision, it considers the
development of 20-25 one-acre lots for "estate homes" a more realistic scenario. This
could generate long-term income to the family far higher than the $1.2 million of the
appraisal. The Maino family would rather see the property preserved in open space and
continued to be used by the public.
In addition to selling the property, the Maino family has asked the City to structure the
financial transaction so that the family may take a charitable contribution. To accomplish
this goal, a conservation easement will be drawn up with the Land Conservancy of San
Luis Obispo County. This easement will encourage public use and restoration of the land
while prohibiting the construction of commercial, industrial, residential or general purpose
government buildings. The easement also provides long-term assurances that the
property would not be developed at a future date.
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CITY OF SAN LUIS OBISPO GREENBELT PROGRAM
Maino Brothers Property
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RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE ACQUISITION OF REAL PROPERTY COMMONLY KNOWN AS
THE MAINO BROTHERS, PROPERTY
WHEREAS, The City of San Luis Obispo ("the City") is a California Charter Municipal
Corporation; and
WHEREAS, the City, acting through its City Council and through adopted public
procedures has determined that certain lands surrounding the City of San Luis Obispo
are important to the scenic character, healthy natural environment, and economic and
social well being of the community and its citizens and has designated these lands as the
San Luis Obispo Greenbelt; and
WHEREAS, within said Greenbelt, the City seeks to preserve and conserve
characteristics such as visual quality, wildlife habitat, a healthy agricultural economy, and
rural setting through a variety of techniques and programs, including dedication of lands
or conservation easements or purchase of same; and
WHEREAS, C.R. Maino and V.J. Maino, ("the Sellers") are owners of certain lands which
lie within said Greenbelt and which lands in their entirety are of scenic, ecological, and
agricultural value to the City and County of San Luis Obispo; and
WHEREAS, Sellers are desirous of retaining such values of the property and have
reached agreement with the City regarding sale of said lands (referred to hereinafter as
the"Property"), subject to the coincident dedication of certain rights to future development
of the Property (referred to hereinafter as the "Conservation Easement"), to a qualified
conservation organization; and
WHEREAS, said sale and coincident dedication of the "Conservation Easement" in the
judgement of the City Council would act together to preserve the values indicated above
and serve an important municipal purpose; and
WHEREAS, this transaction has been determined to be exempt under the California
Environmental Quality Act as a Class 25 exemption, and has been determined to be
consistent with the General Plan by the Planning Commission of the City of San Luis
Obispo.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis
Obispo hereby:
Authorizes and directs the Mayor of the City of San Luis Obispo and City staff to sign any
and all documents necessary and appropriate to complete the above-referenced
transaction.
Approved and adopted this 1st day of October, 1996.
ATTACHMENT 2
Resolution No.
Page 2
On motion of seconded by and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of . 1996.
Allen K. Settle, Mayor
ATTEST:
Bonnie L. Gawf, City Clerk
APPROVED AS TO FORM:
ff gen en, AAA.Ifmey
DEED OF CONSERVATION EASEMENT
THIS GRANT DEED OF CONSERVATION EASEMENT is made this day of
199_,by V.J. Maino and C.R. Maino,having an address at
("Grantors"), in favor of the Land Conservancy of San Luis Obispo, a non-profit California
corporation qualified to do business in California, having an address at 743 Pacific St., San Luis
Obispo, CA 93401 ("Grantee").
WITNESSETH:
WHEREAS, Grantors are the sole owners in fee simple of certain real property in San Luis
Obispo County, California,more particularly described in Exhibit A attached hereto and
incorporated by this reference (the "Property"); and
WHEREAS,The Property is legally subdivided as established by The Brizzolara Addition to the
City of San Luis Obispo, Book A, Page 45 of maps, March 1978; Linda Vista Addition, Page 5,
Volume 3,June 1922, collectives resulting in 194 parcels, and
WHEREAS, The Property contains other parcels of land outside of these subdivisions; and
WHEREAS,The Grantors intends to convey the development potential of all these parcels and
its associated value to the Grantee, and
WHEREAS,the Property possesses natural, scenic,and open space values(collectively,
"conservation values)of great importance to Grantors,the people of San Luis Obispo County,
and the people of the Sate of California; and
WHEREAS,the Property has conservation values that both Grantor and Grantee desire to protect
these conservation values for the public benefit; and
WHEREAS,the Grantor intends to sell the underlying property to the City of San Luis Obispo
("City"), a municipal corporation and political subdivision of the State of California,and the City
agrees that this Deed of Conservation Easement serves important municipal purposes; and
WHEREAS,the specific conservation values of the Property are documented in an inventory of
relevant features of the Property, dated , 199 on file at the offices of
Grantee and attached hereto as Exhibit B and incorporated by this reference('Baseline
Documentation"), which consists of reports,maps,photographs, and other documentation that
the parties agree provide,collectively,an accurate representation of the Property at the time of
this grant and which is intended to serve as an objective information baseline for monitoring
compliance with the terms of this grant; and
ATTACHMENT 3
Conservation Easement between Maino & the Land Conservancy of San Luis Obispo County
WHEREAS, Grantors intend that the conservation values of the Property be preserved and
maintained by limiting the use of the Property to the enjoyment of its open space values to
passive recreation uses that include sight seeing, walking, hiking, outdoor education,research
and similar activities; and
WHEREAS, Grantors further intend, as owners of the Property,to convey to Grantee the right to
preserve and protect the conservation values of the Property in perpetuity; and
WHEREAS, Grantee is a publicly supported,tax-exempt non-profit organization, qualified under
Section 501(c)(3) and 170(h) of the Internal Revenue Code,whose primary purpose is the
preservation,protection, or enhancement of land in its natural, scenic,historical, agricultural,
forested, and/or open space condition; and
WHEREAS, Grantee agrees by accepting this grant to honor the intentions of Grantors stated
herein and to preserve and protect in perpetuity the conservation values of the Property for the
benefit of this generation and the generations to come;
NOW, THEREFORE, in consideration of the above and the mutual covenants,terms, conditions,
and restrictions contained herein, and pursuant to the laws of California and in particular
Sections 815 and 816 of the Civil Code- Conservation Easements, Grantors hereby voluntarily
grant and convey to the Grantee a Conservation Easement in gross in perpetuity over the
Property described in Attachment A and referred to hereinafter as the Property Area.
1. $i ose. It is the purpose of this Easement to assure that the Property, subject to the
limitations described herein,will be retained forever in its scenic and open space condition and to
prevent any use of the Property that will significantly impair or interfere with the conservation
values of the Property. Grantors intend that this Easement will confine the use of the Property to
such activities, including, without limitation,those involving passive recreation,education or
research that are consistent with the purpose of this Easement.
2. Rights of Grantee. To accomplish the purpose of this Easement,the following rights are
conveyed to Grantee by this Easement:
(a) To preserve and protect the conservation values of the Property.
(b) To enter upon the Property at reasonable times in order to monitor Grantors' and
Grantors' successors and assignees compliance with and otherwise enforce the terms
of this Easement; provided that such entry shall be upon prior reasonable notice to
Grantors, and Grantee shall not unreasonably interfere with Grantors'use and quiet
enjoyment of the Property; and
Page 2 of 10
�2-13
Conservation Easement between Maino &the Land Conservancy of San Luis Obispo County
(c) To prevent any activity on or use of the Property that is inconsistent with the purpose
of this Easement and to require the restoration of such areas or features of the
Property that may be damaged by any inconsistent activity or use, pursuant to
paragraph 6.
(d) To place signage on the Property, in conjunction with the City, which identify the
land as being protected by this Conservation Easement.
3. Prohibited Uses. Any activity on or use of the Property inconsistent with the purpose of
this Easement is prohibited. Without limiting the generality of the foregoing,the following
activities and uses are expressly prohibited;
(a) Subdivision for purposes of residential or industrial development,
(b) Industrial, commercial, or residential uses,
(c) Government buildings and uses except as may be necessary for activities related to
the purpose of this easement and activities defined as Reserved Rights such as the
construction of pathways, and irrigation improvements.
(d) Parking lots, storage areas or waste dumps of any kind, except as necessary to support
Reserved Rights such as passive outdoor recreation, education,and research.
(e) Coverage of land by asphalt, concrete, or other material that does not constitute a
natural cover for the land, except as necessary for access to and maintenance of
activities defined as Reserved Rights.
(f) New buildings, structures, or other improvements,other than those described in the
purpose of this easement and necessary to support activities defined as Reserved
Rights.
(g) Alteration of the land surface through grading or soil dumping or trenching,except as
may be necessary for activities related to the purpose of this easement and activities
defined as Reserved Rights such as the construction of pathways, and irrigation
improvements.
(h) Surface mineral development or mining.
(i) Advertising signs or billboards constructed for commercial purposes.
Page 3 of 10
Conservation Easement between Maino &the Land Conservancy of San Luis Obispo County
(j) Cutting or removal of trees, shrubs, or other vegetation, except as necessary for fire
protection, thinning, elimination of diseased growth, restoration of native plant
communities,passive recreation, education or research purposes.
(k) Any use that would cause, increase or substantially add to the risk of erosion.
(1) No dumping of any kind;trash, concrete, toxic materials, etc.
(m)The construction of active recreational facilities such as baseball fields, football
fields, or soccer fields and their associated bleachers facilities.
4. Reserved Rights. Grantors reserve to themselves, and to their personal representatives,
heirs, successors, and assigns, all rights accruing from their ownership of the Property, including
the right to engage in or permit or invite others to engage in all uses of the Property that are not
expressly prohibited herein and are not inconsistent with the purpose of this Easement. Without
limiting the generality of the foregoing, the following rights are expressly reserved:
(a) The right to undertake activities and improvements related to the passive use of the
Property for recreation,education and research. Passive recreation is intended to
include activities such as hiking,biking,picnicking, and informal sport activities.
Education includes using the Property and constructing small facilities as necessary to
support activities such as outdoor education for schools, and the construction of
exhibits or facilities as necessary for self-guided nature trails. Research includes
such activities as experimental plantings, exotic species removal, land restoration or
educational scientific experiments.
(b) The right to construct a small restroom facility and storage facility for the purpose of
supporting recreation, education and research activities as well as the right to
undertake minor grading as necessary to support these activities.
(c) The construction of signs as necessary to inform users of the Property of its identity
and regarding rules or activities that are acceptable on the Property or provide
educational information.
(d) To maintain and enhance the habitat values of the Property by conducting minor
grading,planting, irrigation, and other activities as may be necessary to restore and
enhance the natural resources present on the Property or as may be restored to the
Property including animal and plant species; and
Page 4 of 10
Conservation Easement between Maino &the Land Conservancy of San Luis Obispo County
(e) The right to restore damage to the Property Area that may be caused by fire, flood,
storm, earth movements, or acts beyond the Grantor's control.
(f)All water rights within the Property Area. This includes the right to construct water
extraction facilities and related distribution facilities. Water rights reserved include
but are not limited to riparian, groundwater, and appropriated water rights within the
Property Area.
(g) The right to undertake or approve any proposed restoration activities within the
Property Area, modification of restoration plans, and all activities necessary to carry
out the restoration projects as granted under Paragraph 2.
(h) The right to conduct agricultural practices provided that such practices are in
accordance with accepted principles of natural resource management and recognize
the multi-use nature of the property.
5. Grantee's Remedies, If Grantee determines that Grantors are in violation of the terms of
this Easement or that a violation is threatened, Grantee shall give written notice to Grantors of
such violation and demand corrective action sufficient to cure the violation and,where the
violation involves injury to the Property resulting from any use or activity inconsistent with the
purpose of this Easement,to restore the portion of the Property so injured. If Grantors fail to
cure the violation within a thirty (30)days after receipt of notice thereof from Grantee, or under
circumstances where the violation cannot reasonably be cured within a thirty(30)-day period,fail
to begin curing such violation within the thirty (30)-day period, or fail to continue diligently to
cure such violation until finally cured, Grantee may bring an action at law or in equity in a court
of competent jurisdiction to enforce the terms of this Easement,to enjoin the violation,ex parte
as necessary,by temporary or permanent injunction,to recover any damages to which it may be
entitled for violation of the terms of this Easement or injury to any conservation values protected
by this Easement, including damages for the loss of scenic,aesthetic,or environmental values,
and to require the restoration of the Property to the condition that existed prior to any such
injury. Without limiting Grantors' liability therefor, Grantee,in its sole discretion,may apply
any damages recovered to the cost of undertaking any corrective action on the Property. If
Grantee, in its sole discretion, determines that circumstances require immediate action to prevent
or mitigate significant damage to the conservation values of the Property, Grantee may pursue its
remedies under this paragraph without prior notice to Grantors or without waiting for the period
provided for cure to expire. Grantee's rights under this paragraph apply equally in the event of
either actual or threatened violations of the terms of this Easement, and Grantors agree that
Grantee's remedies at law for any violation of the terms of this Easement are inadequate and that
Grantee shall be entitled to the injunctive relief described in this paragraph, both prohibitive and
mandatory, in addition to such other relied to which Grantee may be entitled, including specific
Page 5 of 10
J-/6
Conservation Easement between Maino & the Land Conservancy of San Luis Obispo County
performance of the terms of this Easement, without the necessary of proving either actual
damages or the inadequacy of otherwise available legal remedies. Grantee's remedies described
in this paragraph shall be cumulative and shall be in addition to all remedies now or hereafter
existing at law or in equity.
