HomeMy WebLinkAbout10/03/2000, 3 - APPROVAL OF PURCHASE OF REAL PROPERTY OF APPROXIMATELY 284 ACRES OF LAND IN RESERVOIR CANYON (HASTINGS). 4
council �Dmt 10-3-00
j acEnaa Report �NA.
CITYOF SAN LUIS O B I S P O
FROM: Ken Hampian,Assistant City Administrati re Officerk#----
Prepared By: Neil Havlik,Natural Resources Manager -
SUBJECT: APPROVAL OF PURCHASE OF REAL PROPERTY OF
APPROXIMATELY 284 ACRES OF LAND IN RESERVOIR CANYON
(HASTINGS).
CAO RECOAUKENDATION
Authorize the Mayor to execute a Contingent Agreement for Purchase and Sale of Real Property
with the Hastings family members for the purchase of 284 acres of property in Reservoir Canyon
in two existing parcels for a purchase price of$200,000, subject to approval by the California
Department of Transportation and minor changes in the purchase agreement, subject to the
approval of the City Attorney.
DISCUSSION
The 284-acre Hastings property lies in Reservoir Canyon adjacent to the City of San Luis
Obispo's existing 200-acre property (Attachment 1). This property has been in the Hastings
family since 1930, when it was apparently patented from the Federal government. The property
is rugged, scenic, and of high resource value. It lacks legal access and that is the primary reason
for the seemingly low purchase price. After lengthy negotiation, the family has agreed to the sale
of the property for conservation purposes. As a result,this is a straightforward transaction: there
are.no known title, hazard, or tenant conditions to create undue problems or difficulties. Staff
recommends this action to take advantage of the great opportunity afforded by current situation,
and begin to permanently protect Reservoir Canyon and the ridge above Johnson Avenue which
is such a dominant feature of that part of the community.
The agreement could be modified slightly prior to execution. Any minor revisions will be
subject to the approval of the City Attorney.
FISCAL E%ffACT
The total cost of this transaction is estimated to be $210,000 (purchase price plus closing costs).
The City has secured grant fund support for approximately half the purchase price from the State
of California(99-01 Financial Plan Supplement Appendix,page 52). Additional grant funding is
obtainable if the City is successful in acquiring additional land in the area. Staff is confident that
this is doable, as several opportunities are expected to come forward in the next several months.
Staff anticipates that State funds will be available before close of escrow; if not, reimbursement
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Council Agenda Report—Approval of Purchase of Real Property of Approximately 284 acres of
Land in Reservoir Canyon(Hastings)
Page 2
will occur very soon thereafter. Therefore,with the additional anticipated acquisitions in the area
the purchase price for this property will eventually be completely recovered. The property will
eventually require an increase in ranger responsibilities; however, due to the wild and
unimproved character of the site this will not happen immediately. The property will be subject
to tax payments as it is outside of the city limits: these are estimated at $2,000 per year or less,
due to deed restrictions required by the State.
ATTACHMENTS
1. Property Map
2. Draft Purchase Agreement
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CITY OF SAN LUIS OBISP.O
GREENBELT PROGRAM
HASTINGS PROPERTY
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ATTACHMENT 2-1
CONTINGENT AGREEMENT FOR PURCHASE AND SALE
OF REAL PROPERTY
This CONTINGENT AGREEMENT FOR PURCHASE AND SALE OF REAL
PROPERTY is entered into by and between the CITY OF SAN LUIS OBISPO ("Buyer"), a
California Charter Municipal Corporation, and FRANK D. HASTINGS, ADMINISTRATOR OF
THE ESTATE OF FRANCIS M. HASTINGS, DECEASED; DANIEL J. WRIGHT; MICHAEL R.
WRIGHT; AND DEBORAH ANN WRIGHT(collectively, "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
WHEREAS, Buyer seeks to preserve and conserve characteristics such as visual
quality, wildlife habitat, and other community attributes where appropriate surrounding the
City; and
WHEREAS, Seller is owner of certain lands adjacent to the City which are of scenic
and ecological value to the City of San Luis Obispo; and
WHEREAS, Seller wishes to preserve, protect and restore the scenic and ecological
values which exist or may exist on the Property, and
WHEREAS, the purchase of said land in the judgment of Buyer would act to preserve
the values indicated above and serve an important municipal purpose; and
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
1. BASIC AGREEMENT
Seller agrees to sell, and Buyer agrees to buy, the Property identified as San Luis
Obispo County APNs 070-301-002 and 070-301-003 and commonly referred to as the
"Hastings property" in the County of San Luis Obispo, (shown on Exhibit A attached hereto)
totaling approximately 284 acres ("the Property"). Buyer's obligation to buy the Property is
expressly contingent upon certain conditions precedent described in Paragraph 4 below.
