HomeMy WebLinkAbout09/18/2001, B 5 - AUTHORIZATION TO PURCHASE APPROXIMATELY 242 ACRES OF REAL PROPERTY IN THE IRISH HILLS FROM THE JOHN council M..ti°°°� q-181-01
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sC I TY OF SAN L U IS O B I S P 0
FROM: Wendy George, Assistant City Administrative Officer W1
Prepared By: Neil Havlik,Natural Resources Manager C-n'd-
SUBJECT: AUTHORIZATION TO PURCHASE APPROXIMATELY 242 ACRES OF
REAL PROPERTY IN THE HUSH HILLS FROM THE JOHNSON FAMILY.
CAO RECOMMENDATION
Authorize the exercising of the Agreement of Option for Purchase and Sale of Real Property with
Jeanette Ayers, Steven F. Curtiss, and Carolyn Silacci (collectively referred to herein as the Johnson
family), for the purchase of 242 acres of land at Ontario Road for public benefit purposes, at a purchase
price of $1,600,000, subject to approval by State granting agencies and non-substantive changes
approved by the City Attorney, and authorize the Mayor to execute the necessary documents associated
with the transaction.
DISCUSSION
The 242-acre Johnson Ranch property was one of the properties identified as priority acquisitions in the
"Saving Special Places" report, produced by the Land Conservancy of San Luis Obispo County for the
City of San Luis Obispo in July 1995. The property lies about two miles south of San Luis Obispo at the
eastern end of the Irish Hills adjacent to Highway 101. It includes both steep, hilly country and more
gentle rolling land closer to the highway. Vegetation consists of open grassland, oak woodland,
chaparral, and a riparian corridor along a small unnamed creek which traverses the property. The
property includes a small farmhouse, and a portion of the old railroad right-of-way between San Luis
Obispo and Port San Luis. Land near the highway is relatively gentle and is attractive as a small park
site. The rest of the property has considerable habitat and scenic value.
The property was on the market for several years between about 1995 and 1997, apparently without
serious offers. Following some discussions between City staff and members of the Johnson family, the
family formally offered to sell the property to the City in July 2000, for $1.6 million. City staff had
identified several potential funding sources, and the Council accordingly approved an option agreement in
August 2000. The agreement allowed fourteen months (to October 15, 2001) for the City to assemble
funds for purchase of the property. With the recent approvals by the California Transportation
Commission (August 23, 2001), the Wildlife Conservation Board (August 30, 2001) and the pledge by
Bert and Candee Forbes (September 4, 2001), the City has accumulated the funds necessary to purchase
the property. The project will include expenditure of approximately $335,000 in City funds. Appraisal
determined the fair market value of the property to be $1,750,000, so the purchase price represents a
bargain sale by the family. The agreement stipulates that the property be named the "Johnson Ranch
Open Space".
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Council Agenda Report-Approval of Purchase of Real Property
Page 2
FISCAL IMPACT
This project has been an extremely challenging one: a wide variety of grant programs have been
pursued in the effort to obtain funding, and the biological richness and high visibility of the site has
been a strong attraction for granting agencies. In addition to City funds, eight outside funding sources
have been successfully pursued. The funding package for the property is outlined below:
• Regional Water Quality Control Board (Guadalupe Settlement) $400,000
• City of San Luis Obispo funds $335,000
• Wildlife Conservation Board $300,000
• State Environmental Enhancement and Mitigation Fund $250,000
• State Habitat Conservation Fund $100,000
• Forbes Family Donation $100,000
• Regional Water Quality Control Board("Avila II" Settlement) $50,000
• Department of Fish and Game("Avila II" Settlement) $50,000
• Private contributions $15,000
• Total $1,600,000
This property, together with the just-designated Irish Hills Natural Reserve, will eventually impose
additional responsibilities on the ranger program. These are anticipated to "phase in" over the next
year or so as the Natural Reserve is opened to public use and becomes better known in the community.
Staff anticipates that the Johnson Ranch would not be opened for public use for about a year,while site
planning, site cleanup and safety improvements are made. It is anticipated that by the 2003-05
Financial Plan period it may be necessary to add an additional open space ranger. Funds have been
allocated by the Council to deal with the cleanup and safety activities. The existing residential tenants
and the grazing tenant will remain for the immediate future. The property is subject to two billboard
leases which will also remain,unless the Council decides at some future time to "buy them out".