5.1 Costs of Enforcement. Any costs incurred by Grantee in enforcing the terms of this
Easement against Grantors, including,without limitation,costs of suit and attorneys' fees, and
any costs of restoration necessitated by Grantors'violation of the terms of this Easement shall be
borne by Grantors. If Grantors prevail in any action to enforce the terms of this Easement,
Grantors' costs of suit, including, without limitation,attorneys' fees, shall be borne by Grantee.
5.2 Grantee's Discretion. Enforcement of the terms of this Easement shall be at the discretion
of Grantee, and any forbearance by Grantee to exercise its rights under this Easement in the event
of any breach of any term of this Easement by Grantors shall not be deemed or construed to be a
waiver by Grantee of such term or of any of Grantee's rights under this Easement. No delay or
omission by Grantee in the exercise of any right or remedy upon any breach by Grantors shall
impair such right or remedy or be construed as a waiver.
5.3 Waiver of Certain Defenses. Grantors hereby waive any defense of(aches, estoppel, or
prescription.
5.4 Acts Beyond Grantors' Control. Nothing contained in this Easement shall be construed to
entitle Grantee to bring any action against Grantors for any injury to or change in the Property
resulting from causes beyond Grantors' control, including,without limitation, fire, flood, stone,
and earth movement, or from any prudent action taken by Grantors under emergency conditions
to prevent, abate, or mitigate significant injury to the Property resulting from such causes.
6. Access. The general public may have access to all or a portion of the Property, consistent
with reasonable regulation concerning said access and permitted uses.
7. Costs and Liabilities. Grantors retain all responsibility and shall bear all costs and
liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the
Property, including the maintenance of adequate comprehensive general liability insurance
coverage. Grantors shall keep the Property free of any liens arising out of any work performed
for,materials furnished to, or obligations incurred by Grantors.
7.1 Taxes. Grantors shall pay all taxes, assessments, fees,and charges of whatever
description levied on or assessed against the Property by competent authority(collectively
"taxes"), including any taxes imposed upon, or incurred as a result of,this Easement,and shall
furnish Grantee with satisfactory evidence of payment upon request.
Page 6 of 10
0�-17
Conservation Easement between Maino &the Land Conservancy of San Luis Obispo County
7.2 Hold Harmless. Each party hereto agrees to hold harmless, indemnify and defend the
other, its members, employees, agents, directors, officers, contractors and their heirs,personal
representatives, successors and assigns of each of them(collectively "Indemnified Parties") from
and against all liabilities,penalties, costs, losses, damages, expenses, causes of action, claims,
demands, or judgments, including, without limitation, reasonable attorney's fees, arising from or
in any way connected with: (1) injury to or death of any person, or(2)physical damage to any
property,resulting from any act,omission, condition, or other matter related to or occurring on or
about the subject property, unless proximately caused by the actions of any of the Indemnified
Parties; and(3)the existence or administration of this Easement.
8. Extinguishment. If circumstances arise in the future such as render the purpose of this
Easement impossible to accomplish,this Easement can only be terminated or extinguished,
whether in whole or in part,by judicial proceedings in a court of competent jurisdiction. The
Grantee shall be not be entitled to any proceeds, after the satisfaction or prior claims, from any
sale, exchange, or involuntary conversion of all or any portion of the Property subsequent to such
termination or extinguishment.
9. Extin,&Wshment. If circumstances arise in the future such as render the purpose of this
Easement impossible to accomplish,this Easement can only be terminated or extinguished,
whether in whole or in part, by judicial proceedings in a court of competent jurisdiction, and the
amount of the proceeds to which Grantee shall be entitled,after the satisfaction or prior claims,
from any sale,exchange,or involuntary conversion of all or any portion of the Property
subsequent to such termination or extinguishment,shall be determined, unless other wise
provided by California law at the time, in accordance with paragraph 9.1. Grantee shall use all
such proceeds in a manner consistent with the conservation purposes of this grant.
9.1 Proceeds. This Easement constitutes a real Property interest immediately vested in
Grantee,which, for the purposes of paragraph 9,the parties stipulate to have a fair market value
determined by multiplying the fair market value of the Property unencumbered by the Easement
(minus any increase in value after the date of this grant attributable to improvements)by the ratio
of the value of the Easement at the time of this grant to the value of the Property,without
deduction for the value of the Easement, at the time of this grant. The values at the time of this
grant shall be those values used to calculate the deduction for federal income tax purposes
allowable by reason of this grant, pursuant to Section 170(h)of the Internal Revenue Code of
1954, as amended. For the purposes of this paragraph,the ration of the value of the Easement to
the value of the Property unencumbered by the Easement shall remain constant.
9.2 Condemnation. If the Easement is taken, in whole or in part, by exercise of the power of
eminent domain, Grantee shall be entitled to compensation in accordance with applicable law.
Page 7 of 10
�Af
Conservation Easement between Maino & the Land Conservancy of San Luis Obispo County
10. Assignment. This Easement is transferable, but Grantee may assign its rights and
obligations under this Easement only to an organization that is a qualified organization at the
time of transfer under Section 170(h) of the Internal Revenue Code of 1954, as amended (or any
successor provision then applicable), and the applicable regulations promulgated thereunder, and
authorized to acquire and hold conservation easements under state statute(or any successor
provision then applicable). As a condition of such transfer, Grantee shall require that the
conservation purposes of this grant is intended to advance continue to be carried out.
11. Subsequent Transfers. Grantors agree to incorporate the terms of this Easement in any
deed or other legal instrument by which they divest themselves of any interest in all or a portion
of the Property, including, without limitation, a leasehold interest. Grantors further agree to give
written notice to Grantee of the transfer of any interest at least twenty (20) days prior to the date
of such transfer. The failure of Grantors to perform any act required by this paragraph shall not
impair the validity of this Easement or limit its enforceability in any way.
12. Estoppel Certificates. Upon request by Grantors, Grantee shall within twenty (20)days
execute and deliver to grantors any document, including an estoppel certificate, which certifies
Grantors' compliance with any obligation of Grantors contained in this Easement and otherwise
evidences the status of this Easement as may be requested by Grantors.
13. Notices. Any notice, demand, request, consent, approval, or communication that either
party desires or is required to give to the other shall be in writing and either served personally or
sent by first class mail,postage prepaid,addressed as follows:
To Grantors:
To Grantee: The Land Conservancy of San Luis Obispo County
743 Pacific
San Luis Obispo, CA 93401
or to such other address as either party from time to time shall designate by written notice to the
other.
14. Recordation. Grantee shall record this instrument in timely fashion in the official records
of San Luis Obispo County, California, and may re-record it at any time as may be required to
preserve its rights in this Easement.
Page 8 of 10
Conservation Easement between Maino &the Land Conservancy of San Luis Obispo County
15. Monitoring. Grantee shall monitor the compliance of Grantor their successors or
assignees with the terms of this Easement on a regular basis; the terms and conditions to be at the
discretion of the Grantee or as required by applicable law.
16. General Provisions.
(a) Controlling Law. The interpretation and performance of this Easement shall be
governed by the laws of the State of California.
(b) Liberal Construction. Any general rule of construction to the contrary
notwithstanding,this Easement shall be liberally construed in favor of the grant to effect the
purpose of this Easement and the policy and purpose of the Conservation Act of 1979. If any
provision in this instrument is found to be ambiguous, an interpretation consistent with the
purpose of this Easement that would render the provision valid shall be favored over any
interpretation that would render it invalid.
(c) Severability. If any provision of this Easement, or the application thereof to any
person or circumstance, is found to be invalid,the remainder of the provisions of this Easement,
or the application of such provision to persons or circumstances other than those as to which it is
found to be invalid, as the case may be, shall not be affected thereby.
(d) Entire Agreement. This instrument sets forth the entire agreement of the parties with
respect to the Easement and superseded all prior discussions,negotiations,understandings, or
agreements relating to the Easement, all of which are merged herein.
(e) No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of
Grantors' title in any respect.
(f) Joint Obligation. The obligations imposed by this Easement upon Grantors shall be
joint and several.
(g) Successors. The covenants,terms, conditions,and restrictions of this Easement shall
be binding upon,and inure to the benefit of,the parties hereto and their respective personal
representatives, heirs, successors, and assigns and shall continue as a servitude running
perpetually with the Property.
(h) Cations. The captions in this instrument have been inserted solely for convenience
of reference and are not a part of this instrument and shall have no effect upon construction or
interpretation.
Page 9 of 10
Conservation Easement between Maino &the Land Conservancy of San Luis Obispo County
(i) Counterparts. The parties may execute this instrument in two or more counterparts,
which shall, in the aggregate, be signed by both parties; each counterpart shall be deemed an
original instrument as against any party who has signed it. In the event of any disparity between
the counterparts produced,the recorded counterpart shall be controlling.
TO HAVE AND TO HOLD unto Grantee, its successors, and assigns forever.
IN WITNESS WHEREOF Grantors and Grantee have set their hands on the day and year
first written above.
Grantors
Grantee
President, Land Conservancy of San Luis Obispo County
Page 10 of 10
PURCHASE AND SALE AGREEMENT
PURCHASE AND SALE AGREEMENT is entered into by and between the CITY
OF SAN LUIS OBISPO ("Buyer") , a California Charter Municipal
Corporation, and C.R. MAINO AND V.J. MAINO, as tenants-in-common
("Seller") , pursuant to the following
RECITALS
WHEREAS, Buyer is a California Charter Municipal Corporation; and
WHEREAS, Buyer, acting through its City Council and through adopted
public procedures, has determined that certain lands surrounding
the City of San Luis Obispo are important to the scenic character,
healthy natural environment, and economic and social well-being of
the community and its citizens, and has designated these lands as
the San Luis Obispo Greenbelt; and
WHEREAS, within said Greenbelt, Buyer seeks to preserve and
conserve characteristics such as visual quality, wildlife habitat,
a healthy agricultural economy, and rural setting through a variety
of techniques and programs, including dedication of lands or
conservation easements, or purchase of same; and
WHEREAS, Seller is owner of certain lands which lie within said
Greenbelt, and which lands in their entirety are of scenic,
ecological, and agricultural value to the City and County of San
Luis Obispo; and
WHEREAS, Seller is desirous of retaining such values of the
property, and has reached agreement with Buyer regarding sale of
said lands (referred to hereinafter as the "Property") , subject to
the coincident dedication of certain rights to future development
of the Property (referred to hereinafter as the "Conservation
Easement") , to a qualified conservation organization which agrees
to retire those rights; and
WHEREAS, said sale and coincident dedication of the "Conservation
Easement" in the judgement of Buyer would act together to preserve
the values indicated above and serve an important municipal
purpose.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
CITY OF SAN LUIS OBISPO ("Buyer") , hereby agrees to purchase, and
C.R. MAINO AND V.J. MAINO, as tenants-in-common ("Seller") , hereby
agree to sell, all of Seller's right, title and interest in that
certain real property in the City of San Luis Obispo, County of San
Luis Obispo, together with all easements, rights and appurtenances
thereto, as described in Exhibit "A" attached hereto and
incorporated by reference. Said property described in Exhibit A
shall hereinafter be referred to as the "Property" . r
ATTACHMENT 4
1. Purchase Price and Terms
The purchase price for the Property shall be Nine Hundred Fifty
Thousand Dollars ($950, 000. 00) , payable in the form of a cashier' s
or certified check, payable to Escrow Holder, which shall be
deposited by Buyer into Escrow not less than one (1) day prior to
the Closing Date, as defined below.
