Loading...
HomeMy WebLinkAboutD-1692B Recorded 08/10/2006RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk's Office City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93422 JULIE RODEWALD San Luis Obispo CountyOrk/Recorder Recorded at the request of Public i AM 8/10/2006 11:34 AM D O C # : 2006056617 Titles: 1 Pages: 47 Fees i 0.00 Taxes 0.00 Others 0.00 PAID $0.00 Space Above Line for Recorder's Use Only CONSERVATION EASEMENT THIS CONSERVATION EASEMENT is made this fk�— day of I , 200 by Clinton R. Pearce and Connie E. Pearce, Trustees of the Clinton and Connie Pearce Revocable Trust, dated 9/15/03, and Pearce Madonna Partnership, a California Limited Partnership (collectively, "Grantor ") in favor of the City of San Luis Obispo, a charter city and municipal corporation of the State of California ( "Grantee ") with reference to the following facts: RECITALS A. Irish Hills Plaza West, L.L.C. ( "Developer ") is the developer of that certain real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, commonly referred to as Irish Hills Plaza 1 (the "Project "). B. Grantor is the. sole owner in fee simple of those portions of the Project legally described on Exhibit "A" and depicted on Exhibit `B" attached hereto and incorporated by this reference (the "Property "), which consists of approximately 0.25 acre. C. This Conservation Easement provides mitigation for certain impacts of the Project by Developer pursuant to requirements of the United States Army Corps of Engineers' ( "ACOE ") Section 404 Nationwide Permit, File No. 200600054 -HW and amendments thereto ( "Section 404 Permit "). Special Condition 4of the Section 404 Permit requires Developer record a Conservation Easement on all mitigation sites. This Conservation Easement-is intended and shall -be deemed to satisfy such part of Special Condition 4 as to the Property. The Property is and will remain in a Natural Condition as defined herein and is intended to be preserved in its natural, scenic, open condition to maintain its ecological, historical, visual and educational values (collectively, "Conservation Values "). D. Grantee is authorized to hold conservation easements pursuant to Civil Code Section 815.3. Specifically, Grantee is an entity identified in Civil Code Section 815.3 and otherwise authorized'to acquire and hold title to real property; and E. Developer has agreed to enter into this Conservation Easement for the purpose of undertaking certain obligations identified herein. a -1- F. The ACOE is the Federal agency charged with regulatory authority over discharges of dredged and fill material in waters of the United States pursuant to Section 404 of the Clean Water Act. COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS In consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to California law, including Civil Code Section 815, et seq., Grantor hereby voluntarily grants and conveys to Grantee a conservation easement in perpetuity over the Property of the nature and character and to the extent hereinafter set forth ( "Conservation Easement "). This Conservation Easement shall run with the land and be binding on Grantor's heirs, successors, administrators, assigns, lessees, and other occupiers or users of the Property or any portion of it. Purpose. (a) The Purpose of this Conservation Easement is to ensure the Property will be preserved in a Natural Condition, defined herein, in perpetuity and to prevent any use of the Property that will materially impair or interfere with the Conservation Values of the Property (the "Purpose "). Grantor intends that this Conservation Easement will confine the use of the Property to such activities, including without limitation, those involving the preservation and enhancement of native species and their habitat in a manner consistent with the habitat conservation purposes of this Conservation Easement. (b) The term "Natural Condition," as referenced in the preceding paragraph and other portions of this Conservation Easement, shall mean the condition of the Property, as it exists at the time this Conservation Easement is executed, as well as future enhancements or changes to the Property that occur directly as a result of the following activities: (1) Compensatory mitigation measures, including implementation, maintenance, and monitoring activities (collectively, "Compensatory Mitigation ") required by the Section 404 Permit and as described in the Final Habitat Mitigation and Monitoring Plan dated June 30, 2006 ( "Mitigation Plan "), the cover.,page and Executive Summary of which are attached as Exhibit "C;" (2) In- perpetuity maintenance ( "Long -Term Maintenance "), that occurs on the Property as described in Section 18 herein; or (3) Activities described in Section 8 herein. (c) Grantor certifies to ACOE and Grantee, that to Grantor's actual knowledge, there are no structures or improvements existing on the Property at the time this grant is executed. Grantor further certifies to ACOE and Grantee that to Grantor's actual knowledge, there are no previously granted easements existing on the Property that interfere or conflict with the Purpose of this Conservation Easement as evidenced by the Title Report attached at Exhibit "D." The current Natural Condition is evidenced in part by the depiction of the Property attached on Exhibit "E," showing all relevant and plottable property lines, -2- • 0 easements, dedications, improvements, boundaries and major; distinct natural features such as waters of the United States: Grantor has delivered further evidence of the Natural Condition to Grantee and ACOE consisting of (1) an aerial photograph of the Property at an appropriate scale taken as close in time as possible to the date this Conservation f Easement is executed; (2) an overlay of the Property boundaries on such aerial photograph; gnd (3) on -site photographs showing all man -made improvements or structures (if any) and the major, distinct natural features of the Property. (d) If a controversy arises with respect to the Natural Condition of the Property, Grantor, Grantee, Developer, or ACOE as a third party beneficiary, or any designees or agents of Grantor, Grantee, Developer, and ACOE, shall not be foreclosed from utilizing any and all other relevant documents, surveys, photographs or other evidence or information to assist in the resolution of the controversy. (e) The term `Biological Monitor" shall mean an independent third -party consultant with knowledge of aquatic resources in the San Luis Obispo City area and expertise in the field of biology. 2. Grantee's Rights. To accomplish the Purpose of this Conservation Easement. Grantor, its successor and assign hereby grants and conveys the following rights to Grantee. These rights are also granted-,to ACOE or its designees as a third party beneficiary of this Conservation Easement: (a) To preserve and protect the Conservation Values of the Property; and (b) To enter upon the Property at reasonable times in order to monitor compliance with and to otherwise enforce the terms of this Conservation Easement; and (c) To prevent any activity on or use of the Property that is inconsistent with the Purpose of this Conservation Easement and to require the restoration of such areas or features of the Property that may be damaged by any'act, failure to act, or any use that is inconsistent with the Purpose of this Conservation Easement; and (d) All mineral, air, and water rights necessary to protect and to sustain the biological resources of the Property, provided that any exercise of such rights by Grantee shall not result in conflict with such Conservation Values; and (e) All present and future development rights allocated, implied, reserved or inherent in the Properties; such rights are hereby terminated and extinguished, and may not be used on or transferred to any portion of the Property, nor any other property adjacent or otherwise; and (f) To enforce by means, including, without limitation, injunctive relief, the terms and conditions of this Conservation Easement. 3. Developer's Rights.. To accomplish the Purpose of this Conservation Easement as described in Section 1, Grantor hereby grants to the Developer the following rights: -3- • • (a) The right to enter the Property to conduct the activities required under the Section 404 Permit and any amendments thereto, and the Mitigation Plan to implement the Compensatory Mitigation iegbirements, including but not limited to the following activities: (1) remove trash and debris; (2) excavate and regrade the surface as appropriate for detention and flow of water for wetlands; (3) eradicate weeds and non - native plants; (4) install and maintain irrigation system; (5) prepare the site for native seeding and planting, including amending soils; (6) install native seeds and container plants; (7) maintain, restore and monitor the wetlands; (8) erect fencing, signs and other markers to mark the boundaries of the Property; and (b) Upon issuance of final approval from the ACOE of the success of Developer's construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan, Developer's right to enter the Property pursuant to Section 3(a), above, shall cease. 4. Prohibited Uses. Any activity on or use of the Property inconsistent with the Purpose of this Conservation Easement and not reserved as a right of Grantor is prohibited. Without limiting the generality of the foregoing, the following uses by Grantor, Grantee, Developer, and their respective guests, agents, assigns, employees, representatives, successors, and third parties are expressly prohibited on the Property except as otherwise provided herein or unless specifically provided for in the Section 404 Permit and any amendments thereto, the Mitigation Plan, and any easements and reservations of rights recorded in the chain of title to.the Property at the time of this conveyance (as set forth on Exhibit D hereto): (a) Supplemental watering except for habitat enhancement activities described in Section 8(b); (b) Use of herbicides, pesticides, biocides, fertilizers, or other agricultural chemicals or weed abatement activities, except weed abatement activities necessary to control or remove invasive, exotic plant species; (c) Use of off -road vehicles and use of any other motorized vehicles except in the execution of management duties; (d) Livestock grazing or other agricultural activity of any kind; (e) Recreational activities including, but not limited to, horseback riding, biking, hunting or fishing; (f) Residential, commercial, retail, institutional, or industrial uses; (g) - Any legal or de facto division, subdivision or portioning of the Property; (h) Construction, reconstruction or placement of any building or other improvement, billboard, or sign except those signs specifically allowed under Section 7(e) and Section 8(d); (i) Dumping, depositing, or accumulating soil, trash, ashes, refuse, waste, bio- solids or any other, material; M • • (j) Planting, introduction or dispersal of non - native or exotic plant or animal species; (k) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, gravel, soil, rock, sand or other material on or below the surface of the Property or granting or authorizing surface entry for any of these purposes; (1) Altering the surface or general topography of the Property, including but not limited to building of roads or trails, paving or otherwise covering the Property with concrete, asphalt.or any other impervious material, and conducting flood control work; (m) Removing, destroying, or cutting of trees, shrubs or other vegetation, except for (1) emergency fire breaks as required by fire safety officials as set forth in Section 8(f), (2) prevention or treatment of disease, (3) control of invasive species which threaten the integrity of the habitat, (4) undertaking the required Mitigation Plan, or (5) activities described in Section 5, Section 6, Section 8 and Section 18; (n) Manipulating, impounding or altering any natural watercourse, body of water or water circulation on the Property, and activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub - surface waters,; and (p) Fuel modification zones (defined as a strip of mowed land or the planting of vegetation possessing low combustibility for purposes of fire suppression). 