2. PURCHASE PRICE
The total purchase price for the Property shall be TWO HUNDRED THOUSAND
DOLLARS ($200,000.00), payable in cash at the close of escrow.
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ATTACHMENT 2-a
3. CONVEYANCE
Title to the Property shall be conveyed by Grant Deed and shall be insured by a CLTA
(or at Buyer's election, an ALTA) owners' policy of title insurance in the amount of the
purchase price, showing title vested in Buyer, subject only to those exceptions listed in the
Preliminary Title Report and/or Supplemental Report approved or deemed approved by
Buyer.
4. CONDITIONS PRECEDENT FOR BENEFIT OF BUYER
Buyer's obligation to purchase the Property is expressly conditioned upon the
satisfaction, deemed approval, or Buyer's waiver of each of the following conditions, each of
which is deemed exclusively for the benefit of Buyer.
(a) Title Retort. Buyers approval of the exceptions to title set forth in a 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 and Escrow Holder written notice of Buyer's disapproval of any
specific title exception. Any title exception not so disapproved shall be deemed approved,
provided that if a Supplemental Title Report is issued showing any exception not shown in
the Preliminary Title Report, Buyer shall have an additional ten (10) calendar days after
receipt of such Supplemental Report to similarly disapprove any new 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 ten (10) 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) calendar days
after receipt by Seller of such notice of disapproval), then Buyer may elect to (i) terminate its
obligations under this Agreement, (ii) waive its objections to such exception, or (iii) elect to
correct any such disapproved exception itself, in which case Seller will provide reasonable
assistance to Buyer to cure the same.
(b) Inspection and Approval of Property and of Any Testing Thereon. Buyer's
inspection and approval of the Property and all improvements thereon, including (at Buyer's
option and expense), any surreys or studies deemed necessary in Buyer's sole judgement.
Access to the property shall be given to Buyer, its agents and authorized representatives
during normal business hours upon at least one (1) business day's notice to Seller, at
Buyer's own cost and risk, for any purposes relating to Buyers conditions. Buyer shall
indemnify and defend Seller against and hold Seller harmless from all losses, costs,
damages, liabilities, and expenses, including, without limitation, reasonable attorney fees
arising out of Buyer's entry onto the Property or any activity thereon by Buyer or its agents,
or authorized representatives prior to the Close of Escrow, except to the extent any such
losses, costs, damages, liabilities, and expenses arise out of the gross negligence or willful
acts of Seller. 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
disapproval (except that Seller shall be obligated to remove any liens) but Seller may elect,
by written notice to Buyer within ten (10) calendar days after receipt by Seller of such notice
of disapproval, to attempt to remove such disapproved items. If Seller is unable within a
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ATTACHMENT 2-3
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) calendar days -
after receipt by Seller of such notice of disapproval), then Buyer may elect to (i) terminate its
obligations under this Agreement, (ii) waive its objections to such exception, (iii) elect to
correct any such disapproved exception itself, in which case Seller will provide reasonable
assistance to Buyer to cure the same. The parties may also enter into additional
negotiations, as may be mutually acceptable, concerning adjustment of the purchase price,
allocation of risk, or contribution to the costs to cure or other matters, and the Escrow shall
be extended for a reasonable time of effect such negotiations.
(c) Approval of the Purchase by the California Department of Transportation.
Seller acknowledges that the Property is to be purchased with grant funds from the California
Department of Transportation, and that said Department must give written approval of the
transaction to Buyer. Buyers obligation to purchase the property is contingent upon Buyers
receipt of such written approval.
