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HomeMy WebLinkAboutD-1707 APN 076-061-002 - 485 Buckley Road Recorded 12/22/2006Recording requested by FIRST AMERICAN TITLE CO. 159��9 sr-o - m� WHEN RECORDED RETURN TO City of San Luis Obispo Office of the City Clerk 990 Palm Street San Luis Obispo, CA 93401 -3249 0176.0�I - tea' ,JULIE RODEWAL� MEL San Luis Obispo Coun ierklRecorder 12/22/2006 Recorded at the request of 8:00 AM First American Title Company D O C # : 211006089865 Titles: 1 Pages: 18 Fees 0.00 Taxes 0.00 Others 0.00 PAID $0.00 OPEN SPACE AND AGRICULTURAL CONSERVATION EASEMENT AGREEMENT This Open Space and Agricultural Conservation Easement Agreement ( "Agreement ") is made and entered into this jjj�$ay of December -, 2006, by and between ERCOLE C. BRUGHELLI and NAOMIE BRUGHEI-LI,. Trustees of the ERCOLE and NAOMIE BRUGHELLI TRUST dated July 19, 1999 (the "Grantor "), and the CITY OF, SAN LUIS OBISPO, a municipal corporation of the State of California (the "City "). WITNESSETH A. Grantor owns that certain real property located at 485 Buckley Road in the unincorporated area of the County of San Luis Obispo, California (Assessor Parcel Number 076 - 061 -002), consisting of approximately 390 acres of land and improvements (the "Subject Property "). The Subject Property is more particularly described in Exhibit A attached hereto. Grantor wishes to place the Subject Property under the protective covenants of this Open Space and Agricultural Conservation Easement Agreement. The easement granted in this Agreement is hereafter described as the "Agricultural Conservation Easement. B. The existing buildings and improvements located on the Subject Property are depicted in Exhibit B attached hereto. The Subject Property also includes open farmland and grazing land, approximately 60 percent of whose soils have been classified as prime farmland by the Natural Resource- Conservation Service, U.S. Department of Agriculture, and by the California Department of Conservation Farmland Mapping and Monitoring Program, because this land has a soil quality, growing season, and moisture supply needed for sustained agricultural production. C. The agricultural and other characteristics of the Subject Property, its current use and state of improvement are described in a Present Conditions Report prepared by the City with the cooperation of Grantor, and acknowledged by both parties to be reasonably complete and accurate as of the date of this Agreement. A copy of such report is on file at the offices of City and is incorporated herein by this reference. Such report is intended to serve as an objective baseline for monitoring compliance with the terms of this grant. D. The market value of the Agricultural Conservation Easement granted to City by this Agreement has been determined by independent appraisal. A copy of the Appraisal Report of the Subject Property dated as of May 15, 2006, prepared by Schenberger, Taylor, McCormick and Jecker, Inc., and approved by City and Grantor, has been provided to City and Grantor. The Appraisal Report concludes that the market value of the Agricultural Conservation Easement provided for in this Agreement is $975,000.00. Grantor is willing to convey this Agricultural Conservation Easement for less than fair market value, namely $750,000.00, to preserve the Subject Property's natural character and existing openness by voluntarily restricting Grantor's use of and activities on the Subject Property through the imposition of a perpetual open space and agricultural conservation easement on the terms and conditions set forth in this Agreement. E. City will acquire this Agricultural Conservation Easement through a substantial investment intended to qualify under Internal Revenue Code § 170(h) applicable to a qualified conservation contribution. The funds paid represent a substantial 'investment by the People of the State of California in the long -term conservation of valuable agricultural land, and the retention of agricultural land in perpetuity., The Subject Property and this Agricultural Conservation Easement have met the California Farmland Conservancy Program's mandatory eligibility criteria and certain selection criteria. The Subject Property and this Agricultural Conservation Easement also have multiple natural resource conservation objectives. The rights vested herein arise out of the State's statutory role in fostering the conservation of agricultural land in California and its role as contributor of, and fiduciary for, the public investment represented here. F. Grantor grants this Agricultural Conservation Easement to the City for valuable consideration and for the exclusive purpose of assuring that, under the City's perpetual stewardship, the Subject Property will be conserved and maintained in accordance with the terms of this Agreement, and that uses of the Subject Property that are inconsistent with this purpose will be prevented or corrected. The concern of the Grantor and City is that, but for this grant, the agricultural attributes and uses of the Subject Property will be compromised by increasing pressure from neighboring agricultural properties that have been converted to more intensive residential density. G. The conservation purposes of this Easement are recognized by, and the grant of this Easement will serve, the following clearly delineated governmental conservation policies: Section 815 of the California Civil Code, which defines perpetual conservation easements; California Constitution Article XIII, section 8, and Revenue and Taxation Code sections 421.5 and 422.5, under which this Agricultural Conservation Easement is an enforceable restriction, requiring that the Subject Property's tax valuation be consistent with restriction of its use for purposes of food and fiber production and conservation of natural resources. 