5. Grantor's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1, Grantor, its successors and assigns shall: (a) Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the Conservation Values of the Property. In addition, Grantor shall undertake all necessary actions to perfect Grantee's rights under Section 2 of this Conservation Easement, including but not limited to Grantee's water rights; and (b) Comply with the terms of this Conservation Easement and cooperate with Grantee in the protection, of the Conservation Values; and (c) Repair and restore damage to the Conservation Easement directly caused by Grantor, Grantor's guests, representatives, employees or agents, and third parties within Grantor's control provided, however, Grantor, its successors or assigns shall not engage in any repair or restoration work in the Property without first consulting with Grantee and ACOE; and (d) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. 6. Grantee's Duties. To accomplish the Purpose of this Conservation Easement as . described in Section 1, Grantee, its successors and assigns shall: WE (a) Subject to the exceptions in Section 8, undertake all reasonable actions to prevent any activity on or use of the Property that is inconsistent with the Purpose of this Conservation Easement; and (b) Perform annual compliance inspections of the Property, and shall make reports available to ACOE upon request; and (c) Perform Long -Term Maintenance of the Property as described in Section 18 herein; and (d) Repair and restore damage to the Conservation Easement directly caused by Grantee, Grantee's guests, representatives, employees or agents, and third parties within Grantee's control provided, however, Grantee, its successors or assigns shall not engage in any repair or restoration work, in the Property without first consulting with ACOE; and (e) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. (f) Set aside, hold, invest and disburse adequate endowment funds in trust solely for the purposes of preserving the Conservation Values of the Property under this Conservation Easement in perpetuity. ACOE shall have the right to review and approve the terms of the endowment agreement, and shall be a third party beneficiary of that agreement with the right to review and approve any amendments and (g) Have a fiduciary duty to ensure that the endowment funds held in trust for the Property is properly managed. The following principles of fiduciary duty shall apply: (1) There shall be no commingling of the endowment funds with other funds. Funds may be pooled for investment management purposes only. (2)` Grantee shall have a duty of loyalty and shall not use. the endowment funds for its own personal benefit: (3) Grantee shall act as a prudent investor of the endowment funds.. (4) Grantee shall not delegate the responsibility for managing the funds to a third party, but may delegate authority to invest the funds with Grantee's oversight. Grantee shall act with prudence when delegating authority and in the selection of agents. (5) Grantee shall have annual audit of the endowment. performed by a licensed CPA. Grantee shall submit the auditor's written report to ACOE upon request. 7. Developer's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1, Developer shall: • • (a) Undertake construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan until issuance of final approval from ACOE confirming that Developer has successfully completed construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan; and ' I I (b) Comply with the terms of this Conservation Easement and cooperate with Grantee in the protection of the Conservation Values; and (c) Repair and restore damage to the Conservation Easement directly caused by Developer, Developer's guests, representatives, employees or agents, and third parties under the control of Developer; however, Developer, its successors or assigns shall not engage in any repair or restoration work in the Property without first consulting with Grantee and ACOE; and (d) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall .be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements; and (e) Install signs as described in Section 8; and (f) Upon receipt of the final approval of the success of the mitigation from the ACOE, Developer's duties under this Conservation Easement shall cease and Developer shall have no further obligations whatsoever with respect to the Property. 8. Reserved Rights. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all other rights accruing from its ownership of the Property, including the right to engage in or to permit or invite others to engage in all uses of the Property that are consistent with the Purpose of this Conservation Easement, including the following uses: (a) Access. Reasonable access through the Property to adjacent land over existing roads, or to perform obligations or other activities permitted by this Conservation Easement or that are required under the Section 404 Permit. (b) Habitat Enhancement Activities. Enhancement of native plant communities, including the right to plant trees and shrubs of the same type as currently existing on the Property, so long as such activities do not harm the habitat types identified in the Section 404 Permit or Mitigation Plan. For purposes of preventing erosion and reestablishing native vegetation, Grantor shall have the right to revegetate areas that may be damaged by the permitted activities under this Section 8, naturally occurring events or by the acts of persons wrongfully damaging the Natural Condition of the Property. Prior to any habitat enhancement activities, Grantor shall have its Biological Monitor submit detailed plans to Grantee and ACOE for review and written approval. Habitat enhancement activities shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (c) Vegetation, Debris, and Exotic Plant Species Removal. Removal or trimming of vegetation downed or damaged due to natural disaster, removal of man-made debris, -7- removal of parasitic vegetation (as it relates to the health of the host plant) and non - native or exotic plant species. Vegetation, debris, and exotic plant species removal shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (d) Erection and Maintenance of Additional Informative Signage. Erection and maintenance of signage and other notification features saying 'Natural Area Open Space," "Protected Natural Area," or similar descriptions that inform persons of the nature and restrictions on the Property. Prior to erection of such signage, Grantor shall have its Biological Monitor submit detailed plans showing the location of such signs to Grantee and ACOE for review and approval. The erection and maintenance of informative signage shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (e) No Interference with Development of Adjoining Property. Notwithstanding anything set forth herein to the contrary, nothing in this Conservation Easement is intended nor shall be applied to in any way limit Grantor or any of Grantor's successors and assigns from (1) constructing, placing, installing, and/or erecting any improvements upon the portions of the Project not constituting the Property, (2) installing and/or maintaining the subsurface infrastructure improvements, utility lines, landscaping (including irrigation and runoff), landscape mitigation, and/or similar non - structural improvements within the Property, and/or (3) developing adjoining property for any purposes, except as limited by any local, state or federal permit requirements for such development and provided that for all of the above clauses (1), (2) and (3) neither such activity nor any effect resulting from such activity amounts to a use of the . Property, or has an impact upon the Property, that is prohibited by Section 4 above. (f) Fire Protection. The right, in an emergency situation only, to maintain firebreaks (defined as a strip of plowed or cleared land made to check the spread of a fire), trim or remove brush, otherwise perform preventative measures required by the fire department to protect structures and other improvements from encroaching fire. All other brush management activities shall be limited' to areas outside the Property., 9. Enforcement. (a) ' Third Party Beneficiaries. Grantor, its successors and assigns, grant to ACOE, U.S. Department of Justice, and State Attorney General a. discretionary right to enforce this Conservation Easement in a judicial or administrative action against any person(s) or other entity(ies) violating or attempting to violate this Conservation Easement; provided, however, that no violation of this Conservation Easement shall result in a forfeiture or reversion of title. The ACOE, U.S. Department of Justice, and State Attorney General shall have the same rights, remedies, and limitations as Grantee under this Section 9. The rights under this Section are in addition to, and do not limit rights conferred in Section 2 above, the rights of enforcement against Developer and its successors or assigns under the Section 404 Permit, or any rights of the various documents created thereunder or referred to therein. The term "Party" means Grantor, Grantee or Developer, as the case may be. The term "Agency" means ACOE, U.S. Department • i of Justice, and State Attorney Genefal. Grantor, Grantee, Developer and any third party beneficiary, when implementing any remedies under this easement, shall provide timely written notice to each other of any actions taken under this section, including, but not limited to copies of all notices of violation and related correspondence. (b) Notice of Violation. In the event that either Party or its employees, agents, contractors or invitees is in violation of the terms of this Conservation Easement or that a violation is threatened, the non - violating Party and/or Agency may demand the cure of such violation. In such a case, the non - violating Party and/or Agency shall issue a written notice to the violating Party (hereinafter "Notice of Violation ") informing the violating Party of the actual or threatened violations and demanding cure of such violations. The Notice of Violation shall be sent to the other Party and Agency listed under Section 16 of this Conservation Easement. (c) Time to Cure. The violating Party shall cure the noticed violation within thirty (30) days of receipt of said written Notice of Violation. If said cure reasonably requires more than thirty (30) days, the violating Party shall, within the thirty (30) day period, submit to the non- violating Party for-review and approval a plan and time schedule to diligently complete a cure. The violating Party shall complete such cure in accordance with the approved plan. If the violating Party disputes the notice of violation, it shall issue a written notice of such dispute (hereinafter "Notice of Dispute ") to the appropriate Party within thirty (30) days of receipt of written notice of violation. (d) Failure to Cure. If the violating party fails to cure the violation within the time period(s) described in Section 9(c), above, or Section 9(e)(2), below, the non - violating Party may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by the violating Party with the terms of this Conservation Easement. In such action, the non - violating Party may: (1) Recover any damages to which they may be entitled for violation by the violating Party of the terms of this Conservation Easement or for any injury to the Conservation Values of the Properties. The non - violating Party shall first apply any damages recovered to the cost of undertaking any corrective action on the Properties. Prior to implementation of any remedial or restorative actions pursuant to this paragraph, ACOE shall be consulted. (2) Enjoin the violation by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. (3) Obtain other equitable relief, including, but not limited to, the restoration of the Property to the condition in which it existed prior to any such violation or injury. (e) Notice.of Dispute. i (l) If the "violating Party provides the non - violating Party with a notice of dispute, as provided herein, the non- violating Party shall meet and confer with the violating Party at a mutually agreeable place and time, not to exceed thirty (30) days from the date that the non - violating Party receives the