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HomeMy WebLinkAbout09/02/2008, BUS 2 - AUTHORIZATION TO COMPLETE REAL PROPERTY TRANSACTIONS WITH THE LAND CONSERVANCY OF SAN LUIS OBISPO C council D� 9 a � j acEnaa Repout z C ITY OF SAN LU 15 O B I S P O FROM: Shelly Stanwyck, Assistant City Administrative Officer Prepared By: Neil Havlik, Natural Resources Manager SUBJECT: AUTHORIZATION TO COMPLETE REAL PROPERTY TRANSACTIONS WITH THE LAND CONSERVANCY OF SAN LUIS OBISPO COUNTY AND FREDERICK K. GLICK. CAO RECOMMENDATION 1. Adopt a Resolution to assign an existing conservation easement covering 180 acres of the Bowden Ranch Open Space (donated to the City of San Luis Obispo in 2001) to the Land Conservancy of San Luis Obispo County, and authorize the Mayor to sign; 2. Adopt a Resolution to acquire an undivided one-half interest in a 180 acre portion of the Bowden Ranch Open Space from Mr. Glick for $120,000, which will give the City full ownership of said property, and authorize the Mayor to sign; 3. Adopt a Resolution to sell 13.62 acres of surplus City property on Stenner Creek Road to Mr. Glick for$320,000, and authorize the Mayor to sign; 4. Adopt a Resolution to accept the donation of a conservation easement on approximately 12.5 acres of the Stenner Creek Road property from Mr. Glick, and authorize the Mayor to sign; and 5. Adopt a Resolution to acquire, in cooperation with the Land Conservancy of San Luis Obispo County, an agricultural conservation easement covering the 838 acre Stenner Ranch at a price of$850,000, and authorize the Mayor to sign. 6. Authorize the City Attorney to approve all agreements and documents necessary to facilitate these transactions. REPORT-IN-BRIEF This series of related recommended actions will result in the acquisition by the City of San Luis Obispo of full ownership of the 180 acre Bowden Ranch Open Space (the City currently owns a one-half undivided interest), and the acquisition of an agricultural conservation easement covering the 838 acre Stenner Ranch in Stenner Canyon, preserving that land in agricultural and open space uses in perpetuity. The cost of these transactions is $970,000 ($850,000 for the Stenner Ranch easement and$120,000 for the remaining one-half interest in the Bowden Ranch). Of this amount, only $300,000 will come from the City's 2007-2009 Open Space fund (replenished as a result of Measure Y), $320,000 will come from the sale of a surplus 13.62 acre property adjacent to the Stenner Ranch, and $350,000 will come from the Federal government's Army Compatible Use Buffer (ACUB) program, using funds secured by the Land Conservancy G/HavUlCouncdagenda/Glick agreements Glick Agreements September 2, 2008 Page 2 of San Luis Obispo County. The existing conservation easement covering the Bowden Ranch will be transferred to the Land Conservancy to ensure that it remains in full force, and a new conservation easement will be donated by the new owner of the 13.62 acre property, restricting that property to use as a single rural homesite in perpetuity. DISCUSSION Background The City of San Luis Obispo's Natural Resources Protection Program was established in 1995 to proactively seek conservation transactions on important open space lands near the City in a designated "Greenbelt". The community's interest in this program has been consistently demonstrated by the frequent inclusion of open space protection as a Major City Goal in the City's budgeting processes, and recently by the passage of Measure Y, in which the citizens indicated their continued interest in open space protection. The proposed transactions represent several years of ongoing negotiations with a major landowning family in the area. They will serve to consolidate City ownership of a popular open space near the San Luis Obispo High School, and to preserve in agriculture a large private ranch in Stenner Canyon, north of the City and adjacent to Camp San Luis Obispo, Cal Poly, and Los Padres National Forest. The Land Conservancy of San Luis Obispo County has entered into a long-term relationship with the National Guard Bureau, which operates Camp San Luis Obispo. This relationship has given the Land Conservancy access to funding from a special Federal program known as the Army Compatible Use Buffer (ACUB) program. Funds from this program can be used to acquire land or easements near military bases to help protect those bases from incompatible land uses that might jeopardize the mission of the base. Since lands near the base are within the City's identified greenbelt area, this arrangement has allowed both the Land Conservancy and the City to leverage their own funds with funds from the ACUB program. In 2006 ACUB funds made a significant contribution to the purchase of the Union Pacific Railroad Company properties for conservation purposes, and in 2007 the Land Conservancy secured additional ACUB funds for further conservation transactions near the base. The Stenner Ranch was an obvious and attractive choice for the use of these funds. The Stenner Canyon area has been an area of interest for the Natural Resources Program since the City Greenbelt Program was established in 1995. Stenner Creek is an important natural waterway that runs through the City until it joins San Luis Obispo Creek at the end of Dana Street. The canyon itself is very scenic, well used by hikers, bicyclists, and equestrians, and includes significant biologically rich public lands, including part of the Cal Poly campus and Los Padres National Forest. The City has acquired 365 acres of land in Stenner Canyon from the Union Pacific Railroad with the assistance of the Land Conservancy. We have also been in ongoing discussions with Fred Glick's father, Ken Glick, regarding a conservation transaction on all or part of the Stenner Ranch since 1996. Because of the availability of the ACUB monies, the Glick family was recently approached anew about the concept. The response was favorable Glick Agreements September 2, 2008 Page 3 and actually led to Council approval of formal negotiations with Frederick K. Glick in January 2008 of a more comprehensive series of property transactions. These negotiations have resulted in the several proposed transactions before the Council. The Bowden Ranch Property The Natural Resources Program has had a longstanding interest in the Bowden Ranch property. The Ranch originally occupied approximately 220 acres, of which 40 acres are within the City limits and 180 acres in unincorporated area. In 2001 the owners offered (and the City accepted) a conservation easement covering the 180 acre portion of the ranch outside of the City limits. In September 2003, a development plan for the 40 acres within the city limits was approved by the City Council. That plan included dedication to the City of approximately 27 acres of open space of the project lying within the city limits, and in early 2006 an undivided one-half interest in the remaining 180 acres was conveyed as a gift to the City by the local development firm WestPacUSA, creating a 207 acre public open space(Attachment #1). The remaining one-half undivided interest was, and still is, held in three equal parts by Fred Glick, Karl Wittstrom, and the Peter Caglieri Trust, who had sold the project to WestPacUSA. As part of staff's discussion with Mr. Glick, he offered to "buy out" his partners, and sell the remaining one-half interest in Bowden Ranch to the City as part of the overall transaction Accordingly, in late 2006, appraiser Bruce Beaudoin appraised the value of the one-half undivided interest in the Bowden Ranch, and found the value of that interest to be $120,000, or about $667 per acre. It was therefore agreed that that value would be applied to the transfer of the remaining one-half undivided interest from Mr. Glick to the City. The importance of this to the City is that it eliminates the potential for conflicts to arise between joint owners of the property, which sometimes occurs on lands owned in such fashion. The conservation easement donated in 2001 would remain in existence unchanged, and a key part of this transaction would be the transfer of the easement to the Land Conservancy, which will ensure that such is the case. There is a small water system installed for watering mitigation plantings, supplied from a spring on the Bowden Ranch, for which Mr. Glick wishes to retain rights to use for irrigation on his adjacent lot in the Bowden Ranch subdivision, as he does currently as a part owner of the Bowden Ranch property. This is permitted under the existing conservation easement and seems reasonable since staff anticipates the retention of that system. Mr. Glick would have one of several lines coming off of it, and would share in its maintenance. The Stenner Creek Road Property The 13.62 acre Stenner Creek Road property was acquired by the City of San Luis Obispo in 1900, as part of the City's purchase at that time of the entire assets of the San Luis Obispo Water Company (Attachment #2). It appears that that site was at one time envisioned by the water company as a site for a dam that would collect the waters of Stenner Creek and divert them for domestic use within the city. The dam was never built, but the property has remained as a city 02 �� j 1 Glick Agreements September 2, 2008 Page 4 asset since 1900. A mobile home was placed on the property in the 1980's and was eventually leased and then sold to the neighboring property owner, Mr. Ken Glick. The mobile home has remained on the property since that time while the City has considered the property surplus and rented the land to Mr. Glick. Both Ken Glick and Fred Glick have consistently stated their desire to purchase the property, and one effort was made in this regard in 1998 but was unsuccessful due to uncertainties about water availability for the property and its effect on value. The mobile home gets its water from a spring on the Stenner Ranch. An appraisal conducted in 2007 by Gerald Jecker found a value of $300,000 