2 • � r I Division 10.2 (sections 10200, et seq.) of the California Public Resources Code, which creates the California Farmland Conservancy Program; Section 51220 of the California Government Code, which declares a public interest in the preservation of agricultural lands; The San Luis Obispo County General Plan, as amended in December 1996, which includes as one of its goals to protect all viable farmlands designated as prime, of statewide importance, unique, or of local importance from conversion to and encroachment of non - agricultural uses; and Resolution No. 2003 -26, approved by the Board of Supervisors of San Luis Obispo County on the 28th day of January, 2002, which expresses support for the acquisition of an agricultural conservation easement on the Subject Property, and finds that such protection is consistent with the County's General Plan. H. City is a California municipal corporation, and, as certified by a resolution of its City Council, accepts the responsibility of enforcing the terms of this Easement. Now, therefore, for the reasons given, and in consideration of their mutual promises and covenants, terms, conditions and restrictions contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor voluntarily grants and conveys to the City, and City voluntarily accepts, a perpetual Conservation Easement, as defined by Section 815.1 of the Civil Code of California, and of the nature and character described in this Agreement, and agree as follows. 1. GRANT OF EASEMENT. Grantor hereby grants to City in perpetuity an open space and agricultural conservation easement on the terms and conditions of this Agreement over the Subject Property as described in Exhibit A. Said grant of an . agricultural conservation easement conveys to City an estate and interest in the Subject Property. The purpose of this Agricultural Conservation Easement is to allow continuation of historical agricultural activities on the property and such other activities as are consistent with the restrictions set forth herein, and to otherwise restrict the use of the Subject Property as hereinafter set forth. 2. CONDITIONS OF EASEMENT. The restrictions hereby imposed upon the use of the Subject Property, and any portion thereof, by Grantor and the acts which Grantor shall refrain from doing upon the Subject Property are, and shall be,, as follows: (a) General Plan Amendments. Amending the General Plan to a land use category that would allow a higher density of development than that which is allowed on July 1, 2006, (namely, a maximum of 18 residential units) based on the General Plan of San Luis Obispo County is prohibited. A certified copy of such General Plan shall be maintained by City. 3 (b) Prohibited Uses. All activities or uses that are not permitted under the General Plan of the County of San Luis Obispo, including its Land Use Ordinances related to property classified as "Agriculture" as of July 1, 2006, are prohibited. A certified copy of such General Plan and such Land Use Ordinances shall be maintained by City. In addition, the following activities or uses that are defined and authorized in land classified as "Agriculture" by such General Plan are prohibited: (1) Airfields or Landing Strips except as may be necessary in support of agricultural activities. (2) Bed and Breakfast facilities except those whose primary purpose is in support of agricultural tourism. (3) Caretaker Residence except as may be necessary in support of agricultural activities. (4) Churches. (5) Concrete, Gypsum, or Plaster Products. (6) Food and Kindred.Products when food processing and manufacturing establishments. (7) Indoor Amusement and Recreation Facilities except when permitted under subparagraphs (c) - (f) of this Paragraph 2. (8) Libraries and Museums except when permitted under subparagraphs (c) - (f) of this Paragraph 2. (9) Membership Organization facilities except when permitted. under subparagraphs (c) - (f) of this Paragraph 2. (10) Surface Mining. (11) Mobile Homes unless a caretaker's residence or when permitted under subparagraphs (c) - (f) of this Paragraph 2. (12) Paving Materials. (c) Subdivisions. Subdivision of the Subject Property into more lots than are permitted for agricultural zoning is prohibited. Any proposed subdivision of the Subject Property shall be subject to the reasonable review and approval of the City of San Luis Obispo and, if applicable, the approval authority of the County of San Luis Obispo. The parties acknowledge that the intent of this restriction is to keep the property in productive agricultural use and that any permitted residential development shall be