HomeMy WebLinkAbout10/03/2000, 4 - ACCEPTANCE OF AN AMENDED CONSERVATION EASEMENT FOR THE JOHN GUIDETTI RANCH ON JESPERSON ROAD, AND AUTHORIZATION OF DISBURSEMENT OF FUNDS councit Dam 0
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C I TY O F S AN LU IS O B I S P O
FROM: Ken Hampian, Assistant City Administrati e Officer
Prepared By: Neil Havlik,Natural Resources Manager'
SUBJECT: ACCEPTANCE OF AN AMENDED CONSERVATION EASEMENT FOR
THE JOHN GUIDETTI RANCH ON JESPERSON ROAD, AND
AUTHORIZATION OF DISBURSEMENT OF FUNDS
CAO RECOMMENDATION
1. Authorize the Mayor to execute an "Amended Conservation Easement" for the 1,480 acre
John Guidetti Ranch on Jesperson Road; and
2. Authorize the disbursement of$50,000 from the existing Natural Resources Program Open
Space budget as the City's contribution toward this project.
DISCUSSION
In 1996, the City of San Luis Obispo and the Land Conservancy of San Luis Obispo were
approached by Mr. John Guidetti regarding the potential sale of a conservation easement on all or
a portion of his property at the end of Jesperson Road which included the top of Indian Knob, a
prominent landmark in the south San Luis Obispo area. After lengthy discussion, an easement
purchase agreement was reached with Mr. Guidetti and in October 1996 the Council authorized
the purchase of an easement interest in the property which did the following:
1. Prohibited father subdivision of the property;
2. Encouraged the clustering of existingdevelopment potential of the property (10-12 units) in
one location on the property so as to minimize disturbance to the conservation values of the
remainder of the ranch;
3. Prohibited commercial cutting of trees for firewood or any other purpose to protect the
significant oak resource values of the property; and
4. Prohibited exploration or exploitation of mineral resources on a portion of the property
which comprised the upper elevations of the ranch.
The City paid$400,000.00 or approximately$275 per acre for this easement.
The Nature Conservancy of California (TNC), negotiated an agreement with Mr. Guidetti last
year to acquire additional easement interests in the property that advance the easement conditions
acquired by the City in 1996. These additional easement interests include:
1. Purchase of most of the existingdevelopment rights, restricting the property to a total of two
dwelling units;
2. Prohibition of intensive agricultural programs on the property, in effect restricting it to
livestock grazing purposes. This is intended to protect the habitat values of the property with
4-1
Council Agenda Report—Amended Conservation easement for the John Guidetti Ranch on
Jesperson Road, and Authorization of Disbursement of Funds
Page 2
which livestock grazing is consistent, but more intensive agricultural purposes such as row
crops or vineyards may not be;
3. Full prohibition of any surface exploration for, or developmentof mineral resources of the
property. Slant drilling for oil from adjacent properties would still be permitted;
4. Specific authority for agencies such as the Nature Conservancy, U.S. Fish and Wildlife
Service, California Department of Fish and Game, or other appropriate entities to undertake
certain actions designed to enhance populations of the two endangered plant species known
to occur on the property; and
5. Provision for restricted access at a relatively low level to tour the property under supervision
and direct guidance up to four times per year.
An appraisal commissioned by TNC determined the value of these added restrictions to be one
million dollars or approximately$675 per acre.
In July of last year City staff were approached by TNC staff, who felt that the most expeditious
way to effect these additional easement interests was by amending the current City-held
conservation easement with Mr. Guidetti. Under this scenario the City would be the holder of
the amended easement, would continue its operation of annual monitoring (done under contract
with the Land Conservancy), and would be in a position to undertake the quarterly tours as part
of the City's anticipated docent program if it chose to do so. Since the amended easement had
provision for public access (even though it was restricted), the Council at that time indicated its
support for acceptance of the amended easement and willingness to contribute $50,000 to the
project. Staff was directed to inform TNC staff of this position.
Since July 1999 there has been regular City participation in activities involved in this transaction,
and the matter is now at a point where the Council can formally act thereon. INC has exercised
its option and escrow is expected to close on October 23, 2000. As an easement acquisition, this
transaction is exempt from NEPA and CEQA.