for the property under the assumption that no water was available from Stenner Creek due to lack of historical exercise of riparian rights and the stream's designation as critical habitat for southern steelhead. This generated an offer from Fred Glick to purchase the property from the City for $320,000, to be paid partly in cash and partly in additional land value (i.e., the one-half interest in the Bowden Ranch). As part of the transaction Mr. Glick agreed to immediately donate a conservation easement on the property back to the City, which would essentially restrict the property in perpetuity to its existing use, which is as a rural single family lot. Stenner Ranch The Stenner Ranch, also known as the Alberti Ranch, has been owned by the Glick family for many years. The ranch occupies 838 acres of land in upper Stenner Canyon and consists of four legal parcels (Attachment#2). It is mostly grassland and has historically been used for livestock grazing, with no intensive agriculture. The property does have ground water, however, and some intensification of agriculture is a possibility. There is in addition some oak woodland and chaparral on the property, and it offers excellent wildlife habitat. (Mr. Glick reports that he regularly sees black bears on the property.) City staff has negotiated in the past with Ken Glick to acquire a conservation easement over part of the Stenner Ranch, but raising the funds necessary has been an issue. However, by including in the current effort proceeds from the sale of the Stenner Creek property and funds secured by the Land Conservancy from the ACUB program, the City can assemble a funding package of $850,000 to acquire the desired easement for the Stenner Ranch. The easement is modeled after the recent conservation easement purchased at the Brughelli Ranch on Buckley Road. Under the terms of the easement, the entire Stenner Ranch would be restricted to its current agricultural zoning, and in that portion of the ranch above (i.e., north and west of) the railroad tracks, structures would be restricted to a single ranch house and agricultural outbuildings associated with that house, such as a barn or stable. This would protect the most environmentally sensitive portion of the property, while allowing reasonable use consistent with current zoning in the County. In addition, certain uses permitted under the County's agricultural, zoning but not open space in character would be prohibited. These include agricultural worker's housing, warehouses, farm equipment repair facilities, quarries, amusement parks, and wineries unless a majority of the wine being processed there come from grapes grown on the property. �2, Glick Agreements September 2, 2008 Page 5 Planning Commission Review The matter will be before the Planning Commission on August 27 for a General Plan consistency determination. The Commission is expected to find the transactions consistent with the General Plan, and the results will be reported to the Council at the September 2 Council meeting. FISCAL IMPACT Successful completion of this acquisition program will require the use of most of the City's 2007-2009 Open Space acquisition funds, which was boasted as a result of Measure Y. It will also require use of the proceeds from the sale of the 13.62 Stenner Creek Road property. The three transactions in total will require the expenditure of$620,000 in City funds, described more particularly below: 1. Stenner Creek Road Property Sale. The 13.62 acre property was appraised at $300,000, and Mr. Glick has offered to pay $320,000 in a combination of cash and "credit", described below. 2. Credit for Bowden Ranch Fee Ownership Transfer. The undivided one-half interest in the Bowden Ranch was appraised at$120,000. Mr. Glick proposes to purchase the two one-sixth interests from his partners, and, together with his own one-sixth interest, grant that interest (totaling one-half) to the City for a credit of $120,000 against the purchase price for the Stenner Creek Road property;in effect making it a City purchase. 3. Funding for Stenner Ranch. The appraiser's preliminary valuation of the easement on the Stenner Ranch is $1,000,000, subject to minor adjustment. This is more money than the City has available, and accordingly Mr. Glick agreed to a below-market sale value of $850,000 for the transaction. This amount of money can be assembled from City General Fund monies ($300,000) and from the sale of the Stenner Creek Road property ($200,000). Since the original source of funds for the purchase of the Stenner Creek Road property was the City's General Fund, it is permissible for the proceeds from that sale to also be used in the easement acquisition. The Land Conservancy has secured $350,000 through the Army Compatible Use Buffer (ACUB) program and is prepared to contribute those funds to the easement acquisition in order to achieve success in the transaction. This is also significant because the work accomplished between the City of San Luis Obispo, the Land Conservancy, and the National Guard Bureau has been one of the most successful of the ACUB programs anywhere in the country. Completion of the project as envisioned will not increase City cost or staffing obligations. There would be an increase in property taxes for the Bowden Ranch, but this would be offset by the elimination of the property tax obligation for the Stenner Creek Road property. The Bowden Ranch property is already treated as part of the City's open space lands and patrol and other activities there are not expected to change. —.S Glick Agreements September 2, 2008 Page 6 The City's Fiscal Health Contingency Plan was recently activated and as a result all CIP projects are currently under review for possible deferral or deletion. A report is planned for Council review in late September 2008 that will identify and recommend project deferrals and deletions. While this review is underway and not yet completed, we recommend going forward with these transactions as being in the long-term interest of the community in preserving important open space lands around the City, and in taking advantage of a current grant opportunity that would otherwise be lost, and utilizing a small surplus piece of City property to effect a much larger conservation effort. The project also supports the mission of Camp San Luis Obispo and recognizes its importance to the community as a major employer and economic contributor to the County's economic future. In return, the Camp, through the National Guard Bureau, is making a sizable contribution to the preservation of open space in our area. Finally, the City's partnership with the Land Conservancy in this and other projects demonstrates the many advantages of such a mutually beneficial relationship. Staff has attached draft or sample agreements for each of the transactions for Council consideration. These may be modified slightly during finalization, and for that reason the Council's actions authorizes the City Attorney to approve all documents related to the matter. No substantive changes are expected, but if there are, staff will return to Council for approval of those changes. ATTACHMENTS: 1. Map of Bowden Ranch Open Space 2. Map of Stenner Ranch and Stenner Creek Road property 3. Draft Assignment of Easement 4. Sample Grant Deed for One-Half Undivided Interest in the Bowden Ranch 5. Sample Grant Deed for Stenner Creek Road Property 6. Draft Conservation Easement for Stenner Ranch 7. Draft Conservation Easement for Stenner Creek Road Property 8. Resolutions (5) LP ATTACHMENT 1 i '•. •—`�?"��__.. .� i L >; � .� eye � ,�/, ;'::•�;� .� 1 cc it Su � �•. y ._- .F is \_ `� � '�. 't n' � •, �( ,' � - ' �` —� L \ ,� }ire \\7S ♦.L�. ♦ �:.�.- 1 'T/+"' ��� • /.� r�� /mow =• . ,'7� `�_� / �• ••..�`' .'�1�';I ♦sem J.� I •' `� 7'1 / ,�, ��� lu ,/ r _ •�- \. . '�. ^ � /r� c/i'. ••%vim%/�, % � - �s `>. � _ '� ��� � \`=; ,� .� � 1 •'- � w �j Cil:. � w _w � .. .. • - - emsCa 9 to - a f it 0 .� :42) cc cm w C tLFt a --7 o nit nAD 2/ X51 I X00 ti 200 II � ' nfj � I 1) 121 Stenner Ranch /J p`• ,' UPRR tracks \ 11 10X78/ \ 720. n \\ SII / E j Old WTP site(City) 1 8 t 5 600 / � • f A743 n rr � I City property proposed for sale 1� CITY OF SAN LUIS OBISPO GREENBELT PROTECTION PROGRAM Stenner Creek Road Property Sale Stenner Ranch Conservation Easement Acquisition — ATTACHMENT 3 Instrument prepared by: City of San Luis Obispo Mail after recording to: Dr. Neil Havlik Natural Resources Manager 990 Palm Strret San Luis Obispo, CA 93402 DRAFT ASSIGNMENT OF CONSERVATION EASEMENT County of San Luis Obispo THIS Assignment is made on the day of 2008, by the CITY OF SAN LUIS OBISPO ("CITY") to the LAND CONSERVANCY (collectively, the "Parties"). RECITALS WHEREAS, in 2001, the owners offered and the CITY accepted a conservation easement ensuring the preservation of approximately one hunderd eighty (180) acres of real property located outside the City limits, commonly known as the Bowden Ranch property("Property") and described and depicted in detail in the Conservation Easement attached hereto as Exhibit A; and WHEREAS,in 2006, CITY accepted a gift of an undivided one-half interest in the Property; and WHEREAS,the remaining one-half undivided interest is held equally by Fred Glick, Karl Wittstrom, and the Peter Caglieri Trust(collectively, "Owners"); and WHEREAS, as partial consideration for the exchange of certain other properties between the City and Owners, Owners have agreed to transfer their one-half interest in the Property to the CITY; and WHEREAS,the CITY desires to ensure the preservation of the Property consistent with the terms and conditions of the Conservation Easement and, in furtherance of the terms and conditions of the Conservation Easement, the CITY desires A ."CHAIENT 3 to assign its right, title, and interest in the Conservation Easement to the LAND CONSERVANCY;and WHEREAS,the LAND CONSERVANCY has agreed to accept the assignment of the Conservation Easement and to hold such easement