2. Conditions Precedent for Benefit of Buyer
All of Buyer' s duties to purchase the Property are expressly
conditioned upon the occurrence and satisfaction of each of the
following conditions, each of which is deemed exclusively for the
benefit of Buyer:
(a) Title Report. Buyer's approval of the exceptions to
title set forth in a CLTA preliminary title report for the
Property (the "Preliminary Title Report") . Buyer shall have
thirty (30) days after the receipt of the Preliminary Title
Report, and copies of all documents referenced therein, to
provide to Seller written notice of Buyer's disapproval of any
title exception. Any title exception not so disapproved shall
be deemed approved, provided that if a Supplemental CLIA title
report is issued showing any exception not shown on the
Preliminary Title Report Buyer shall have an additional ten
(10) calendar days after receipt of such Supplemental Report
to approve or disapprove any such title exception. If Buyer
disapproves any title exception, Seller shall have no
obligation to cure such disapproval (except that Seller shall
be obligated to remove any liens) . Seller may elect, by
written notice, to Buyer within five (5) calendar days after
receipt by Seller of such notice of disapproval to attempt to
remove such disapproved items. If Seller is unable within a
reasonable time to accomplish such cure or removal, or if
Seller elects not to attempt to so cure or remove (which
election shall be communicated to Buyer within ten (10) days
after receipt of Buyer' s notice of disapproval) , then Buyer
may elect to (i) terminate its obligations under this
Agreement by providing written notice to Seller, or (ii) waive
its objections to such exception, or (iii) elect to correct
any such disapproved exception itself, in which case Seller
shall use its best efforts to assist Buyer, whenever Buyer may
request, in order to cure any such defect, provided that
Seller shall incur no monetary obligations in connection with
such cure, and provided escrow shall be extended for a
reasonable period in which to effect such cure.
(b) Inspection and Approval of Property. Buyer' s inspection
and approval of the Property and ali improvements thereon
including, at Buyer' s option and expense, a noise study, a
survey, a soils investigation, a Phase I or Phase II
environmental report or any other investigation that the Buyer.
deems necessary. This condition shall be deemed approved if
Buyer does not send written notice of disapproval to Seller
within thirty (30) days after the opening of Escrow. If Buyer
discovers through its investigations any defects on the
Property, or improvements thereon, which it disapproves of,
Seller shall have no obligation to cure such defects but
Seller may elect, by written notice to Buyer within five (5)
calendar days after receipt by Seller of such notice of
disapproval, to attempt to cure such disapproved defects . If
Seller is unable within a reasonable time to accomplish such
cure, or if Seller elects not to attempt to cure said defects
(which election shall be communicated to Buyer within ten (10)
days after receipt of Buyer' s notice of disapproval) , then
Buyer may elect to (i) terminate its obligations under this
Agreement by providing written notice to Seller, or (ii) waive
its objections to such defects, or (iii) elect to correct any
such disapproved defects itself, in which case Seller shall
use its best efforts to assist Buyer, whenever Buyer may
request, in order to cure any such defect, provided that
Seller shall incur no monetary obligations in connection with
such cure, or (iv) the Parties may enter into additional
negotiations, as may be mutually acceptable, concerning an
adjustment to the purchase price, allocation of risk, or
contribution to the costs to cure or other matters, and
provided escrow shall be extended for a reasonable period of
time to effect such negotiations.
3. Conditions Precedent for Benefit of Seller
All of Seller' s duties to sell the Property are expressly
conditioned upon the occurrence and satisfaction of the following
condition, which is deemed exclusively for the benefit of Seller:
(a) Grant of Conservation Easement. Buyer acknowledges that
Seller desires to donate certain rights and interest in the
property to a qualified nonprofit organization, for the
purpose of memorializing the value of such donation, and to
ensure that the property remains in open space uses in
perpetuity. Buyer and Seller agree that said donation is
considered an integral part of this transaction, and that said
donation shall occur coincident with the transfer of the
underlying fee interest to Buyer.
4. Escrow and Deposit
(a) Closing Date. This purchase and sale shall close upon
the recordation of the Grant Deed to Buyer (the "Close of
Escrow") . The close of Escrow shall occur on or before sixty
(60) days (the "Closing Date") after a copy of this agreement
(executed by both Buyer and Seller) is deposited with the
Escrow Holder, but no later than December 31, 1996, unless
extended by mutual agreement of the parties, or as otherwise
provided herein. In no event shall Seller be required to
extend the Closing Date. Time is of the essence in this
Agreement.
��y
(b) Escrow Holder. Within fifteen (15) business days after
the execution of this Agreement, Buyer and Seller shall
jointly open an Escrow for the consummation of the purchase
and sale of the Property with First American Title Insurance
Company, 899 Pacific Street, San Luis Obispo, California 93401
("Escrow Holder") . The Escrow shall be deemed to be "opened"
as of the date on which a copy of this Agreement (executed by
Buyer and Seller) is deposited with Escrow Holder.
(c) Escrow Instructions. Although Escrow Holder may require
further written instructions executed by Buyer and Seller to
clarify the duties and responsibilities of Escrow Holder, any
such further instructions shall not modify or amend the
provisions of this Agreement unless any such instructions
expressly provide that they are intended to amend or modify
the provisions of this Agreement. It is expressly noted that
all rights reserved to Seller in the aforementioned Grant of
Conservation Easement shall be transferred to Buyer as part of
this purchase and sale transaction.
(d) Title Insurance. Title to the Property shall be conveyed
by Grant Deed. Title to the Property shall be insured by a
CLTA owner' s policy in the amount of the purchase price,
showing title vested in Buyer, subject only to those
exceptions specified in the Preliminary Title Report and/or
Supplemental Report and accepted by Buyer. Seller shall pay
First American Title Company. Buyer may elect to have title
insured by an ALTA policy of title insurance, provided that
Buyer shall pay that portion of the premium which exceeds the
costs of a CLTA standard coverage policy of title insurance.
Buyer shall also pay the cost of any survey.
(e) Fees and Taxes. Seller agrees to pay all documentary
transfer taxes and recording fees. Escrow fees shall be borne
equally. Real property taxes shall be prorated as of the
Close of Escrow, based on the most recently available tax
bill.
5. Representations, Warranties, Agreements and Disclaimers
(a) Authorized Representative. Buyer and Seller hereby
represent and warrant to each other that the persons who sign
this agreement and any other documents required to be executed
by such party to perform its obligations hereunder shall have
all requisite power and authority to have entered into this
Agreement, and that all authorizations required to be obtained
by or on the part of such party to execute and perform this
Agreement have been obtained.
(b) Proof of Citizenship. Seller is not a foreign person as
such term is used in Section 1445 of the Internal Revenue
Code. Prior to the Close of Escrow, Seller shall deposit in
Escrow a non-foreign affidavit as provided under said Section
1445, and the failure to do so shall entitle Buyer to withhold
0?-JJ
from the purchase price such sums as are required by said
Section 1445.
(c) Delivery of Property. Possession of the Property shall
be de ivered by Seller to Buyer upon the Close of Escrow.
Seller shall have the right prior to the close of escrow to
remove all personal property and trade fixtures, provided the
Property is left in a sound and tenantable condition.
(d) Legal Actions. Seller represents and warrants that there
are no actions, suits, or legal proceedings related to the
ownership, use, operation or sale of the Property to which
Seller is a party nor has Seller received any notice that any
such actions are pending or threatened.
(e) Indemnification by Seller. Effective as of the closing
date, Seller shall indemnify and hold harmless Buyer from and
against any and all claims, damages or liabilities (whether or
not caused by negligence) , including civil or criminal fines,
arising out of or relating to any of the following:
(i) Any generation, processing, handling, transport,
storage treatment or disposal of solid wastes or
hazardous wastes by Seller, including, but not limited
to, any of such activities occurring on the property;
(ii) Any releases by Seller (including, but not limited
to, any releases as defined under the Comprehensive
Environmental Response, Compensation and Liability Act
of 1980) to the extent occurring or existing prior to
closing, including, but not limited to, such releases to
land, groundwater, surface water or into the air.
(f) Seller's Knowledge of the Environmental Conditions of the
Prom�o e__r_ t�� Seller, to the best of Seller' s knowledge and
beliet, represents and warrants that:
(i) Throughout the period of ownership of the Property
by Seller, there have been no notices, directives,
violations, reports or actions by any local, state or
federal department or agency concerning environmental
laws or regulations, and the Property is in compliance
with all state and federal environmental laws;
(ii) The business and operations of Seller have at all
times been conducted in compliance with all applicable
federal, state, or local laws, ordinances, regulations,
orders and other requirements of governmental authorities
on matters relating to the environment.
(iii) There has been no spill, discharge, release, cleanup
or contamination of or by any hazardous or toxic waste or
substance used, generated, treated, stored, disposed of
or handled by the Seller on or around the Property.
(iv) There are no underground storage tanks located at,
on, or under the Property, nor are there any petroleum
pipelines crossing on or under any part of the Property.
(v) No hazardous or toxic substances or wastes are
located at, or have been located on or removed from the
Property.
(vi) A11 studies, reports, and investigations known to
Seller concerning any pollution, toxic building materials
or toxic hazardous substances or wastes located at, on,
or under the Property have been provided or otherwise
been disclosed to Buyer prior to the close of Escrow.
(vii) There are no soil or geological conditions
which might impair or adversely affect the current use
or future plans for use of the Property.
6. Notices
All notices, communications, consents, approvals and
disapprovals required or permitted hereunder must be in
writing and shall be delivered by personal delivery,
facsimile, or deposited in the United States mail, postage
prepaid and addressed as follows:
TO BUYER: City of San Luis Obispo
Neil Havlik
Natural Resources Manager
990 Palm Street
San Luis Obispo, CA 93401
TO SELLER:
The foregoing addresses may be changed by written notice. If
served personally, or by facsimile, service shall be
conclusively deemed made at the time of service. If served
by mail, service shall be conclusively deemed made seventy-two
(72) hours after deposit thereof in the United States mail.
7. Brokers
Buyer and Seller each represent to the other that it knows of
no claim for broker' s or finder's fees or other commissions in
connection with this transaction other than as provided in
this paragraph. In the event any other broker or finder
asserts a claim for a commission or finder' s fee, the party
through whom the broker or finder makes this claim shall
indemnify the other party for any and all costs and expenses
(including attorney' s fees) incurred by the other party in
defending the same.
8. Miscellaneous
This Agreement contains the entire agreement between the
parties hereto, and no modification or addition to any term
or provision shall be effective unless made in writing and
signed by both parties hereto. In the event any litigation
is commenced between the parties hereto in connection with
this Agreement, the prevailing party in such litigation shall
be entitled to a reasonable sum for its attorney' s fees and
costs. The captions and headings in this Agreement are for
reference only and shall not be deemed to define or limit the
scope or intent of any of the terms, covenants, conditions or
agreements contained herein.
9. Entry
With respect to Paragraphs 2 and 5. Buyer, its agents and
authorized representatives shall have the right to enter onto
the Property only during normal business hours, or at such
other times as may be mutually agreed to by the Parties, which
consent to enter shall not be unreasonably withheld. Buyer
shall indemnify and defend Seller against and hold Seller
harmless from, any and all liability, cost and expense
(including without limitation any and all recorded mechanics
or other liens) for loss of or damage to any property or
injury to or death of any person, arising out of or in any way
related to the entry by Buyer or Buyer's agents onto the
Property, unless such liability, cost and expense is caused by
the negligence of Seller. In the event of the recording of
any claim of lien for materials supplied or labor or
professional services performed on behalf of Buyer, Buyer
shall promptly satisfy and discharge such lien at its sole
cost and expense upon demand, therefore, by Seller. Buyer
shall repair any and all damages to the Property caused by any
such tests and inspections.
10. Survival
The warranties, representations and agreements made in this
Agreement shall survive the close of escrow.
11. Not binding Until Signed by Buyer and Seller
This Agreement shall be of no force or effect whatsoever until
signed by authorized representatives of both Buyer and Seller.
In the event this Agreement is executed by the parties on
different dates, the date of execution shall be deemed to be
the later date.
