HomeMy WebLinkAbout12/15/2009, B 3 - APPROVAL OF GRANT AGREEMENT WITH THE LAND CONSERVANCY OF SAN LUIS OBISPO COUNTY IN SUPPORT OF THE P °;councils o
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C I T Y O F S A N L U I S O B I S P O
FROM: Shelly Stanwyck,Assistant City Manager
Prepared By: Neil Havlik,Natural Resources Manager
SUBJECT: APPROVAL OF GRANT AGREEMENT WITH THE LAND
CONSERVANCY OF SAN LUIS OBISPO COUNTY IN SUPPORT
OF THE PURCHASE OF AN AGRICULTURAL CONSERVATION
EASEMENT AT THE 189 ACRE O'CONNOR RANCH ON
O'CONNOR WAY
RECOMMENDATION
1. Adopt a resolution approving payment of$107,500 to First American Title Company from
the City's Open Space Fund in support of the purchase of an agricultural conservation
easement by the Land Conservancy of San Luis Obispo County at the 189 acre O'Connor
Ranch on O'Connor Way in the City's Greenbelt area.
2. Authorize the Mayor to sign an agreement with the Land Conservancy of San Luis Obispo
County memorializing the payment and conditions under which the payment will be made.
DISCUSSION
Background
In June 2009, the City Council approved the 2009-11 budget. The budget included funds in the
amount of$117,500 to support the purchase of a conservation easement at one of several properties
being considered jointly by the Land Conservancy of San Luis Obispo County and City staff. Each
property considered would have been eligible to utilize Federal funds from the Department of
Defense's Army Compatible Use Buffer (ACUB) program at Camp San Luis Obispo, since the
Camp's area of interest overlaps portions of the City of San Luis Obispo Greenbelt. The ACUB
program has been utilized over the past several years, to leverage City funds in order to achieve
conservation objectives shared by the City, Land Conservancy, and Camp San Luis Obispo. For
example, in 2006, the Land Conservancy, using ACUB funds plus other funds raised locally,
purchased the 315 acre Union Pacific Railroad Company properties on Cuesta Ridge and in 2007,
donated that property to the City of San Luis Obispo as public open space. Last year, the City, the
Land Conservancy, and the National Guard Bureau again cooperated to purchase an agricultural
conservation easement on the 838 acre Stenner Ranch in Stenner Creek Canyon.
Recently the Land Conservancy entered into an agreement with Joseph and Mary Lindsey, owners
of the O'Connor Ranch, to purchase an agricultural conservation easement on the 189 acre ranch
for a total cost of$949,000. Due to the highly successful relationship that exists between the City,
the Land Conservancy, and Camp San Luis Obispo, and the fact that the ACUB match
requirements have been exceeded by the City and Land Conservancy in the past, the Camp has been
G/Navlik/Councilagenda/O'Connor Ranch Funding Support
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Council Agenda Report—O'Connor Ranch Funding Support
Page 2
able to secure $850,000 from ACUB to contribute to the purchase. The balance of $107,500 is
needed to cover the purchase price and various closing costs that have been or will be incurred by
the Land Conservancy in completing the purchase.
Grant Terms
City Natural Resources staff have been a party to the development of the O'Connor Ranch
Conservation Easement, and agrees that it satisfies the outlines of the several earlier conservation
easements negotiated between the City, the Land Conservancy, Camp San Luis Obispo, and
property owners. Specifically, preventing the creation of land uses incompatible with the Camp's
mission of military training. The City's grant to the Land Conservancy requires that the ACUB
funds be deposited into escrow at First American Title Company. The grant also recognizes the
right of the United States of America to enforce the easement conditions in the event that the Land
Conservancy is unable to do so. The City shall have no other obligations under the grant.
FISCAL IMPACT
The grant will provide City funding to match a substantial grant of ACUB funds, thus providing a
beneficial fiscal effect for an important. City program. The expenditure is less than originally
anticipated, and the $10,000 remaining will be put toward the City's next anticipated Open Space
purchase,Froom Ranch.
Overall, a total of ACUB and other contributions of $830,000 in the Union Pacific and Stenner
Ranch transactions have been matched by City funds in amount of$550,000, a ratio of 1.5:1. This
transaction will change those numbers to$1,680,000 and$657,500 respectively, a ratio of 2.55:1
ALTERNATIVE
The Council could reject the agreement. This is not recommended as the agreement provides
needed funding for the project in a very positive and advantageous manner.