pursuant to the terms and conditions set forth in Exhibit A in order to ensure the perpetual efficacy of the Conservation Easement; NOW,THEREFORE, in consideration of the promises herein and the mutual benefits accruing to the parties and the public from the Conservation Easement herein referenced and assigned, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the CITY and the LAND CONSERVANCY hereby agree as follows: A. The Recitals herein are incorporated into and made a part of this Assignment. B. CITY conveys and assigns to the LAND CONSERVANCY all the rights, title, easement, privilege and interest (and subject to all conditions contained therein), in that Conservation Easement conveyed to the CITY dated the day of (month), (year), and recorded in Deed Book , Page, County Registry. C. The CITY hereby expressly reserves from this Assignment the nonexclusive rights initially acquired by the Conservation Easement to monitor, enforce and maintain the Conservation Easement and to access the property for such purposes as described in the Conservation Easement. D. The LAND CONSERVANCY shall hold said right, privilege and easement herein granted and assigned to the LAND CONSERVANCY, its successors and assigns, in perpetuity. E. CITY covenants that it is properly vested with the Conservation Easement; has the right to assign the same to the LAND CONSERVANCY; that the Conservation Easement is free from encumbrances except as may be expressly excepted to by the terms and conditions of the Conservation Easement; and that the CITY will warrant and defend title to the same against the claims of all persons or entities. IN WITNESS WHEREOF, the Parties have executed the foregoing as of the date year first above written. APPROVED AS TO FORM: CITY OF SAN LUIS OBISPO AN P. LOWELL By: City Attorney Dave Romero,Mayor 1 ATTACHMENT 4 i r RECORDING REQUESTED BY: Cuesta Title WHEN RECORDED MAIL DOCUMENT AND TAX STATEMENT TO: i City of San Luis Obispo c/o City Administration EUS , 93401 'SAMPLE TITLE ORDER NO. 611014 1014 ESCROW NO. 611814 ypN 073,3711 002 SPACE ABOVE THIS UNE FOR RECORDER'S USE i GRANT DEED �.. i THE UNDERSIGNED GRANTOR(S)DECLARE(S): DOCUMENTARY TRANSFER TAX is: $ CITY TAX is:$0.00 Monument Preservation Fee is: Cal computed on full value of property conveyed,or ❑ computed on full value less value of liens and encumbrances remaining at time of sale. ❑ Unincorporated area: LI City of San Luis Obispo,and i FOR A VALUABLE CONSIDERATION,receipt of which is hereby acknowledged, Bowden Ranch, L.P..,a California Limited partnership � 3 hereby GRANT(S)to i City of San Luis Obispo,a political subdivision of the State of California. the following described real property in the Git7eFSw4geds Gbi"o,County of San Luis Obispo,State of California: AN UNDIVIDED 50%INTEREST IN AND TO THE FOLLOWING: FOR LEGAL DESCRIPTION,SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF. Dated: April 12,2006 ATE OF CALIFORNIA } } lore CO OFOn beme, (here rt name and title of the officer) personally appeared P (mown to me (or Prov to me on the basis of satisfactory evidence)to be the persons)whose na )is/are subscribed to the within instrument and acknowledged to me that h eAhey executed the same in his/her/their authorized capacity(ies),and that ismer/their signatures) on the instrument the person(a), or the entity up behalf of which the persons)acted,executed the instrument. WITNESS my hand andotficialseal. See attached acknowledgments Signature (This area for official notarial sea]) i i i April 19, 2006 ATTACHMENT 4 EXHIBIT A Legal Description Parcel One: Lot 8 of the Piedmont tract, in the County of San Luis Obispo, State of California, according to map filed in Book A, Page 146 of Maps, records of said County. Parcel Two: The southeast quarter of the Southwest quarter, and the Southeast quarter of Section 25, in Township 30 South, Range 12 East, in Mount Diablo Base and Meridian, in the County of San Luis Obispo, State of California, according to the official plat thereof. Subject to covenants, conditions, reservations, restrictions, rights of way and easements, if any, of record. The above described parcel is graphically shown on Exhibit B attached hereto and made a part hereof. a . � G A a r. 411 M 4hdaich�ardson, P.L.S. 6904 (exp. 6/2007) r1=515000'V�bpenspw lots.doc ATTACHMENT 4 \p NO SCALE ��b•\ co b• •' � cp COUNY OF SAN LUIS OBISP TRACT CITY OF SAN LUIS OBISPO 2420 design professionals oivll engfneermsumayors.land planners EXHIBIT B 1998 sante barbara at.san IWs obispo,ca 93401 O9—/3 ph:80515498658•email'eda@edelna rom job.no.2.2515.1 OD A ' I I J ATTACHMENT 4 SIGNATURE PAGE ESCROW NO: 611014-SRS ORDER NO: 611014-SRS GRANTOR SIGNATURES BOWDEN RANCH, L.P.., a California limited partnership BY: Lizzie Street Partners, LLC, a Ca ' mia limited liability Company, General P BY: Hamish S. , anger BY: Bowden Properties, LLC,a California limited liability 1 Company, General Partner BY: Kenneth P. Slaught,Manager BY: Richard L.Ridgway, Manger By: SLO Bowden Ranch Partners, LLC,a California limited liability Company, General Partner BY: JMW Management, LLC, a California limited liability company, its Mang BY: lson Holding Company, Inc.,a California corporation, its Manager BY: John M. Is6n,President j i i i f BOOR 592 PAGE 434 ATTACHMENT s IN COSsIomATION of the sum of Ten Dollars ($10.00), the r CITY OF BAT. LtJiB OBISPO, a munioipaa corporation of the State ' of California, does hereby grant to MARIA ALS&RTI, tgtatoaof property situated in the County -of San Luis Obispo, California, described as follows: All that part of Lot 9, as designatea in the Report and maps filed in the Superior Court of the County of San tLuis ObiGPO h9 rtition of Ranoho Potreroedo Sea- Luis d "Map Of hObiapovBan Luis Obispoart f Or Co. Cal., partitioned by °inthe action entitledu t r of the peri of Ban Luis Obispo County, lito Serrano. et al; parti- 3anuel Serrano et al vb. H Barrie, O.O.King and tion made Sent. 1667, Y H.Dallidet, Cor:rmissionera, R.R.Harris, Surveyor," and more particularly describe8etsonfollows: Cotr rlyelinegoft lJ." iron pine marked t► 5 o thence Lot 9 of the Rancho Potrero doe oan�Lu sObeio'a 2" a 2' running from said point N 63 '35 547-93t true point of beginninn�ac, thence N 930 35' A°347.17'' t$ a point, thence s 54 53thence5' Bao 03iint; thence 8 14 32 & the �?$ { W S6, to a point; R 269# to a Point; thence B '+`► l0 5 thence 8 750 �5, N 125' to a point; thence ffi 200 3Rcrae E 675' to the point of beg1mi art of Said Sotnggilling 5 more or less and beinF F said CITY OF SAN LUIS BI PO, man195.a�, IN JITNESsi xFiEREOF, day Of cipal corporation, has this hereunto Caused its corpora a name to be subRc4ob0idirnieaoes seal Affixed by itP wayor and City B9Ped�and adopted on the 20th day Ho. 336• (lieu Series) finally p of Nov&mber, 1950, by the City Oeuncil oY said muaieiPal cor- porstien. CITY OF BAN UIb OBISPO By �d - r- By _ C C$. ' er STATE OF CALIFRylA :e'+•. }�� COtTe'TY OF SAN LUIS OBIaPO 4.1 On this ��day of .195., before me, GEORGE L. A-iJiiE, a aotary Publicfor said County and state, w rRonally appeared TILOTHY O'RSILLY, known to me to be the mayor, and J. E. BRONH, known to me to be the City Clerk, of the CITY OF 5 N LUIS OBISPO# the municipal eor— porntion Biot executed tie within instrument, and known to re to be the perncns abo executed the within instrument on behalf oYthe =nieipai corporation therein awed, and aoknow- ledFed to me tcct such Fnnieionl corporation executed the same, 1IT1JEBa my •hand and official seal the day and year in this cert Ificetex•g•,�At above written. j `• • :� •. < otary is in and fors d County and State, aScle t?�� tc, r, _ ATTACHMENT RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo Office of the City Clerk 990 Palm Street San Luis Obispo, CA 93401-3249 DRAFT OPEN SPACE AND AGRICULTURAL CONSERVATION EASEMENT AGREEMENT This Open Space and Agricultural Conservation Easement Agreement ("Agreement") is made and entered into this second day of September, 2008, by and between FREDERICK K GLICK and MICHELLE LEGUINA,Trustees of the KENNETH L. GLICK REVOCABLE TRUST dated December 5, 2003 (the "Grantors"), and the CITY OF SAN LUIS OBISPO, a municipal corporation of the State of California(the "City"). WITNESSETH A. Grantor owns that certain real property located at Stenner Creek Road in the unincorporated area of the County of San Luis Obispo, California(Assessor Parcel Numbers 073-261-006, 073-261-008, 073-261-009 and 073-261-010), consisting of approximately 888 acres of land and improvements (the "Subject Property"). The Subject Property is more particularly described in Exhibit A attached hereto. Grantor wishes to place the Subject Property under the protective covenants of this Open Space andAgricultural Conservation Easement Agreement. The easement granted in this Agreement is hereafter described as the "Agricultural Conservation Easement." B. The existing buildings and improvements located on the Subject Property are depicted in Exhibit B attached hereto. The Subject Property also includes open farmland and grazing land. C. The agricultural and other characteristics of the Subject Property, its current use and state of improvement are described in a Present Conditions Report prepared by the City with the cooperation of Grantor, and acknowledged by both parties to be reasonably complete and accurate as of the date of this Agreement. A copy of such report is on file at the offices of City and is incorporated herein by this reference. Such report is intended to serve as an objective baseline for monitoring compliance with the terms of this grant. D. The market value of the Agricultural Conservation Easement granted to City by this Agreement has been determined by independent appraisal. A copy of the Appraisal Report of the Subject Property dated as of*********, 2008, prepared by Schenberger, Taylor, ATTACHMENT McCom-dck and Jecker, Inc., and approved by City and Grantor, has been provided to City and Grantor. The Appraisal