The Johnson Ranch will be also subject to property tax as it is outside of the City limits. It is not
certain how much this will be, but due to the numerous deed restrictions required by the granting
agencies, it is assumed that the property will be deed restricted to open space uses and therefore
assessed at agricultural value. Initial funding for taxes should be available within the Natural
Resources budget. It is not possible to annex the property as it is not contiguous to the City limits at
this time.
ATTACHMENTS
1. Project Location Map
2. Agreement of Option for Purchase and Sale of Real Property
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CITY OF SAN LUIS OBISPO
GREENBELT PROTECTION PROGRAM
JOHNSON RANCH
Pismo Beach Quadrangle, California
scale I I.,200'approx. e7)
—1D
- ATTACHMENT 2
AGREEMENT OF OPTION FOR PURCHASE AND SALE
OF REAL PROPERTY
This AGREEMENT OF OPTION FOR PURCHASE AND SALE OF REAL PROPERTY is
entered into by and between the CITY OF SAN LUIS OBISPO ("Buyer"), a California Charter
Municipal Corporation, and JEANETTE AYERS, STEVEN F. CURTISS, Managing Member of
Curtiss-Johnson Properties, LLC, and CAROLYN SILACCI (collectively, "Seller"), pursuant to the
following
RECITALS
WHEREAS, Buyer is a California Charter Municipal Corporation; and
WHEREAS, Buyer, acting through its City Council and through adopted public procedures, has
determined that certain lands surrounding the city of San Luis Obispo are important to the scenic
character, healthy natural environment, and economic and social well being of the community and its
citizens; and
WHEREAS, Buyer seeks to preserve and conserve characteristics such as visual quality,
wildlife habitat, and other community attributes where appropriate surrounding the City; and
WHEREAS, Seller is owner of certain lands adjacent to the City which are of scenic,
ecological, and agricultural value to the City of San Luis Obispo; and
WHEREAS, Seller wishes to preserve, protect and restore the scenic and ecological values
which exist or may exist on the Property, and
WHEREAS, the purchase of said land in the judgment of Buyer would act to preserve the
values indicated above and serve an important municipal purpose; and
WHEREAS, both Buyer and Seller recognize that time will be required to secure the funds
necessary for the transaction, and for other matters related thereto.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
1. OPTION AND OPTION TERM.
Seller, for valuable consideration, hereby grants to Buyer an exclusive Option to purchase the
Property identified as San Luis Obispo County APNs 076-111-031 and 076-121-019 in the County of
San Luis Obispo, (shown on Exhibit A attached hereto) totaling approximately 242 acres ("the
Property"). Buyer and Seller agree that the term of this Option shall commence on August 16, 2000,
and continue for ONE YEAR, to August 15, 2001. Buyer may exercise the Option at any time within
that period by sending written notice to Seller: The Option Agreement may be extended without
additional Option payment for an additional sixty (60) days (to October 15, 2001) for the express
purpose of meeting specific requirements of grant programs involving votes of State grantmaking
agencies.
ATTACHMENT 2
2. OPTION PAYMENT; RETURN OF OPTION PAYMENT.
(a) . In consideration of the Option and Option Term described above, Buyer shall pay Seller
the sum of Thirty Five Thousand Dollars ($35,000) as an Option Payment. This payment shall not be
refundable, except as described in Item 2(b) below. If the Option is exercised as described above, the
full Option Payment shall apply to the purchase price.
(b) In the event that Seller is unable to deliver clear title to the Property to Buyer, or in the
event that hazardous materials are found to exist on the site such that completion of the Purchase and
close of escrow or reasonable extension thereof as described herein cannot take place, then Seller shall
refund the full Option payment to Buyer.
3. PURCHASE PRICE
If and when the Option is exercised, the total purchase price for the property shall be $1,600,000.00,
payable in cash at the close of escrow.
4. CONVEYANCE
Title to the Property shall be conveyed by Grant Deed and shall be insured by a CLTA (or at
Buyer's election, an ALTA) owners' policy of title insurance in the amount of the purchase price,
showing title vested in Buyer, subject only to those exceptions listed in the Preliminary Title Report
and/or Supplemental Report approved or deemed approved by Buyer.