notice of dispute. The non - violating Party shall consider all relevant information concerning the disputed violation provided by the violating Party and shall determine whether a violation has in fact occurred and, if so, whether the notice of violation and demand for cure issued by the non - violating Party is appropriate in light of the violation. (2) If, after reviewing the violating Party's notice of dispute, conferring with the violating Party, and considering all relevant information related to the violation, the non - violating Party determines that a violation has occurred, the non - violating Party shall give the violating party notice of such determination in writing. Upon receipt of such determination, the violating Party shall have fifteen (15) days to cure the violation. If said cure reasonably requires more than fifteen (15) days, the violating Party shall, within the fifteen (15) day period, submit to the non- violatingParty for review and approval a plan and time schedule to diligently complete a cure. The. violating Party shall complete such cure in accordance with the approved plan. (f) Conflicting_ Notices of Violation. (1) If any Party receives a notice of violation that is in material conflict with one or mote prior written notices of violation that have not yet been cured by the Party (hereinafter "Active Notice(s) of Violation ") such that the conflict makes it impossible for the Party to carry out the cure consistent with all prior Active Notices of Violation, the Party shall give written notice (hereinafter "Notice of Conflict ") to the non - violating Party issuing the later, conflicting Notice(s) of Violation. The Party shall issue said Notice of Conflict to the appropriate non - violating Party within fifteen (15) days of the receipt of each such conflicting Notice of Violation, A valid Notice of Conflict shall describe the conflict with specificity, including a description of how the conflict makes compliance with all Active Notices of Violation impossible. (2) Upon issuing a valid Notice of Conflict to the appropriate non= violating Party, as described above, the violating Party shall not be required to carry out the cure described in the conflicting Notice or Notices of Violation until such time as the non - violating Party responsible for said conflicting Notice(s) of Violation issue(s) a revised Notice of Violation that is consistent with prior Active Notices of Violation. Upon receipt of a revised, consistent Notice of Violation, the violating Party shall carry out the cure recommended in such notice within the time period(s) described in Section 9(c) above. Notwithstanding Section 9(g), failure to cure within, said time period(s) shall entitle the non- violating Party to the remedies described in Section 9(d) and Section 9(h). -10- • • (3) The failure of the violating Party' to issue a valid Notice of Conflict within fifteen (15) days of receipt of a conflicting Notice of Violation shall result in a waiver of the violating Party's ability to claim a conflict. (g) Immediate Action. In the event that circumstances require immediate action to prevent or mitigate.significant damage to the Conservation Values of the Property, the Party seeking enforcement pursuant to Section 9(b) above may immediately pursue all available remedies, including injunctive relief, available pursuant to both this Conservation Easement and state and federal law after giving the violating Party at least twenty four (24) hours' written notice before pursuing such remedies. So long as such twenty -four (24) hours' notice is given, the non - violating Party may immediately pursue all available remedies without waiting for the expiration of the time periods provided for cure or notice of dispute as described in Section 9(c). The written notice pursuant to this paragraph may be transmitted to the violating Party by facsimile and shall be copied to the other Party and Agency listed in Section 16 of this Conservation Easement. The rights of the non - violating Party under this paragraph apply equally to actual or threatened violations of the terms of this Conservation Easement. The violating Party agrees that the remedies at law for any violation of the terms of this Conservation Easement are inadequate and that the non - violating Party shall be entitled to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which they may be entitled, including specific performance of the terms of this Conservation Easement, without. the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. The remedies described in this Section 9(g) shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including but not limited to, the remedies set forth in Civil Code Section 815, et seq., inclusive.. (h) Costs of Enforcement. Any costs incurred by a Party or Agency in enforcing the terms of this Conservation Easement against another Party, including, but not limited to, costs of suit and attorneys' fees, and any costs of restoration necessitated by a Party's violation or negligence under the terms of this Conservation Easement shall be borne by the violating Party. (i) Enforcement Discretion. Enforcement of the terms of this Conservation Easement by a Party shall be at the discretion of the Party, and any forbearance by such Party to exercise its rights undef this Conservation Easement in the event of any breach of any term of the Conservation Easement by a Party or any subsequent transferee shall not be deemed or construed to be a waiver by the non - violating Party of such terms or of any subsequent breach of the same or any other term of this Conservation Easement or of any of the rights of the non - violating Party under this Conservation Easement. No delay or omission by the non - violating Party in the exercise of any right or remedy upon any breach by the violating Party shall impair such right or remedy or be construed as a waiver. Further, nothing in this Conservation Easement creates a non - discretionary duty upon the non - violating Party to enforce its provisions, nor shall deviation from these terms and procedures, or failure to enforce its provisions give rise to a private right of action against the non - violating Party by any third parties. -11- I (j) Acts. Beyond Grantor's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Grantor for any injury to or change in the Properties resulting from: (1) Any natural cause beyond Grantor's control, including without limitation, fire not caused by Grantor, flood, storm, and earth movement; (2) Any prudent action taken by Grantor under emergency conditions to prevent, abate, -or mitigate significant injury to persons and/or the Property resulting from such causes; (3) Acts by Grantee, ALOE, or their employees, directors, officers, agents, contractors, or representatives; or (4) Acts of third parties (including any governmental agencies) that are beyond Grantor's control, except to the extent Grantor is obligated to repair and restore the Properties pursuant to Section 5(c) above and so long as:Grantor takes reasonable steps to prevent prohibited uses of the Property. Notwithstanding the foregoing, Grantor must obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and undertake any activity or use in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. (k) Acts Beyond Grantee's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantor or ACOE to bring any action against Grantee for any injury to or change in the Properties resulting from: (1) Any natural cause beyond Grantee's control, including without . limitation, fire not caused by Grantee, flood, storm, and earth movement; (2) Any prudent action taken by Grantee under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Property resulting from such causes; (3) Acts by Grantor, ACOE, or their employees, directors, officers, agents, contractors, or representatives; or -12- (4) Acts of third parties (including any governmental agencies) that are beyond Grantee's control, except to the extent Grantee is obligated to repair and restore the Property pursuant to Section 6(d) above and so long as Grantee takes reasonable steps to prevent prohibited uses of the Property. i Notwithstanding the foregoing, Grantee must obtain an y applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and undertake any activity or use in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. (1) Use of Endowment. If a court of competent jurisdiction determines that there has been a violation of any term of this Conservation Easement: (1) Funds from the Endowment which was created to manage the Property cannot be used to pay damages awarded as part of the judgment; (2) Funds from the Endowment cannot be used to defend an enforcement action; (3) Funds from the Endowment which was created to manage the Property cannot be used to restore the Property to the condition in which it existed prior to the violation; and (4) In lieu of recovering monetary damages against Grantee from any source, ACOE may direct the role of Grantee and related management responsibility to a new entity, which shall be a public agency or non - profit concerned with conservation. 10. Access. This Conservation Easement does not convey a general right of access to the public or a general right of access to the Property. In accordance with Section 7(e), Developer, its successors or assigns shall install signage at all likely points of entry informing persons of the nature and restrictions on the Property. This Conservation Easement will allow for access to the Property by the ACOE and third -party easement holders of record at the time of this conveyance at locations designated in easements and reservations of rights recorded in the chain of title to the Property at.the time of this conveyance- 11. Costs and Liabilities. (a) Grantor, its successors and assigns retain all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property. Grantor agrees that neither Grantee nor ACOE shall have any duty or responsibility for the operation, upkeep, or maintenance of the Property (except as provided in Section 18), the monitoring of hazardous conditions thereon, or the protection of Grantor, the public or any third parties from risks relating to conditions on the Property. Grantor remains solely responsible for obtaining any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders and requirements. -13- • (b) Hold Harmless. Grantor shall hold harmless, protect and indemnify Grantee and its directors, officers, elected officials, employees, agents, contractors, and representatives and the heirs, personal representatives, successors and assigns of each of them (each a "Grantee Indemnified Party" and, collectively, "Grantee's Indemnified Parties ") and third party beneficiary and its directors, officers, employees, agents, contractors, and representatives and the heirs, personal representatives, successors and assigns of each of them (each a "Third Party Beneficiary Indemnified Party" and, collectively, "Third Party Beneficiary Indemnified Parties ") from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation, reasonable attorneys' fees and experts' fees), causes of action, claims, demands, orders, liens or judgments (each a "Claim" and, collectively, "Claims "), arising from or in any way connected with: (a) injury to or the death of any person, or 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, except that (i) this indemnification shall be inapplicable to Grantee's Indemnified Parties with _respect to any Claim due solely to the negligence of Grantee or any of its employees and (ii) this indemnification shall be inapplicable to Third Party Beneficiary Indemnified Parties with respect to any Claim due solely to the negligence of third party beneficiaries or any of their employees; (b) the obligations specified. in Sections 5 and 11; and (c) the existence or administration of this Conservation Easement. If any action or proceeding is brought against any of the Grantee Indemnified Parties and/or Third Party Beneficiary Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee or third party beneficiary or beneficiaries, defend such action or proceeding by counsel reasonably acceptable to Grantee and/or the applicable Third Party Beneficiary Indemnified Party or Parties or reimburse the Grantee for attorneys fees and/or applicable third party beneficiary or beneficiaries for all charges incurred for services of the U.S. Department of Justice in defending the action or proceeding. .12. Taxes, No Liens. Grantor; its successors and assigns shall pay before delinquency all taxes, assessments,. fees, and charges of whatever description levied on or assessed against the Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee or ACOE with satisfactory evidence of payment upon request. Grantor, its successors and assigns shall keep Grantee's interest in the Property free from any liens. 