FISCAL EWPACT
This is a highly advantageous action for the City of San Luis Obispo, since for a $50,000
contribution the City will receive a $1,000,000 value. TNC has accumulated the additional
funding necessary for the transaction, and the City will obtain an amended conservation
easement with much stronger long-term protection for the property. The City will continue to
undertake annual easement compliance inspections of the property(as is done now), and will add
the public tours to the Natural San Luis docent program. The city's $50,000 contribution is
available in the existing Open Space budget (99-01 Financial Plan Supplement Appendix, page
52). There are not expected to be any new cost considerations resulting from this acquisition.
4-2
Council Agenda Report—Amended Conservation easement for the John Guidetti Ranch on
Jesperson Road, and Authorization of Disbursement of Funds
Page 3
ATTACHMENTS:
1. Letter from The Nature Conservancy; August 30,2000
2. Amended Conservation Easement
3. Property map
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The ATTACHMENT 1
Nature S San oto.Box 1004
Obispo,ca�ifornia
Conservancy®
93406
CENTRAL COAST
1767
CONSERVATION OFFICE FAx80554}-
Fax 805 544-22092209
August 30,2000 E-mAa hara_smth@int.org
Mr.Neil Havlik
Natural Resources Manager e(� ^
City of San Luis Obispo `''�'vv c
990 Paha St.
San Luis Obispo, CA 93401 SEP U 5 2000
City Qf S,L,O.
RE: Guidetti Ranch Conservation Easement Administration
Dear Neil,
I am writing to ask for your assistance as The Nature Conservancy prepares to exercise its option for the
conservation easement on the John Guidetti Ranch. As you know,the option exercise date is September 22,2000
and our closing date is Monday,October 23. We must actually have all of the funding and necessary information
available before Friday,October 20. To assure that we will have the completed package ready for the sale to be
recorded on time,we are requesting that the City of San Luis Obispo submit the$50,000 it is contributing toward
the purchase and all required approvals and documentation by no later than Friday,October 13.
More specifically,we need the following:
1. City Council resolution of acceptance for the amended conservation easement
2_ City Council approval of the updated title report
3. City Council authorization for Mayor Settle to sign an original counterpart of the"Amendment
to Deed of Conservation Easement"
4. City Council approval for disbursement of the$50,000 the City has agreed to contribute toward
the purchase as part of its Greenbelt Program
When necessary,I can provide copies of the amended conservation easement and updated title report,as
well as an original counterpart of the"Amendment to Deed of Conservation Easement"for Mayor Settle's
signature. The$50,000 payment can be deposited pursuant to wiring instructions available from Cuesta Title
Escrow Officer Jan Hinote,who can be reached at 5441860.
I appreciate your assistance in this process. Please give me a call if you need any additional information or
have questions about any of the above.
Sin
cerely,
Y ""
Armee McMahon
Operations Manager
Cc: Ruth Cahill,The Nature Conservancy
Jan Hinote,Cuesta Title
4-4
,.ode,,,.
ATTACHMENT 2-
WHEN RECORDED,PLEASE MAIL TO:
The City of San Luis Obispo
Attn:
990 Palm Street
San Luis Obispo,CA 93401
Space above for Recorder's Use
AMENDMENT TO DEED OF CONSERVATION EASEMENT
John Guidetti and the City of San Luis Obispo
THIS AMENDMENT TO DEED OF CONSERVATION EASEMENT (this
"Amendment") is made this day of . 1999, by John Guidetti,having an address
at P.O.Box 185, San Luis Obispo, CA 93406("Grantor')and the City of San Luis Obispo, a
chartered municipal corporation of the State of California, having an address of 990 Palm Street,
San Luis Obispo, CA 93401 (the City of San Luis Obispo is also referred to herein as"Grantee").