5. CONDITIONS PRECEDENT FOR BENEFIT OF BUYER
Buyer's obligation to purchase the Property is expressly conditioned upon the satisfaction,
deemed approval, or Buyer's waiver of each of the following conditions, each of which is deemed
exclusively for the benefit of Buyer:
(a) Title Report. Buyer's approval of the exceptions to title set forth in a preliminary title
report for the Property (the "Preliminary Title Report"). Buyer shall have thirty (30) days after the
receipt of the Preliminary Title Report and copies of all documents referenced therein, to provide to
Seller and Escrow Holder written notice of Buyer's disapproval of any specific title exception. Any
title exception not so disapproved shall be deemed approved, provided that if a Supplemental Title
Report is issued showing any exception not shown in the Preliminary Title Report, Buyer shall have an
additional ten (10) calendar days after receipt of such Supplemental Report to similarly disapprove any
new title exception. If Buyer disapproves any title exception, Seller shall have no obligation to cure
such disapproval (except that Seller shall be obligated to remove any liens) but Seller may elect, by
written notice to Buyer within ten (10) calendar days after receipt by Seller of such notice of
disapproval, to attempt to remove such disapproved items. If Seller is unable within a reasonable time
to accomplish such cure or removal, or if Seller elects not to attempt to so cure or remove (which
election shall be communicated to Buyer within ten (10) calendar days after receipt by Seller of such
notice of disapproval), then Buyer may elect to (i) terminate its obligations under this Agreement, (ii)
2 S—�
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ATTACHMENT 2
waive its objections to such exception, or (iii) elect to correct any such disapproved exception itself, in
which case Seller will provide reasonable assistance to Buyer to cure the same.
(b) Inspection and Approval of Property and of Any Testing Thereon. Buyer's inspection
and approval of the Property and all improvements thereon, including (at Buyer's option and expense)
any surveys or studies deemed necessary in Buyer's sole judgement. Access to the property shall be
given to Buyer, its agents and authorized representatives during normal business hours upon at least
one (1) business day's notice to Seller, at Buyer's own cost and risk, for any purposes relating to
Buyer's conditions. Buyer shall indemnify and defend Seller against and hold Seller harmless from all
losses, costs, damages, liabilities, and expenses, including, without limitation, reasonable attorney fees
arising out of Buyer's entry onto the Property or any activity thereon by Buyer or its agents, or
authorized representatives prior to the Close of Escrow, except to the extent any such losses, costs,
damages, liabilities, and expenses arise out of the gross negligence or willful acts of Seller. If Buyer
discovers through its investigations any defects on the Property or improvements thereon which it
disapproves of, Seller shall have no obligation to cure such disapproval (except that Seller shall be
obligated to remove any liens) but Seller may elect, by written notice to Buyer within ten (10) calendar
days after receipt by Seller of such notice of disapproval, to attempt to remove such disapproved items.
If Seller is unable within a reasonable time to accomplish such cure or removal, or if Seller elects not
to attempt to so cure or remove (which election shall be communicated to Buyer within ten (10)
calendar days after receipt by Seller of such notice of disapproval), then Buyer may elect to (i)
terminate its obligations under this Agreement, (ii) waive its objections to such exception, (iii) elect to
correct any such disapproved exception itself, in which case Seller will provide reasonable assistance
to Buyer to cure the same. The parties may also enter into additional negotiations, as may be mutually
acceptable, concerning adjustment of the purchase price, allocation of risk, or contribution to the costs
to cure or other matters, and the Escrow shall be extended for a reasonable time to effect such
negotiations.
6. ESCROW
(a) Escrow Holder. Buyer and Seller will establish an escrow ("Escrow") with Escrow
Holder within ten (10) business days of execution of this Agreement, subject to the provisions of the
standard conditions for acceptance of escrow and the terms and conditions in this Agreement, with a
signed counterpart of this document to be delivered as escrow instructions to Escrow Holder. In the
event of any conflict between the terms of this Agreement and the standard conditions for acceptance
of escrow, the terms of this Agreement shall control. The Escrow Holder shall be First
American Title Insurance Company, 899 Pacific Street, San Luis Obispo, CA. 93449.