13. Condemnation. The Purpose of the Conservation Easement is presumed to be the best and most necessary public use as defined in Civil Procedure Code Section 1240.680 notwithstanding of Civil Procedure Code Sections 1240.690 and 1240.700. Nevertheless, if the Property is taken, in whole or in part, by exercise of the power of eminent domain, Grantor and Grantee shall be entitled to compensation in accordance with applicable law. 14. Subsequent Transfers. (a) By Grantee. This Conservation Easement is transferable by Grantee, but Grantee may assign its rights and delegate obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code Section 815.3 (or any successor provision then applicable) and only with the prior written approval of Grantor and ACOE. Grantee shall record the assignment in the county where the Property is located. Along with such transfer, Grantee shall transfer any funds remaining in the -14- Endowment established under this Conservation Easement, after deducting reasonable costs of transfer and the cost of satisfying all outstanding contracts and obligations. (b) By Grantor. (1) The covenants, conditions, and restrictions contained in this Conservation Easement are intended to and shall run with the land and bind all future owners of any interest in the Property. Grantor, its successor or assign agrees to (i) incorporate by reference to the title of and the recording information for this Conservation Easement in any deed or other legal instrument by which each divests itself of any interest in all or a portion of the. Property, including, without limitation, a leasehold interest and (ii) give actual notice to any such transferee or lessee of the existence of this Conservation Easement. Grantor, its successor and assign agrees to give written notice to Grantee and ACOE of the intent to transfer any interest at least forty -five (45) days prior to the date of such transfer. The failure of Grantor, its successor or assign to perform any act provided in this Section. 14 shall not impair the validity of this Conservation Easement or limit its enforceability in any way. (2) From- and after the date of any transfer of all or any portion of the Property by Grantor and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Grantor as to the portion transferred, as set forth in this Conservation Easement, (ii) the transferee shall be deemed to have accepted the restrictions contained herein as to the portion transferred, (iii) the transferor, as applicable, shall have no further obligations hereunder except for any obligations pursuant to Section 22(Q), and (iv) all references to Grantor in this Conservation Easement shall thereafter be deemed to refer to such transferee. 15. Additional Interests. Grantor, its successors and assigns shall not grant additional easements or other interests in the surface or subsurface of the Property (other than a security interest that is subordinate to this Conservation Easement) without the prior written authorization of Grantee and ACOE, which consent shall not be unreasonably withheld. It shall be reasonable for Grantee and ACOE to withhold consent for the grant of additional easements or other interest in the Property that are in direct or potential conflict with the preservation of the Natural Condition of the Property as defined in Section 1(b) of this Conservation Easement. Grantor or its successors and assigns shall record any additional easements or other interests in the Property approved by Grantee and ACOE in the official records of San Luis Obispo County, California and shall provide a copy of the recorded document to Grantee and ACOE. 16. Notices. All notices, demands, requests, consents, approvals, or communications from one party to another shall be personally delivered or sent by facsimile to the persons set forth below or shall be deemed given five (5) days after deposit in the United States mail, certified and postage prepaid, return receipt requested, and addressed as follows, or at such other address as any Party may from time to time specify to the other parties in writing: To Grantor: Madonna Pearce Partnership C/o Madonna Enterprises 284 Higuera Street San Luis Obispo, California 93401 FAX: 805 -541 -3067 -15- • To Grantee: City Administrator City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401 FAX: 805 -781 -7109 To Developer: Irish Hills Plaza West, LLC 284 Higuera Street San Luis Obispo, CA 93401 FAX: 805 -541 -3067 With a copy to: District Counsel U.S. Army Corps of Engineers Los Angeles District 915 Wilshire Boulevard, Room 1535 Los Angeles, California . 90017 -3401 FAX: 213 - 452 -4217 The parties agree to accept facsimile signed documents and agree to rely upon such documents as if they bore original signatures. Each party agrees to provide to the other parties, within seventy -two (72) hours after transmission of such a facsimile, the original documents that bear the original signatures. 17. Amendment. Grantor and Grantee and Developer, while a party to this Conservation Easement, may amend this Conservation Easement only by mutual written agreement and with the written consent of ACOE. Any such amendment shall be consistent with the Purpose of this Conservation Easement and shall not affect its perpetual duration. Grantor or its successors and assigns shall record any amendments to this Conservation Easement approved by ACOE in the official records of San Luis Obispo County, California and shall provide a copy of the recorded document to Grantee and ACOE. 18. Long -Tefm Maintenance. (a) Grantee's Responsibilities for.Maintenance and Management. Grantee, its successors and assigns shall be responsible for monitoring for compliance with this Conservation Easement, and in- perpetuity, ongoing, long -term maintenance and management of the Property. Such long -term maintenance and management shall consist of the following activities: (1) annual removal of trash or man -made debris; (2) maintenance of signage and other notification features, as needed; and (3) invasive weed control. Such activities shall be limited to available endowment funding described in Section 19, below. (b) Restoration Responsibilities. Grantor, Grantee, their successors and assigns shall each individually be obligated to repair, remediate, or restore the Property damaged by any activities prohibited by Section 4 herein for which it is responsible. -16- • 0 (c) Annual Reporting. Grantee, its successors and assigns shall prepare an annual monitoring and maintenance report documenting activities performed under Sections 16(a)(1)43) above, and shall make such report available to Grantor and ACOE upon request or as required. i (d) Grantor Restoration. When activities are performed pursuant to a violation of Section 4 herein that are the obligations and responsibilities of Grantor, Grantee, its successors and assigns, shall retain, at Grantor's expense, a qualified Biological Monitor to prepare a Restoration Plan and to oversee /monitor such restoration activities. Grantee shall have its Biological Monitor submit a draft Restoration Plan to Grantor and ACOE for review and for ACOE written approval prior to its implementation. Upon completion of restoration as specified in the approved Restoration Plan, Grantee shall have a Biological Monitor prepare a detailed monitoring report, and Grantee shall make the report available to Grantor and ACOE within thirty (30) days of completion of restoration activities. Grantee, its successors or assigns and Biological Monitor shall sign the monitoring report, and the report shall document the Biological Monitor's name and affiliation, dates Biological Monitor was present on -site, activities observed and their location, Biological Monitor's observations regarding the adequacy of restoration performance by the Grantee, its successors or assigns, or its contractor in accordance with the approved Restoration Plan, corrections recommended and implemented. Grantor shall be responsible for compensating and/or reimbursing Biological Monitor and Grantee for all reasonable and ordinary expenses incurred by them in discharging their respective responsibilities under this subsection within thirty (30) days of invoice. (e) Grantee Restoration. When activities are performed pursuant to a violation of Section 4 herein that are the obligations and responsibilities of Grantee, Grantee, its successors and assigns, shall retain, at Grantee's expense, a qualified Biological Monitor to prepare a Restoration Plan and to oversee /monitor such restoration activities. Grantee shall have its Biological Monitor submit a draft Restoration Plan to Grantor and ACOE for review and for ACOE written approval prior to its implementation. Upon completion of restoration as specified in the; approved Restoration Plan, Grantee shall have a Biological Monitor prepare a detailed monitoring report, and Grantee shall make the report available to Grantor and ACOE within thirty (30) days of completion of restoration activities. Grantee, its successors or assigns and Biological Monitor shall sign the monitoring report, and the report shall document the Biological Monitor's name and affiliation, dates Biological Monitor was present on -site, activities observed and their location, Biological Monitor's observations regarding the adequacy of restoration performance by the Grantee, its successors or assigns, or its contractor in accordance with the approved Restoration Plan, corrections recommended and implemented.. Grantee shall be responsible for all reasonable and ordinary expenses incurred by it in discharging its responsibilities under this subsection. 19. Endowment. Developer shall transfer to the Grantee upon recording of the Conservation Easement a certain sum agreed upon and calculated using a Property Analysis Record for the purpose of fulfilling Grantee's obligations under this Conservation Easement, including annual monitoring of the Property. 20. Recordation. Grantor shall promptly record this instrument in the official records of San Luis Obispo County, California and immediately notify Grantee and ACOE through the mailing of a conformed copy of the recorded easement. -17- • • 21. Estoppel Certificate. Upon request, Grantee shall within fifteen (15) days execute and deliver to Grantor, its successors and assigns any document, including an estoppel certificate, which certifies compliance with any obligation of Grantor, its successors and assigns contained in this Conservation Easement and otherwise evidences the status of this Conservation Easement as may be requested by Grantor, its successors and assigns. 22. General Provisions. (a) Controlling Law. The laws of the United States and the State of California shall govern the interpretation and performance of this Conservation Easement. (b) Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement shall be liberally construed in favor of and to effect the purposes of this Conservation Easement and the policy and purpose set forth in California Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. (c) Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement Deed,-such action shall not affect the remainder of this Conservation Easement Deed. If a court of competent jurisdiction voids or invalidates the application of any provision of this Conservation Easement Deed to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. (d) Entire Agreement. This instrument together with the attached exhibits and any documents referred to herein sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements; relating to the Conservation Easement. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment in accordance with Section 17. (e) No Forfeiture. Nothing contained herein will result in a.forfeiture or reversion of Grantor's title in any respect. (f) .,Successors. The covenants, terms, conditions, and restrictions of this Conservation Easement Deed shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall constitute a servitude running in perpetuity with the Property. The covenants hereunder benefiting Grantee shall also benefit the ACOE as a third party beneficiary. (g) Termination of Rights and Obligations. A party's rights and obligations under this Conservation Easement shall terminate upon transfer of the party's interest in the Conservation Easement or Property (respectively), except that liability for acts or omissions occurring prior to transfer shall survive transfer. (h) 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 its construction or interpretation. • • (1) Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by all 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. 0) Exhibits. All Exhibits referred to in this Easement are attached and incorporated herein by reference., (k) Subordination. Grantor hereby represents to Grantee that, as of the date of this Conservation Easement, the Property is not encumbered with any mortgage, deed of trust or other monetary encumbrance except for liens for non - delinquent real property taxes and assessments. (1) No Hazardous Materials Liability. Grantor represents and warrants that it has no knowledge of any release or threatened release of Hazardous Materials (defined below) or underground storage tanks existing, generated, treated, stored, used, released, disposed of, deposited or abandoned in, on, under, or from the Property, or transported to or from or affecting the Property. Without limiting the obligations of Grantor under Section 11, Grantor hereby releases and agrees to indemnify, protect and hold harmless the Grantee Indemnified Parties and. the Third Party Beneficiary Indemnified Parties (defined in Section 11) against any and all Claims (defined in Section 11) arising from or connected with any Hazardous Materials present; alleged to be present, or otherwise associated with the Property at any time, except that (i) this release and indemnification shall be inapplicable to the Grantee Indemnified Parties with respect to any Hazardous Materials placed, disposed or released by Grantee, its employees or agents and (ii) this release and indemnification shall be inapplicable to the Third Party Beneficiary Indemnified Parties with respect to any Hazardous Materials placed, disposed or released by third party beneficiaries, their employees or agents. This release and indemnification includes, without limitation, Claims for (i) injury to or death of any person or physical damage to any property; and (ii) the violation or alleged violation of, or other failure to comply with, any Environmental Laws (defined below). If any action or proceeding is brought against the Grantee and/or any of the Third Party Beneficiary Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee and/or the applicable third party beneficiary or beneficiaries, defend such action or proceeding by counsel reasonably acceptable to the Grantee and/or applicable Third Party.Beneficiary Indemnified Party or Parties or reimburse the Grantee for attorneys fees and/or applicable third party beneficiary or beneficiaries for all charges incurred for the services of the United States Department of Justice in defending the action or proceeding. Despite any contrary provision of this Conservation Easement, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee any of the following: (1) The obligations or liabilities of an "owner" or "operator," as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.; hereinafter, "CERCLA "); or -19- (2) The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or (4), or (3) The obligations of a responsible person under any applicable Environmental Laws; or (4) The right to investigate and remediate any Hazardous Materials associated with the Property; or (5) Any control over Grantor's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by- products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances; or related materials defined in CERCLA; Resource Conservation and Recovery Act (42 U.S.C. 6901. et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control. Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and 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 Easement. 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. Grantor represents, warrants and covenants to Grantee that Grantor's activities upon and use of the Property will comply with all Environmental Laws. IN WITNESS WHEREOF Grantor, Grantee and Developer have executed this Conservation Easement the day and year first above written and have agreed to be bound by the terms and provisions hereof. GRANTOR: Madonna P ce P rtnershi By: n R. Pearce, P er By: Connie E. Pearce, Partner DEVELOPER: Irish Hills Plaza West LLC -20- • 1 B . Y Clinton R. Pearce, Vice President Connie E. Pearce, Vice President_ -21- • • CERTIFICATE OF ACCEPTANCE * * * * * * * * * * ** THIS IS TO CERTIFY that the interest in real property conveyed by the DEED OF CONSERVATION EASEMENT dated August 9, 2006, by and between Clinton R. Pearce and Connie E. Pearce, Trustees of the Clinton and Connie Pearce Revocable Trust, dated 9/15/03, and Pearce Madonna Partnership, a California Limited Partnership, (collectively, "Grantor"), and the CITY OF SAN LUIS OBISPO, a charter city and municipal Corporation of the State of California ( "Grantee "), is hereby accepted by the undersigned officer on behalf of the City Council pursuant to authority conferred by Resolution No. 5370 (1984 Series) recorded June 15, 1984, in Volume 2604, Official Records, Page 878, San - Luis Obispo County, California, and Grantor hereby consents to recordation thereof by its duly authorized officer or his agent. Date: A&O L/q ?V r ATTEST: Audrey Hoop -22- CITY OF SAN LUIS OBISPO David F. Romero, Mayor �J STATE OF CALIFORNIA COUNTY OF S txv-' L4A IS 'D"� L Sp } SS. • On bo^6�" -k- ° -.,O0(' before me, yy - 4�^ personally appeared (Z- . Q (rti6 a- GowN I onally known to, m (or proved to me on the basis of satisfactory evidence) to the person me rs/ subscribed to the within instrument and acknowledged to me that he/she/"e executed the same in his/her/ 01 authorized capacity((eq and that by his/her/ eir signatur on the instrument the persoror the entity upon behalf of which the perso s acted, executed the instrument. WITNESS my hand and official seal. Signature TATE OF I's it On -personall no) whose n (s; he /she /they e e signature(s) on acted, executed WITNESS my Sign in to me (or p ve( is /are subscri d ;uted the same in the instrument the t e instrument. SS. to me on the basis of � to the within instrurr. s /her /their authorized c 2erson(s), or the entity official seal. -23- MOII'1sIQ501l�p1� C`,aerrdmn • 1512075 NOW -ruMe • Coftr a 5M 4r 0bW C"* MV CM1in. 5 UP 6 20 before me, person lly appeared ictory evidence) to th person(s) and acknowledged to a that ity(ies), and that by his/h /their q behalf of which the pers (s) Exhibit A Legal Description of Property . . -24- Exhibit "A" AREA 7 CONSERVATION EASEMENT Legal Description That parcel of land in the County of San Luis Obispo, State of California, being a portion of Lots 17 and 49 of the subdivisions of the ranchos Canada de Los Osos and La Laguna, as surveyed by Jas. T. Stratton, according to that map filed in Book "A ", at Page 83 of Maps in the office of the Recorder for said County, more particularly described as follows: Commencing from City of San Luis Obispo, Primary Horizontal Control Network Station #5217, being a pin in concrete in monument well at the centerline intersection of Los Osos Valley Road and Diablo Road, State Plane Coordinate, Zone 5 values, in Survey Feet, Northing: 2,294,411.825 and Easting: 5,754,942.757, North American Datum of 1983, epoch 1991.35 (1992 adjustment) as converted according to the published values listed by the City of San Luis Obispo Public Works Department, Engineering Division, and viewed on the World Wide Web at www. slocity .or0publicworks/surve3ing.asa; Thence, N 16° 23' 11" W, 5561.14 feet to the East comer of said Lot 17 (S -201) marked by a chiseled cross in concrete on top of the westerly culvert headwall as shown on Parcel Map CO- 70 -76, filed in Book 5, at Page 13 of Parcel Maps in the office of the Recorder for said County, referred to hereinafter as Point "C", being S 69° 36' 50" E, 2766.58 feet from a 3/4" iron pipe with tag stamped LS 2391 marking the comer common to Lots 17, 18, 46 and 49 (S -196) of said subdivisions of the ranchos Canada de Los Osos and La Laguna; Thence, S 71° 08'l 5" W, 1454.12 feet to Point "E" on the northerly boundary of that Conservation Easement described as "Area 5" in Document#E 2005071748 of Official Records filed in the office of the Recorder for said County; Thence, on the northwesterly and southwesterly boundary of said "Area 5 ", S 45° 41' 25" W, 202.46 feet (L88); Thence, S 35° 42' 16" W, 97.82 feet (L89); Thence, S 46P:54' 22" W, 101.55 feet (L77) Thence, S 469 03' 33" E, 82.60 feet (L78) to the True Point of Beginning referred to here as Point "F"; Thence, leaving the southwesterly boundary of said "Area 5", S 43° 56' 27" W, 120 feet (L90); Thence, S 46° 03' 33" E, 90.00 feet (L91); Thence, N 43° 56' 27" E, 120.00 feet (L92); Thence, N 46° 03' 33" W, 90.00 feet (L93) to a point of beginning; "Land Area 7" contains 0.25 acres. Bearings shown hereon are based upon the World Geodetic System of 1984 (WGS84) reference frame as determined from GPS observations obtained in November 2004, and constrained to California State Plane Coordinate System, Zone 5, at the above referenced geodetic control monument, to convert the herein above grid bearings to geodetic bearings rotate counter -clockwise V 32' 26.26 ", and to obtain ground level distances multiply the herein above described grid distances by 1.000037396. d Description Prepared by: D S. Hutchinson, LS 513 'cense renewal 6/30/07) Date: OZ A) me 5139 Page 1 of 1 F: \proj12 0 0 4104 1 03Murvey \Design\Master Drawings%egal Descriptions\Area 7 Conservation Easmlentdoci -25- Exhibit B Map of Property [See Attached] -26- 0 0 LLI �. o Cr _ Q yQ d \ \ 1 / / 6 0 Z JOm0rnNOnNO) �? O co N m N N a0 1-: 0 0 O o 0 O 0 0 O o 0 O 3 W 3 3' 3: w w3: 1 � / N- s) t/ 1 M �- o \ N M N Z O 1 N rn IM QOQ a rn \ �/ 00FNC.O F ON ¢ JOC) z 3:s •1 OO m 0O WO z O fl � � D - a�r�v��v Z 07 �wFaO<ZC~naw ,\\ / w J w cn o n Q Q W c»�a 0_Z J / tnNCnmmozz Z \ Q z W Z m> N F U W J O Z 0 Z 1 co / V) 0 00 00 \ n r D `'` N W) O W Z J J 1 \ / / LO Q 00 J m 01 \ U U � QOM 1 LLI �. o Cr _ Q yQ d \ \ 1 / / 6 L a CL Q W Q 0 Z JOm0rnNOnNO) �? O co N m N N a0 1-: 0 0 O o 0 O 0 0 O o 0 O 3 W 3 3' 3: w w3: / N- s) t/ 1 M m= Q ID N M N N o 17 N) N rn IM QOQ Z 0 WYZ H N N aQ �OON <0116 �/ 00FNC.O F ON ¢ JOC) z 3:s •1 OO m 0O WO z O fl � � D - a�r�v��v Z 07 �wFaO<ZC~naw ,\\ / w J w cn o n Q Q W c»�a 0_Z J / tnNCnmmozz Z Q z W Z m> N F U W J O Z 0 Z Q O W_j<IL WJ� � W I, 00 00 O) O N W) Z J J 1 J J 00 J m 01 m O) L a CL Q W Q r- C14 % /Al / s) t/ 1 OHO ID O / W (n / J Z Q Lo- / QOQ Z 0 WYZ H N N aQ �OON <0116 �/ 00FNC.O F ON ¢ JOC) z 3:s •1 OO m 0O O fl � � D Z 07 �wFaO<ZC~naw ,\\ / w J w cn o n Q Q W c»�a 0_Z Z ZZ X omoac'Ni'NO M� W-lhaQ -JOz / Z Q z W Z m> N F U W J O Z 0 Z Q O W_j<IL WJ� � / Q => J Q N Z H Q (Q Q' Z z z o m d // z Z z 50 VLLJ V)ED<0aoo r- C14 Exhibit C Mitigation Plan [See Attached] omm 0 -1 . 