located or clustered in such a manner as to protect the productive agricultural use of the Subject Property. (d) Residential Structures. Construction and placement of any residential structures, and associated infrastructure shall be subject to the ll reasonable review and approval of the City of San Luis Obispo and, if applicable, the approval authority of the County of San Luis Obispo. (e) Large Agricultural Structures. Large. structures associated with agricultural production, such as winery facilities, may be constructed on the Subject Property subject to the reasonable review and approval of the City of San Luis Obispo and, if applicable, the approval authority of the County of San Luis Obispo. Any such large structures must be clearly associated with agricultural production from the Subject Property. (f) Other Improvements. Except as provided in subparagraphs (b), (c), (d), and (e) above, no other buildings or other structures may be constructed or installed on the Subject Property, except structures and improvements permitted in an agricultural zone for agricultural production on the Subject Property. Such other permitted improvements include, for example, barns, equipment sheds, irrigation systems, fencing, and improvements for agricultural production purposes and the. sale of farm products predominately grown or raised on the Subject Property. All such structures and improvements, individually and combined, must be consistent with the provisions of this Agricultural Conservation Easement and Public Resources Code § 10262. Any such structures proposed to be built or placed on the Subject Property shall be subject to the reasonable prior review and approval of the City of San Luis Obispo and, if applicable, to the approval authority of the County of San Luis Obispo. (g) Advertisements. No signs, billboards, or similar structures or devices or advertising of any kind or nature may be located on the Subject Property, except for reasonable identifying signage associated with any. approved activity. (h) Natural Resources. No extraction of surface or subsurface natural resources (except water resources) may be allowed on the Subject Property. Subsurface oil and gas resources, if found to be present, may be extracted by proper technological methods. (i) Impervious Surfaces. Impervious surfaces shall be minimized, and in no case shall such surfaces exceed five percent (5%) of the area of the Subject Property. . 3. GRANTOR TO RETAIN ALL WATER RIGHTS. Grantor shall retain and reserve all water rights of any kind or nature on the Subject Property. 4. EASEMENT TO BE PERPETUAL. This Agricultural Conservation Easement shall remain in effect in perpetuity. 5. TERMS BINDING ON SUCCESSORS. The terms and conditions contained herein shall be binding on the parties hereto and their heirs, successors and assigns. 5 6. ALL OTHER RIGHTS RETAINED BY GRANTOR. Grantor retains the right to perform any act on the Subject Property not specifically prohibited or limited by this Agreement. Such ownership rights include, but are not limited to, the right to exclude any member of the public from trespassing, and the right to sell, lease, or otherwise transfer the Subject Property, or properly subdivided portions thereof, to anyone they choose. 7. NO OTHER LEGAL OBLIGATIONS IMPOSED ON CITY. Other than as specified herein, this Agreement is not intended to impose any legal or other responsibility on the City of San Luis Obispo, or in any way to affect any existing obligation of the Grantor as owner of the Subject Property. Among other things, this shall apply to: (a) Taxes. Grantor shall be solely responsible for payment of all taxes and assessments levied against the Subject Property including the Easement Area. If the City ever pays any taxes or assessments on the Subject Property, or if the City pays levies on Grantor's interest in order to protect City's interests in the Subject Property, Grantor will reimburse the City for the same. (b) Upkeep and Maintenance. Grantor shall be solely responsible for the upkeep and maintenance of the Subject Property to the extent required by law. City shall have no obligation for the upkeep or maintenance of the Subject Property, except as specifically provided in this Agreement. (c) Liability and Indemnification. In consideration of City's negative rights, limited access to the land, and lack of active involvement in the day -to -day management activities on the Subject Property, Grantor shall indemnify, protect, defend and hold City, its officers, directors, members, employees, contractors, legal representatives, agents, successors and assigns harmless from and against all liabilities costs, losses, orders, liens, penalties, damages, expenses, or causes of action, claims, demands, or judgments, including without limitation reasonable attorney's fees, arising from or in any way connected with injury or the death of any person, or physical damage to any property, or any other costs or liabilities resulting from any act, omission, condition, or other matter related to or occurring on or about the Subject Property, regardless of cause, unless due to the negligence or willful misconduct of City or any of its officers, directors, members, employees, contractors, legal