(b) Prorations and Fees.
(i) Real property taxes and rental income shall be prorated to the close of escrow.
(ii) Seller shall pay (1) the documentary transfer tax, (2) the premium for a CLTA
policy of title insurance, and (3)recording fees. 'If Buyer elects an ALTA policy of title
insurance, Buyer shall pay the portion of the premium that exceeds the premium for a
CLTA policy of title insurance.
(iii) All Escrow fees and costs shall be allocated according to custom in San Luis
Obispo County.
3 S`L
- ATTACHMENT 2
(c) Closing Date. Escrow shall close within forty-five (45) days of exercise of the Option
by Buyer.
7. REPRESENTATIONS,WARRANTIES,AND AGREEMENTS
(a) Authorized Representative. Buyer and Seller hereby represent and warrant to each other
that the persons who sign this agreement and any other documents required to be executed by such
party to perform its obligations hereunder, shall have all requisite power and authority to have entered
into this Agreement, and that all authorizations required to be obtained by or on the part of such party
to execute and perform this Agreement have been obtained.
(b) Proof of Citizenship. Seller is not a foreign person as such term is used in Section 1445
of the Internal Revenue Code. Prior to the Close of Escrow, Seller shall deposit in Escrow a non-
foreign affidavit as provided under said Section 1445. Failure to do so shall entitle Buyer to withhold
from the purchase price such sums as are required by said Section 1445.
(c) Delivery of Property. Possession of the Property shall be delivered by Seller to Buyer
upon the close of Escrow. Seller may remove, at Seller's expense, prior to the Close of Escrow, all
personal property and trade fixtures on the property, provided that the property is left in a safe, sound
and usable condition.
(d) Legal Actions. Seller represents and warrants to Buyer that there are no actions, suits,
or legal proceedings related to the ownership, use, operation or sale of the Property to which Seller is a
party nor has Seller received any notice that any such actions are pending or threatened.
(e) Seller's Knowledge of Environmental Conditions of the Property. To the best of
Seller's knowledge, there are not now nor have there been any hazardous or toxic wastes (as said terms
are defined in applicable Federal, State, or County laws or regulations) located on or within any portion
of the property; nor have there been any enforcement, cleanup, removal or other governmental or
regulatory actions instituted, contemplated, or threatened pursuant to any applicable Federal, State, or
local laws or regulations relating to any hazardous materials and affecting the property; nor have there
been any claims made or threatened by any third party against Seller or the property, relating to
damage, contribution, cost recovery, compensation, loss or injury resulting from any hazardous
materials.
8. LEASES.
(a). Purchase Subject to Existing Leases. Seller wan-ants, and Buyer acknowledges that the
Property is subject to three existing leases as described in Exhibit B, and Buyer accepts the property
subject to said leases, provided; however, that said leases are in conformance to all conditions of the
lease and with all applicable County regulations regarding the uses being made of the premises by
lessees.
(b). No New Leases. Seller shall not enter into any new leases or modifications to existing
leases, nor accept the cancellation of any existing lease, nor consent to the assignment of a lease,
without Buyer's prior written consent, which shall not be unreasonably withheld.
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ATTACHMENT 2
(c). Seller's Warranty. Seller shall, within sixty (60) days of the date of this Agreement,
deliver to Buyer the following:
(i). Originals or true copies of all leases and amendments to said leases affecting the
property;
(ii). Proposed form of assignment of Seller's rights under the leases;
(iii). An estoppel certificate executed by each Lessee. Estoppel certificates shall be in
substantially the form attached as Exhibit C. Seller warrants and represents that as of
the date of this Agreement and as of close of escrow no other leases of the property are
or will be in force; that no other party has a right of possession; no rent concessions
have been given; no other agreements written or verbal have been made with the lessee
or any sublessee; neither Seller nor tenant is in default of any condition of any lease;
and that all Lessees are in compliance with the leases; and any and all laws, ordinances,
rules, regulations, requirements, or orders of any federal, state, county, or municipal
governments which may apply thereto..