5. ESCROW
(a) Escrow Holder. Buyer and Seller will establish an escrow ("Escrow") with
Escrow Holder within ten (10) business days of execution of this Agreement, subject to the
provisions of the standard conditions for acceptance of escrow and the terms and conditions
in this Agreement, with a signed counterpart of this document to be delivered as escrow
instructions to Escrow Holder. In the event of any conflict between the terms of this
Agreement and the standard conditions for acceptance of escrow, the terms of this
Agreement shall control. The Escrow Holder shall be Cuesta Title Company, 3450 Broad
Street, Suite 101, San Luis Obispo, CA. 93449.
(b) Prorations and Fees.
(i) Real property taxes and rental income, if any, shall be prorated to the close
of escrow.
(ii) All Escrow fees and costs shall be allocated according to custom in San
Luis Obispo County.
(a) Closing Date. Provided that the contingencies are met and removed by Buyer,
Escrow shall close within forty-five (45) days of execution of this Agreement by
Buyer.
6. REPRESENTATIONS, WARRANTIES,AND AGREEMENTS
(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.
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-4(b) ATTACHMENT 2-4-
(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. 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 Property. Possession of the Property shall be delivered by Seller to
Buyer upon the close of Escrow. Seller may remove, at Seller's expense, prior to the Close
of Escrow, all personal property and trade fixtures on the property, provided that the property
is left in a safe, sound and usable condition.
(d) Legal Actions. Seller represents and warrants to Buyer 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) Seller's Knowledge of Environmental Conditions of the Property. To the best of
Seller's knowledge, there are not now nor have there been any hazardous or toxic wastes
(as said terms are defined in applicable Federal, State, or County laws or regulations)
located on or within any portion of the property; nor have there been any enforcement,
cleanup, removal or other governmental or regulatory actions instituted, contemplated, or
threatened pursuant to any applicable Federal, State, or local laws or regulations relating to
any hazardous materials and affecting the property; nor have there been any claims made or
threatened by any third party against Seller or the property, relating to damage, contribution,
cost recovery, compensation, loss or injury resulting.from any hazardous materials.
(f). Property to be Preserved as Open Space in Perpetuity. Buyer warrants that it
intends to retain the Property in a natural condition in perpetuity, and that an Agreement
Declaring Restrictive Covenants shall be imposed upon the Property as a requirement of the
grant from the State of California.
7. 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: Dr. Neil Havlik, Natural Resources Manager
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Telephone (805) 781-7211
TO SELLER: Mr. Raymond Smith
South County Realty
102 Bridge Street
Arroyo Grande, CA. 93406
Telephone (805)481-4297
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The foregoing addresses may be changed by written notice. If sell WPW=1y, c9-S
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.
8. BROKER'S FEES
Seller shall be solely responsible for any broker's or finder's fees or other commissions in
connection with this transaction.
9. SURVIVAL
The warranties, representations, and agreements made in this Agreement shall survive the
close of escrow.
10. MISCELLANEOUS
(a) Entire Agreement. This Agreement, and the exhibits hereto, contains the
entire agreement between the parties hereto. No modification or addition to any term or
provision hereof shall be effective unless made in writing and signed by both parties hereto.
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.
(b) Attorneys' Fees. If litigation is commenced between the parties, the prevailing
party in that litigation shall be entitled to recover from the non-prevailing party all reasonable
attorney fees and costs.
(c) Successors. This Agreement shall inure to the benefit of and shall be binding
upon the parties to this Agreement and their respective heirs, successors, and assigns..
(d) Governing Law. This Agreement shall be governed and construed in
accordance with California law.
(e) Time of Essence. Time is of the essence in this Agreement.
(f) Offer and Acceptance. This Agreement shall be of no force or effect
whatsoever until signed by all authorized representatives of.both Buyer and Seller.
(g) Exhibits. Exhibit A. Map
(h) Signature in Counterparts. This Agreement may be signed in counterparts,
each of which shall be deemed an original.
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ATTACHMENT 2—cP
"Seller"
FRANK D. HASTINGS, ADMINISTRATOR DANIEL J. WRIGHT
OF THE ESTATE OF FRANCIS M. HASTINGS,
DECEASED Date:
Date:
MICHAEL R. WRIGHT DEBORAH ANN WRIGHT
Date: Date:
"Br"
CITY OF SAN LUIS OBISPO
by: Date:
ALLEN K. SETTLE, MAYOR
ATTEST: APPROVED AS TO FORM:
Lee Price, CMC J r Jo ns
City Clerk ity Attom6y
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