representatives, agents, successors, and assigns. City shall be named additional insured on Grantor's general liability insurance policy. City shall indemnify, protect, defend and hold Grantor, its trustees, officers, directors, employees, contractors, legal representatives, agents, successors and assigns harmless from and against all liabilities costs, losses, orders, liens, penalties, damages, expenses, or causes of action, claims, demands, or judgments, including without limitation reasonable attorney's fees, arising from or in any way connected with injury or the death of any person, or physical damage to any property, or any other costs or liabilities resulting from any act, omission, condition, or other 0 matter related to or occurrin on or about the SubJ ectl Property due to the negligence or willful misconduct of City or any of its officers, directors, members, employees, contractors, legal representatives, agents, successors,; and assigns. I 8. CITY MONITORING OBLIGATIONS. City shall manage its responsibilities for the Subject Property, including, but not limited to, annual monitoring, such additional monitoring as circumstances may require, record keeping, and enforcement, for the purposes of preserving the agricultural productive capacity and open space character of the Subject Property consistent with the terms of this Agreement in perpetuity. City shall maintain a record of annual monitoring, describing the method of monitoring, condition of the Subject Property, stating whether any violations were found during the period, describing any corrective actions taken, and the resolution of any violation. 9. ENFORCEMENT AND COSTS. City shall have the right to prevent and correct violations of the terms of this Agreement. With reasonable advance notice to Grantor, the City may enter the Subject Property for the purposes of inspection. If the City finds what it believes is a violation, it may at its discretion take appropriate action, including legal action, subject to the provisions of Section 10, Arbitration. Except when an ongoing or imminent violation could irreversibly diminish or impair the open space character and agricultural productivity of the Subject Property, City shall give Grantor written notice of any such violation and thirty (30) days to correct it, before filing any legal action. If a court with jurisdiction determines that a violation may exist or has occurred, City may obtain an injunction to stop it, temporarily or permanently. A court may also issue an injunction requiring Grantor to restore the Subject Property to its condition prior to the violation. The failure of City to discover a violation or to take immediate legal action shall not bar it from doing so at a later time. Without limiting Grantor's liability therefore, City shall apply damages recovered to the cost of undertaking any corrective action on the Subject Property. Should the restoration of lost values be impossible or impractical for whatever reason, City shall apply any and all damages recovered to furthering the City's mission, with primary emphasis on agricultural easement acquisition and enforcement. Nothing contained in this Agreement shall be construed to entitle City to bring any action against Grantor for any injury to or change in the Subject Property resulting from causes beyond Grantor's control, including, without limitation, fire, flood, storm, earth movement or from any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Subject Property resulting from such causes. In any case where a court finds that a violation has occurred and City is not in default hereunder, Grantor shall reimburse City for all its expenses incurred in stopping and correcting the violation, including but not limited to reasonable attorney's fees.. If Grantor prevails in any action or proceeding to enforce the terms of this Agreement, Grantor's costs of suit, including, without limitation, attorneys' fees, shall be borne by City. 7 • 0 10. ARBITRATION. Any controversy arising from this Agreement or its breach, except an imminent violation that could irreversibly diminish or impair the open space character and agricultural productivity of the Subject Property that requires immediate action under Section 9, shall be determined by arbitration as follows: (a) Within thirty (30) days after a notice by either party to the other requesting arbitration and stating the basis of the party's claim, one arbitrator shall be appointed by each party. Notice of appointment shall be given by each party to the other party when made. If a party fails to appoint an arbitrator within such 30- day period, the arbitrator selected by the other party shall decide the matter. (b) If two arbitrators are timely appointed, they shall immediately choose a third arbitrator to act with them. If they fail within fourteen (14) days of their appointment to select a third arbitrator, on application by either party, a third arbitrator shall be appointed by the then presiding judge of the Superior Court of the State of California in and for the County of San Luis Obispo. The party making the application shall give the other party fourteen (14) day's notice of the application. (c) The arbitration shall be conducted