9. NOTICES
All notices, communications, consents, approvals and disapprovals required or permitted
hereunder must be in writing and shall be delivered by personal delivery, facsimile, or deposited in the
United States mail,postage prepaid and addressed as follows:
TO BUYER: City of San Luis Obispo
Dr. Neil Havlik,Natural Resources Manager
990 Palm Street
San Luis Obispo, CA 93401
Telephone (805) 781-7211
TO SELLER: Mr: Steve Curtiss
204 Paso Robles Street
Los Altos, CA. 94022
Telephone (650)-941-0627 or(408)-588-1980
The foregoing may be changed by written notice. If served personally, or by facsimile, service
shall be conclusively deemed made at the time of service. If served by mail, service shall be
conclusively deemed made seventy-two (72) hours after deposit thereof in the United States mail.
10. BROKERS
In the event a commission is payable to any real estate brokers as a result of the transaction herein, the
Sellers will be responsible for the payment of said commission.
L=0
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ATTACHMENT 2
11. SURVIVAL
The warranties, representations, and agreements made in this Agreement shall survive the close of
escrow.
12. 1031 EXCHANGE
Buyer acknowledges that Seller may wish to sell the Property by way of a 1031 exchange.
Buyer agrees to cooperate in any such 1031 exchange,provided it shall be at Seller's sole cost and risk,
and shall not unreasonably delay the close of escrow.
13. MISCELLANEOUS
(a) Entire Agreement. This Agreement, and the exhibits hereto, contains the entire
agreement between the parties hereto. No modification or addition to any term or provision hereof
shall be effective unless made in writing and signed by both parties hereto. The captions and headings
in this Agreement are for reference only and shall not be deemed to define or limit the scope or intent
of any of the terms, covenants, conditions or agreements contained herein.
(b) Attorneys' Fees. If litigation is commenced between the parties, the prevailing party in
that litigation shall be entitled to recover from the non-prevailing party all reasonable attorney fees and
costs.
(c) Successors. This Agreement shall inure to the benefit of and shall be binding upon the
parties to this Agreement and their respective heirs, successors, and assigns.
(d) Governing Law. This Agreement shall be governed and construed in accordance with
California law.
(e) Time of Essence. Time is of the essence in this Agreement.
(f) Offer and Acceptance. This Agreement shall be of no force of effect whatsoever until
signed by authorized representatives of both Buyer and Seller.
(g) Naming. Buyer agrees that the Property shall be known as the"Johnson
Ranch Open Space"or, if developed for park purposes, "Johnson Park".
(h) Maintenance Standards; Family's Opportunity to Comment Upon Development Plans.
Buyer agrees that the Property shall be maintained in a manner meeting the standards to which City
park and open space properties are required to be maintained under City regulations. Buyer further
agrees to provide Seller with the opportunity to review and comment upon plans for development of
park or recreational improvements as such may be proposed by the City.
6 �= 9
ATTACHMENT 2
(i) Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be deemed an original.
"Seller"
JE ETTE AYERS DATE
STEVEN F. CURTISS, Managing Member DATE
CURTISS-JOHNSON PROPERTIES, LLC
CAROLYN SILACCI DATE
"Buyer„
CITY OF SAN LUIS OBISPO
b _ , DATE
Y
ALLEN K_ SETTL , I YOR
ATTE _ APPROVED AS TO FORM:
4
Lee Price, CMC *City
ot ens
City Clerk orney
7 ��
ATTACHMENT 2
(i) Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be deemed an original.
"Seller"
JEANETTE AYERS DATE
STEVEN F. CURTISS, Managing Member DAT
CURTISS-JOHNSON PROPERTIES,LLC
CAROLYN SILACCI DATE
"Buyer"
CITY OF SAN LUIS OBISPO
by: DATE`. 1LOO
ALLEN K. ETTL OR
ATTEST: APPROVED AS TO FORM:
lX.l✓ � ,4�
Lee Price, CMCoYrnse
City Clerk it Attoy
ATTACHMENT 2
(i) Signature in Counterparts. This Agreement may be signed in counterparts, each of
.vhich shall be deemed an original.