0 Irish Hills Plaza West San Luis Obispo County, California trIL A HABITAT MITIGATION AND - MONITORING, PLAN Prepared for: Mr. Clint Pearce Irish Hills Plaza West, LLC 284 Higuera Street San Luis Obispo, California 93401 Prepared by: MORRO GRou,, iNc. Environmental Services June 30, 2006 -29- Irish Hills Plaza West San Luis Obispo County, California HABITAT MITIGATION AND MONITORING PLAN' EXECUTIVE SUMMARY The Habitat Mitigation and Monitoring Plan has been prepared to mitigate project impacts within Army Corps of Engineers (ACOE), Regional Water Quality Control Board ( RWQCB), and California Department of Fish and Game (CDFG) jurisdiction resulting from implementation of the Irish Hills Plaza West Project (Project). Although the project is located on Los Osos Valley Road near Costco and Home Depot, the mitigation area will be located off -site on Boysen Ranch, approximately 1.8 miles northwest of the project site. Boysen Ranch has been utilized for two prior mitigation projects: Home Depot/Fromm Ranch Project (2002) and Costco / Calle Joaquin Road Realignment Project (2005). This HMMP outlines the methods and procedures that will be implemented on the Boysen Ranch mitigation site for the Irish Hills Plaza West Project and has been designed to parallel the Calle Joaquin Road Realignment HMMP. The proposed project (Irish Hills Plaza West) will construct a new retail shopping complex and associated parking areas. The project is adjacent to an unnamed drainage that contains ACOE, CDFG and RWQCB jurisdictional areas. The drainage runs parallel to the west side oflos Osos Valley Road (LOVR) and receives flows from the .commercial facilities. Approximately 4;399 square feet (0.101 acre) of the existing drainage is proposed for disturbance. Project activities that will impact the drainage include the extension of an existing culvert at the Froom Ranch Way crossing and the construction of .a new culvert crossing. The Froom Way culvert extension will allow the construction of a business sign and the new culvert crossing will allow for vehicle access to the shopping center. The goal of the HM1VT is to provide a plan to mitigate for lost functions and values associated with impacts to jurisdictional waters of the U.S. This will be accomplished by creating wetlands off site on the Boysen Ranch. The mitigation project will create a new 0.06 acre wetland adjacent to the existing seasonal freshwater marsh wetlands that were created in 2002 and 2005. The creation of wetlands will mitigate for both temporary and permanent impacts, as follows: a. Temporary Wetlands. To mitigate for the temporary impacts, the applicant proposes to restore 0.081 acre (3,528 square feet) of wetland and associated upland banks on -site. Temporary impacts to seasonal freshwater marsh and upland habitats will be restored at a 1:1 ratio by installing brown - headed rush and cattail divisions in the thalweg of the drainage. Impacted areas located above the ordinary high waterline will be seeded with a native seed mix which will include: deer grass, coyote brush, meadow barley, blue wild rye, annual lupine, purple needle grass, fescue, and creeping wild rye. b. Permanent Wetlands. To mitigate for the permanent impacts to jurisdictional wetland, the applicant proposes to create 0.06 acres (2,614 square feet) of seasonal freshwater marsh wetland off -site on the Boysen Ranch. In addition, the applicant will restore (on -site) 0.043 acre (1,873 square feet) of permanently impacted upland habitat. Permanent impacts to seasonal freshwater marsh will be mitigated at a 3:1 ratio on Boysen Ranch and the created seasonal freshwater marsh wetland would be planted with seed and divisions of perennial plants. Cattail; salt grass, and brown - headed rush would be planted from divisions from plants found in existing wetland areas of Boysen Ranch and the Irish Hills Plaza West site. The area would also be seeded with creeping wild rye grass and low barley. -30- Exhibit D Title Report [See Attached] -31- • i q UESTA ITLE PRELEMNARY TITLE REPORT Cuesta Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance of Stewart Title Guaranty Company describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception on Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit "A" attached Copies of the Policy forms should be read They are available from the office which issued this report. Please read the exceptions shown or referred to below and the Exceptions and Exclusions set forth in the attached Exhibit "A" of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered It is important to note that this Preliminary Report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to this land This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested Marcus Hannon Tide Officer Authorized Signatory -32- File Number: t6800009 I CTU E S T A ITL C O K P A N Y 715 Tank Farm Road, #120 • San Luis Obispo. CA 93401 • (805) 544 1660 • FAX (805) 541 -1769 PRELIMINARY REPORT T TLE:OFFICER: Marcus.Harmon TO: Madonna Construction 100 Madonna Rd. San Luis Obispo, California 93405 ATTN: Clint Pearce PHONENUMBER: (805).543 =0300 SHORT TERM RATE: Yes Your. Reference. : t6800009 Property Address :, , EFFECTIVE DATE:, Thursday; June 29, 2006 at 7:30 A.M. The form of Policy or Policies of-tide insurance contemplated by this report.is: PRELLN NARY TITLE REPORT 1. THE ESTATE OR INTEREST IN THE LAND HERE 1NAFTER DESCRIBED OR REFERRED TO-COVERED BY THIS REPORT IS: A Fee 2. TITLE TO-SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Clinton R. Pearce and Connie E: Pearce, Trustees of the Clinton and Connie Pearce Revocable Trust dated 9/15/03, as.to an undivided 1%,,and Pearce,Madonna Partnership;.a California Limited Partnership; as to an undivided 99% interest 3. THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN. THE- COUNTY OF SAN LUIS OBISPO, STATEOF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF 7/10/2006 Page I of 8' -33- 0 • File Number: t6800009 LEGAL DESCRIPTION A parcel of land in the County of San Luis Obispo, State of California, described as follows: Commencing at a 3" x 3" stake marked S 198 set in the most Southerly comer of Lot 49 of the Ranchos Canada de Los Osos and La Laguna, according to Map recorded in Book A, Page 83 of Maps, in the County of San Luis Obispo, State of California, and entitled "Map of the Subdivisions of the Ranchos Canada de Los Osos and La Laguna, San Luis Obispo County, California, Surveyed by Jas. T. Stratton May 1868"; Thence North 26 °05' East, 2,019.03 feet along the Easterly line of said Lot 49 and Lot 17 of said Rancho to a 3" x 3" stake S 201 the most Easterly comer of said Lot 17; Thence North 31 °02' West, 1,628.13 feet along the Northeasterly line of said Lot 17 to a 3" x 3" stake; Thence South 46°22' West, 3,190.90 feet across said Lot 17 and Lot 49 to a 3" x 3" stake set on the Southerly line of said Lot 49; Thence South 66 °00' East, 2,475.13 feet along the Southerly line of said Lot 49 to the Point of Beginning and being a part. of said Lot 17 and 49 of the aforementioned Ranchos. EXCEPTING THEREFROM that portion of said land described in the Deed to the County of San Luis Obispo, recorded October 19, 1970 in Book 1589, Page 536 of Official Records and in Final Order of Condenmation, a certified copy of which recorded April 28, 1983 in Book 2481, Page 714 of Official Records. ALSO EXCEPTING THEREFROM 50% of all oil and minerals in and under said land, as reserved by Raymond E. Boysen and Mabel E. Boysen, Husband and Wife, in Deed recorded December 1, 1975 in Book 1865, Page 812 of Official Records. APN: 067,061,054 End of Legal Description Page 2 of 8 -34- r i File Number: t6800009 SCHEDULE B At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy or policies would be as follows: 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes, to be levied for the fiscal year 2006 - 2007 which are a lien not yet payable. 2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the revenue and taxation code of the State of California. An easement for the purpose shown below and rights incidental thereto as set forth in a document: Grant To: Union Oil Company of California Purpose: Cathodic pipe protection system, connected to one or more pipe lines, which system consists of the following: electrical rectifier mounted on a pole; buried pipe anode; metallic conductors constructed underground between said rectifier, pipelines, conductors constructed underground between said rectifier, pipe lines and anode; insulators and any and all other necessary fixtures attached to said Cathodic pipe protection system Recorded: April 22, 1953, Book 706, Page 588, of Official Records. Affects: Portion of said land No representation is made as to the present ownership of said easement. 4. An easement for the purpose shown below and rights incidental thereto as set forth in a document: Grant To: County of San Luis Obispo Purpose: Public Highway Recorded: September 8, 1958, Book 956, Page 441, of Official Records. Affects: Portion of said land No representation is made as to the present ownership of said easement. 5. An easement for the purpose shown below and rights incidental thereto as set forth in a document: Grant To: The Pacific Telephone and Telegraph Company Purpose: Public Utilities Recorded: July 1, 1963, Book 1248, Page 71, of Official Records. Affects: Portion of said land No representation is made as to the present ownership of said easement. 6. Restrictions on the use, by the owners of said land, of the easement area as set out in the easement document: Recorded: July 1, 1963 in Book 1248, Page 71, of Official Records. 7. The fact that a portion of said land is included within Unit No. 3 of the Streets and Highways Plan being a part of the Master Plan of the County of San Luis Obispo, as disclosed by a Map filed in Book 1, Page 3 of Maps and in Book 1, Page 10 of Maps, in the County of San Luis Obispo. Page 3 of 8 -35- • File Number. t6800009 8. A waiver in favor of the State of California of any claims for damages to said land by reasons hereinafter shown in connection with a highway contiguous thereto, contained in the deed: Reason: Location, construction, landscaping and maintenance Recorded: October 19, 1970, Book 1589, Page 563, of Official Records. Affects: Said land 9. The effect of the following: An Agreement establishing a Revocable License dated November 12, 1975 by and between Raymond E. Boysen and Mabel Boysen and Alex Madonna and Phyllis Madonna, relating to a Stock Watering Trough, recorded December 1, 1975 in Book 1865, Page 816 of Official Records. Affects: A portion of Lot 49 10. An easement for the purpose shown below and rights incidental thereto asset forth in a document: Grant To: The United States of America Purpose: Conservation Recorded: November 29, 1999, as Instrument/File No. 1999- 083208 of Official Records. Affects: Portion of said land No representation is made as to the present ownership of said easement. 11. Covenants, conditions and restrictions (Restrictions, if any, based on race, color, religion, sex, handicap, familial status or national origin are deleted.) as set forth in the document referred to in the numbered item last above shown. 12. An easement for the purpose shown below and rights incidental thereto as set forth in a document: Grant To: The City of San Luis Obispo, a charter city and municipal corporation of the State of California Purpose: Conservation Recorded: July 8, 2005, as Instrument/File No. 2005055853 of Official Records. Affects: A portion of said land No representation is made as to the present ownership of said easement. 13. Covenants, conditions and restrictions (Restrictions, if any, based on race, color, religion, sex, handicap, familial status or national origin are deleted.) as set forth in the document referred to in the numbered item last above shown. 14. An easement for the purpose shown below and rights incidental thereto as set forth in a document: Grant To: The City of San Luis Obispo, a charter city and municipal corporation of the State of California Purpose: Conservation Recorded: August 29, 2005, as Instrument/File No. 2005071748 of Official Records. Page 4 of 8 -36- File Number - 6800009 Affects:. A,portion of said land No, representation is made as to the present ownership of said easement.. 15. Covenants; conditions and restrictions (Restrictions, if any;. based on race; color, religion, sex; handicap, familial 'status or national origin are deleted.)'as set forth in. the document referred to in the numbered item last above shown. 16. Deed of Trust to secure an indebtedness in the amount shown.below, and any other obligations secured thereby:. Amount: $400;000.00' Dated: Febni o .17, 16.06, Trustor: Phyllis�Madonna; a widow; and Pearce Madonna Partnership, a _ California Uinited.Pactrierstup Trustee: Farm Credit West, FLCA Beneficiary:; Farm Credit W..est;'FLCA Recorded: February. 