Report concludes that the fair market value of the Agricultural Conservation Easement provided for in this Agreement is One Million Dollars ($1,000,000.00). Grantor is willing to convey this Agricultural Conservation Easement for less than the fair market value, namely Eight Hundred Fifty Thousand Dollars ($850,000.00), to preserve the Subject Property's natural character and existing openness by voluntarily restricting Grantor's use of and activities on the Subject Property through the imposition of a perpetual open space and agricultural conservation easement on the terms and conditions set forth in this Agreement. E. City will acquire this Agricultural Conservation Easement through a substantial investment intended to qualify under Internal Revenue Code §170(h) applicable to a qualified conservation contribution. .The funds paid represent a substantial investment by the People of the City of San Luis Obispo, the State of California, and the United States of America in the long-term conservation of valuable agricultural land, and the retention of agricultural land in perpetuity. The Subject Property and this Agricultural Conservation Easement have multiple natural resource conservation objectives. The rights vested herein arise out of the State's statutory role in fostering the conservation of agricultural land in California and its role as contributor of, and fiduciary for, the public investment represented here. F. This Agricultural Conservation Easement will be acquired in part with funding in the amount of$350,000 provided by the United States National Guard Bureau (NGB) under a Cooperative Agreement with the Land Conservancy of San Luis Obispo County in order to implement NCB's Army Compatible Use Buffer Program (ACUB) for the benefit of Camp San Luis Obispo. The purpose of the ACUB is to prevent incompatible land uses on the periphery of Camp San Luis Obispo such as residential development or other uses which could lead to encroachment problems at Camp San Luis Obispo. G. Grantor grants this Agricultural Conservation Easement to the City for valuable consideration and for the exclusive purpose of assuring that, under the City's perpetual stewardship, the Subject Property will be conserved and maintained in accordance with the terns of this Agreement, and that uses of the Subject Property that are inconsistent with this purpose will be prevented or corrected. The concern of the Grantor and City is that, but for this grant, the agricultural attributes and uses of the Subject Property will be compromised by increasing pressure from neighboring agricultural properties that have been converted to more intensive residential density. H. The conservation purposes of this Easement are recognized by, and the grant of this Easement will serve, the following governmental conservation policies: Section 815 of the California Civil Code, which defines perpetual conservation easements; California Constitution Article XIII, section 8, and Revenue and Taxation Code sections 421.5 and 422.5, under which this Agricultural Conservation Easement is an enforceable restriction, requiring that the Subject Property's tax valuation be consistent with 2 ATTACHMENT (o restriction of its use for purposes of food and fiber production and conservation of natural resources. Division 10.2 (sections 10200, et seq.)of the California Public Resources Code, which creates the California Farmland Conservancy Program; Section 51220 of the California Government Code, which declares a public interest in the preservation of agricultural lands; Title 10, Section 2684a of the United States Code, which declares a public interest in the prevention of incompatible uses of lands near military installations which can negatively affect the operations of such installations; The San Luis Obispo County General Plan, as amended in December 1996, which includes as one of its goals to protect all viable farmlands designated as prime, of statewide importance, unique, or of local importance from conversion to and encroachment of non-agricultural uses. I. City is a California municipal corporation, and, as certified by a resolution of its City Council, accepts the responsibility of enforcing the terms of this Easement. Now, therefore, for the reasons given, and in consideration of their mutual promises and covenants, terms, conditions and restrictions contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor voluntarily grants and conveys to the City, and City voluntarily accepts, a perpetual Conservation Easement, as defined by Section 815.1 of the Civil Code of California, and of the nature and character described in this Agreement, and agree as follows. 1. GRANT OF EASEMENT. Grantor hereby grants to City in perpetuity an open space and agricultural conservation easement on the terms and conditions of this Agreement over the Subject Property as described in Exhibit A. Said grant of an agricultural conservation easement conveys to City an estate and interest in the Subject Property. The purpose of this Agricultural Conservation Easement is to allow continuation of historical agricultural activities on the property and such other activities as are consistent with the restrictions set forth herein, and to otherwise restrict the use of the Subject Property as hereinafter set forth. 2. CONDITIONS OF EASEMENT. The restrictions hereby imposed upon the use of the Subject Property, and any portion thereof, by Grantor and the acts which Grantor shall refrain from doing upon the Subject Property are, and shall be, as follows:. (a) General Plan Amendments. Amending the San.Luis Obispo County General Plan to a land use category that would allow a higher density of development than that which is allowed on the date of approval of this transaction by the City Council of the City of San Luis Obispo (September 2, 2008), namely, a maximum of FOUR (4) residential units) based on the General Plan of San Luis Obispo County, is prohibited. A certified copy of such General Plan shall be maintained by City. ATTACHMENT (b) Prohibited Uses. All activities or uses that are not permitted under the General Plan of the County of San Luis Obispo, including its Land Use Ordinances related to property classified as "Agriculture" as of the date of closing of this transaction, are prohibited. A certified copy of such General Plan and such Land Use Ordinances shall be maintained by City. In addition, the following activities or uses that are defined and authorized in land classified as "Agriculture" by such General Plan are prohibited: (1) Airfields or Landing Strips except as may be necessary in support of agricultural activities. (2) Bed and Breakfast facilities except those whose primary purpose is in support of agricultural tourism. (3) Houses of Worship. (4) Concrete, Gypsum, or Plaster Products. (5) Food and Kindred Products when food processing and manufacturing establishments. (6) Indoor Amusement and Recreation Facilities except when permitted under subparagraphs (c) - (f) of this Paragraph 2. (7) Libraries and Museums except when permitted under subparagraphs (c) - (f) of this Paragraph 2. (8) Membership Organization facilities except when permitted under subparagraphs (c) - (f) of this Paragraph 2. (9) Recycling and/or scrap handling facilities. (10) Waste dumps. (11) Manufacturing or agricultural equipment repair facilities, except for small facilities serving equipment used on the Subject Property. (12) Livestock or poultry feeding lots or processing facilities. (13) Veterinary facilities, animal hospitals, or zoos. (14) Warehouse facilities. (15) Amusement parks of any kind. (16) On-Site Housing for Agricultural Workers (c) Subdivision; Lot Line Adjustments. Subdivision of the Subject Property into more lots than currently exist is prohibited. The parties acknowledge that the intent of this restriction is to keep the property in productive agricultural use and that any permitted residential development shall be located or clustered in such a manner as to protect the productive agricultural use of the Subject Property. The foregoing not 4 � / a -�� ATTACHMENT � withstanding, the parties acknowledge that the Subject Property currently consists of four (4) legal parcels identified in those certain Certificates of Compliance attached hereto and identified as Exhibits D1 through D4. The Grantor may sell, lease, or finance each parcel individually, however each parcel shall be subject to the provision of the herein easement. In addition, Grantor may change the property lines of each parcel by lot line adjustment as they see fit. (d) Residential Structures. A single residential structure may be constructed on each parcel, along with agricultural support buildings as provided herein before in Section 2(f). These structures shall be located at any suitable site within the Subject Property, except that only one such building may be built at any site north or west of the Union Pacific Railroad Company tracks, as identified in Exhibit E. If and when any such site north or west of the Union.Pacific Railroad Company tracks is selected, no other site north or west of the tracks may be used in the future. Construction and placement of any residential structures, and associated infrastructure shall be subject to the approval authority of the County of San Luis Obispo. (e) Large Agricultural Structures. Large structures associated with agricultural production, such as winery facilities, may be constructed on the Subject Property subject to the reasonable review and approval of the City of San Luis Obispo and, if applicable, the approval authority of the County of San Luis Obispo. However, any such large structures must be clearly associated with agricultural production from the Subject Property. (f) Other Improvements. Except as provided in subparagraphs (b), (c), (d), and (e) above, no other buildings or other structures may be constructed or installed on the Subject Property, except structures and improvements permitted in an agricultural zone for agricultural production on the Subject Property. Such other permitted improvements include, for example, barns, equipment sheds, irrigation systems,fencing, and improvements for agricultural production purposes and the sale of farm products predominately grown or raised on the Subject Property. All such structures and improvements, individually and combined, must be consistent with the provisions of this Agricultural Conservation Easement and Public Resources Code § 10262. Any such structures proposed to be built or placed on the Subject Property shall be subject to the reasonable prior review and approval of the County of San Luis Obispo. (g) Advertisements. No signs, billboards, or similar structures or devices or advertising of any kind or nature may be located on the Subject Property, except for reasonable identifying signage associated with any approved activity. (h) Natural Resources. No extraction of surface or subsurface natural resources (except water resources)may be allowed on the Subject Property. Subsurface oil and gas resources, if found to be present, may be extracted by proper technological methods, subject to the reasonable review and approval of the County of San Luis Obispo and/or other agencies with jurisdiction over the matter. 