"Seller"
JEANETTE AYERS DATE
STEVEN F. CURTISS, Managing Member DATE
CURTISS-JOHNSON PROPERTIES, LLC
CAROLYN LACCI DATE
"Bu_yer"
CITY OF SAN LUIS OBISPO
by• L% DATE: Z
ALLEN K. S TTL , M OR
ATTEST: APPROVED AS TO FORM:
w
Lee Price, CMC Jo ens
City Clerk y Att rney
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CITY OF SAN LUIS OBISPO
GREENBELT PROTECTION PROGRAM
JOHNSON RANCH
Pismo Beach Quadrangle, California
scale 1"= 1,200'approx. S� /3
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PROPERTY MANAGER/REAL ESTATE BROI ER
P.O.BOX 707 SAN LUIS OBISP,CA.93406
805-543-2550 EMAIL:dodonnl0®aol.com
To: Carolyn Si7acci
Re: Property Icaws/rental agrccmcnts
Per your request I endowcopies of the two leases for Billboards located on the
Johnson Family Ranch and information regarding the rental agreements for the pasture
.and and the d,%vM nb located on the ranch..
At the present time we have verbal rental agreements with the following persons:
1: Dennis Ahearn
1319 Garden St.,
San Leis Obispo,Ca. 93401
Pasture rights, including use of corral.
$250.00 per month
2:William Raetz
5182 Ontario Rd.,
San Luis Obispo,Ca. 93405
Rental of iwo bedroom dwelling, mduding pasture/orchard area east of dwelling
snuff storage shed , -patio Room' and garage west of dwelling.
$750.00 monthly rental.
If you need any other information please contact me
Cordially.
O'Donnell
operty ManBm'
JDO'D/me
end;
STANDARD LEASE AGREEMENT Orrice 5676 E- SH 1 F:I.11h A V F:_
rnrm 6565.Re, ,%M 9/65 -- FREM CA. 93727
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Q '. Lease M
NATIONAL ADVERTISING COMPANY 270-Nw9A
v (Subsidiary of Minnesota Mining b Manufacturing Co.)
Home Office: Bedford Park, Illinois 60501
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Z c THIS AGREEMENT,made this ! 71 y day of Q,� "-y 19 9 3 by and between
�. 1)ta (c� �jts 1.11dEd.L—�}CPtl�of �IgJs��(,:1/S 061SA 'MA
hereinafter called the-Lessor.and National Advertising Company,of Bedford Park,Illinois,hereinafter calleUG Lessee.
WITNESSETH =-
1. The Lessor hereby leases unto the Lessee,and the-Lamm hereby leases from the tensor.the use and possession of the portion to be occupied of the
following described premises•for the purposes of erecting and maintaining advertising displays(painted,reflectorized.printe4 illuminated or Otherwise).
including necessary structures devices,power poles and connecdorhs -•- - '
2 The property herein demised is located about 3& r„iIC51I -iLV qt ......SM.IMS.CRIW...................do
the hJUG W side of Route No. .....for display(s)facing N-X)Q mg.such leased Property,being part of the Lessor's Property situated in
the Township of ... ...................'I ....... 4AN TITTS (7RIEM
o State of.... .......................N Legal 6.see reverse side hereoL)
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.:. $Thilirtiltin-ailthis lease shall.• nterhee ori ,* �, .,*7g'• !. tmbsattttmiriated emfier tu rbomaturer Ifereirtelterset fortttshall hzntirhuefor
E-' :an ihiG'at'�etre or ten yWFS;t'dnt�neday df rhe•4r5�FirlQfitlrtotldwtntJheieQc�i'ct7ta'iidvbrt'a'rt4 6.-play(s)ryfieidntattete�rydllie effective dam'7,and snea
continue thereafter,at the optiorf'orthe testae;for a'ieadii(rie n of ten years and tllefeatty hen year to year'On Ute same terms until terminated es of any
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i - subsequent anniversary of the effective date by written notice of termination given not less than sixty days priorto such anniversary date by either the Lessor or
r.•1...YL...urY.... "=a•L= .-•:.::I_11w eAl.:- Y: - •. ` •.