under the Code of Civil Procedure (CCP Sections 1280- 1294.2) and be held in San Luis Obispo, California. Both parties agree by signing this Agreement that they are agreeing to have any dispute arising from the matters relating to this Agreement, except for imminent violations subject to Section 9, decided by neutral arbitration as provided by California law and that each party is giving up rights to have the dispute litigated in a court or by jury trial. By signing this Agreement, each party is giving up judicial rights to discovery and appeal unless such rights are specially requested in the notice requesting Arbitration or as permitted by CCP 1280 et. seq. If either party refuses to submit to arbitration, they may be compelled to arbitrate under the authority of the California Code of Civil Procedure. 11. TRANSFER OF EASEMENT BY CITY. If the City should desire to transfer the Agricultural Conservation Easement created by this Agreement to another qualified party, City must first obtain written permission from the Grantor, which permission shall not be unreasonably withheld. The request shall state the name of the qualified party to which the transfer is proposed, the reasons therefore, and such other information as Grantor may reasonably request. If written consent is given for the proposed transfer, City may transfer the Easement created by this Agreement to: (1) a private nonprofit organization that, at the time of transfer, is a "qualified organization" under Section 170(h) of the U.S. Internal Revenue Code and under Section 815.3(a) of the Civil Code of California and has similar purposes to preserve open space and farmland, as well as agreeing to assume the responsibilities imposed by this Agreement; (2) if no such private nonprofit organization is willing to assume the responsibilities imposed by this Agreement, then the Agricultural Conservation Easement created by this Agreement may be transferred to any public agency authorized to hold interests in real property as provided in section 815.3(b) of the Civil Code of California. Such a transfer may proceed only if the E:j organization or agency expressly agrees to assume the responsibility imposed on City by this Agreement. If City ever ceases to exist or no longer qualifies under Section 170(h) of the U.S. Internal Revenue Code, or applicable state law, a court with jurisdiction shall, upon consultation with the California Department of Conservation, transfer this Agricultural Conservation Easement, pursuant to the California Public Resources Code Section 10235(b), to another qualified organization, as defined in Section 815.3 of the Civil Code of California, and having similar purposes that agrees to assume the responsibility imposed by this Agreement. 12, VOLUNTARY TRANSFER OF TITLE BY OWNER. Any time the Subject Property itself, or any interest in it, is transferred by the Grantor to any third party, Grantor shall notify the City in writing at least 30 days prior to such transfer, and the document of conveyance shall expressly incorporate by reference this Agreement. Any document conveying a lease of the Subject Property shall expressly incorporate by reference this Agreement. Failure of the Grantor to do so shall not impair the validity of this Agreement or limit.its enforceability in any way. The purpose of this section is to ensure that new parties to the Agreement or affected by this Agreement are notified of, and are aware of, its existence. 13. AMENDMENTS MUST BE IN WRITING. This Agreement may be amended only with the written consent of Grantor and City. Any such amendment shall be consistent with the purposes of this Agreement and with City's easement amendment policies, and shall comply with Section 170(h) of the Internal Revenue Code, or any regulations promulgated in accordance with that section, and with Section 815 et seq. of the Civil Code of California, or any regulations promulgated thereunder. 14. TERMINATION OF EASEMENT. Termination of this Agricultural Conservation Easement shall be governed by Sections 10270 -10277 of the Public Resources Code of California. 15. TERMINATION BY CONDEMNATION. Termination of this Agricultural Conservation Easement or any portion thereof through condemnation is subject to the requirements of Section 10261 of the Public Resources Code. If all or any portion of the Subject Property is acquired by eminent domain, or by purchase in lieu of eminent domain by any public entity other than City, City shall be paid by the condemnor (or purchaser), 76.9% value of the Agricultural Conservation Easement at the time of condemnation (Public Resources Code Section 10261(a) 2). Should this easement be condemned or otherwise terminated on any portion of the Subject Property, the balance of the Subject Property shall remain subject to this Agreement. In this event, all relevant related documents shall be updated and re- recorded by the City to reflect the modified Subject Property subject to this Easement. 16. INTERPRETATION. References.to authorities in this Agreement shall be to the statute, rule, regulation, ordinance or other legal provision that is in effect at the time this easement becomes effective. Z, This Agreement shall be interpreted under the laws of California, resolving any ambiguities or questions of the validity of specific provisions so as to give maximum effect to its conservation purposes. 