5 ATTACHMENT � (i) Impervious Surfaces. Impervious surfaces shall be minimized, and in no case shall such surfaces exceed two and one-half percent (2.5%) of the area of the Subject Property. 3. EASEMENT TO BE PERPETUAL. This Agricultural Conservation Easement shall remain in effect in perpetuity. 4. TERMS BINDING ON SUCCESSORS. The terms and conditions contained herein shall be binding on the parties hereto and their heirs, successors and assigns. 5. ALL OTHER RIGHTS RETAINED BY GRANTOR. Grantor retains the right to perform any act on the Subject Property not specifically prohibited or limited by this Agreement. Such ownership rights include, but are not limited to, the right to exclude any member of the public from trespassing, and the right to sell, lease, or otherwise transfer the Subject Property,or properly subdivided portions thereof, to anyone they choose. 6. NO OTHER LEGAL OBLIGATIONS UvIPOSED ON CITY. Other than as specified herein, this Agreement is not intended to impose any legal or other responsibility on the City of San Luis Obispo, or in any way to affect any existing obligation of the Grantor as owner of the Subject Property. Among other things, this shall apply to: (a) Taxes. Grantor shall be solely responsible for payment of all taxes and assessments levied against the Subject Property including the Easement Area. If the City ever pays any taxes or assessments on the Subject Property, or if the City pays levies on Grantor's interest in order to protect City's interests in the Subject Property, Grantor will reimburse the City for the same. (b) Upkeep and Maintenance. Grantor shall be solely responsible for the upkeep and maintenance of the Subject Property to the extent required by law. City shall have no obligation for the upkeep or maintenance of the Subject Property, except as specifically provided in this Agreement. (c) Liability and Indemnification. In consideration of City's negative rights, limited access to the land, and lack of active involvement in the day-to-day management activities on the Subject Property, Grantor shall indemnify, protect, defend and hold City, its officers, directors, members, employees, contractors, legal representatives, agents, successors and assigns harmless from and against all liabilities costs, losses, orders, liens, penalties, damages, expenses, or causes of action, claims;demands, or judgments, including without limitation reasonable attorney's fees, arising from or in any way connected with injury or the death of any person, or physical damage to any property, or any other costs or liabilities resulting from any act, omission, condition, or other matter related to or occurring on or about the Subject Property, regardless of cause, unless due to the negligence or willful misconduct of City or any of its officers, directors, members, employees, contractors, legal representatives, agents, successors, and assigns. City shall be named additional insured on Grantor's general liability insurance policy. 6 ATTACHMENT � City shall indemnify, protect, defend and hold Grantor, its trustees, officers, directors, employees, contractors, legal representatives, agents, successors and assigns harmless from and against all liabilities costs, losses, orders, liens, penalties, damages, expenses, or causes of action, claims, demands, or judgments, including without limitation reasonable attorney's fees, arising from or in any way connected with injury or the death of any person, or physical damage to any property, or any other costs or liabilities resulting from any act, omission, condition, or other matter related to or occurring on or about the Subject Property due to the negligence or willful misconduct of City or any of its officers, directors, members, employees, contractors, legal representatives,agents, successors, and assigns. 7. CITY MONITORING OBLIGATIONS. City shall manage its responsibilities for the Subject Property, including, but not limited to, annual monitoring, such additional monitoring as circumstances may require, record keeping, and enforcement, for the purposes of preserving the agricultural productive capacity and open space character of the Subject Property consistent with the terms of this Agreement in perpetuity. City shall maintain a record of annual monitoring, describing the method of monitoring, condition of the Subject Property, stating whether any violations were found during the period, describing any corrective actions taken, and the resolution of any violation. 8. ENFORCEMENT AND COSTS. City shall have the right to prevent and correct violations of the terms of this Agreement. With reasonable advance notice to Grantor, the City may enter the Subject Property for the purposes of inspection. If the City finds what it believes is a violation, it may at its discretion take appropriate action, including legal action, subject to the provisions of Section 10, Arbitration. Except when an ongoing or imminent violation could irreversibly diminish or impair the open space character and agricultural productivity of the Subject Property, City shall give Grantor written notice of any such violation and thirty (30) days to correct it, before filing any legal action. If a court with jurisdiction determines that a violation may exist or has occurred, City may obtain an injunction to stop it, temporarily or permanently. A court may also issue an injunction requiring Grantor to restore the Subject Property to its condition prior to the violation. The failure of City to discover a violation or to take immediate legal action shall not bar it from doing so at a later time. Without limiting Grantor's liability therefore, City shall apply damages recovered to the cost of undertaking any corrective action on the Subject Property. Should the restoration of lost values be impossible or impractical for whatever reason, City shall apply any and all damages recovered to furthering the City's mission, with primary emphasis on agricultural easement acquisition and enforcement. Nothing contained in this Agreement shall be construed to entitle City to bring any action against Grantor for any injury to or change in the Subject Property resulting from causes beyond Grantor's control,including, without limitation, fire, flood, storm, earth movement or from any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Subject Property resulting from such causes. In any case where a court finds that a violation has occurred and City is not in default hereunder, Grantor shall reimburse City for all its expenses incurred in stopping and correcting the violation, including but not limited to reasonable attorney's fees. If Grantor 7 ATTACHMENT prevails in any action or proceeding to enforce the terms of this Agreement, Grantor's costs of suit, including, without limitation, attorneys' fees, shall be borne by City. 9. THIRD PARTY RIGHT OF ENFORCEMENT. The Land Conservancy of San Luis Obispo County (LCSLO) shall have a third party right of enforcement of this Agricultural Conservation Easement by virtue of its contribution of NGB funds for the benefit of Camp San Luis Obispo. Should the Grantee and/or LCSLO fail to enforce any term or condition of the Agricultural Conservation Easement and permit the Subject Property to be used in a manner inconsistent with such terms and/or conditions, then the United States, through the NGB, shall have the right to enforce said terms and conditions to protect NGB's interest and required and in accordance with 10 U.S.C. 2684a(d)(4). 10. ARBITRATION. Any controversy arising from this Agreement or its breach, except an imminent violation that could irreversibly diminish or impair the open space character and agricultural productivity of the Subject Property that requires immediate action under Section 9, shall be determined by arbitration as follows: (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 appointment shall be given by each party to the other party when made. If a party fails to appoint an arbitrator within such 30-day period, the arbitrator selected by the other party shall decide the matter. (b) If two arbitrators are timely appointed, they shall immediately choose a third arbitrator to act with them. If they fail within fourteen (14) days of their appointment to select a third arbitrator, on application by either party, a third arbitrator shall be appointed by the then presiding judge of the Superior Court of the State of California in and for the County of San Luis Obispo. The party making the application shall give the other party fourteen (14) day's notice of the application. (c) The arbitration shall be conducted under the Code of Civil Procedure (CCP Sections 1280-1294.2) and be held in San Luis Obispo, California. Both parties agree by signing this Agreement that they are agreeing to have any dispute arising from the matters relating to this Agreement, except for imminent violations subject to Section 9, decided by neutral arbitration as provided by California law and that each party is giving uprights to have the dispute litigated in a court or by jury trial. By signing this Agreement, each party is giving up 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. 