.G 'oW
"SELLER"
By:
Date:
"BUYER"
CITY OF SAN LUIS OBISPO
By:
Allen K. Sett e
Mayor
Date:
ATTEST:
City Administrative Officer
APPROVED AS TO FORM:
City Attorney
LINDA VISTA oUBDIVISION r
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/ ATTACHMENT 6
JOHN GUIDETTI RANCH FACT SHEET
Property Resources
The 1,400-acre Guidetti Ranch contains what may be the largest, highest quality and
most diverse natural resource habitat within or near the City's Greenbelt. More
specifically, the soils on the Guidetti Ranch are capable of supporting wildlife habitat and
agriculture. The ranch includes over 100 acres of land with soils rating high for "prime
farmland." The ranch also has the potential for rare and endangered species. These
rare and endangered species include the western pond turtle, two-strip garter snake, and
the recently listed red-legged frog. These species may inhabit the riparian areas of
Davenport Creek or the wetted areas near the three springs on the site. The Guidetti
Ranch also lies in the Davenport Hills area which serves as a wildlife migration corridor.
The unique quality of the Guidetti Ranch is its combination of large plant communities.
The springs provide a relatively constant source of water. The oaks, riparian woodland
and coastal\scrub communities provide both food and shelter for a host of wildlife species.
The property also includes Indian Knob, which at 887 feet is the highest point in the hills
south of San Luis Obispo.
The Goal
The goal of the easement is to prevent the future intensification of development through
subdivision of the land and to protect this habitat forever. The acquisition of a -
conservation easement for this property is a long-term vision, protecting the land now —
before it is too late. Long-term threats to the property are very real as can be seen on
the surrounding hillsides. Failure to act now could ultimately lead to the fragmentation
of this important habitat and destroy its essential quality. This is an important opportunity
to preserve our rural landscape.
The Transaction
The City is proposing to purchase a conservation easement over the 1,400 acres for
$400,000, or about $270 per acre. The purchase of a conservation easement allows the
City to provide protection of the habitat for much less than it would cost to purchase the
land in "full fee." In order to secure this easement, the City has agreed to allow a number
of existing uses to continue. This includes continuing the land in agriculture and allowing
the owner to construct homes already allowed under existing County rules. This could
include two houses each on five parcels. The City will work with John Guidetti to cluster
the development of these homes and maintain large areas of open space. Should long-
term funding become available for the acquisition of open space, the City could work to
purchase the right to develop the homes. In the interim, what the City is purchasing is
protection against the future intensification of the property.
ATTACHMENT 6
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CITY OFSAN LUIS OBISPO GREENBELT PROGRAM
John Guidetti Property 40Z
7 11 = znnn
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE ACQUISITION OF A CONSERVATION EASEMENT ON REAL
PROPERTY COMMONLY KNOWN AS THE GUIDETTI RANCH (WEST PORTION)
WHEREAS, The City of San Luis Obispo ("the City") is a California Charter Municipal
Corporation; and
WHEREAS, the City, acting through its City Council and through adopted public
procedures has determined that certain lands surrounding the City of San Luis Obispo
are important to the scenic character, healthy natural environment, and economic and
social well-being of the community and its citizens, and has designated these lands as
the San Luis Obispo Greenbelt; and
WHEREAS, within said Greenbelt, the City seeks to preserve and conserve
characteristics such as visual quality, wildlife habitat, a healthy agricultural economy, and
rural setting through a variety of techniques and programs, including dedication of lands
or conservation easements or purchase of same; and
WHEREAS, John Guidetti, ("the Seller") is owner of certain lands which lie partially within
said Greenbelt, and which lands in their entirety are of scenic, ecological, and agricultural
value to the City and County of San Luis Obispo; and
WHEREAS, Seller is desirous of retaining such values of the property, and has reached
agreement with the City regarding sale of certain rights of future development and
resource management potential(referred to hereinafter as the"Conservation Easement'),
which sale in the judgement of the City Council would act to preserve the values indicated
above and serve an important municipal purpose; and
WHEREAS, this transaction has been determined to be exempt under the California
Environmental Quality Act as a Class 25 exemption, and has been determined to be
consistent with the General Plan by the Planning Commission of the City of San Luis
Obispo.
NOW, THEREFORE, BE IT-RESOLVED that the City Council of the City of San Luis
Obispo hereby:
Authorizes and directs the Mayor of the City of San Luis Obispo and City staff to sign any
and all documents necessary and appropriate to complete the above-referenced
transaction.
Approved and adopted this 1st day of October, 1996.
- Co
ATTACHMENT 7
Resolution No.
Page 2
On motion of seconded by and on the
following roll call vote:
AYES.
NOES:
ABSENT:
The foregoing resolution was adopted this day of , 1996.
Allen K. Settle, Mayor
ATTEST:
Bonnie L. Gawf, City Clerk
APPROVED AS TO FORM:
/ge ®rglese ity Oomey
DEED OF CONSERVATION EASEMENT
John Guidetti and the City of San Luis Obispo
THIS GRANT DEED OF CONSERVATION EASEMENT is made this day of
September, 1996,by John Guidetti,having an address at P.O. Box 185, San Luis Obispo, CA
93406 ("Grantor"), in favor of the City of San Luis Obispo, a chartered municipal corporation of
the State of California,having an address at 990 Palm Street, San Luis Obispo, CA 93401
("Grantee").
WITNESSETH:
WHEREAS, Grantor is the sole owner in fee simple of certain real property consisting of five
separate parcels in San Luis Obispo County, California, more particularly described in
Attachment A attached hereto and incorporated by this reference(the "Property"); and
WHEREAS,the Property possesses agricultural,natural resource values including wildlife and
plant resources,and scenic open space values(collectively,conservation values)of great
importance to Grantor,the people of the City of San Luis Obispo,and the people of the State of
California; and
WHEREAS, both Grantor and Grantee desire to preserve and conserve these conservation values
for the public benefit; and
WHEREAS,the specific conservation values of the Property are documented in a report called
the Baseline Report that is on file at the offices of Grantee and incorporated by this reference,
and this Report consists of maps, photographs, and other documentation that the parties agree
provide, collectively, an accurate representation of the Property at the time of this grant and
which is intended to serve as an objective information baseline for monitoring compliance with
the terms of this grant; and
WHEREAS, Grantor and Grantee intend that the conservation values of the Property be
preserved and maintained by the continuation of currently existing land use patterns, including,
without limitation,those relating to farming and ranching; and
ATTACHMENT 8
Conservation Easement between John Guidetti and the City of San Luis Obispo
WHEREAS, Grantor and Grantee recognize the Property is classified as Agriculture in the
General Plan for the County of San Luis Obispo and this carries with it permitted activities that
are acknowledged by the Grantee that include the construction of single family residential
homes; and
WHEREAS, Grantor and Grantee agree to work cooperatively as a joint effort to plan for and
locate those permitted activities specifically related to single family residential homes in such a
way that will protect the conservation values of the Property; and
WHEREAS, Grantor reserves all oil,mineral, gas and other hydrocarbon resources below the
surface of the Property subject, however, to the reserved rights of Grantee to reasonably review
and approve all aspects of development related to the exploration or extraction of these
resources; and
WHEREAS, Grantor and Grantee agree to work cooperatively as a joint effort to plan for and
locate all support facilities that may be necessary to develop these oil, mineral,gas and other
hydrocarbon resources in a way that protects the conservation values of the Property; and
WHEREAS, Grantor further intends, as owner of the Property, to convey to Grantee the
right to preserve and protect the conservation values of the Property in perpetuity; and
WHEREAS, Grantee is a chartered municipal corporation of the State of California that is
authorized to accept Conservation Easements; and
WHEREAS, Grantee agrees by accepting this grant to honor the intentions of Grantor stated
herein and to preserve and protect in perpetuity the conservation values of the Property for the
benefit of this generation and the generations to come;
NOW, THEREFORE, in consideration of the above and the mutual covenants,terms, conditions,
and restrictions contained herein, and pursuant to the laws of California and in particular sections
815 and 816 of the Civil Code- Conservation Easements, Grantor hereby voluntarily grants and
conveys to the Grantee a Conservation Easement in gross in perpetuity over the Property
described in Attachment A and referred to hereinafter as the Property.
1. P=ose. It is the purpose of this Easement to assure that the Property, subject to the
existing uses described herein, will be retained forever in its predominantly natural, scenic, and
open space condition and to prevent any use of the Property that will significantly impair or
interfere with the conservation values of the Property. The conservation values of particular
importance include the oak woodland plant community,the understory of shrubbery the oak
Page 2 of 13
Conservation Easement between John Guidetti and the City of San Luis Obispo
woodlands contain and its importance to wildlife. The values also include the scenic quality of
the undeveloped land that is visible from the surrounding community,the values the land
supports in its native plant communities, the value of the land in the existing and potential
production of agricultural crops that includes cattle grazing, vineyard development, the value of
the land as a watershed and the benefits provided with the prevention to erosion, and protection
of water quality, the values of the land as it supports riparian vegetation along its drainage ways
and creeks. Grantee recognizes that fanning and ranching consistent with the Grantor's current
practices is consistent with the protection of these values and the construction of single family
homes on the existing parcels as authorized by existing County plans and ordinances can be
accommodated with proper planning in such a way that these values among others can be
protected. Grantor and Grantee also recognize that it is the purpose of this Easement to establish
a cooperative working relationship that would extend through all stages of project planning,as
described in Paragraph 7, with regard to the adjustment of property lines between existing legal
parcels, the construction of single family residential structures and support facilities as well as
with regard to all aspects of oil or mineral development, to protect the conservation values of the
Property and ensure the design of such projects includes reasonable measures to minimize the
environmental impact of these projects to the maximum extent reasonably feasible.
2. Bights of Grantee. To accomplish the purpose of this Easement,the following rights are
conveyed to Grantee by this Easement:
(a) To enter upon the Property at reasonable times in order to monitor Grantor's
compliance with and otherwise enforce the terms of this Easement; provided that
such entry shall be upon prior reasonable notice to Grantor,and Grantee shall not
unreasonably interfere with Grantor's use and quiet enjoyment of the Property;
and
(b) To prevent any activity on or use of the Property that is inconsistent with the
purpose of this Easement and to require the restoration of such areas or features of
the Property that may be damaged by any inconsistent activity or use.
3. Prohibited Activities. Any activity on or use of the Property inconsistent with the
purpose of this Easement is prohibited. Without limiting the generality of the foregoing,the
following activities and uses are prohibited from being established:
(a) Subdivision of the land pursuant to the California Subdivision Map Act
(b) Amending the General Plan to a land use category that would allow a higher density
of development than that which is currently allowed based on the General Plan of
Page 3 of 13
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Conservation Easement'between John Guidetti and the City of San Luis Obispo
San Luis Obispo County in effect as of the date of this Easement. A certified copy
of this General Plan will be maintained in the offices of the Grantee.
(c) Advertising signs or billboards unless related to an on-site activity related to a
Reserved Right.
(d) Cutting or removal of trees or clearing of shrub land for the commercial sale of
firewood.
(e) All activities(also called"uses" by the General Plan of the County of San Luis
Obispo)that are not permitted under the General Plan of the County of San Luis
Obispo, in the Framework for Planning Table `O' and including its Land Use
Ordinances related to property classified as Agriculture as of the date this
Conservation Easement is executed are prohibited. A certified copy of the
Framework for Planning Table"O"and the Land Use Ordinance related to property;
classified as Agriculture as of the date of the Conservation Easement,shall be kept
on file with the Clerk of the City of San Luis Obispo for reference.
In addition,the following activities that are defined and authorized in land classified
as Agriculture by the County General Plan are prohibited.
(1) Airfields and Landing Strips except as may be necessary in support of
agricultural activities
(2) Bed and Breakfast Facilities.
(3) Caretaker Residence except as may be necessary in support of agricultural
activities.
(4) Churches.
(5) Concrete, Gypsum,and Plaster Products.
(6) Electric Generating engaged in the generation and distribution of electrical
energy for sale(power plants) from oil, gas, coal or nuclear fuels.
( ) Food and Kindred Products (food processing and manufacturing
establishments).
(8) Indoor Amusement and recreation facilities.
(9) Libraries and museums.
(10) Membership organization facilities.
(11) Mining,surface
(12) Mobile homes unless necessary as a caretaker's residence for agricultural
purposes.