28, 2006, _ as'Instrument/File No. 2006013658 of Official Records: END OF EXCEPTIONS I Page:6 Df 8 -37- • • File Number: t6800009 NOTES Note No. 1: Property taxes for the fiscal year 2005 - 2006 shown below are paid. For proration purposes the amounts are: date of this report are as follows: 1" Installment: $959.07 2nd Installment $959.07 Exemption: None Land: $189,810.00 Improvements: $1,581.00 Personal Property: $0.00 Code Area: 112 -002 Assessment No.: 067,061,054 Note No. 2: The only conveyances affecting said land, which as shown in the public records within 24 months of the date of this report are as follows: Grantor: Phyllis Madonna, a widow, as to an undivided 84.50% interest Grantee: Clinton R- Pearce and Connie E. Pearce, Trustees of the Clinton and Connie Pierce Revocable Trust dated September 15, 2003, as to an undivided 84.50% interest Recorded: February 18, 2005, as Instrument/File No. 2005012980, of Official Records. Grantor: Phyllis Madonna, a widow, as to an undivided 15.50% interest and Clinton R. Pearce and Connie E. Pearce, Trustees of the Clinton and Connie Pearce Revocable Trust dated 9115/03, as to an undivided 84.50% interest Grantee: Phyllis Madonna, a widow, as to an undivided 1% interest and Clinton R. Pearce and Connie E. Pearce, Trustees of the Clinton and Connie Pearce Revocable Trust dated 9115/03, as to an undivided 99% interest, as Tenants in Common Recorded: March 18, 2005, as Instrument/File No. 2005021166, of Official Records. Grantor. Clinton R. Pearce and Connie E. Pearce, Trustees of The Clinton and Connie Pearce Revocable Trust dated 9/15/03 Grantee: Pearce Madonna Partnership, a California Limited Partnership Recorded: December 27, 2005, as Instrument/File No. 2005107307, of Official Records. Grantor: Phyllis Madonna, a widow as to an undivided 1 % interest, and Clinton R. Pearce and Connie E. Pearce, Trustees of the Clinton Page 6 of 8 File Number: f6800009 p4dCo.nnie;Pearce,Revocable Trusi dated 5/03j alsito an undivided 99% interest 43fantee:. Clinton R. Pearce and Con.nie E. Pearce;, Tiustees of the Clinton and C6nAie Peaitd Revocable Trust Recorded: June 9, 2006 as Instrument/ , File No. 2006040808 of Official &;ords. ,Note No: 3: -Short Term Rate is Applicable. Page 7 of 8 -_39- 0 • File Number. t6800009 CALIFORNIA "GOOD FUNDS" LAW California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub - escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received by Cuesta Title Company via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn. on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and/or disbursement may be delayed, and you should contact your title or escrow officer. All escrow and sub - escrow funds received will be deposited with other escrow funds in one or more non - interest bearing escrow accounts in a financial institution selected by Cuesta Title Company. Cuesta Tide Company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with the financial institution, and Cuesta Title Company shall have no obligation to account to the depositing parry in any manner for the value of, or to pay to such party, any benefit received by Cuesta Title Company. Such benefits shall be deemed additional compensation to Cuesta Tide Company for its services in connection with the escrow or sub-escrow. If any check submitted is dishonored upon presentation for payment, you are authorized to notify all principals and/or their respective agents of such nonpayment. If you anticipate having funds wired to Cuesta Tide Company, our wiring information is as follows: Additional Note: Direct wire transfers to: City National Bank One Centerpoint Drive #1160 La Palma. CA 90623 ABA: 122016066 Account Number. 013 - 429707 Credit to: Cuesta Tide Company Reference Number. t6800009 When instructing the financial institution to wire funds, it is very important that you reference Cuesta Tide Company. Should you have any questions in this regard please contact your Escrow Officer immediately. Page 8 of 8 -40- Cuesta Title Company and Underwriters, Stewart Title Guaranty Company, Stewart Title Insurance Company And Commonwealth Land Title Insurance Company Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm -Leach -Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Cuesta Title Company and underwriters Stewart Title Guaranty Company, Stewart Title Insurance Company and Commonwealth Land Title Company. We may collect nonpublic personal information about you from the following sources: • Information we receive from you, such as on applications or other forms. • Information about your transactions we secure from our files, or from our affiliates or others. • Information we receive from a consumer reporting agency. • Information that we receive from others involved in your transaction, such as the Real Estate Agent or Lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law. We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform services on our behalf or with whom we have joint marketing agreements: • Financial Service providers such as companies engaged in banking, consumer finance, securities and insurance. • Non - financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. -41- • 0 EXHIBIT A AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6 -1-87) EXCLUSIONS In addidm to the Oceptima In School Id, you are not Insured against Jose, costs. ettomeys' loos, and exporeas result"; bore 1. Goon"""al e pollm power. and the ehdsterx or viaaaon of any law or governmental regulation, TbIs Includes building and zoning ordinances and also laws and regWaties concomina: • land use • ImpmvomertU on the land • land division emimnrrssdal pretec n This euJusion does not apply to violations or the mforao r em of these menen which appear In the public moords at policy data This exclusion does not limit the zoning wwrage described In Itms 12 and 13 of Covered Title Risks. 2. The right to take Ina land by condemning it unless a c to d exercising the right oppoars'In the public records on the Policy Date • the taking happened pda to the Policy Onto and Is binding on you If you bought the land wlthort knowledge of the taking TRIO Risks: • that ore crooteck allowed. or named to by you that are (mown to you but not to us, on the Policy Date- unleat they appeared in the public records • that result In no loss to you • that first Meet your this alter the Policy Date –this done not lift Ina labor and material Ilan coverage In horn 8 ol Covarod Title Risks Failure to pay value for your title. Lack of a right. • to erry two outside the area specifically described and rdomod to In hen 3 at Schedule A or In streets, alleys, or waterways that town your land This atciusion does not Unit the access coverage In hom 5 of Covered Tioo Risks. SCHEDULE B EXCEPTIONS In addition to the Exclutienr. YOU are not Insured ago"sl loss, costs, altOrnBW lass, and Ina epelnes resulting n g Iro 1. Any rgins, Interests, or clatmo of parti6e In Possession of the land nor ahOm by rib Pudic 2. Any ease. s or Ilene not shown by the pudic records This don not Ihnl the Hen taavarape In hem 8 of Cc mmd Title RIa1o. 3. Any facts about the land which a correct survey would disclose and which are not Nova by the Public retards This does not gait the forced removal coverage In bozo 12 of Ocr cmd Two Risks. 4. Any water rights or Balm or title to water in or under the land, whether or not shown by the pudic mcorda. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY —1990 EXCLUSIONS FROM COVERAGE The following mottos am woressly Wo:luded from the cam age of this policy and the Company will not pay loss or damage, torts, attorneys' two or o pa=s which arise by realm of: 1. (a) Any law, ordnance w govommomal regulation (including M not limited to building and zoning In", ordnances or regulations) restricting, regulating, prohibiting or relating (I) the occupancy, use, or mjoynem d the land; QI) tha character, dirnensioru or location of any Impmvernem new or homahor Omelod on the land; (iii) a separation In,ow-ahlp or a charge in the chi onsima or area of the land or any parcel of which the land is or was a part or Qv) e Ironmntel prelentlm, or the effect at any violation of these lawn. aminW Cn Or govorn nentel regulations, e=ept to the seen that a notice of the eriomement Ihereol or a notice of a defect, him or or o nerMCo newhing from a violation or alleged violation affecting the land has been moordod In the pudic records at Date of Policy. (b) Any gowmmemal police power not excluded by (a) "bare, escepl In the ebanf that o notice of tho sommise thered or a nosco of a defect lien or annmOranco msueng from a violation or alleged violal'un affecting the land has been recorded In the Publiereco ds at Dale of Policy. 2. Rights of errinml domain unless nalpe of the exercise thereof has been recorded In the public records at Date of Policy, but not exclusog tram coverage arty taking which has occurred prior to Onto of Policy whine wautd be binding m the rights of a purchaser for value wlhrxd knowledge 3. Delecfs, liens, encumbrances, adverse claims, or cover meners: (a) whether or not r ecordod In the pudic records at Date of Policy, but created eNfemo, assumed. or agreed to by the Insured claimant; (b) not (mown to Ina Company, not ncordod In the pudic records at Date of Policy, but keen to the insured dalmml and not disclosed In writing to the Company by the Insured clain ant prior to the date the Insured claimant became an Insured under this policy. (c) resulting in no toss or damage to the Insured claimant' (d) attaching or ematod subsequent to Date of Policy, or (a) rowatir; in loss or damage which would not how boon sustained it the insured cleirrcm had paid value for the htsurod mortgage at tar the estate or interest insured by this policy. A. UnmfomeabHity, of the Hen of the insured mortgage because of zoo Inability or the failure a the insured at Date of Policy, or the Inability or tallum of any subsequent owner of the Indebednem to comply with the applicable doing bush lava of tie state In which the had Is situated. 5. Irrvalldlly or WenhrceatAy of the Ion of the insured mortgage. Or dsim themaf, wrictt arises ed of the umsactim evidatrad by Ina [=no rrmltgago and is bawd upm rmrry or any corrt: nar credit protectim or truth In lending law. B. Any clairn. which arises out or the bansacdon vesting in the irmrred Ins estate of !merest !mitred by this policy or the transaction creating the Interest of the Insured lender, by reason of the operation of federal bankruptcy, state IntiWaney or sinelarcrektors' rights laws. SCHEDULE B, PART I EXCEPTIONS FROM COVERAGE This policy does not Insure against loss or damage (and zoo Cmpany Oil not pay costa, anomsys' fen or aponses) with erlae by reason of: PART 1 1. Taxes or assessments which are net shown as lodslina gnus by the records at wry taAn; authority that laving taxes or assesmnents on real property or try the pudic records. Prcoaesngs by a pudic agency witch trey r"Al In texas or assessments, or no8cas of.Mich proceedings, whether a not shown by the records of such agency a by the pudic rseards. 2_ Any faols, rights, Interests or claims which ere not shown by the public records but whlon could be ascodninnd by an Inspection of the land a which may be asserted by Persons In possession thereof. 3. Eesenents, lions or encumbrancm or claims; thereof, which are not shown by the pudic 4. Disraepandes, cmiticts in boundary firms, shortage in area, ecroedvrhenta, a any tithe facer with a —red surrey would disclose, and which ere rot shown by zoo P.M. records 5. (a) Unpatemed mining claims; (b) mismiatio s a esepdona In potems or in Acts aWCdZing the Issuance thereof; (c) water rights, claims or titio to water, whether or not the rtortors excepted under (a). (D). or (c) we shown by the pudic records. -42- 9 0 EXHIBIT A (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10- 17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10- 17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The fallowing matters are expressly excluded from the coverage Of this policy and the Corrparn will net pay lass or dernege, coats, ate mays' fees or eapstaes which arse by roman ok 1. (a) Any law, ordinance or governmental regulation (Including but not limited to batting and mNng laws, ordinoncm or rogulallars) restricting, regulating, prohibldrtg or relating to (i) the occupancy, use, or enMinent of the land; (i) the character, dimensions or location of any Inprovemem now or In Offer erecled on the land; (III) a separation In awnersh(p or a change In the dimerataa or area of the land or any parcel of which the land is or was a pan; or (Iv) environmental protection, or the &fleet of any violation of these laws, ordinances, or governmental regulations. except to the asem that a notice of the enforcement thereof or a notice of a detect, lion or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the pudic records at Date d Polley. (b) Any govemmental police power not excluded by (a) above, except to the extent that a notice of dire exercise thermal or a noflce d a detect, lien or encumErance resulting from a violation or alleged viclatm affecting the land has been recorded In the public records at Date of Policy. 