11. TRANSFER OF EASEMENT BY CITY. If the City should desire to transfer the Agricultural Conservation Easement created by this Agreement to another qualified party, City must first obtain written permission from the Grantor, which permission shall not be unreasonably withheld. The request shall state the name of the qualified party to which the 8 rQ- -�3 ATTACHMENT ro transfer is proposed, the reasons therefore, and such other information as Grantor may reasonably request. If written consent is given for the proposed transfer, City may transfer the Easement created by this Agreement to: (1) a private nonprofit organization that, at the time of transfer, is a"qualified organization" under Section 170(h)of the U.S. Internal Revenue Code and under Section 815.3(a) of the Civil Code of California and has similar purposes to preserve open space and farmland, as well as agreeing to assume the responsibilities imposed by this Agreement; (2)if no such private nonprofit organization is willing to assume the responsibilities imposed by this Agreement, then the Agricultural Conservation Easement created by this Agreement may be transferred to any public agency authorized to hold interests in real property as provided in section 815.3(b)of the Civil Code of Such a transfer may proceed only if the organization or agency expressly agrees to assume California..he responsibility imposed on City by this Agreement. If City ever ceases to exist or no longer qualifies under Section 170(h) of the U.S. Internal Revenue Code, or applicable state law, a court with:jurisdiction shall, upon consultation with the California Department of Conservation, transfer this Agricultural Conservation Easement, pursuant to the California Public Resources Code Section 10235(b), to another qualified organization, as defined in Section 815:3 of the Civil Code of California, and having similar purposes that agrees to assume the responsibility imposed by this Agreement. 12. VOLUNTARY TRANSFER OF TITLE BY OWNER. Any time the Subject Property itself, or any interest in it, is transferred by the Grantor to any third party, Grantor shall notify the City in writing at least 30 days prior to such transfer, and the document of conveyance shall expressly incorporate by reference this Agreement. Any document conveying a lease of the Subject Property shall expressly incorporate by reference this Agreement. Failure of the Grantor to do so shall not impair the validity of this Agreement or limit its enforceability in any way. The purpose of this section is to ensure that new parties to the Agreement or affected by this Agreement are notified of, and are aware of, its existence. 13. AMENDMENTS MUST BE IN WRITING. This Agreement may be amended only with the written consent of Grantor and City. Any such amendment shall be consistent with the purposes of this Agreement and with City's easement amendment policies, and shall comply with Section 170(h) of the Internal Revenue Code, or any regulations promulgated in accordance with that section, and with Section 815 et seq. of the Civil Code of California, or any regulations promulgated thereunder. 14. TERMINATION OF EASEMENT. Termination of this Agricultural Conservation Easement shall be governed by Sections 10270-10277 of the Public Resources Code of California. 15. TERMINATION BY CONDEMNATION. Termination of this Agricultural Conservation Easement or any portion thereof through condemnation is subject to the requirements of Section 10261 of the Public Resources Code. If all or any portion of the Subject Property is acquired by eminent domain, or by purchase in lieu of eminent domain by any public entity other than City, City shall be paid by the condemnor(or purchaser) *** percent of the appraised value of the Agricultural Conservation Easement at the time of condemnation (Public Resources Code Section 10261(a) 2). Should this easement be condemned or otherwise terminated on any portion of the Subject Property, the balance of the Subject Property shall 9 2�y ATTACHMENT remain subject to this Agreement. In this event, all relevant related documents shall be updated and re-recorded by the City to reflect the modified Subject Property subject to this Easement. 16. INTERPRETATION. References to authorities in this Agreement shall be to the statute, rule, regulation, ordinance or other legal provision that is in effect at the time this easement becomes effective. This Agreement shall be interpreted under the laws of California, resolving any ambiguities or questions of the validity of specific provisions so as to give maximum effect to its conservation purposes. 17. NO APPROVALS EXPRESS OR RAPL1ED. No provision of this Agreement shall constitute governmental approval of any improvements, construction or other activities that may be permitted under this Agreement. The easement created by this Agreement pursuant to Civil Code section 815.1 shall run with the land in perpetuity. Every provision of this Agreement that applies to Grantor or City shall also apply to their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear. No merger of title, estate or interest shall be deemed effected by any previous,contemporaneous, or subsequent deed, grant, or assignment of an interest or estate in the Subject Property, or any portion thereof, to City, or its successors or assigns, it being the express intent of the parties that this Agricultural Conservation Easement not be extinguished by, or merged into, or any other interest or estate in the Subject Property now or hereafter held by City or its successors or assigns. 18. NOTICES. Any notices to Grantor and City required by this Agreement shall be in writing and shall be personally delivered or sent by first class mail, to the following addresses, unless a party has been notified by the other of a change of address: To Grantor: Frederick K. Glick 1315 Santa Rosa Street San Luis Obispo, CA 93401 To City: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 19. GRANTOR'S HAZARDOUS MATERIALS WARRANTY. Grantor warrants that Grantor has no actual knowledge of a release or threatened release of hazardous substances or wastes on the Subject Property and hereby promises to defend and indemnify City against all litigation, claims, demands, penalties and damages, including reasonable attorneys' fees, arising from or connected with any release of hazardous waste or violation of federal, state or local environmental laws. Notwithstanding any other provision herein to the contrary, the parties do not intend this Agreement be construed such that it creates in or gives the City: (a) the obligations or liability of an "owner" or"operator" as those words are defined and used in environmental laws, as defined below, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 10 ATTACHMENT (� as amended (42 USC section 9601 et seq. And hereinafter"CERCLA"); (b) the obligations or liability of a person described in 42 USC section 9607 (a)(3)or(4); (c) the obligations of a responsible person under any applicable Environmental Laws, as defined below; (d) the right to investigate and remediate any Hazardous Materials, as defined below, associated with the Subject Property; or (e) any control over Grantor's ability to investigate, remove, remediate, or otherwise clean up any Hazardous Materials associated with the Subject Property. The term"Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive, or radioactive; (b)petroleum products and (c)hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in the CERCLA (42 USC section 9601 et seq.), the Hazardous Materials Transportation Act (49 USC section 5101,et seq.), the Hazardous Waste Control Law (California Health and Safety Code section 25100 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state, or local laws, ordinances, rules, or regulations now in effect or enacted after this date. The term "Environmental Laws" includes; without limitation, any federal, state or local or administrative agency statute, regulation, rule, ordinance, order or requirement relating to pollution, protection of human health, the environment or Hazardous Materials. 20. GRANTOR'S TITLE WARRANTY. Grantor represents and warrants that Grantor has good fee simple title to the Subject Property, free from any and all liens or encumbrances, except those set forth in Exhibit C, all of which have been subordinated to this Agricultural Conservation Easement; and hereby promises to defend the same against all claims that may be made against it. Grantor represents and warrants that the Subject Property is not subject to any other conservation easement whatsoever. Grantor may grant subsequent conservation easements on the Subject Property, provided that such subsequent easements are for the purpose of wetland, wildlife habitat or biological resource creation, enhancement or preservation, or for the protection and enhancement of agricultural productivity of the Subject Property. City shall be notified in advance, in writing, of any proposed conservation or other easement on the Subject Property, and shall have the right of reasonable review and approval of any such new easements. 21. INVALIDATION. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of this Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. 