RECITALS
WHEREAS,Grantor is the sole owner iit fee simple of certain real property consisting of six(6)
separate parcels in San Luis Obispo County, Califomia, more particularly described in Attachment
1 attached hereto and incorporated by this reference (the"Property");and
WHEREAS,the Property possesses agricultural values, scenic open space values, and natural
resource values, including wildlife,plant resources (including the federally endangered Pismo
clarkia and Indian Knob mountain balm)and natural communities(including maritime chaparral
and oak woodlands) (collectively, the"conservation value:?,)of great importance to Grantor,the
people of the City of San Luis Obispo,and the people of the State of California;and
WHEREAS,on October 29, 1996,Grantor and the City of San Luis Obispo did execute that
certain Deed of Conservation Easement (the"Easement Agreement") to effect the preservation of
the conservation values of the Property;and
WHEREAS, Grantor and Grantee now wish to amend the Easement Agreement to add certain
protective measures for the public benefit while still maintaining certain rights of utilization to the
Property by Grantor,and
WHEREAS,The Naturc Conservancy, a nonprofit conservation organisation, recognizes the
conservation values of the Property and therefore intends to raise the funds necessary to complete
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ATTACHMENT 2-a
the purchase of the additional protective measures reflected in this Amendment pursuant to the
Option Agreement for Purchase and Sale of Conservation Easement, which is incorporated by this
reference;and
WHEREAS,the specific conservation values of the Property are documented in a 1996 report
prepared by the Land Conservancy of San Luis Obispo County(the"Baseline Report") which is
on file at the offices of Grantee and incorporated by this reference,and this Baseline Report
includes maps,photographs,and other documentation that the parties agree collectively provide
an accurate representation of the Property at the time of this Amendment and which is intended to
serve as an objective information baseline for monitoring compliance with the terms of both the
Easement Agreement and this Amendment; and
WHEREAS, Grantor and Grantee recognize the Property is classified as within the Agricultural
zone in the General Plan for the County of San Luis Obispo and this carries with it permitted
activities that are acknowledged by Grantor and Grantee to include the construction of single
family residential homes;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,the City of San Luis Obispo is a chartered municipal corporation of the State of
California that is authorized to accept conservation easements;and
WHEREAS, Grantee agrees by accepting this Amendment to honor the intentions of Grantor and
Grantee stated herein and to preserve and protect in perpetuity the conservation values of the
Property for the benefit of this generation and generations to come;
NOW THEREFORE,in consideration of the above and of the mutual covenants, terms,
conditions,and restrictions contained in this Amendment, and pursuant to the laws of California
and in particular sections 815 and 816 of the Civil Code -Conservation Easements, Grantor and
the City of San Luis Obispo hereby agree to amend the Easement Agreement as set forth herein
and Grantor hereby voluntarily grants and conveys to Grantee an easement in gross, in perpetuity,
over the Property, subject to all the term and conditions of the Easement Agreement and this
Amendment.
1. Restrictions on Development. Grantor hereby forever agrees that the Property shall not
contain any new development other than two residences, one considered a primary
residence and the other considered a secondary residence, in accordance with the
regulations of the Agricultural zone as they exist in the County of San Luis Obispo as of
the date of this Amendment. Grantor further agrees that said residences shall be located in
the area indicated on Attachment 2 attached hereto and incorporated by this reference. In
so agreeing, Grantor acknowledges he is relinquishing all rights to develop any other
residences or structures(residential,commercial, industrial or otherwise)on the Property
other than as described in this paragraph. The restrictions of this paragraph do not apply
to existing residences or structures now located on the Property.
Am`mbOsYotOmmoa�WIYM 2 4-6
ATTACHMENT 2-3
2. Restrictions on Agricultural Activities. Except as provided for in this paragraph,Grantor
hereby forever relinquishes the right to conduct any and all agricultural activities or
operations anywhere on the Property,including the planting of any vineyards or orchards,
and the pursuit of activities that involve tillage of soil, removal of vegetation, planting of
crops that would be harvested, or irrigation of said crops.Notwithstanding the foregoing,
Grantor is permitted to use a 50-acre parcel for tillage of soil and raising of crops for the
limited purpose of supporting the cattle being grazed on the Property, in the area indicated
on Attachment 3 attached hereto and incorporated by this reference, with a minimum 35
foot setback from the adjacent creek, to be measured from the top of the creek bank.
Further notwithstanding the foregoing,the grazing of domestic livestock shall be
permitted on the Property, subject to the conditions and restrictions on grazing set forth in
the Easement Agreement,and to the additional restriction that grazing shall be conducted
at a degree less than or consistent with current grazing practices employed by Grantor and
his grazing lessee at the time of the execution of this Easement Agreement, as described in
Attachment 4 attached hereto and incorporated by this reference. Subject to this
additional restriction, Grantor shall be encouraged to develop a conservation program for
grazing on the Property in cooperation with the Natural Resource Conservation Service
program of the U.S. Department of Agriculture.
3. Prohibition of Surface Exploration for or Exploitation of Mineral Resources. Grantor
hereby forever relinquishes the right to conduct any surface exploration activities or
exploitation or development activities associated with mineral resources anywhere on the
Property, except for the following: (1)a domestic water well to serve the permitted
residences,and(2) development of water resources to irrigate the permitted 50-acre tilled
area described in Paragraph 2 of this Amendment and for the continued grazing permitted
by the Easement Agreement and this Amendment. Drilling for oil and other minerals
under the surface of the Property carried out from adjacent properties shall be permitted if
and only if such drilling has no impact on the conservation values of the Property, and only
upon the approval of Grantee, which approval shall not be unreasonably or arbitrarily
withheld.