e -a In consideration(A1t�taregdogmtid,Uia1ta aua►promises herein e011e11ine4 arta other good and valuable consideration. e L.esseaeges reto pay Ino
o Q . Lessor at the r4a of '. year.�tstah y�eriods of time as Me display(s)contemplated hereunder is(are)not in advertising position,and at the
rate of 5 h'• pe -year for'Wdl period*of time as Vie displays)contemplated hereunder is(are)in position.Such yearly rental is to be paid in
advance(subject to a 30 day delay for processing)with supp1ementay adjustments to be made promptly when the advertising status of the displays)Is changed-
When feasible,the payment data*11 be adjusted to coincide with an anniversary of the effective date.Rent shall be deemed to have been made On the date(s)
Na ai rj -• scheduled unless Lessor notifies Lessee of non-receipt of payment
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. m. 5. ADDITIONAL PR6VLStOFLS.The provisions Printed an the reverse hereof are hereby incorporated herein by specific reference thereto and!rotWitute a
Z It pan of this agreement :•_ - '
AREA SKETCH OF LEASED PREMISES NORTHaCi > >
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STANDARD LEASE AGREEMENT' j h office 5678 E. SHIELDS AVE.
Fnrm 6565.Rev:sea 9,85 ,T'QE20 CA_ 07
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Lease a
NATIONAL ADVERTISING COMPANY zro-o4ll s
(Subsidiary of Minnesota Mining 3 Manufacturing Co.)
y Home Office: Bedford Park,Illinois 60501
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u o THIS AGREEMENT, made this ut day of M AA C-E4 19!1 by and between
" " S �D "Da�f.IELL^air- 1t9K ku15 o&rsot) -- f* A
hereinafter called the Lessor,and National Advertising Company,of Bedford Park,Illinois,hereinafte called the Lessee.
WITNESSETH: ---
1. The Lessor hereby leases undo the Leasee.and the Lessee hereby leases from thtLessor,the use and possession of the portion to be occupied of the
following described premises, for the purposes of erecting and maintaining advertising displays(painted,reffederized.ptin0a4 illuminatedor otherwise),
including necessary structure&devices.power poles and cmg.Vans
2 The property herein demised is located about J U mile0=-s-M of ..MN.LMS, MIM.......................on
the N'CCC%-W side of Route No....W.101.... for display(s)facing-S-•7Q.such leased property being part of the Lessor's property situated in
' - •' ' � - SAN T 7TTS MIM.
the Townshipot . ► .�1► •.............•.................. County of
o State of....CALPURM................ r Of Legal is uired.see reverse side hereof.)
'gariiiofthbresse3w,Itibeirieee Dh--• w- ° "': :r79 nrededeaniecintltdmemrerherekmftwasitorth.ehdtcm mofa._
E -an initial tefm of tin yea'r's Ince he.fFsf d2W of the*W nWhJfi foT6WTrid'e bf d*advertising dapYkj1s)(herelrietfer'tbRed"M eftMis CaWl end SM
`- continue Hereafter,at the option of the Lessee,for s'sacortd*mi of ten years,and thereafter Iran year to year,on the same term%umU-terminated es of arty
J m
i a ..._.subsequent.anniversary of the effective date•.[written notice of termination given not less that[sats,days prior to such anniversary data by either the Lessor or
L wlLessee''1.'.:d`9�1.1 , .9.O ii4�,.MmOMMtQr'Q1.9t�M+arfi Ym•t 4•.JSRr,i4AlS ...• .. l+.'::..•::. -•Vl.'::+•IT-. y..r::-' ,
'u .�•.., 70 > 9s.„ani Oni cl
o. G.,In consideration of the'toregoing aetd ere mutual promises herein contained.and otlter good and-valuable eonsiderabon,theLmsee agiee319 pay"
Q Lessor at the rate of$ year for such periods of time as the display(s)contemplated hereunder Islam)not in advertising position,and at the
"• rate of$•"' Vote as the displeylal Meted haerntder islars)kt po 'Such yeedy'redfal S to bs paid-le
advance(subject to a 30 day delay for processing)with supplementary adjustments to be made promptly when the advertising slags of+he displays)is ehangdd.
Z When feasible,the payment date will be adjusted to coincide with an anniversary of He effective date.Rent shall be deemed Is have been made on the date(s)
r m.d . . scheduled unless Lessor notifies Lessee of Cron-receipt of payment
.:.:L•rn+i r01n.,.:•y+'O Yh06'.. J)9 ::.d vet.:.::to ... O.-5r. Ta ffl,—J
w
S. ADDITIONAL PROVISIONS.The provisions printed on the reverse hereof are hereby incorporated herein by specific reMence therefoand eonstibae a
Z cc pan of this agreement
AREA SKETCH OF LEASED PREMISES NORTH
= a ¢ Size ....12 M G........... FL
HAGL ...........::...........