22. CITY AGREEMENT. As attested by the signature of its Mayor affixed hereto, in exchange for consideration, City hereby accepts without reservation the rights and 11 ATTACHMENT responsibilities conveyed by this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this document on the day and year first written above. GRANTORS KENNETH L. GLICK REVOCABLE TRUST dated December 5, 2003 By By Frederick K. Glick, Co-Trustee Michelle Leguina, Co-Trustee CITY CITY OF SAN LUIS OBISPO By David F. Romero, Mayor APPROVED AS TO FORM: JON AN P. LOWELL Attomey 12 ATTACHMENT <6 Exhibit A Description of Property The subject property is described as follows: ATTACHMENT Exhibit B Buildings and Improvements on the Subject Property The subject property includes the following buildings and improvements: 02 c2 ATTACHMENT Exhibit C Encumbrances on the Subject Property The subject property is subject to the following encumbrances as of September 2, 2008: - ' ATTACHMENT � Exhibit D 1 —D4 Certificates of Compliance ATTACHMENT Exhibit E Restricted Building Area North and West of Union Pacific Railroad Tracks ATTACHMENT STATE OF CALIFORNIA ) ss COUNTY OF SAN LUIS OBISPO ) On 200_, before me, a Notary Public for the State of California, personally appeared DAVID F. ROMERO personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public STATE OF CALIFORNIA ) ss COUNTY OF SAN LUIS OBISPO ) On , 200_, before me, a Notary Public for the State of California, personally appeared FREDERICK K. GLICK and MICHELLE LEGUINA personally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public a-33 V.U.4EMT 2 in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Covenant. The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Covenantor represents, warrants and covenants to ACOE that Covenantor's activities upon and use of the Mitigation Property will comply with all Environmental Laws. (k) Additional Easements. Covenantor shall not grant any additional easements, rights of way or other interests in the surface or subsurface of the Mitigation Property (other than a security interest that is subordinate to this Conservation Covenant), or grant or otherwise abandon or relinquish any water rights relating to the Mitigation Property, without first obtaining the written consent of ACOE. ACOE may withhold such consent if it determines that the proposed interest or transfer is inconsistent with the Purpose of this Conservation Covenant or will impair or interfere with the Conservation Values of the Mitigation Property. This Section shall not prohibit transfer of a fee or leasehold interest in the Mitigation Property that is subject to this Conservation Covenant and complies with Section 10. Covenantor, its successors and assigns shall record any additional easements or other interests in the Mitigation Property approved by the ACOE in the official records of San Luis Obispo County, California and provide a copy of the recorded document to the ACOE. IN WITNESS WHEREOF Covenantor has executed this Conservation Covenant the day and year first above written. COVENANTOR Dated: Mr. Dave Romero, Mayor City of San Luis Obispo By: Mr. Dave Romero, Mayor APPROVED AS TO FORM: JONA P. LOWELL Attorney 9 ATTACHMENT DRAFT DEED OF CONSERVATION EASEMENT Frederick K. Glick to the City of San Luis Obispo THIS DEED OF CONSERVATION EASEMENT dated 2008, by Frederick K. Glick, having an address at **** Santa Rosa Street, San Luis Obispo, CA. 93401 ("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"), is made with respect to the following: RECITALS WHEREAS, Grantor is the sole owner in fee simple of certain real property consisting of one Assessor's parcel 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 natural resource values including wildlife and plant resources, and scenic open space values (collectively, the 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, due to soil conditions and slopes, the property has extremely limited agricultural value; 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; 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. Purpose. 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 3! ATTACHMENT 7 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 grassland chaparral, and woodland communities existing on the site, the natural flow of Stenner Creek, and their importance to wildlife. These values also include the scenic quality of the undeveloped land that is visible from the surrounding community, the value of the land as a watershed and the benefits provided with the prevention to erosion, and protection of water quality, and the value of the land as it supports riparian vegetation along its drainage ways and creeks. 2. Rights 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) Building or erection of structures of any kind. (c) Cutting or removal of trees, except as may be necessary for health of the remaining trees or for public safety. (d) Mining or other mineral exploration or exploitation of the property. (e) The collection of any portion of the natural flows of Stenner Creek. (f) Grading, other than for purposes of providing hiking or riding trails on the site consistent with generally accepted standards. 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. 02�� ATTACHMENT 7 5. Baseline Documentation. The parties agree that the specific conservation values of the property shall be documented in a report ("the Baseline Report") that shall be completed within thirty days of the transfer of this Deed of Conservation Easement; and that both Grantee and Grantor shall receive true copies of this report. The Report shall consist of maps, photographs, and other documentation that, the parties must agree in writing, provide 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 6. Arbitration. Any controversy arising from this Easement or its breach 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 to each party and to the other party when made. (b) The two arbitrators shall immediately choose a third arbitrator to act with them. If a parry 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 parry 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 parry 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. 7. 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 ;.-310 - ATTACHMENT 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 the 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 therefore, Grantee, in its sole discretion, may apply any damages recovered to the cost of undertaking any correction 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 violation of the terms of this Easement, and Grantor agrees 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 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.. 8. 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 borne by Grantor. If Grantor prevails in any action to enforce the terms of this Easement, Grantor's costs of suit, including, without limitation, attorneys' fee, shall be borne 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 borne by Grantor. 9. 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 beach by Grantor shall impair such right or remedy or be construed as a waiver. 10. Waiver of Certain Defenses. Grantor and Grantee hereby mutually waive any defense of laches, estoppel, or prescription. 11. 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 —J 7 ATTACHMENT 1 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. 12. No Expense to Grantor. Under the express terms of this Deed of Conservation Easement, Grantor shall not incur any expense with maintaining the property as open space. All expenses associated with conservation efforts Grantee determines to be necessary to preserve the open space easement shall be borne by Grantee, unless and to the extent Grantor is in violation of this Deed of Conservation Easement, in which case provisions herein shall control. 13. 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"), 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. 14. Hold Harmless. Grantor shall hold harmless, indemnify, and defend Grantee and its 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 12; or (4) the existence of this Easement. 15. 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 (if any) 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 as provided by California law. 16. 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. . 17. 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 34? ATTACHMENT authorized to acquire and hold conservation easements under state statue (or any successor provision then applicable). 18. Subsequent Transfers. 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. 19. 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. 19. 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: Frederick K. Glick 1315 Santa Rosa Street San Luis Obispo, CA. 93401 To Grantee: Mr. Ken Hampian, City Administrative Officer City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 or to such other address as either parry from time to time shall designate by written notice to the other. 20. Recordation. Grantee shall record this instrument 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 in this Easement. 21. 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 the conservation values over time. A copy of each monitoring report shall be given to the Grantor. 22. Subordination. Any mortgage securing the property shall be subordinate 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 e;l 39 ATTACHMENT 7 extinguishment of this Easement by the exercise of any rights of the mortgage holder. 23. General Provisions. (a) Controlling Law. The interpretation and performance of this Easement shall be government 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. (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) 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) Captions. 