2. Rights of aednam domain union notice of ee exercise tiered has bean recorded in ft pudic records d Date at Policy, but not excluding from coveralls any taking which has —nod prior to Date of Policy which would be binding on the rights of a purchaser forvalue without knowledge. 7. Defects. Mars, encumbrances, adverse claims, or other mothers: (a) created. suffered, assumed. a agreed m by the Insured allotment fb) not know, to the Company, nth recorded in the public records at Date d Policy, but known to the insured dalment and not disclosed In writino to the Company by the Insured claimant prior to the date the Insured ciaimam became an Insured under this pocky, (c) resulting In no loss or damage to the insured claimant; (d) attaching or created witsequom to Date of Policy (except to the mead that this policy insures the pdodty d the Ilan d the Insured mortgage over any statutory lien for services, IMr or meleried or to the extent insurance Is afforded herein m to assessments for street Imprevertwms under corw7nxUon or oomoleted at Date of Po2oy}, or (a) mulling In loss a damage which would not have own sustained If the Insured claimant had paid value tar the Insured mortgage. 0. Unenlorceeoility of the Ilan Of the insured mortgage because of ft inablihy or the failure of the insured at Date of Policy, or eta inability or logure of any, subsequent owner of " Indebtedness, to comply with applicable doing business laws d the state In which the land Is situated. S. Imalltlhy or unenforceablgly of the lien of the insured mortgage, ordaim thered, which anew out of the transaction evidenced by the Insured mortgage and is based upon usury or any convxror credit protection or truth In lending lawn. 6. Any statutory hen for services, labor or materials (or me claim of priority of any stahnary Gen for services, labor or materials over the ten of the insured nongago) ansing hem an improvement or work related to the land which is contracted for and commenced subsequent to Data of Palley and Is net financed in whdo or In part by proceeds of the Indebtedness assured by the insured mortgage which at Data of Policy the Insured has advanced or Is obligated to advance. 7. Any claim, which arises out of the tmnsodgon mating the imeroet of as mortgagoo Insured by this pdky, by reason of the operation of federal bankruptcy, state insolvency, or ainllar credl ors' dghrs Iran, that la based on: () the transaction cresting the interest of it* Insured mortgagee being dochod a f wW crd conveyance or fraudaem transfer, or (II) pro Subordination of the Interest of the insured mortgagee as a molt of as application at the doctrine at agritable subordrallorc or (Ili) the transaction creating the Interest of Iha Insured mortgages bring deemed a preferential transfer except where the preferential transfer nsuhe from and tal,mr (a) to timely record the Instrument of iraruster, or (b) at Such recordation to Irrpan notice to a purchaser lavako or a Judgement or Gain dredtor. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10- 17 -92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10- 17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage d this policy and the Company will net pay loss or damage, costs, atlomeys' fees or expenses which arlse by reason of 1. (a) Any law, ordinance or governmental regulation (Including but not limited to building and zorAn lawn, ordinances or tegule lons) restricting, regulating, prohibiting or relating to (I) the ocntptmcy, use, a an)oymem of the lend; Gi) the darsder, dimensions or location of any irnprovarnant now or hereafter erected an the land: (ffq a separation in ownership or a change In the dimonslons or area of the land or any parcel of which are two is or was a part or 6v) arnironmarrtat Protection. or the effect of any violation of these laws. ordinances e gmemmemal re(lulallons, o —Pt to the rodent that a notice of the enforcement thereof or a notice of a ddect, lien or encumbrance resulting from a violation or alleged violation Wfwdng the land has been recorded In the public records at Date of Policy. (b) Arhy governma.. police power not excluded by (a) above, except to the exam that a notice of the exercise thereof or a notice of a defeat. Ilan or encumbmnm resulting from a violation or alleged violation seeding mo lard has been recorded in the Public records at Data of Policy. 2. Rights of erdnem domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred odor to Date of Policy which would be binding an the rights of a purchaser for value without knowledge. Defects. liens. arcurtbrm¢es, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured dalrranf (b) net known to the Company, not recorded In the public records at Data of Policy, but known to the insured claimed and not disclosed in writing 10 the Company by the insured daimam prior to fie date the insured cidmenl became an Insured under this pdky, (e) resulting In no loss or damage to the Insured claimant: (d) stashing or created subsequent to Dale of Policy, or (e) resulting in loos or damage which would not have been sustained if the Insured claimom had paid value for the estate or interest insured by this policy. Any claim, wrh!rh arum out of the transaction vesting In the insured the estate or Interest Insured by this policy, by racoon of the operation of foderat bankruptcy, state insdvoney, or atmilar creditors' rights laws, that is based ore 0 the transaction creating the estate or Interest insured by this policy being deamad a fraudulent comreyelce or fraudulent transfar, or (II) the transaction creating t a estate or Imew Insured by INS policy being deemed a preferential trmafor =Apt wlhoro ft profemmial transfer results frpn the failure: (a) to limey record the Instrument of transfer, or (b) of such recordation to Impart nodes to a purchaser for value or a )rdpanwd or lien craditor. The above ALTA policy forms may be Issued to afford either Standard Coverago or Extended Coverage. In addition to the above Etrduslons Immn Coverage, the Exceptions from Coverage in a Standard Coverage policy wilt also Include the following General 6eeptlons: EXCEPTIONS FROM COVERAGE This Polley does W insure against loss or damage (and the Company will not pay costs, attorneys' too a expenses) which striae by reason of f. Taxes or assmarams which are nth Shown al; existing time by the .acarl a of any taxing 3. Easoments. fish or woe nbrances. or claims thereat. which are net shave by the pudic authority that lovlos taxes er moossmoms on real property or by the public records. records Proceedings by a pudic agency which may result in taxes or moessmonto, or noerea of ouch 4. DiscrePandm, conflicts In boundary lines, shortage In area, encroachments, or any opar proceedings, whether or nth shown by rho retards of Such agency or by the public records. facts which a torten survey would diaddse, and which are not shown by the public retards 2. Any tats, rights, inlem e; or claim which are not shown by the public records but witch 6 (a) Unpatented mining calms; (b) reservations or exceptions In Patents or in Acs could be ascertained by an inspection of the land or by making inquiry of persons in outhorWng tfre issuance thereof, (c) water rights, claim or tine to water, whether or not the possesolon thereof. manors ecopted wow (a), (b), or (c) are Shown by the pudic records. -43- 0 0 EXHIBIT A (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6 -2 -98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10- 17 -98) EXCLUSIONS In adtVbon to the Exoeptiara In Scladuia B. You am not inured against 1054 005% 21anoys' fear, and mmmhses msul inp from 1. Gove rintentol police power, and the eaftlence a nClabon of any law a povenvtentel reguWVon. This Inc�udes odinanem laws and regulations toner dru. a building b. coning c. Land use d. irrpmvamonts on Lmrd o. Lard division I. environmental proteullm This Exclusion does not apply to violation a the onto cemom of thaw notion ft notice of the violation or enforcement appears In the Public Records at the Policy Date. This Exclusion does not Vmh the coverage described In Covered Risk 14, 15. 18.17 a 24. 2. The farm of Your ehdsdng structures, or my port of mart to be constructed in accordance with opOicablo building codes. This Exclusion does not apply to violations of Wilding ­d= if notice of the violation appeme in the Public Records at the Policy Data. 8. The right to take the Land by condemning It, uness: a notice of exercising the right appears In the Public Records at Pte Policy Veto; or b. the tatting happened before the Policy Data and Is binding at You It You bought the Land without Knowing of the taking. 4. Risks e that ere created. allowed. or agreed to by You, whether or nor they appear in the Pubic Records; It. that am Known to You or an Policy Dam, but not to Us, unless they appear in the Public Records at the Palley Date: C. that result in no loss to You; or d that first occur afterrhe Policy Dam —this does not 8n9t the coverage described in Covered Risk 7, li 22, 29, 24, or 25. S. Failure to pay value fa Your Tide B, lack or a right a to any Land outside the area specifically described and mtaned to In pmepreph 9 of Schodulo k and b. in streets, alleys, or waterways that touch the Land. This 6clusion does not Iirdl the coverage described In Covered Risk 11 or 1 I RESIDENTIAL TITLE INSURANCE POLICY ONE -TO -FOUR FAMILY RESIDENCE ENHANCED VERSION (1997) EXCLUSIONS In addition to the ons In Sonedub B, you are not Insured egWnat loss, Cosh, etmmeyY fees, and mtperaca r tsultng from 1. Govemrnomal police power, and the etlarence or Aeration of any law or govenunantsl mguiatlen. This includes bu8ding and inning ordinances and also lam and reguiadcn concerning Q. land use; 0. improvements on the Land; Q land dvistons; or d. environmental protection. This e=lusion does not apply m violations or the enforcement d these motets which appear n the public reoods at Parley Dahe This ex.1mlon does not Ilovt the coverage described In Rem 12C and d, 13 and 18 of Coveted This Rlska. 2. The right to take the WW by condemning IL unless A. a notice of omrdaing the right appears In the public records an the Policy date; or It. the taking happened before the Policy Data and 19 binding on you If you bought the land WOW knowing of Ina taking. / I 3 Me Rsks; a. that am Created. alirywud, a agreed to by you: b, that are known to you. but not to on the Policy Date — urdass they appemod In the public records: G that result In no loss to you: or d. that first affect your lice after the Policy Date— this does not limit the coverage described in Items 86, 8, 17, and 19 of Covered Tube Risk& 4. Failure to pay value for your Vtlo. 5. Lack of a right: (a) to any land outside the ems specifically described and interred to in Nan g at Schedule A of (b) in straits, alleys, or watansrys that much yew tend. This o¢lusion doss not Ibnft the coverage dsscrlbad In harm 5 and 12a of Vol Covered TVs Risks. amo3� A m �m my 'CD� m� HCL o CS- m U [n = G y' N d CCD C 5 � CD Cm ._ y C O 7 C, y C C = b. an m CO O. y m y y _O j C ID =tp m ' O Cp m m = y CD � m _ qz-_ Z 0 m 0 0 O n A C h 0 1 Q q O` a o b n O O 1 � O ,/a'\ : .7ve®oo 6000069 :sep.zo `wJ Z 30 T :eBaB 9'L9 MW s0eseasy y,•odurgp sTM aag :aOT3dr sea -45- 5 40 'o 0 m V f e a3 6 0' v Exhibit E Map of the major; distinct natural features on the Property [See Attached] Em Irish Hills Plaza West - Habitat Miti *n and Monitoring Plan • Exhibit E EXHIBIT E 0 0 , y. IAREA 1 l iaBA 3` �I AREA 2 AREA 4 ARFA_5 AREA 8 and Reference Site #1 PROPOSED AREA 7 .; - (see Figure 5)% E)dsdng Soil Fill Site 0 400 eau y 1 INCH = 400 FEET , Morro Group, Inc. I END OF DOCUMENT