17. NO APPROVALS EXPRESS OR IMPLIED. No provision of this, Agreement shall constitute governmental approval of any improvements, construction or other activities that may be permitted under this Agreement. The easement created by this Agreement pursuant to Civil Code section 815.1 shall run with the land in perpetuity. Every provision of this Agreement that applies to Grantor or City shall also apply to their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear. No merger of title, estate or interest shall be deemed effected by any previous, contemporaneous, or subsequent deed, grant, or assignment of an interest or estate in the Subject Property, or any portion thereof, to City, or its successors or assigns, it being the express intent of the parties that this Agricultural Conservation Easement not be extinguished by, or merged into, or any other interest or estate in the Subject Property now or hereafter held by City or its successors or assigns. 18. NOTICES. Any notices to Grantor and City required by this Agreement shall be in writing and shall be personally delivered or sent by first class mail, to the following addresses, unless a party has been notified by the other of a change of address: To Grantor.- Ercole and Naomie Brughelli 485 Buckley Road San Luis Obispo, CA 93401 To City: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 19. GRANTOR'S HAZARDOUS MATERIALS WARRANTY. Grantor warrants that Grantor has no actual knowledge of a release or threatened release of hazardous substances or wastes on the Subject Property and hereby promises to defend and indemnify City against all litigation, claims, demands, penalties and damages, including reasonable attorneys' fees, arising from or connected with any release of hazardous waste or violation of federal, state or local environmental laws. Notwithstanding any other provision herein to the contrary, the parties do not intend this Agreement be construed such that it creates in or gives the City: . (a) the obligations or liability of an "owner" or "operator" as those words are defined and used in environmental laws, as defined below, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 USC section 9601 et seq. And hereinafter "CERCLA "); (b) the obligations or liability of a person described in 42 USC section 9607 (a)(3) or (4); 10 0 0 (c) the obligations of a responsible person under any applicable Environmental. Laws, as defined below; . (d) the right to investigate and remediate any Hazardous Materials, as defined below, associated with the Subject Property; or (e) any control over Grantor's ability to investigate, remove, remediate, or otherwise clean up any Hazardous Materials associated with the Subject Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive, or radioactive; (b) petroleum products; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in the CERCLA (42 USC section 9601 et seq.), the Hazardous Materials Transportation Act (49 USC section 5101, et seq.), the Hazardous Waste Control Law (California Health and Safety Code section 25100 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state, or local laws, ordinances, rules, or regulations now in effect or enacted after this date. The term "Environmental Laws" includes, without limitation, any federal, state or local or administrative agency statute, regulation, rule, ordinance, order or requirement relating to pollution, protection of human health, the environment or Hazardous Materials. 20. GRANTOR'S TITLE WARRANTY. Grantor represents and warrants that Grantor has good fee simple title to the Subject Property, free from any and all liens or . encumbrances, except those set forth in Exhibit C, all of which have been subordinated to this Agricultural Conservation Easement, and hereby promises to defend the same against all claims that may be made against it. Grantor represents and warrants that the Subject Property is not subject to any other conservation easement whatsoever. Grantor may grant . subsequent conservation easements on the Subject Property, provided that such subsequent easements are for the purpose of wetland, wildlife habitat or biological resource creation, enhancement or preservation, or for the protection and enhancement of agricultural productivity of the Subject Property. City shall be notified in advance, in writing, of any proposed conservation or other easement on the Subject Property, and shall have the right of reasonable review and approval of any such new easements. 21. INVALIDATION. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of this Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. 22. CITY AGREEMENT. As attested by the signature of its Mayor affixed hereto, in exchange for consideration, City hereby accepts without reservation the rights and responsibilities conveyed by this Agreement. 