ATTACHMENTS
1. Grant Agreement
2. Resolution
3. Location Map of the O'Connor Ranch
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- ATTACHMENT 1
GRANT AGREEMENT FOR CONSERVATION EASEMENT
THIS Grant Agreement (the "Agreement") is made on this 15th day of December, 2009,
by the CITY OF SAN LUIS OBISPO ("CITY") and THE LAND CONSERVANCY OF
SAN LUIS OBISPO COUNTY ("LAND CONSERVANCY") who are collectively
referred to as the "Parties".
RECITALS
WHEREAS, LAND CONSERVANCY is party to an agreement with the United
States National Guard Bureau ("NGB"), whereby LAND CONSERVANCY may acquire
land or interest in land for the purpose of protecting the mission of the NGB property
commonly known as Camp San Luis Obispo, in the County of San Luis Obispo
California; and
WHEREAS, portions of the area of interest and concern to NGB also lie within the
established Greenbelt of CITY and are of interest to CITY for conservation purposes; and
WHEREAS, LAND CONSERVANCY has reached an agreement with Joseph
and Mary Lindsey to acquire a Conservation Easement interest ("Conservation
Easement") ensuring the preservation of approximately one hundred eight-nine (189)
acres of real property (the "'Property") located within said greenbelt, which Property is
described in detail as Exhibit A, attached hereto; and
WHEREAS, CITY, LAND CONSERVANCY, and NGB all desire to ensure the
preservation of the Property consistent with the terms and conditions of the Conservation
Easement in order to protect the scenic, open space, and agricultural values of the
Property in perpetuity; and
WHEREAS, the purchase price for the Conservation Easement is $949,000.00
pursuant to a qualified appraisal; and
WHEREAS, CITY, in consideration of a request from LAND CONSERVANCY,
and of the Parties' mutual goals and long-standing partnership in land conservation,
desires to make a grant in the amount of $107,500.00 towards the purchase price of the
Conservation Easement; and
WHEREAS, NGB will provide the remaining funds needed, pursuant to its Army
Compatible Use Buffer (ACUB) Program for the benefit of Camp San Luis Obispo, to
LAND CONSERVANCY to complete the transaction; and
WHEREAS, LAND CONSERVANCY has agreed to accept the Conservation
Easement, pursuant to a resolution passed by its Board of Trustees at their meeting of
December 08, 2009, and to hold, monitor, and enforce the Conservation Easement
pursuant to its terms and conditions in order to ensure the perpetual efficacy of the
Conservation Easement; and
B3 - 3
ATTACHMENT 1
WHEREAS, said Conservation Easement and the Agreements between LAND
CONSERVANCY and NGB providing for said Easement, contain assurances that, in the
event of inability of LAND CONSERVANCY to carry out its duties under the Easement
for any reason, the United States of America acting through NGB retains the perpetual
right and duty to so enforce the provisions of said Easement.
NOW, THEREFORE, in consideration of the promises herein and the mutual
benefits accruing to the Parties, to NGB, and to the general public from the Conservation
Easement contemplated herein, CITY and LAND CONSERVANCY hereby agree as
follows:
A. The Recitals herein are incorporated into and made a part of this
Agreement.
B. CITY shall make a grant of funds to LAND CONSERVANCY in the
amount of $107;500.00 which shall be deposited to an escrow account at First American
Title Company, number 4009-3245896, which has been established for the benefit of this
transaction, upon LAND CONSERVANCY's instructions made at least 14 days in
advance to do so.
C. CITY's funds shall only be used if, and only if, all other funds are
deposited to escrow and the Conservation Easement is duly executed, notarized, and
recorded with the San Luis Obispo County Clerk / Recorder. If the transaction is
substantially delayed or does not take place for any reason whatsoever, then LAND
CONSERVANCY shall cause First American Title Company to promptly return the
funds to CITY.
D. LAND CONSERVANCY, or its successors and assigns, shall hold all
right, privilege and interests accruing from the Conservation Easement in perpetuity.
IN WITNESS WHEREOF, the Parties have executed the foregoing as of the date year
first above written.
CITY OF SAN LUIS OBISPO:
By: Date:
Dave Romero, Mayor
THE LAND CONSERVANCY OF SAN LUIS OBISPO COUNTY:
By: Fe p ,d Date:
APPRG M"s `O F��6ft!