(13) Paving materials
Page 4 of 13
1-39
Conservation Easement between John Guidetti and the City of San Luis Obispo
(14) Public safety facilities such as prisons.
(15) Recycling collection stations.
(16) Recycling and scrap
(17) Residential care facilities
(18) Schools
(19) Small scale manufacturing
(20) Warehousing.
(21) Waste Disposal Sites such as public sanitary land fills.
(22) Wholesaling and Distribution.
4. Reserved Rights. Grantor reserves to himself, and to his personal representatives,heirs,
successors, and assigns, all rights accruing from their ownership of the Property, including the
right to engage in or permit or invite others to engage in all uses of the Property that are not
expressly prohibited herein and are not inconsistent with the purpose of this Easement. These
Reserved Rights may be exercised without permission or review by the Grantee and include such
activities as the harvesting or cutting of trees for personal use, fencing and other improvements
or maintenance necessary for ongoing agricultural activities such as fences, roads, water troughs
and agricultural water development,and reconstruction of existing structures, or the sale or
leasing of underground mineral rights.
5. Notice of Intention to Undertake Certain Reserved Rights. Grantor shall notify Grantee
prior to undertaking any of the following activities. Whenever notice is required, Grantor shall
notify Grantee in writing not less than 60 days.prior to the date Grantor intends to undertake the
activity in question. The notice shall describe the nature, scope, design, location, timetable, and
any other material aspect of the proposed activity in sufficient detail to permit Grantee to make
an informed judgment as to its consistency with the purpose of this Easement. This excludes any
activities that are necessary due to an emergency that requires immediate repair or construction
of facilities. An emergency would be limited to any event that could threaten injury to a person
or could result in immediate threat to real property or the potential for impacts on the
conservation values of the Property.
(a) The intensification of agricultural practices for grazing purposes or the
introduction of new crops such as installation of vineyards,that could require
removal of substantial amounts of shrubbery in the understory of the existing oak
woodlands.
(b) The construction of new agricultural structures such as bams including access and
other improvements necessary to support such structures.
Page 5 of 13
c�-3 9
Conservation Easement between John Guidetti and the City of San Luis Obispo
6. Grantee's Objection to Construction. For a period of 15 days after Grantee receives the
notice provided in Paragraph 5 above, Grantee may, in a notice in writing(the"Objection
Notice"), set forth its reasonable objections to Grantor's proposed construction, such objections
to state the reasons why the construction would be inconsistent with the purpose of or violate the
provisions of this Easement. Within ten days after Grantor receives the Grantee's objections, if
any, Grantor and Grantee shall meet to resolve these objections. In the event that the parties
cannot resolve the objections to their mutual satisfaction within such ten day period, either of the
parties may refer the dispute to arbitration under Paragraph 9 of this Agreement. In the event
Grantee does not give to Grantor the Objection Notice within the above described 15 day period,
Grantee shall be deemed to have waived any right to object to such activities.
7. Requirement for Undertake Cooperative Planning for Certain Reserved Rights. Grantor
shall notify Grantee prior to undertaking any of the following activities. Whenever notice is
required, Grantor shall notify Grantee in writing that he intends to undertake one or more of the
following activities and request that a cooperative planning process be initiated. This planning
and process is to include cooperation on the location of activities, the intensity of such activities,
and the physical nature of improvements into or on the land necessary to support these activities.
The Grantor will work with the Grantee to establish a mutually agreed time table for completion
of this planning process. If the Grantor and Grantee can not reach an agreed upon time table
within a reasonable period of time within 30 days,a time period of 180 days will be set as the
maximum amount of time allocated for the completion of this process. The rights of the Grantee
shall include reasonable review,modifications to (including,but not limited to redesign)and
approval of activities proposed by the Grantor. Such review and approval shall not be considered
an official action by the Grantee under the California Environmental Quality Act and such
review and approval shall not unreasonably restrict the rights of the Grantor reserved by this
Easement. No formal submittal of an application to the County of San Luis Obispo, however, for
any such activities shall be submitted by the Grantor without formal notice in writing from the
Grantee that the rights conveyed by this Paragraph to the Grantee, including the rights of
arbitration,have been completed.
The activities subject to this requirement for cooperative planning include:
(a) The construction of single family homes including mobile homes and any access
or other facilities and structures necessary to support the construction or
installation of such homes except as follows: where the location of such
construction is within the area marked as"Potential Development Area"on
Attachment B to this Easement,the Grantor is only obligated to provide notice as
required under Paragraph 5.
Page 6 of 13
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Conservation Easement between John Guidetti and the City of San Luis Obispo
(b) The adjustment or modification of lot lines between existing legal lots.
(c) The exploration or extraction of subsurface minerals except as provided for in
Paragraph 8.
8. Approval of ares Proposed for Exploration or Extraction of ub urface Mineral ig tc
Ridgetop Exclusion from Such Activities. If Grantor proposes exploration or extraction of
mineral rights on the Property conducted (1) from sites off the Property, or(2) from the area
marked as"Potential Subsurface Mineral Exploration and Extraction Areas" on Attachment C to
this Easement,the Grantor is only obligated to provide notice as required under Paragraph 5. If
such exploration or extraction is proposed elsewhere on the Property, the Grantor shall notify the
Grantee as provided under Paragraph 7. The cooperative planning process defined under
Paragraph 7,in the case of mineral exploration and extraction, shall include a preliminary
environmental analysis which will address issues of concern to Grantee, including but not limited
to impacts on natural vegetation and the scenic character of the area that may be caused by road
access and other infrastructure needs, and closure or abandonment requirements. In no case,
however, shall Grantor propose to conduct such activities from the ridgetop areas of Indian
Knob, said areas being identified as those lands on the Property above 600 feet above sea level
and shown on Attachment C to this easement.
9. Arbitration. Any controversy arising from this Easement or its breach related to the
definition of activites defined as Rights of Grantee,Prohibited Activities,Reserved Rights,
activities subject to Notice of Intention to Undertake Certain Reserved Rights, or activities
subject to Requirements for Undertaking Cooperative Planning for Certain Reserved Rights shall
be determined by three arbitrators appointed as set out below:
(a) Within thirty (30)days after a notice by either party to the other requesting
arbitration and stating the basis of the party's claim, one arbitrator shall be
appointed by each party. Notice of the appointment shall be given be each party
to the other party when made.
(b) The two arbitrators shall immediately choose a third arbitrator to act with them. If
a party fails to select an arbitrator within the time allowed or if the two arbitrators
fail to select a third arbitrator within 14 days after their appointment,on
application by either party the third arbitrator shall be promptly appointed by the
then presiding judge of the Superior Court of the State of California in and for the
County of San Luis Obispo acting as an individual within 14 days. The party
Page 7 of 13
"7
Conservation Easement between John Guidetti and the City of San Luis Obispo
making the application shall give the other party 14 day's notice of the
application.
The arbitration shall be conducted under the Code of Civil Procedures (Section
1280-1294.2). Hearings shall be held in San Luis Obispo County California
Both parties agree by signing this Easement that they are agreeing to have any
dispute arising from the matters included in the Arbitration provisions of this
Easement decided by neutral arbitration as provided by California law and that
each party is giving up any rights to have the dispute litigated in a court or by a
jury trial. By signing this Easement, each party is giving up their judicial rights to
discovery and appeal unless such rights are specially requested in the notice
requesting Arbitration or as permitted by CCP 1280 et.seq. If either party refuses
to submit to arbitration,they may be compelled to arbitrate under the authority of
the California Code of Civil Procedure.
10. Grantee's Remedies, If Grantee determines that Grantor is in violation of the
terms of this Easement or that a violation is threatened, Grantee shall give written notice to
Grantor of such violation and demand corrective action sufficient to cure the violation and,where
the violation involves injury to the Property resulting from any use or activity inconsistent with
the purpose of this Easement,to restore the portion of the Property so injured. If Grantor fails to
cure the violation within a thirty(30) days after receipt of notice thereof from Grantee, or under
circumstances where the violation cannot reasonably be cured within a thirty(30)-day period,
fails to begin curing such violation within the thirty (30)-day period, or fails to continue
diligently to cure such violation until finally cured, Grantee may bring an action at law or in
equity in a court of competent jurisdiction to enforce the terms of this Easement,to enjoin the
violation, ex parte as necessary,by temporary or permanent injunction, to recover any damages
to which it may be entitled for violation of the terms of this Easement or injury to any
conservation values protected by this Easement, including damages for the loss of scenic,
aesthetic, or environmental values, and to require the restoration of the Property to the condition
that existed prior to any such injury. Without limiting Grantor's liability therefor, Grantee, in its
sole discretion,may apply any damages recovered to the cost of undertaking any corrective
action on the Property. If Grantee, in its sole discretion,determines that circumstances require
immediate action to prevent or mitigate significant damage to the conservation values of the
Property, Grantee may pursue its remedies under this Paragraph without prior notice to Grantor
or without waiting for the period provided for cure to expire. Grantee's rights under this
Paragraph apply equally in the event of either actual or threatened violations of the terms of this
Easement, and Grantor agrees that Grantee's remedies at law for any violation of the terns of this
Easement are inadequate and that Grantee shall be entitled to the injunctive relief described in
Page 8 of 13
Conservation Easement between John Guidetti and the City of San Luis Obispo
this Paragraph, both prohibitive and mandatory, in addition to such other relief to which Grantee
may be entitled, including specific performance of the terms of this Easement, without the
necessary of proving either actual damages or the inadequacy of otherwise available legal
remedies. Grantee's remedies described in this Paragraph shall be cumulative and shall be in
addition to all remedies now or hereafter existing at law or in equity.
11. Costs of Enforcement. Any costs incurred by Grantee in enforcing the terms of this
Easement against Grantor, including, without limitation, costs of suit and attorneys'
fees, and any costs of restoration necessitated by Grantor's violation of the terms of this
Easement shall be bome by Grantor. If Grantor prevails in any action to enforce the
terms of this Easement, Grantor's costs of suit, including,without limitation, attorneys'
fees, shall be bome by Grantee. If Grantee prevails in any action to enforce the
terms of this Easement, Grantee's costs of suit, including,without limitation, attorneys'
fees, shall be bome by Grantor.
12. Grantee's Discretion. Enforcement of the terms of this Easement shall be at
the discretion of Grantee,and any forbearance by Grantee to exercise its rights under this
Easement in the event of any breach of any term of this Easement by Grantor shall not be
deemed or construed to be a waiver by Grantee of such term or of any of Grantee's rights
under this Easement. No delay or omission by Grantee in the exercise of any right or
remedy upon any breach by Grantor shall impair such right or remedy or be construed as
a waiver.
13. Waiver of Certain Defenses, Grantor hereby waives any defense of laches,
estoppel, or prescription.
14. Acts Beyond Grantor's Control. Nothing contained in this Easement shall be
construed to entitle Grantee to bring any action against Grantor for any injury to or
change in the Property resulting from causes beyond Grantor's control, including, without
limitation, fire, flood, storm,and earth movement,or from any prudent action taken by
Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the
Property resulting from such causes.
15. Access. No right of access by the general public to any portion of the Property is
conveyed by this Easement without specific written authority from Grantor describing places,
trails, and other conditions.
16. Taxes. Grantor shall pay all taxes,assessments, fees, and charges of whatever description
levied on or assessed against the Property by competent authority(collectively "taxes"),
Page 9 of 13
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Conservation Easement between John Guidetti and the City of San Luis Obispo
including any taxes imposed upon, or incurred as a result of, this Easement, and shall furnish
Grantee with satisfactory evidence of payment upon request subject to the right to contest any
such taxes.
17. Hold Harmless. Grantor shall hold harmless, indemnify, and defend Grantee and its
members, directors, officers, employees, agents,and contractors and their heirs,personal
representatives, successors and assigns of each of them(collectively "Indemnified Parties") from
and against all liabilities,penalties, costs, losses, damages, expenses, causes of action, claims,
demands,or judgments, including, without limitation,reasonable attorney's fees, arising from or
in any way connected with: (1)injury to or death of any person, (2)physical damage to any
property,resulting from any act,omission, condition, or other matter related to or occurring on or
about the Property,regardless of cause, unless due to the sole negligence of any of the
Indemnified Parties; (3)the obligations specified in Paragraph 16; or(4)the existence of this
Easement.