11 IN WITNESS WHEREOF, the parties hereto have executed!this document on the day and year first written above. GRANTOR ERCOLE and NAOLMIE BRUGHELLI TRUST dated. July 19, 1999 B y �� ~ Ercole Brughell ;-trustee Naomie Bra e CITY CITY OF SAN LUIS OBISPO LBy David F. Romero, Mayor 12 J 11 STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO On a Notary Public for they ROME O personally known to evidence) o be the person(s) wh and ackno edized to me that he, ss _, 200_, before me, e of California, persona (or proved to me on the name(s) is /are subscribed i hey executed the same in 0 appeared DAVID F. ;is of satisfactory .�the within instrument, h%"er/their authorized capacity(ies),ind that by his/her /their ignature(s) on the instrumei� the person(s) or the entity upon beh*f of which the person( acted, executed the instrurr�qqnt. WITNESS)wiv hand and official STATE OF CALIFORNIA ss COUNTY OF SAN LUIS OBISPO otary Public On 2 l Z • OLD , 200_, before me, USQ i , M U rY'6L �( , a Notary Public for the State of California, personally appeared ERCOLE C. BRUGHELLI and NAOMIE BRUGHELLI personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument, and acknowledged to me that he /she /they executed the same in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s) or, the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. SUSAN MURRAY �m N COMM. # 1527827 < Notary Public - California , y. Public County of San Luis Obispo N My Comm. Exp. Nov. 19, 2008 STATE OF CALIFORNIA ) )SS COUNTY OF SAN LUIS OBISPO ) U On December 15, 2006, before me Audrey Hooper, City Clerk, personally appeared David F. Romero, Mayor, CITY OF SAN LUIS OBISPO, personally known to me (er- pFeved- t&ine-m to be the person whose name(Wis /amsubscribed to the within instrument and acknowledged to me that he /she4ha�,executed the same in his/hurltheir authorized capacity(ies�,-and that by his /hr- signatureXon the instrument the person, or the entity upon behalf of which the persongacted, executed the instrument. WITNESS my hand and official seal. �s Signature aAlx-44Z�'c� Clerk (Seal) i • Exhibit A Description of Property The subject property is described as follows: Lots 1 and 2 and the North Half of Section 14, Township 31 South, Range 12 East, Mount Diablo Base and Meridian, in the County of San Luis Obispo, State of California, According to the Official Plat Thereof. Excepting Therefrom That Parcel of Land Conveyed to the Board of Trustees of Santa Fe School District by Deed Recorded November 27, 1878 in Book L Page 251 of Deeds, Title of which has since passed to San Luis Coastal Unified School District by Judgement Quieting Title Recorded April 29, 1996 as Instrument No. 1996 - 021085 of Official records. Also Excepting Therefrom 1/2 Interest in and to all Minerals, Oil, Gas, and Other Hydrocarbon Substances of Whatever Nature in, on or under the Land, as Reserved by Jeanne Marriott, et al, in Deed Recorded April 16, 1948 in Book 473 Page 191 of Official Records, Which Deed further provides, as follows: "Together with Right of Ingress and Egress to and from the Said Land for the Purpose of Exploring Thereo, Drilling and Recovering such Minerals, Oil, Gas and all other Hydrocarbon Substances and for the Purpose of Storing the same Thereon, and for the Further purpose of Transporting the Same over and across the Said land, and to Lay and Maintain all Proper and Convenient Roadways, Pipes and Pipelines, and to Erect and Maintain all Necessary, Proper and Convenient Electric Lines,. Telephone and Telegraph Lines on Said Premises, with the Further Reservation and Understanding that the Parties of the First Part, Their Heirs, Successors, Administrators, or Assigns, May Lease for Minerals, Oil, Gas and other Hydrocarbon Substance Purpose without the consent of the Parties of the Second Part, Their Heirs, Successors, Administrators, or Assigns, Relative to the Leasing of Said Premises by Said Parties of the First Part for Said purposes Aforesaid." A-� ' -ova- Oq� -Ole Exhibit B Buildings and.Improvements on the Subject Property The subject property includes the following buildings and improvements: 1. An approximately 1,330 square foot, single story, wood frame home, with perimeter foundation and a raised front porch. The interior includes three . bedrooms, one bath, kitchen, dining area, and living room with fireplace; 2. An approximately 940 square foot carport with a concrete foundation and dirt floor, with corrugated steel roof, wood exterior walls, and open side for parking vehicles and equipment. 3. An approximately 5,570 square foot barn, originally designed for hoses and/or dairy cattle. This barn features a relatively new corrugated metal roof and interior bracing. It also has raised central loft for hay storage. 4. An approximately 1,225 square foot implement shed, used for vehicle and equipment storage. The shed features wood post construction and corrugated metal roof. It is enclosed on three sides. 5. An approximately 445 square foot milking room, now used as a workshop. The structure features concrete floors, wood frame walls with stucco siding, and a corrugated metal roof. 6. A set of corrals, holding pens, loading chute, and squeeze located near Buckley road; and 7. A windmill, water storage tank, septic system, underground water lines, and landscaping, including a lawn and fruit trees. There is also an old boxcar (believed to be from the narrow -gauge Pacific Coast Railroad) without undercarriage, used for storage. 