P. LOWELL
City Attorney
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ATTACHMENT 1
EXHIBIT A —
LEGAL DESCRIPTION OF PROPERTY
to be subject to the
DEED OF CONSERVATION EASEMENT
Real property in the unincorporated area of the County of San Luis Obispo, State of
California, described as follows:
LOT 12 OF THE SUBDIVISION OF THE RANCHOS CANADA DE LOS OSOS AND
LA LAGUNA, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA,
ACCORDING TO MAP RECORDED OCTOBER 8, 1868 IN BOOK A, PAGE 83 OF
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPTING THEREFROM THAT PORTION OF SAID LOT 12 DESCRIBED AS
FOLLOWS:
BEGINNING AT A STAKE MARKED 5.142 ON TOP OF THE "CERRO
ROMAULDO"; THENCE ALONG THE LINE BETWEEN LOTS 11 AND 12 AS PER
SAID MAP, SOUTH 440 WEST 54.00 CHAINS TO A STAKE S.10, A COMMON
CORNER OF LOTS 11 AND 12 AFORESAID; THENCE ALONG THE
NORTHEASTERLY LINE OF A ROAD DELINEATED ON THE ABOVE
MENTIONED MAP, SOUTH 540 EAST 6.00 CHAINS TO A STAKE MARKED
O.C.3; THENCE LEAVING THE NORTHEASTERLY LINE OF SAID ROAD,
NORTH 440 EAST, AT 36.58 CHAINS TO A LIVE OAK TREE MARKED O.C.4,
AND AT 54.79 CHAINS TO THE NORTHEASTERLY LINE OF SAID LOT 12;
THENCE ALONG THE NORTHEASTERLY LINE OF SAID LOT 12, NORTH 810 15'
WEST, 6.17 CHAINS TO THE STAKE S.142, THE POINT OF BEGINNING.
Also referred to as the following Assessor's Parcel Number: APN: 067-061-031
l'3-S
ATMO W9
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
PROVIDING FOR A GRANT AGREEMENT WITH THE LAND CONSERVANCY OF
SAN LUIS OBISPO COUNTY IN SUPPORT OF THE PURCHASE OF A
CONSERVATION EASEMENT ON THE O'CONNOR RANCH IN
SAN LUIS OBISPO COUNTY, CALIFORNIA
WHEREAS, The Land Conservancy of San Luis Obispo County is party to an
agreement with the United States National Guard Bureau ("NGB"), whereby the Land
Conservancy may acquire land or interest in land for the purpose of protecting the
mission of the NGB property commonly known as Camp San Luis Obispo, in the County
of San Luis Obispo California; and
WHEREAS, portions of the area of interest and concern to NGB also lie within
the established Greenbelt of City of San Luis Obispo and are of interest to the City of
San Luis Obispo for conservation purposes; and
WHEREAS, the Land Conservancy has reached an agreement with Joseph and
Mary Lindsey to acquire a Conservation Easement interest ("Conservation Easement')
ensuring the preservation of approximately one hundred eight-nine (189) acres of real
property (the Property") located within the City's identified Greenbelt; and
WHEREAS, the City of San Luis Obispo, the Land Conservancy, and NGB all
desire to ensure the preservation of the Property consistent with the terms and
conditions of the Conservation Easement in order to protect the scenic, open space,
and agricultural values of the Property in perpetuity; and
WHEREAS, the purchase price for the Conservation Easement is $949,000.00
pursuant to a qualified appraisal; and
WHEREAS, in consideration of a request from LAND CONSERVANCY, and of
the Parties' mutual goals and long-standing partnership in land conservation, the City of
San Luis Obispo desires to make a grant in the amount of $107,500.00 towards the
purchase price of the Conservation Easement; and
WHEREAS, NGB will provide the remaining funds needed, pursuant to its Army
Compatible Use Buffer (ACUB) Program for the benefit of Camp San Luis Obispo, to
the Land Conservancy in order to complete the transaction; and
WHEREAS, the Land Conservancy has agreed to accept the Conservation
Easement, pursuant to a resolution passed by its Board of Trustees at their meeting of
December 08, 2009, and to hold, monitor, and enforce the Conservation Easement
pursuant. to its terms and conditions in order to ensure the perpetual efficacy of the
Conservation Easement; and
� 1
ATTACHMMT 2
WHEREAS, said Conservation Easement and the Agreements between the Land
Conservancy and NGB providing for said Easement, contain assurances that, in the
event of inability of the Land Conservancy to carry out its duties under the Easement for
any reason, the United States of America acting through NGB retains the perpetual right
and duty to so enforce the provisions of said Easement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Luis Obispo hereby:
1. Authorizes and directs the Mayor to sign the Grant Agreement for
Conservation Easement to effect the transaction..
2. Authorizes the City Manager to make payment of funds in the amount of
$107,500.00 into an escrow account at First American Title Company,
number 4009-3245896, which has been established for the benefit of this
transaction, upon request of the Land Conservancy of. San Luis Obispo
County made at least 14 days in advance..
Adopted this 15"' day of December, 2009.
On motion of , seconded by and
on the following roll call vote:
AYES:
NOES:
ABSENT:
David F. Romero, Mayor
ATTEST:
Elaina Cano, City Clerk
APPROVED AS TO FORM:
Jo an Lowell
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