18. Extinguishment. If circumstances arise in the future such as render the purpose of this
Easement impossible to accomplish,this Easement can only be terminated or extinguished,
whether in whole or in part, by judicial proceedings in a court of competent jurisdiction, and the
amount of the proceeds to which Grantee shall be entitled,after the satisfaction or prior claims,
from any sale, exchange, or involuntary conversion of all or any portion of the Property
subsequent to such termination or extinguishment, shall be determined,unless otherwise
provided by California law at the time, in accordance with Paragraph 19. Grantee shall use all
such proceeds in a manner consistent with the conservation purposes of this grant.
19. Proceeds. This Easement constitutes a real property interest immediately vested in
Grantee,which, for the purposes of Paragraph 18, the parties stipulate to have a fair market value
of four hundred thousand dollars ($400,000).
20. Condemnation. If the Easement is taken, in whole or in part,by exercise of the power of
eminent domain, Grantee shall be entitled to compensation in accordance with applicable law.
21. Assignment, This Easement is transferable,but Grantee may assign its rights and
obligations under this Easement only to an organization that is a qualified organization at the
time of transfer under Section 170(h)of the Internal Revenue Code of 1954,as amended(or any
successor provision then applicable), and the applicable regulations promulgated thereunder, and
authorized to acquire and hold conservation easements under state statute(or any successor
provision then applicable). As a condition of such transfer, Grantee shall require that the
conservation purposes of this grant is intended to advance continue to be carried out.
Page 10 of 13
Conservation Easement between John Guidetti and the City of San Luis Obispo
22. Subsequent Tr ncferc Grantor agrees to incorporate the terms of this Easement in any
deed or other legal instrument by which they divest themselves of any interest in all or a portion
of the Property, including, without limitation, a leasehold interest. Grantor further agrees to give
written notice to Grantee of the transfer of any interest at least twenty (20) days prior to the date
of such transfer. The failure of Grantor to perform any act required by this Paragraph shall not
impair the validity of this Easement or limit its enforceability in any way.
23. Certificates. Upon request by Grantor, Grantee shall within twenty (20)days execute and
deliver to Grantor any document, including an estoppel certificate, which certifies Grantor's
compliance with any obligation of Grantor contained in this Easement and otherwise evidences
the status of this Easement as may be requested by Grantor.
24.Notices. Any notice,demand,request, consent, approval, or communication that either
party desires or is required to give to the other shall be in writing and either served personally or
sent by first class mail,postage prepaid, addressed as follows:
To Grantor: John Guidetti
P.O. Box 185
San Luis Obispo, CA 93406
To Grantee: Neil Havlik
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
or to such other address as either party from time to time shall designate by written notice
to the other.
25. recordation. Grantee shall record this instrument in timely fashion in the official records
of San Luis Obispo County, California, and may re-record it at any time as may be required to
preserve its rights in this Easement.
26. Monitoring. The Grantee or its designee shall conduct annual monitoring of the
conservation values within the Property. Such monitoring shall be done in accordance with a
systematic and routine checklist designed to facilitate the identification of trends and changes of
Page 11 of 13
Conservation Easement between John Guidetti and the City of San Luis Obispo
the conservation values over time. A copy of each monitoring report shall be given to the
Grantor.
27. Subordination. At the time of the conveyance of this Easement,the Property is subject to
mortgage. The holder of this mortgage agrees by execution of this Easement to subordinate its
rights in the Property to this Easement to the extent necessary to permit the Grantee to enforce
the purpose of this Easement in perpetuity and to prevent any modification or extinguishment of
this Easement by the exercise of any rights of the mortgage holder. The priority of the existing
mortgage with respect to any valid claim on the part of the existing mortgage holder to the
proceeds of any sale, condemnation proceedings, or insurance or to the leases, rents, and profits
of the Property shall not be affected thereby,and any lien that may be created by Grantee's
exercise of any of its rights under this Easement shall be junior to the existing mortgage. Upon
request, Grantee agrees to subordinate his rights under this Easement to the rights of any future
mortgage holders or beneficiaries of deeds of trust to the proceeds, leases,rents, and profits
described above and likewise to subordinate its rights under any such lien and to execute any
document required with respect to such subordination provided any such subordination by the
Grantee shall not result in the extinguishment of this Easement.
28. General Provisions.
(a) Controlling Law. The interpretation and performance of this Easement shall be
governed by the laws of the State of California.
(b) Liberal Construction. Any general rule of construction to the contrary
notwithstanding,this Easement shall be liberally construed in favor of the grant to
effect the purpose of this Easement and the policy and purpose of the
Conservation Act of 1979 as described in sections 815 through 816 of the
California Civil Code. If any provision in this instrument is found to be
ambiguous, an interpretation consistent with the purpose of this Easement that
would render the provision valid shall be favored over any interpretation that
would render it invalid.
(c) Severability. If any provision of this Easement, or the application thereof to any
person or circumstance, is found to be invalid, the remainder of the provisions of
this Easement,or the application of such provision to persons or circumstances
other than those as to which it is found to be invalid, as the case may be, shall not
be affected thereby.
Page 12 of 13
-7
Conservation Easement between John Guidetti and the City of San Luis Obispo
(d) Entire A=ement. This instrument sets forththe entire agreement of the parties
with respect to the Easement and superseded all prior discussions, negotiations,
understandings, or agreements relating to the Easement, all of which are merged
herein.
(e) Successors. The covenants, terms, conditions, and restrictions of this Easement
shall be binding upon, and inure to the benefit of,the parties hereto and their
respective personal representatives,heirs, successors, and assigns and shall
continue as a servitude running perpetually with the Property.
(f) CMtions. The captions in this instrument have been inserted solely for
convenience of reference and are not a part of this instrument and shall have no
effect upon construction or interpretation.
(g) Counterparts. The parties may execute this instrument in two or more
counterparts, which shall, in the aggregate, be signed by both parties; each
counterpart shall be deemed an original instrument as against any party who has
signed it. In the event of any disparity between the counterparts produced, the
recorded counterpart shall be controlling.
TO HAVE AND TO HOLD unto Grantee, its successors, and assigns forever.
IN WITNESS WHEREOF Grantor and Grantee have set their hands on the day and year
first written above.
For the Grantor:
John Guidetti
For the Grantee:
Allen Settle,Mayor
For Deed of Trust Holder
(Acknowledgments)
Page 13 of 13
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PURCHASE AND SALE AGREEMENT
This PURCHASE AND SALE AGREEMENT is entered into by and between the
CITY OF SAN LUIS OBISPO ("Buyer") , a California Charter Municipal
Corporation, and JOHN GUIDETTI ("Seller") , pursuant to the
following
RECITALS
WHEREAS, Buyer is a California Charter Municipal Corporation, and
WHEREAS, Buyer, acting through its City Council and through adopted
public procedures, has determined that certain lands surrounding
the City of San Luis Obispo are important to the scenic character,
healthy natural environment, and economic and social well-being of
the community and its citizens, and has designated these lands as
the San Luis Obispo Greenbelt, and
WHEREAS, within said Greenbelt, Buyer seeks to preserve and
conserve characteristics such as visual quality, wildlife habitat,
a healthy agricultural economy, and rural setting through a variety
of techniques and programs, including dedication of lands or
conservation easements, or purchase of same, and
WHEREAS, Seller is owner of certain lands which lie within said
Greenbelt, and which lands in their entirety are of scenic,
ecological, and agricultural value to the City and County of San
Luis Obispo, and
WHEREAS, Seller is desirous of retaining such values of the
property, and has reached agreement with Buyer regarding sale of
certain rights of future development and resource management
potential (referred to hereinafter as the "Conservation Easement") ,
which sale in the judgement of Buyer would act to preserve the
values indicated above and serve an important municipal purpose.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
CITY OF SAN LUIS OBISPO ("Buyer") , hereby agrees to purchase, and
JOHN GUIDETTI ("Seller") , hereby agrees to sell a portion of
Seller' s right, title and interest in that certain real property in
the County of San Luis Obispo, as described in Exhibit "A" attached
hereto and incorporated by reference. Said property shall
hereinafter be referred to as the "Property", and said portion of
Seller' s right, title, and interest in said property to be sold
shall hereinafter be referred to as the "Conservation Easement. "
The parties further agree that said PURCHASE AND SALE AGREEMENT
shall be made subject to the specific terms and conditions outlined
below.
1 . Purchase Price and Terms
The purchase price for the Conservation Easement shall be Four
Hundred Thousand Dollars ($900, 000. 00) , payable in the form of a
ATTACHMENT 9
cashier' s or certified check, payable to Escrow Holder, which shall
be deposited by Buyer into Escrow not less than one (1) day prior
to the Closing Date, as defined below.
2. Conditions Precedent
Buyer' s obligation to purchase the Property is expressly
conditioned upon the occurrence and satisfaction of each of the
following conditions, each of which is deemed exclusively for the
benefit of Buyer:
(a) Title Report. Buyer's approval of the exceptions to title set
forth in a CLTA preliminary title report for the Property (the
"Preliminary Title Report") . Buyer shall have thirty (30) days
after the receipt of the Preliminary Title Report, and copies of
all document referenced therein, to provide to Seller written
notice of Buyer' s disapproval of any . title exception. Any title
exception not so disapproved shall be deemed approved, provided
that if a Supplemental CLTA title report is issued showing any
exception not shown on the Preliminary Title Report, Buyer shall
have an additional ten (10) calendar days after receipt of such
Supplemental Report to approve or disapprove any such title
exception. If Buyer disapproves any title exception, Seller shall
have no obligation to cure such disapproval (except that Seller
shall be obligated to remove any liens) but Seller may elect, by
written notice to Buyer within five (5) calendar days after receipt
by Seller of such notice of disapproval, to attempt to remove such
disapproved items. If Seller is unable within a reasonable time to
accomplish such cure or removal, or if Seller elects not to attempt
to so cure or remove (which election shall be communicated to Buyer
within ten (10) days after receipt of Buyer' s notice of
disapproval) , then Buyer may elect to (i) terminate its obligations
under this Agreement by providing written notice to Seller, or (ii)
waive its objections to such exception, or (iii) elect to correct
any such disapproved exception itself, in which case Seller shall
use its best efforts to assist Buyer, whenever Buyer may request,
in order to cure any such defect, provided that Seller shall incur
no monetary obligations in connection with such cure, and provided
escrow shall be extended for a reasonable period in which to effect
such cure.
(b) Inspection and Approval of Property. Buyer's inspection and
approval of the Property and a 1 improvements thereon including, at
Buyer's option and expense, a noise study, a survey, a soils
investigation, a Phase I or Phase II environmental report or any
other investigation that the Buyer deems necessary. This condition
shall be deemed approved if Buyer does not send written notice of
disapproval to Seller within thirty (30) days after the opening of
Escrow. If Buyer discovers through its investigations any defects
on the Property, or improvements thereon, which it disapproves of,
Seller shall have no obligation to cure such defects but Seller may
elect, by written notice to Buyer within five (5) calendar days
after receipt by Seller of such notice of disapproval, to attempt
to cure such disapproved defects. If Seller is unable within a
reasonable time to accomplish such cure, or if Seller elects not to
attempt to cure said defects (which election shall be communicated
to Buyer within ten (10) days after receipt of Buyer' s notice of
disapproval) , then Buyer may elect to (i) terminate its obligations
under this Agreement by providing written notice to Seller, or (ii)
waive its objections to such defects, or (iii) elect to correct any
such disapproved defects itself, in which case Seller shall use its
best efforts to assist Buyer whenever Buyer may request in order to
cure any such defect, provided that Seller shall incur no monetary
obligations in connection with such cure, or (iv) the Parties may
enter into additional negotiations, as may be mutually acceptable,
concerning an adjustment to the purchase price, allocation of risk,
or contribution to the costs to cure or other matters, and provided
escrow shall be extended for a reasonable period of time to effect
such negotiations.
3. Escrow and Deposit
(a) Closing Date. This purchase and sale shall close upon the
recordation of the Deed of Easement to Buyer (the "Close of
Escrow") . The Close of Escrow shall occur on or before sixty (60)
days (the "Closing Date") after a copy of this agreement (executed
by both Buyer and Seller) is deposited with the Escrow Holder, but
no later than October 30, 1996, unless extended by mutual agreement
of the parties, or as otherwise provided herein. In no event
shall Seller be required to extend the Closing Date. Time is of
the essence in this Agreement.
