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Home My WebLink About09/06/2005, C10 - DEED BACK TO BOWDEN RANCH PARTNERS, LP A PORTION OF DEED OF CONSERVATION EASEMENT FROM BOWDEN RANCH council 6 j ac en as Report CITY OF SAN LUIS OBISPO FROM: Jonathan P.Lowell, City Attorney J4__ SUBJECT: DEED BACK TO BOWDEN RANCH PARTNERS, LP A PORTION OF DEED OF CONSERVATION EASEMENT FROM BOWDEN RANCH PARTNERS, JV TO THE CITY TO REFLECT CORRECT PROPERTY DESCRIPTION CAO RECOMMENDATION Authorize the Vice Mayor to execute on behalf of the City of San Luis Obispo a deed that grants to Bowden Ranch Partners,LP, successors in interest to Bowden Ranch Partners,JV(original grantors of the conservation easement to the City) that portion of the original conservation easement that was mistakenly included in the property description in 2001 and should not be subject to the Conservation Easement. In addition,authorize the Vice Mayor and staff to take any additional steps necessary to effectuate correction of the conservation easement. DISCUSSION The Bowden Ranch property occupies approximately 220 acres, a portion of which is in the City limits with the remainder in the County. The Bowden Ranch links the City limits to City-owned lands in Reservoir Canyon and has been used by City residents over many years for walking and hiking on informal trails. In December 2001, the City Council authorized acceptance of a conservation easement over that portion of the property (approximately 180 acres) outside the City limits from investors who had purchased the Bowden Ranch with the intent of developing a 12 acre portion for residential purposes. The donation was made, in part; to provide some tax advantage to the grantors; the donation was voluntary and not made as a condition of development entitlement. Since recordation of the easement a few years ago, the residential development proposal has made its way through the City development review process and a tentative subdivision map was approved by the City. That map is set to expire soon, and in preparing to final the map and ready the lots for sale it was discovered that a clerical error had taken place in 2001 whereby the conservation easement was inadvertently placed over at least part of the 12 acres intended to be developed. Throughout the discussions concerning the donation in 2001 the grantors were very clear about their intentions to develop the 12 acre portion, and to donate the easement over the 180 acres in the County. The City always understood that the 12 acre portion would be considered for development and it was never intended to be-subject to the conservation easement. The terms of the conservation easement provide thatrights under the agreement may only be extinguished by judicial proceedings. However; in this instance where a drafting error took place that imposed the easement upon lands that were never intended to be burdened, a strong argument can be made that this is not an extinguishment, but rather the correction of a clerical or administrative error. While the property owner has requested that the City deed back a portion of the conservation easement,Bowden Ranch Partners will also seek a judicial order to extinguish the incorrect portion of the easement. This may Clb -=l Deed to Amend Conservation Easement Page 2 entail the City entering into 'a stipulation agreeing to remove this portion of the land from the conservation easement. CONCURRENCES Dr.Neil Havlik,Natural Resources Manager concurs in the recommendation. FISCAL UYIPACT None. ALTERNATIVES None, as Bowden Ranch Partners will seek judicial extinguishment in addition to the City deeding back a portion of the land subject to the conservation easement. Attachments; 1. December 20,2001 Council Agenda Report 2. Map of Area of Existing Conservation Easement 3. Map of Area of Proposed Conservation Easement 4. Deed to Amend Deed of Conservation Easement ATTACHMENT 1 council "' °�ia AQ6n6A REpoat 1N.