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. � y0 ATTACHMENT '7 For the Grantor: For the Grantee: David F. Romero, Mayor For Deed of Trust Holder By: APPROVED AS TO FORM: XTP�LOWELL City Attorney 01 �/� ATTACHMENT � ATTACHMENT A Legal Description of Property Subject To Easement (to be added prior to close of escrow) �—�01 ATTACHMENT g RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO PROVIDING FOR THE ASSIGNMENT OF AN EXISTING CONSERVATION EASEMENT TO THE LAND CONSERVANCY OF SAN LUIS OBISPO COUNTY WHEREAS, in December 2001, the City of San Luis Obispo acquired by gift a conservation easement burdening certain real property in the County of San Luis Obispo, outside of but adjacent to the City of San Luis Obispo, said property being identified as Assessor's Parcel Number 073-371-002 and commonly known as the Bowden Ranch; and WHEREAS, since that time the City of San Luis Obispo has also acquired by gift an undivided one-half interest in fee ownership of said property;and WHEREAS, the City of San Luis Obispo anticipates the acquisition the remaining one-half undivided interest in said property; and WHEREAS, the City Council of the City of San Luis Obispo wishes to retain the terms and conditions of the Conservation Easement in full.force.and effect by assigning said easement to an independent party. NOW, THEREFORE; BE IT RESOLVED that the City Council of the City of San Luis Obispo: 1. Hereby assigns all right and interest in the Conservation Easement burdening the Bowden Ranch Open space (Assessor's Parcel Number 073-371-002) to the Land Conservancy of San Luis Obispo County. 2. Authorizes and directs the Mayor to sign the necessary documents to effect said assignment, subject to approval by the City Attorney. Adopted this 2nd day of September, 2008. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: David F. Romero, Mayor a y� ATTACHMENT ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: J athan Lowell �y� ATTACHMENT RESOLUTION NO. RESOLUTION OF.THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING ACQUISITION OF A PARTIAL INTEREST IN REAL PROPERTY ALREADY PARTIALLY OWNED BY THE CITY OF SAN LUIS OBISPO WHEREAS, Frederick K. Glick ("Grantor") is the owner of a one-half undivided fee interest in of certain real property in San Luis Obispo County, California, outside of but adjacent to the City of San Luis Obispo, described as Assessor's Parcel Number 073-371-002 and referred to as the Bowden Ranch (the "Property"); and WHEREAS, the Property possesses natural resource values including wildlife and plant resources, and scenic open space 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, in February, 2006, the City of San Luis Obispo accepted the donation of a one-half undivided fee interest in said property; and WHEREAS, Grantor now wishes to convey to the City of San Luis Obispo the remaining one-half undivided fee interest in the real property for its fair market value; and WHEREAS, the City of San Luis Obispo is a chartered municipal corporation of the State of California that is authorized by law to acquire lands for public benefit purposes, including open space and wildlife habitat preservation. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby: 1. Accepts the offer of a one-half undivided fee interest in the property commonly known as the Bowden Ranch and identified as Assessor's Parcel Number 073- 371-002 for a purchase price of $120,000, payable at the close of escrow; and 2. Authorizes and directs the Mayor to accept the grant deed to said property and to execute documents necessary to effect the transaction on behalf of the City of San Luis Obispo, subject to approval by the City Attorney. Approved and adopted this 2"d day of September, 2008. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: i ATTACHMENT r David F. Romero, Mayor ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: tnowellhan 13.1 , City A orney a- 7 AA IIACHMENT � RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING THE SALE OF REAL PROPERTY WHEREAS, the City of San Luis Obispo is owner in fee simple of certain real property in San Luis Obispo County, California, outside of but near the City of San Luis Obispo, described as Assessor's Parcel Number 073-281-004 and commonly referred to as the Stenner Creek Road property (the "Property"); and WHEREAS, said property has been declared surplus to City needs and has been considered for sale or trade in conjunction with the acquisition of an easement interest in the adjacent Stenner Ranch; and WHEREAS, Frederick K. Glick, Trustee of the Kenneth Glick Revocable Trust, owners of the Stenner Ranch, has reached agreement with the City of San Luis Obispo regarding such sale of the Stenner Creek Road property and acquisition of an easement interest in the Stenner Ranch; and WHEREAS, Frederick K. Glick has offered, upon completion of the purchase of the Property, to immediately donate a Conservation Easement on the Property in order to protect the natural resource and other values of the Property. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby: 1. Accepts the offer of purchase of the Stenner Creek Road property by Frederick K. Glick at a purchase price of $320,000; and 2. Authorizes and directs the Mayor to execute all documents necessary to effect the transaction on behalf of the City of San Luis Obispo, subject to approval by the City Attorney. Approved and adopted this 2nd day of September, 2008. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: David F. Romero, Mayor -" H 1 1 H�:1'IIYItIV I ATTEST: Audrey Hooper, City Clerk APPROVED S TO FORM: Jon an Lowell ATTACHMENT RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING ACCEPTANCE OF A CONSERVATION EASEMENT ON REAL PROPERTY WHEREAS, the City of San Luis Obispo is owner in fee simple of certain real property in San Luis Obispo County, California, outside of but near the City of San Luis Obispo, described as Assessor's Parcel Number 073-281-004 and commonly referred to as the Stenner Creek Road property (the "Property"); and WHEREAS, said property has been declared surplus to City needs and has been considered for sale or trade in conjunction with the acquisition of an easement interest in the adjacent Stenner Ranch; and WHEREAS, Frederick K. Glick, Trustee of the Kenneth Glick Revocable Trust, owner of the Stenner Ranch, has reached agreement with the City of San Luis Obispo regarding such sale of the Stenner Creek Road property and acquisition of an easement interest in the Stenner Ranch; and WHEREAS, the Property possesses natural resource values including wildlife and plant resources, and scenic open space values (the "Conservation Values") of importance to Grantor, the people of the City of San Luis Obispo, and the people of the State of California; and WHEREAS, due to soil conditions and slopes, the Property has extremely limited agricultural value; and WHEREAS, the Property also contains a portion of Stenner Creek, which is a natural waterway known to contain a population of the threatened southern steelhead; and WHEREAS, Frederick K. Glick has offered, upon completion of the purchase of the Property, to immediately donate a Conservation Easement on the Property in order to protect the natural resource and other values described above; and WHEREAS, the City of San Luis Obispo is a chartered municipal corporation of the State of California that is authorized by law to accept Conservation Easements; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby: 1. Accepts the offer of donation of a Conservation Easement for Assessor's Parcel Number 073-371-002; and 2. Authorizes and directs the Mayor to execute all documents necessary to effect said Conservation Easement on behalf of the City of San 4-P y9 ATTACHMENT '�' Luis Obispo. Approved and adopted this 2nd day of September, 2008. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: David F. Romero, Mayor ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: 6JoAathan Lowell ' ATTACHMENT � RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING PURCHASE OF AN AGRICULTURAL CONSERVATION EASEMENT ON REAL PROPERTY WHEREAS, Frederick K. Glick and Michelle Leguina, Trustees of the Kenneth L. Glick Revocable Trust dated December 5, 2003 ("Grantors") are the owners in fee simple of certain real property in San Luis Obispo County, California, described as San Luis Obispo County Assessor's Parcel Numbers 073-261-006, 073-261-007, 073-261- 009 and 073-261-010, commonly known as the Stenner Ranch (the "Property'); and WHEREAS, the Property possesses natural resource values including agricultural value and scenic open space values (the "Conservation Values") of great importance to Grantors, the people of the City of San Luis Obispo, and the people of the State of California; and WHEREAS, the United States of America, acting through its National Guard Bureau, maintains a military installation, known as Camp San Luis Obispo, which is adjacent to the Stenner Ranch, and said military installation would benefit from the permanent retention of Stenner Ranch in agriculture and open space uses; and WHEREAS, such benefit to the United States of America has caused the National Guard Bureau to offer financial support to such a preservation effort; and WHEREAS, Grantors desire that the Conservation Values of the Property be preserved and maintained by the continuation of currently existing land use patterns; and WHEREAS, Grantors further intend, as owners of the Property, to convey by this Agricultural Conservation Easement, the right and duty to the City of San Luis Obispo 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 by law to hold Conservation Easements, including Agricultural Conservation Easements protecting working farm and ranch lands; and WHEREAS, the City of San Luis Obispo agrees by this Agreement 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, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby accepts and directs the Mayor to sign all documents necessary to effect said Agricultural Conservation Easement on behalf of the City of San Luis Obispo. 02 ATTACHMENTB1' Approved and adopted this 2nd day of September, 2008. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: David F. Romero, Mayor ATTEST: Audrey Hooper, City Clerk APPRO ED AS TO FORM: i J an P. Lowell, City Attorney � Asa