(b) Escrow Holder. Within five (5) business days after the
execution of this Agreement, Buyer and Seller shall jointly open an
Escrow for the consummation of the purchase and sale of the
Property with Chicago Title Company, 1212 Marsh Street, San Luis
Obispo, California 93401 ("Escrow Holder") . The Escrow shall be
deemed to be "opened" as of the date on which a copy of this
Agreement (executed by Buyer and Seller) is deposited with Escrow
Holder.
(c) Escrow Instructions. Although Escrow Holder may require
further written instructions executed by Buyer and Seller to
clarify the duties and responsibilities of Escrow Holder, any such
further instructions shall not modify or amend the provisions of
this Agreement unless any such instructions expressly provide that
they are intended to amend or modify the provisions of this
Agreement.
(d) Title Insurance. The Conservation Easement on the Property
shall be conveyed by Deed of Easement. The Conservation Easement
shall be insured by a CLTA owners policy in the amount of the
purchase price, showing title to the Conservation Easement vested
in Buyer, subject only to those exceptions specified in the
Preliminary Title Report and/or Supplemental Report and accepted by
Buyer. Buyer shall pay any premiums associated with said policy of
title insurance.
�-S�
(e) Fees and Taxes. Buyer agrees to pay all documentary transfer
taxes and recording fees . Escrow fees shall be borne equally. It
is anticipated that the sale of the Conservation Easement shall not
have any bearing on property taxes owed or due upon the Property,
and Seller shall therefore remain fully responsible for all real
property taxes burdening the property.
4 . Representations, Warranties, Agreements and Disclaimers
(a) Authorized Representative. Buyer and Seller hereby represent
and warrant to each other that the persons who sign this agreement,
and any other documents required to be executed by such party to
perform its obligations hereunder, shall have all requisite power
and authority to have entered into this Agreement, and that all
authorizations required to be obtained by or on the part of such
party to execute and perform this Agreement have been obtained.
(b) Proof of Citizenship. Seller is not a foreign person as such
term is used in Section 1445 of the Internal Revenue Code. Prior
to the Close of Escrow, Seller shall deposit in Escrow a non-
foreign affidavit as provided under said Section 1445, and the
failure to do so shall entitle Buyer to withhold from the purchase
price such sums as are required by said Section 1445.
(c) Delivery of Conservation Easement. Possession of and interest
in the Conservation Easement shall be deemed to have been delivered
by Seller to Buyer upon the Close of Escrow.
(d) Legal Actions. Seller represents and warrants that there are
no actions, suits, or legal proceedings related to the ownership,
use, operation or sale of the Property to which Seller is a party
nor has Seller received any notice that any such actions are
pending or threatened, except as noted in the preliminary title
report dated July 31, 1.996, by Chicago Title Company.
(e) Indemnification by Seller. Effective as of the closing date,
Seller shall indemnify and hold harmless Buyer from and against any
and all claims, damages or liabilities (whether or not caused by
negligence) , including civil or criminal fines, arising out of or
relating to any of the following:
(i) Any generation, processing, handling, transportation,
storage treatment or disposal of solid wastes or hazardous
wastes by Seller, including, but not limited to, any of such
activities occurring on any of the properties;
(ii) Any releases by Seller (including, but not limited to,
any releases as defined under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980) to the
extent occurring or existing prior to closing, including, but
not limited to, such releases to land, groundwater, surface
water or into the air.
�:S'3
(f) Seller's Knowledge of the Environmental Conditions of the
Property. As an inducement to Buyer to enter into this
agreement, Seller, to the best of Seller's knowledge and
belief, represents and warrants that:
(i) Throughout the period of ownership of the Property by
Seller, there have been no notices, directives, violation
reports or actions by any local, state or federal department
or agency concerning environmental laws or regulations, and
the Property is in compliance with all state and federal
environmental laws;
(ii) The business and operations of. Seller have at all times
been conducted in compliance with all applicable federal,
state, and local laws, ordinances, regulations, orders and
other requirements of governmental authorities on matters
relating to the environment.
(iii) There has been no spill, discharge, release, cleanup or
contamination of or by any hazardous or toxic waste or
substance used, generated, treated, stored, disposed of or
handled by the Seller on or around the Property.
(iv) There are no underground storage tanks located at, on, or
under the Property.
(v) No hazardous or toxic substances or wastes are located
at, or have been located on or removed from the Property.
(vi) All studies, reports, and investigations, known to
Seller, concerning any pollution, toxic building materials or
toxic hazardous substances or wastes located at, on, or under
the Property have been provided or otherwise been disclosed to
Buyer prior to the close of Escrow.
(vii) There are no soil or geological conditions which might
impair or adversely affect the current use or future plans for
use of the Property or the Conservation Easement.
5. Notices
All notices, communications, consents, approvals and
disapprovals required or permitted hereunder must be in
writing and shall be delivered by personal delivery,
facsimile, or deposited in the United States mail, postage
prepaid and addressed as follows:
TO BUYER: City of San Luis Obispo
Neil A. Havlik, Natural Resources Manager
990 Palm Street
San Luis Obispo, CA 93401-3249
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TO SELLER:
The foregoing addresses may be changed by written notice. If
served personally, or by facsimile, service shall be
conclusively deemed made at the time of service. If served
by mail, service shall be conclusively deemed made seventy-two
(72) hours after the deposit thereof in the United States
mail .
6. Brokers
Buyer and Seller each represent to the other that it knows of
no claim for broker' s or finder' s fees or other commissions in
connection with this transaction other than as provided in
this paragraph. In the event any broker or finder asserts a
claim for a commission or finder' s fee, the party through whom
the broker or finder makes this claim shall indemnify the
other party for any and all costs and expenses (including
attorney' s fees) incurred by the other party in defending the
same.
7. Miscellaneous
This Agreement contains the entire agreement between the
parties hereto, and no modification or addition to any term
or provision shall be effective unless made in writing and
signed by both parties hereto. In the event any litigation
is commenced between the parties hereto in connection with
this Agreement, the prevailing party in such litigation shall
be entitled to a reasonable sum for its attorneys fees and
costs. The captions and headings in this Agreement are for
reference only and shall not be deemed to define or limit the
scope or intent of any of the terms, covenants, conditions or
agreements contained herein.
S . Entry
With respect to Paragraphs 2 and 4, Buyer, its agents and
authorized representative shall have the right to enter onto
the Property during normal business hours, or at such other
times as may be mutually agreed to by the Parties, for the
purpose of inspection and approval of the property, and to
conduct studies including, but not limited to, noise studies,
soils investigations, Phase I or Phase II environmental
studies, or other investigations deemed necessary by Buyer.
Such consent to enter shall not be unreasonably withheld.
Buyer shall indemnify and defend Seller against and hold
Seller harmless from any and all liability, cost and expense
(including without limitation any and all recorded mechanics
or other liens) for loss of or damage to any property or
'.SJ
injury to or death of any person, arising out of or in any way
related to the entry by Buyer or Buyer's agents onto the
Property, unless such liability, cost and expense is caused by
the negligence of Seller. In the event of the recording of
any claim of lien for materials supplied or labor or
professional services performed on behalf of Buyer, Buyer
shall promptly satisfy and discharge such lien at its sole
cost and expense upon demand, therefore, by Seller. Buyer
shall repair any and all damages to the Property caused by any
such tests and inspections .
9. Survival
The warranties, representations and agreements made in this
Agreement shall survive the close of escrow.
10 . Not Binding Until Signed by Buyer and Seller
This Agreement shall be of no force or, effect whatsoever
until signed by authorized representatives of both Buyer and
Seller. Unless and until this Agreement has been signed by
such authorized representative, Seller reserves the right to
convey the property to (or enter into an agreement for the
conveyance of the Property with) any other person.
In the event this Agreement is executed by the parties on
different dates, the date of execution shall be deemed to be
the later date.
�-s�
"SELLER"
By:
Date:
"B=R"
CITY OF SAN LUIS OBISPO
By:
Date:
Allen K. Settle
Mayor
ATTEST:
City Administrative Officer
APPROVED AS TO FORM:
City Attorney
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ATTACHMENT 10
mEET1NG
AGENDA
DATE 40 --I-96 ITEM
Date: September 25, 1996
To: City Council
Via: John Dunn, City Administrative Offi��
From: Neil Havlik, Natural Resources Manager`
Subject: Update Report on Phase 1 Environmental Assessments -- Maino.and
Guidetti Properties
The Phase 1 Environmental Assessments for these two properties have been completed
and the investigators indicate that there is no evidence of "indicators of environmental
impairment", the industry parlance for a potential problem, for either property.
If Council members wish to review the documents for either property, please contact
Natural Resources Manager Neil Havlik.
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YCLERWORIG ❑ POLICE CHF i
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❑ C EAD FILE ❑ UTIL DIR 7i D
❑ PERS DIR SEP 2 5 1996
CrrY CLERK
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mCETING AGENDA
DATE /a-/-96 ITEM #
Date: September 26, 1996
To: City Council
Via: John Dunn, City Administrative Officer
Ken Hampian, Assistant Cit Administrative Officer
From: K p y
Subject: October 1st Agenda Item #2: Open Space Public Hearing
The attached historical information concerning the City's open space goals was prepared
for a meeting with the former members of the Open Space Financing Task Force. We
thought the Council would be interested as .well.
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❑ C EAD FILE O UTIL DIR
❑ FERS DIR
_,— OP 2 6 1996
CITY CLERK
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POLICY HISTORY OF OPEN SPACE
PLANNING AND ACQUISITION:
AN/IN NINAM 110 r
1987-89 Financial Plan and Budget
"Revise and incorporate open space and conservation element policies into the updated
Land Use Element, including an evaluation and recommendation on an Open Space
Acquisition Program."
1989-91 Financial Plan and Budget
"Identify properties with high scenic, habitat, recreational, and open space values to act
as a buffer around the City...identify priorities for protection and/or acquisition and
inclusion in the City's park and open space plans. Develop protection strategies tailored
to each situation, including cluster development, transfer of development rights, and
purchase of easements or fee title. Seek voter approval for new funding. Begin
implementation."
($600,000 allocated for acquisition during this time.)
1991-93 Financial Plan and Budget
"Identify and develop a permanent source of funding for the acquisition of open space
sites in order to establish a green belt around the City...immediate implementation of the
acquisition program following the adoption of the Open Space Element."
($900,000 in bond proceeds allocated for acquisition brings the total to $1.5 million.)
1993-95 Financial Plan and Budget
"Complete the update of the General Plan Elements including the...Open Space
Element"..."develop non-general fund options to support the implementation of open
space programs."
1995-97 Financial Plan and Budget
"Inventory, prioritize and fund acquisition of open space, while continuing to inventory
natural resources within the City, urban reserve line, and green belt areas."
(over)
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1988 Citaen Survey(per Land Use Element Update)
"90 percent of respondents listed the natural environment as their top quality of life
concern" (adopted Land Use Element, p. 4).
Open Space Element Advisory Committee Final Report(1992)
"Designating open space within a community is a way of protecting vital natural and
community resources for present and future generations, maintaining a level of harmony,
and preserving the area's quality of life."
"The City should designate one City department and maintain staff within that department
to manage and secure open space properties in order to successfully preserve open
space and to effectively manage the lands that are obtained."
Economic Strategy Task Force Final Report(1993)
"The City's scenic surroundings are important to business and residents, yet while there
has been much discussion and planning for open space and greenbelts, very little space
has been obtained."
"Hard and clean community edges are desired."
"Use a variety of techniques to acquire or retain open space around the boundaries of the
City, concurrent with annexations, independently, or in cooperation with other agencies."
Environmental Quality Task Force Final Report(1995)
"Develop a program and funding mechanism for acquisition of lands for conservation
purposes."
"Develop strong and clear public policy statements about the value of preserving open
land around the city, to enable private land trusts to assist in land protection."