��^� C I TY OF SAN LU IS O B I S P O FROM: Wendy George, Assistant City Administrative Officer Prepared By:. Neil.Havlik,Natural Resources Manager SUBJECT: ACCEPTANCE OF A CONSERVATION EASEMENT FOR A PORTION OF THE BOWDEN RANCH NEAR WOODLAND DRIVE CAO RECOMMENDATION Authorize the Mayor to accept the donation of a Conservation Easement covering the approximately 180 acre portion of the Bowden Ranch, which lies adjacent to but outside of the. boundaries of the City of San Luis Obispo, subject to non-substantive changes approved by the City Attorney. DISCUSSION The Bowden Ranch property occupies approximately 220 acres, of which 40 acres are within the City limits of the City of San Luis Obispo, and the remainder is in the unincorporated area. It lies between the City limits and certain City-owned lands in Reservoir Canyon, connecting them by informal hiking trails. The Bowden Ranch has long been of interest to City residents, and has been used for walking and hiking for many years. In September 2000, the property was purchased from its long-time owners by a local partnership for the purpose of residential development of a portion of the property. This portion (totaling about 12 acres) lies within the City limit and the urban reserve line. The partnership approached City staff for preliminary feedback about the constraints of the site, and during the course,of discussion proposed that the portions of the property which would not be developed be either dedicated to the City or. otherwise permanently protected. As these discussions proceeded, the concept of outright donation of the portion of the property outside City limits was raised. While reluctant to make outright donation of fee title to the property, the partnership concluded that donation of development rights attached to the County portion of the property had the potential for significant tax advantages. Therefore the offer to donate these rights has been made. The partnership is desirous of concluding the transaction by December 31, 2001, in order to take advantage of the tax deduction in this tax year. This offer of donation is exactly that. There is no quid pro quo; the donors are aware that this donation has no connection to the development proposal currently being put forward, which focuses on that portion of the property which lies within City limits. The easement would be permanent. The easement conditions are designed to ensure that the property remains in its natural state forever. It surrenders the right of the donors to undertake any action that conflicts with those conditions, and empowers the City of San Luis Obispo to legally enforce those conditions. Title to the property will remain with the partnershipIt is , f Council Agenda Report—Conservation Easement for the Bowden Ranch ATTACHMENT 1 Page 2 possible, however, that title may be given.to the City at a later date. Should that occur, the City and the donors will address what, if any, changes to the easement will need to be made at that time: FISCAL IMPACT This is an advantageous action for the City of San Luis Obispo, since at basically no cost, the City will receive a unknown but likely significant value. (There may be some minor costs associatedwith escrow closing.) The City will undertake an annual easement compliance inspection of the property, the cost of which can be accommodated within the Natural Resources Program budget. There ate not expected to be any capital costs resulting from this acquisition. Attachments: 1. Resolution 2. Property Map 3. Draft Conservation Easement C �d .��. ti ti.+.� ATTACHMENT 1 I O l ,, W lit CL f, i � ,,, 111 +� % �S,tl'• '�~:♦ :�1 t'•• / f' :'�'' ` / r 'Ili•••`- •'II I l i 4 •+-'•,•, •�__`/�- a�- _i � , I -'•` ( I f..-_ d �:I, t i� _ .- =,•7_�'. 5.0; <\��. -f-' 'fes.: . • �'. !', f� �. �•! •-'!I� ! -`-.,/�V _ �' -1�.�� Imo'; �'r].fi-'- __.S-�� If/'`f�/ff f'•J/l,f Ir�i"t-: _Ili I •II� PIL �i -_f_ j - - ' _ .II(`-� :Il'• Ir~- _—- - 'I'II � tc ui M c Also Ir cx ui LL O C CID l _ '� '•' V _ - .. �•.� t: � .fir � �� ' . L' fb S :-=•:'• ATTACHMENT 2 s W Z N N - '� i i '� Sv�d��T°N �:, 1 i • ATTACHMENT 3 s W� O� � Off.;•��;��:•.�: - L�i 2 vim:•.