4. Authority to Conduct Annual Inspection Grantor hereby grants to Grantee or its agents
the right to enter any part of the Property once per year, at an agreed upon time, for the
specific purpose of inspecting the Property for compliance with the Easement Agreement
and this Amendment. Such entry shall not count against the four(4) entry limit set forth
in paragraphs 5 and 6,below.
5. Authority to Undertake Management Activities for Enhancement or Protection of
Resources. Grantor hereby grants to Grantee or its agents the right to enter the Property
up to four(4itimes per calendar year(provided that entry onto the Property by Grantee
for the purposes set forth in paragraph 6, below, shall count against the four(4)entry
limit)at agreed upon times for the specific purpose of conducting studies or carrying out
habitat restoration activities for plants, animals, and natural communities located on the
Property(including, for example,the federally endangered Pismo clarkia and Indian Knob
mountain balm which are known to occur on the Property). Grantee may enter the
Property more fluor four(4) tinies per calendar year with Grantor's prior written
peraysmon. As used in this Amendment, "habitat restoration activities" include,but�are
�semat�.e..s®tai 3 4-7 .
AnACHMENT 2
not limited to, removal of exotic species, planting of native species, research, and
monitoring, but shall exclude any activity that unreasonably interferes with Grantor's
grazing or other permitted activities. Any habitat restoration activities shall be proposed in
writing to Grantor, at least one week prior to commencement of such activities. All
habitat restoration activities are subject to the approval of Grantor,which shall not be
unreasonably or arbitrarily withheld. If Grantor objects to any proposed habitat
restoration activities, Grantor shall notify Grantee of such in writing within forty-eight
(48)hours of receiving the proposed habitat restoration activity plan. If Grantor fails to
object within forty-eight(48)hours, Grantee is permitted to commence the proposed
habitat restoration activities.
6. Access for Public Educational Programs. Grantor hereby agrees to permit the entry on the
Property at agreed upon times, supervised groups of not more than twenty (20)persons
for the purpose of conducting educational and natural history tours of the Property. Said
tours may occur up to four(4)times per year(provided that entry onto the Property by
Grantee for the purposes set forth in paragraph 5, above, shall count against the four(4)
entry limit). Grantee may enter the Property more than four(4)times per calendar year
with Grantor's prior written permission. Said tours will be under the control of Grantee or
its agents.
7. Successors and Assiens. The terms and conditions of this Amendment shall apply to and
bind, and shall inure to the benefit of,the heirs,executors, administrators, successors,and
assigns of the parties hereto.
8. All Other Conditions of Easement Agreement Remain in Full Force and Effect. Except as
specifically modified by this Amendment, the Easement Agreement,and all covenants,
terms,conditions,and restrictions contained therein, shall remain in full force and effect.
In the event of conflict between this Amendment and the Easement Agreement, this
Amendment shall prevail.
9. Recordation. Grantee shall record this Amendment in a 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 under the Easement Agreement and this Amendment.
IN WITNESS WHEREOF, Grantor and Grantee have executed this Amendment as of the
date first written above.
For the Grantor.
John Guidetti
For the Grantee:
Allen Settle,Mayor
AP'IPWVED AS TO FORM:
Amdmr mmdO�veF�m IaR.M 4 JiAkWMw
For the Deed of Trust Holder ATTACHMENT 2-5
Subordination
The undersigned is the holder of the beneficial interest in and under that certain Deed of
Tom, dated as of , and recorded on , as Instrument No.
in the Official Records of San Luis Obispo County [as amended] (the
"Deed of Trust"), which Deed of Trust is by and between ,a
as Trustor, and . a ' a Trustee,and
. as Beneficiary. The undersigned hereby subordinates said Deed of
Trust and its beneficial interest thereunder to the Amendment to Deed of Conservation
Easement(the"Amendment')to which this Subordination is appended, and to the
Easement Agreement(as that term is defined in the Amendment).
Central Coast Federal Land Bank Association,FLCA
By:
John C. Boyes, Senior Vice President
Central Coast Production Credit Association
By:
John C.Boyes, Senior Vice President
5 4-9
AITACHMENT 3
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CITY OF SAN LUIS OBISPO
GREENBELT PROTECTION PROGRAM
JOHN GUIDEM RANCH
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