8. Various fences to contain livestock within the property and away from that portion of the property used for crop production. These fences are mostly barbed wire. Exhibit C Encumbrances on the Subject Property The subject property is subject to the following encumbrances as of June 23, 2006: 1. General and Special taxes for the fiscal year 2006 -2007, not yet due or payable. 2. Lien of Supplemental taxes, if any. 3. Standard public easement for Navigation and Fisheries. 4. Rights, tights of way, reservations and exceptions in the patent recorded July 2, 1875 as Book A Page 620 of Patents, affecting Lots 1 and 2. 5. Rights of the public in and to that portion of the land lying within any County roads. 6. A 16 -foot wide easement for drainage purposes in favor of San Luis Obispo County within the northeastern portion of the property. 7. A road easement on the west etly 20 feet of the property for Jespersen -Road. 8. Terms and Provisions contained within a document executed pursuant to the California Land Conservation Act of 1965 (Williamson Act); and 9. An easement for drainage purposes in favor of San Luis Obispo County within a portion of the property near Buckley Road. • CERTIFICATE OF ACCEPTANCE • THIS IS TO CERTIFY that the interest in real property conveyed by ERCOLE C. BRUGHELLI AND NAOMIE BRUGHELLI, TRUSTEES OF THE ERCOLE AND NAOMIE BRUGHELLI TRUST dated July 19, 1999, to the CITY OF SAN LUIS OBISPO, a California Municipal Corporation, 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 the Grantee consents to recordation thereof by its duly authorized officer or his agent. Date: 1211512006 ATTEST: .By.9r. ' Auorpy Ho er, C Cdy CIbrk . CITY OF SAN LUIS OBISPO By: David F. Romero, Mayor END OF DOCUMENT // 402 First American Title Company 899 Pacific Street, San Luis Obispo, CA 93401 Phone - (805)543 -8900 Fax - (866)654 -3625 SALE CLOSING ESCROW INSTRUCTIONS To: First American Title Company File No.: 159439SLO (MY) Yolanda Whisenand / Melinda Stewart, Escrow Date: December 13, 2006 Officer Estimated Closing Date: December 15, 2006 Re: 485 Buckley Road, San Luis Obispo, CA 93401 ( "Property") The undersigned hand you funds and documents required to close escrow, and instruct you to do so under the following terms and conditions, upon receipt of all such funds and documents, and when you are in a position to issue a title insurance policy as described below. Final Approvals: Buyer and Seller acknowledge that all conditions precedent have been released, approved and /or waived and Escrow Holder is instructed to proceed to close this escrow. Estimated Settlement Statement: Upon Close of Escrow, Escrow Holder is instructed to disburse in accordance with the executed "Estimated Settlement Statement" without further instruction from the parties hereto. Escrow not responsible for payment of bills: The undersigned acknowledge that any charges for work or inspections on the property are solely the responsibility of the parties to this escrow. Escrow Holder will not be responsible for payment of or collection of payment from parties to this escrow for any bills submitted to escrow other than those that have been approved for payment on the Buyer's, Seller's and Borrower's settlement statements. If bills are submitted by Seller, Buyer or their agents after the settlement statements have been approved, they will be charged to the respective party as verbally instructed by the submitting party. Prorations: All prorations for the Property are to be handled in escrow as reflected on the "Estimated Settlement Statement." The parties understand and agree that (1) Escrow Holder will not prorate municipal utilities, and (2) the transfer of the utilities must be handled by the parties outside of escrow. Warranty Regarding Encumbrances: The undersigned sellers warrant and guarantee that there are no outstanding liens or Deeds of Trust or Mortgages affecting the property, other than those shown on the preliminary report issued in this transaction. Proceeds: Seller directs that the proceeds check be: [ ] Held for pick up at this office [ ] Mailed to the address below [ ] Sent via certified mail ] Delivered to Seller's Agent ] Sent via next day mail (Additional $15.00 charge) ] Other- ent via wire transfer (Additional $15.00 charge) (if checked, Attach wiring instructions of receiving bank) Note: Receiving Banks may impose a charge for the receipt of any wire transfers. Page 1 of 3 First American Title Company® • File No.:159439SLO (MY) Document /Funds Delivery: After Close of Escrow, all documents, funds and statements are to be sent to the undersigned at the addresses provided to Escrow Holder. Escrow General. Provisions: The parties acknowledge receipt of the Escrow General Provisions which are incorporated herein by reference. SELLER: Ercole C. Brughelli and Naomie Brughelli, Trustees of the Ercole and Naomie Brughelli Trust, dated July 19, 1999 Ercole C. Brughelli, Trustee Naomie Brughelli, Trustee Please indicate your forwarding address and phone number: Pho Page 2 of 3 First American Title Company • File No.:159439SLO (MY ) BUYER: City San Luis Obispo By: David F. Romero, Mayor Please indicate your forwarding address and phone number: W a 0 Lwr s try S� ti Lu �s d S (cv cjq 93 Yo/ Phone: Page 3 of 3