•.., • �O Z W- Q � O � C1, ' ATTACHMENT 4 DEED TO AMEND DEED OF CONSERVATION EASEMENT FROM BOWDEN RANCH PARTNERS, JV TO THE CITY OF SAN LUIS OBISPO This Deed to Amend Conservation Easement dated 2005 by 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, California 93401 ("Grantor") in favor of BOWDEN RANCH, LP, a Califomia.limited partnership having its address at 805 Aerovista Place, Suite 202, San Luis Obispo, California ("Grantee") is made with respect to the following: RECITALS WHEREAS, Grantor was conveyed a Conservation Easement by Grantee's predecessors in interest; Bowden Ranch Partners, JV; and WHEREAS, the Conservation Easement was to encumber certain real property owned by Grantee's predecessor in interest, now owned by Grantee; and WHEREAS, the Deed of Conservation Easement conveying the Conservation Easement mistakenly included real property that all parties agree was never intended to be encumbered with that particular Conservation Easement; and WHEREAS, Grantor and Grantee agree that in order to carry out the intentions of the parties it is necessary that Grantor deed to Grantees a release of the encumbrance of the Deed of Conservation Easement so that upon recording of the Deed to Amend Conservation Easement, the real property described herein will be completely released from and no longer encumbered with the Conservation Easement per that certain Deed recorded in favor of Grantor on December 28, 2001 as Document Number 2001101251; and WHEREAS, Grantor and Grantee intend by this Deed to remove certain real property that was mistakenly included in the original Deed.of Conservation Easement described hereinbefore; GRANT NOW, THEREFORE, in consideration of the above and in order to release the real property mistakenly included in the Conservation Easement, Grantor hereby voluntarily grants and conveys to Grantee all right, title and interest that Grantor may have by way of that certain Deed of Conservation Easement recorded December 28; 2001 as Document Number 2001101257 with respect to the real "property described in L(d =� I ATTACHMENT 4 Exhibit"A" and depicted on Exhibit"AV attached hereto. The property described in Exhibit "A" and depicted on Exhibit "A1" attached hereto shall hereinafter be referred to as the "released property": The released property shall no longer be encumbered or legally bound by the Deed of Conservation Easement recorded December 28; 2001 as Document Number 2001101257. GRANTOR: Approved as to form: Jo ath owell, City Attorney 1 1 ATTACHMENT 4 EXHIBIT A LEGAL DESCRIPTION OF RELEASED PROPERTY Parcel 1: All that part of the West half of the Southwest quarter of Section 25, in Township 30 South, Range 12 East, Mount Diablo Base and Meridian, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to the official plat thereof, described as follows: Beginning at a point which bears North 68622' East, 79 feet from the comer common to Section 25, 26, 35 and 36 in said Township and Range, said point being on the Southwest line of Lizzie Street, according to the map of Piedmont Tract, in the City of San Luis Obispo, recorded May 21, 1889 in Book A, Page 146 of Maps, records of said County; thence North 68022' East across said Street and along the Northwest line of Lot 5 of said Tract, 933.5 feet to the most Northerly comer of said Lot; thence along the Westerly line of Lot 1 of the said Tract, North 45°38' West, 65.5 feet and North 2125' East, 1226 feet to Stake CA, the most Northerly comer of said Lot, said comer being the most Easterly comer of the property conveyed to Kate M. Cox, by deed dated September 29, 1892 and recorded in Book 17, Page 324 of Deeds, Records of the said county; thence along the Easterly and Southeasterly line of the property so conveyed, South 6 1/40 West, 408.5 feet, South 671/4° West,,282.5 feet, and South 28 3/40 West, 91.1 feet to the Northeast line of the property conveyed to C. H. Phillips, by deed dated May 18, 1880 and recorded in Book M. Page 253 of Deeds, Records of said County; thence along the line of the property so conveyed, South 61° East, 