Open Space Financing Task Force Final Report(1996)
"In order for us to retain our quality of life, the greenspace and open areas and a strong
visitor economy, it is necessary that the City government and our citizens become
stewards for preserving the best of what is left. Development pressures, a continuation
of the trend for the past thirty years, will continue into the future. Now is the time to plan
and act if the unique beauty of our area is to be saved for the enjoyment of future
generations." f�/
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9/1/J!MEMOV J,W/I;r71/!!i/71//1//1/rl/';
• Land Use Element
• Open Space Element
• Parks and Recreation Element
• Conservation Element
MEETING AGENDA
DATE A ITEM #
C
September 26. CAO
1996 J COU14CIL DIR
VFIN DIR
J UP"ACAO 0 FIRE CHIEF
A! RNEY ❑ f
SE.? 2 1996 13 PW DIR
San Luis Obispo city Council CLE K/ORIG 0 POLICE CHF
990 Palm Street CITY ❑
rLERK MGMT TEAM 0 REC DIR
San Luis Obispo CA 93401 C,,j.1 ! -I3r -, .0 C READ FILE
CA 0 UTIL DIR
Attn: Mayor and Council Members 0 PEAS DIR
OF47 1714WJ <
Subject: Support for Open Space Acquisition of Maino and Guidetti Parcels
Dear Mayor and Council Members:
As a long time supporter of Open Space Preservation for the City and County of San Luis
Obispo. I must urge the council to support the acquisition of the Maino Property and the
easement on the Guidetti Property. These acquisitions are a demonstration of the Council's
foresight in planning for the City's future while accommodating the anticipated Margarita
and Airport Area annexations which may be before you in the coming year.
As the Council knows, the key to Open Space Preservation is the willingness of the
landowners to negotiate with the interested party and satisfy the needs of the landowner.
Each owners situation is different and the terms and agreements will differ with every
easement, acquisition or development.
The goal of any Open Space program is to eventually create large contiguous parcels for
wildlife, habitat and as well view shed. In creating the City's Greenbelt it is also not
necessary own the properties outright to accomplish this. These parcels meet this criteria.
As each parcel is different, I have listed below the many reasons why the council should
go forward with these agreements.
Maino Property:
• The Maino Property is at the Gateway to the City and should never be developed
• The City has passed a joint resolution with the County of San Luis Obispo and the
City of Morro Bay to work toward the preservation of the Morros. This parcel is at
the base of Cerro San Luis Mountain
• The outright acquisition of this property is appropriate because it in the city limits and
can provide limited recreation to San Luis Obispo City residents.
• It adjacent to an existing 40 acre parcel open space parcel creating a 125 acre parcel
for wildlife, habitat, and limited public use. It is also close to Laguna Lake and the
possibility of and easement over the remaining parcels could link these parcels to
Laguna Lake Park, creating an even larger protected wildlife preserve. ,
• The property has been slated for development many times and should be acquired.
• The conservation easement with the Land Conservancy is required to guarantee no
further development of the property is done and to lower the overall asking price for
the property.
• The asking price of$950,000 dollars is well worth its weight, as considered to the
appraisal and what the city will have gained over the next 20 years.
Guidetti Property:
• After touring the property it is clear that regardless of the development potential and
mineral extraction after this agreement is executed, this 1500 acre parcel is a prime
candidate to provide wildlife and habitat protection. One house per 150 acres is quite
acceptable.
• It may appear that this site is remote, but with pending annexation proposals this site
will no longer be remote. It will actually be very near the City's southern Urban Edge.
The foresight of acquiring the development rights now will help the City in its planning
of the Airport and Margarita annexation proposals.
• It creates a buffer zone from the ever approaching Pismo Beach which may eventually
acquire Crag Canyon near the Avila Beach Off Ramp.
• From a visual perspective this parcel covers a lot of territory and will help maintain the
rural character of the San Luis Obispo Country Club, adjoining Squire Canyon, and
Airport Area.
• It has been suggested that a portion of the Guidetti property lies outside the greenbelt
area. I have always thought of the greenbelt line as a bit arbitrary and may expand or
shrink depending on property lines, landowner negotiations, etc. In this particular case
the greenbelt line goes directly though the middle of the property and through the
middle of a valley. In this case, to preserve wildlife habitat and the view shed to the
city, the greenbelt line should be expanded to encompass the surrounding hillsides.
• Public access has been mentioned many times on this property. Though this may be
desirable it is not necessary if one of the goals is to preserve wildlife habitat and the
agricultural operation on this ranch. Public access should never be a deal breaker on a
conservation easement agreement
The purchase of the development rights is the right thing to do at this time. It allows
the landowner to remain in agriculture. It meets the landowners present needs. It also
goes along with the county goals of trying to preserve agriculture a vital industry to
the County of San Luis Obispo
• The property will remain on the County Tax Rolls and the City's maintenance cost will
be zero.
• The price of$400,000 is small price to pay for what the city will gain. It will eliminate
what may become a political hot potato if the easement is not purchased now.
In conclusion, I urge the council to support the Open Space Program and the agreement
reached on of these two parcels. These are definitely prime parcels for wildlife, habitat
protection. Provides limited public access to residents of the city. It demonstrates how the
City can be flexible with landowners, and still reach its goals of creating a greenbelt
around the City of San Luis Obispo.
Sincerely,
Gary S. Felsman
2234 Santa Ynez Ave
San Luis Obispo CA 93405
(805)549-0532
MEETING AGENDA
MEMORANDUM DATEAK 2/0 ITEM #
Date: October 1, 1996
To: City Council
From: John Dunn1�4k( ,f�
Subject: Current Open Space Acreage Information
Council member Romero asked staff to compile information regarding the amount of open space
acreage already owned by the City. This information is attached. However, a couple of
qualifiers are in order:
1. While we believe the acreage are fairly close to accurate, time did not permit a detailed
review of the legal property record. Therefore, the numbers should be considered as
estimates.
2. Property shown includes open space areas and major easements only. The City also holds
a myriad of maintenance easements along creeks and elsewhere; these minor easements
have not been included in the numbers.
3. We have not included City-owned property located well outside the greenbelt, such as
Whale Rock, Salinas Reservoir, or Lopez Canyon.
Any questions concerning these estimates should be directed to John Mandeville or Neil Havlik.
A large map showing the major open space areas already owned by the City shall be posted in
the Community Room for review this evening.
cc: Arnold Jonas
Ken Hampian
John Mandeville
Neil Havlik
CITY OPEN SPACE LANDS ACQUIRED 1986 - 1996
EXISTING PRIOR TO 1986 (from Property Management Manual, March 1986)
Laguna Lake Park and Open Space, 250 acres (fee)
Reservoir Canyon Open Space, 200 acres (fee)
Mount San Luis Open Space, 43 acres (fee)
Water Treatment Facility Open Space, 15 acres (fee)
Tract 808 Open Space (South Hills), 12 acres (fee)
San Luis Obispo Creek Open Space, 2.6 acres (fee)
Ferrini Ranch Open Space, 148 acres (easement)
"Rancho Lobo" (Wolfe/Andrews property, Tract 940) Open Space, 95.9 acres (easement)
Foothill/La Mancha (Tract 1313) Open Space, 9.5 acres (easement)
"Let It Be" Nature Preserve Site, 7 acres (easement)
1986 estimated acreage in fee: 522.6; estimated acreage in easement: 260.4; Total: 783.
1986
none
1987
none
1988
Terrace Hill Open Space, 17.2 acres (fee?)
1989
Laguna Heights (Royal Way, Tract 1438) Open Space, 2.9 acres (easement)
1990
none
1991
none
1992
San Luis Obispo Creek, 1.3 acres (fee)
Islay Hill Open Space, 65 acres (easement)
San Luis Drive Open Space, 18.3 acres (easement)
Hill Street Open Space (Jeong/Santacqua properties), 1.5 acres (easement)
1993
Willow Creek, 0.6 acres (easement)
1994
none
1995
Ferrini Ranch Open Space, 138 acres (change from easement to fee)
South Street Hills Open Space, 50 acres (fee)
"Let It Be" Nature Preserve Site, 7 acres (change from easement to fee)
1996 (TO DATE)
Froom Creek, 0.8 acres (easement)
TOTAL TO DATE:
estimated acreage in fee: 736.1; estimated acreage in easement: 194.5; Total 930.6.
MEETING AGENDA
MEMORANDUM DATE �`-�g�'-ITEM #L.,12,
Date: October 1, 1996
To: City Council /
From: John Dunn Y,,A-� .�EY
Subject: Current Open Space Acreage Information
Council member Romero asked staff to compile information regarding the amount of open space
acreage already owned by the City. This information is attached. However, a couple of
qualifiers are in order:
1. While we believe the acreage are fairly close to accurate, time did not permit a detailed
review of the legal property record. Therefore, the numbers should be considered as
estimates.
2. Property shown includes open space areas and major easements only. The City also holds
a myriad of maintenance easements along creeks and elsewhere; these minor easements
have not been included in the numbers.
3. We have not included City-owned property located well outside the greenbelt, such as
Whale Rock, Salinas Reservoir, or Lopez Canyon.
Any questions concerning these estimates should be directed to John Mandeville or Neil Havlik.
A large map showing the major open space areas already owned by the City shall be posted in
the Community Room for review this evening.
cc: Arnold Jonas
Ken Hampian
John Mandeville
Neil Havlik
J '
CITY OPEN SPACE I:ANDS ACQUIRED 1986 - 1996
EXISTING PRIOR TO 1986 (from Property Management Manual, Match 1986)
Laguna Lake Park and Open Space, 250 acres (fee)
Reservoir Canyon Open Space, 200 acres (fee)
Mount San Luis Open Space, 43 acres (fee)
Water Treatment Facility Open Space, 15 acres (fee)
Tract 808 Open Space (South Hills), 12 acres (fee)
San Luis Obispo Creek Open Space, 2.6 acres (fee)
Ferrini Ranch Open Space, 148 acres (easement)
"Rancho Lobo" (Wolfe/Andrews property, Tract 940) Open Space, 95.9 acres (easement)
Foothill/La Mancha (Tract 1313) Open Space, 9.5 acres (easement)
"Let It Be" Nature Preserve Site, 7 acres (easement)
1986 estimated acreage in fee: 522.6; estimated acreage in easement: 260.4; Total: 783.
1986
none
1987
none
1988
Terrace Hill Open Space, 17.2 acres (fee?)
1989
Laguna Heights (Royal Way, Tract 1438) Open Space, 2.9 acres (easement)
1990
none
1991
none
a
1992
San Luis Obispo Creek, 1.3 acres (fee)
Islay Hill Open Space, 65 acres (easement)
San Luis Drive Open Space, 18.3 acres (easement)
Hill Street Open Space (Jeong/Santacqua properties), 1.5 acres (easement)
1993
Willow Creek, 0.6 acres (easement)
1994
none
1995
Ferrini Ranch Open Space, 138 acres (change from easement to fee)
South Street Hills Open Space, 50 acres (fee)
"Let It Be" Nature Preserve Site, 7 acres (change from easement to fee)
1996 (TO DATE)
Froom Creek, 0.8 acres (easement)
TOTAL TO DATE:
estimated acreage in fee: 736.1; estimated acreage in easement. 194.5; Total 930.6.
r �
MEETING AGENDA
F3
DATE /0 ITEM #
San Luis obtspo County
FARM BUREAU
October 1, 1996 _;�, .
COUNCIL ZCDD DIR
AO ❑ FIN DIR IrI
CAO ❑ FIRECHIEF �I
E ATTORNEY ❑ PW DIR
�7 CLERWORIC ❑ POLICE CHF
Council Members ❑ MGMT TEAM ❑ REC DIR {
San Luis Obispo City Council .l ❑ D FILE ❑ UTIL DIR
City of San Luis Obispo
❑ PERS DIR
990 Palm Street A/,fi/AVux
San Luis Obispo, CA 93401
Dear Council Members:
It is the understanding of the S. L. 0. Co. Farm Bureau that the San Luis Obispo City Council
will be considering two special land conservation projects. One project is a fee acquisition and
the second an easement for scenic protection and open space. The two projects have been
presented to Farm Bureau as projects that are desired by the current property owners. One project
was initiated by the property owner.
Farm Bureau policy supports the right for agricultural property owners to enter into land
conservation programs, as long as the programs are voluntary market based, incentive driven, do
not seta precedent that creates an future mandato ro am or impact neighboring land use and
are processed in a timely manner.
As a matter of policy, Farm Bureau does not support individual projects, rather general programs
that are beneficial to agriculture and the agricultural property owners. We would like to reaffirm
this position of program support, as outlined with the criteria above and appreciate the City of
San Luis Obispo's consideration of a voluntary, incentive driven land conservation program
Sincerely,
JOY ZHUGH
Legislative yst
Li
(�nT •.n
`IJ: �.—;7
651 Tank Fane Rd.
San Luis Obispo, CA 93401
(805) 543-3654