79.9 feet to Stake B.M. No. 6, South.28 1/4' East; 132 feet to Stake B.M. No. 7, and South 60 1/40 West, 994.6 feet to Stake B.M. No. 8, and F.D. No. 9 set on the Northeast line of the property conveyed to C. H. Phillips deed dated December 10, 1880 and recorded in Book M, Page 625 of Deeds, Records of said County; thence South.28 1/40 East along said Northeast line, 352 feet to a point on the Northwest line of aforesaid Lizzie Street, distant North 53038' East., 451 feet from the most Northerly comer of Johnson and Lizzie Street, as said comer existed on January 27, 1887; thence North 53038' East along the Northwest line of said Lizzie Street, 11 feet to Stake C.6; thence South 36922' East, 73 feet to the point of the beginning. Except therefrom that portion thereof described in the deed to San Luis Obispo High School District, recorded January 3, 1.949 in Book 458, Page 496 of Official Records, described as follows: Beginning at the most Northerly comer of Lot 1 in Block 4 of Fixlini Terrace, according to map filed for records September 14, 1888 in Book A, Page 100 of Maps, in the office of the County Recorder of said County;thence North 36022' West, 33 feet; thence South 53°38 West, 11.64 feet; thence North 28057' West ATTACHMENT 4 (Record bearing North 28 3/40 West) and along the Northeasterly line of the property conveyed to C. H. Phillips, by deed dated September 10, 1880 and recorded in Book M, Page 625 of Deeds, Records of the County, 351.85 feet to a 1 W iron pipe, stake BN No, 8, and F.D. No 9, in the Southeasterly line of the property conveyed to San Luis Obispo High School District by deed dated December 6, 1945 and recorded in Book 392, Page 452 of Official Records of said County; thence along said Southeasterly line, North 60027' East, 994.62 feet to a 1 '/2" iron pipe; thence South 25002' East; 221.56 feet to a 1 1/2' iron pipe; thence South 62034' West, 929.79 feet to a 1 %2 iron pipe; thence South 28057' East, 192.8 feet; thence South 53038' West, 34.49 feet to the point of beginning. Also except therefrom that portion thereof lying within the lines of that certain street, described in Paragraph 1 of Judgment and Decree recorded September 4, 1957 in Book 906, Page 262 of Official Records, and in Paragraph 1 of Judgment Nunc Pro Tunc, recorded September 19, 195. 7 in Book 908 Page 365 of Official Records. Also except therefrom that portion described as follows:. Beginning at the most Northerly comer of Lot 1 in Block 4 of Fixlini Terrace, according to the map fled for record in Book A, Page 100 of Maps, in the Office of the County Recorder of said county; thence along the Northeasterly line of. said Fixlini Terrace, South 36022' East, 40.00 feet to the Southwesterly prolongation of the Northwesterly line of Lot 5 of the Piedmont Tract, according to the Map fled for record in Book A, Page 146 of Maps; in the Office of the County Recorder of said county; thence along said Southwesterly prolongation and said Northwesterly line North 68022' East, 443.96 feet to the true point of beginning; thence North 40028' West, 303.22 feet to the Southeasterly line of the land described in the deed to San Luis Obispo High School District, recorded January 3, 1949 in Book 458, Page 496 of Official Records of said County; thence along said Southeasterly line, North 60027' East, 220.28 feet; thence South 40028' East 335.27 feet to the Northwesterly line of Lot 5 of the Piedmont Tract; thence along said Northwesterly line.South 68022' West, 228.53 feet to the true point of beginning. Also except therefrom that portion thereof described in the deed to Gregory Devereaux Bowden, a.married man as his sole and separate property, recorded December 30, 1970 in Book 1599, Page 900 of Official Records. f GRAPHIC SCALE 200 0 400 200 — ( INFEEI) 1 inch =200 ft. R 496 0 458 m c Ae 0P O ''A ti 0 P'I %.Oft 4g9 . --- oa RELEASED PROPERTY design protasalonals . EXHIBIT Al civil ar eeFs"o land surveyors.land planners - gls 19.98 sante barbara at.san lull Obispo,ca 9=1 ph:800498858 email:eda&dahm mn joli nm 22515200