-FL -• . ._C� Q.Ou�� ( .nT.�tYA1-L .a✓ _. .
� ISoD• Db PE� �c�R1 02
EDP ......................... FL q
v c Q Power ...... FL v /a O�- 6%bAI 50— (3 &SS
............. ` y
L a) Z Mileage Panel ................ Mi. 1 t,t,.LCO vt%E W 17 V,-14I=-V E R- (S
1
Location Staked .existing.. ZCL tr
th
Display Facing .. ...... Su`J.Sa GQ o )f,40-0 Y14cn
F
I S Geo ss 1 t.IGti E LESS
• ° i b• �� % AGF��-"1 FE�s
CEt � E � . R � j.u1E
Cn
c,�AR 2 1993 MAR 2 2 'g.
ljational Adv. LOS"iEetes
;Nqtionai Ami--
: : LL
f PA kk c_
(Prtn 1
(Ownet)
APPROVED: (T ant) (Signatitrel
of appticabtel E C 1 I V E O
(Ml. /�.t,( f S alhn0t1�00ress 7IT
� Cr Accepte IJ211S
D 2 NATI ADV RTIS A E �' MAY 1 19 �o S Unty
> o By: Civ,•LD5 AngeT2� (LeJsor Ph e NuGm r l�
= aa Ss4 z - � � �
ITas ID Number)
STANDARD LEASE AGREEMENT
Form MS.8 nwnM 6/B1 --
6. In the event of any change of ownership Of the property hereby leased.the Lessor agrees to notify brie Lessee promptly Of such change.and the Lessor also
agrees to give the new owner formal written notice of the existence of this lease and to deliver a copy thereof to such new owner.
7. Unless specifically Stated Otherwise herein.the Lessor TepreSerita 8170 that he is either the Owner or the Agent of the Owner Of the Orr3Derty herein
The Lessor covenants and warrants that if the Lessee shall pay the rental as net Pin provide
demised.and that he has full authdtlry t0 enter into this IeaSe• d and snail.rep
and perform the Other covenants herein stated.tl•P!" n--all and may,peaceably andquietly have.hold and enjoy the use Of the premises herein demised for the term
Of this lease.such use to include access to the site over any lands under the Control of the Lessof.
3. Nzahur tnb Lessor nor the Lessee shall be bound by any agreement or representation,expressed or implied,not contained herein.This leaseshall be deemed
to have been accepted and
dPits terms enforceable only upon the acpeptance hereof by the Lessee in the
ace
eixecu orssuch aatlministtatoncceptance.it nanld assigneinure to e
benefit of and be binoin upon the parties hereto and to thilld ilictive tenants.heirs,sueceSSOM e ,: 3 _
esi-
9. In the event that the portion of Ire Lessor's property,occupied by the Lessee'sdisplays 4110 bei iprWed by erecting per nerlivinj r;v�te�e rtirtaty(90)r�
dential building.As m"nced by builhing permit.requiring rembYal�essee's displayi ikOiek*Am" rrtlrla M R � g• Off' I and upon
written noticeotte fnadoatogelllerwithaeopyolthstanMmgpermitsentbyl."isteredMailtdeithertheLesxa'SHomeOff)oeortheBrartdf_, tce;std
the Lessor's refunding to the Lessee the rent previously
paid for the unexpired portion of aft Lease beyond the te i—
termination it The Lessee agrees to remove itsdisplays
and I a el level a!Eessee4dilmlsya.4000 seal Ili" me%Ill of 1himmosopmetio .......
within the ninety(90)day period.If the Lessor doesnot commence the`eonstrutlion williin ninety(90)days after the displays have been removed the Lessaemay at its
written notice to the Lessor.and if so reinstated.the Lessor agree to reimburse the Lesseefor its reasonable expenses m replacing the
option,reinstate this Lease by c error.theprop"arenottobeutiifQadforsuchbuilding,theLesseehastheoptiontousetheremaininermiionon
Lessees displays on the Lassoes prop". any Pont
the same terms.except that the rent shall be equitably reduced it the highway view Of thediglwislesathan what itwasbeforethesignvitasmored.Theright ottermination
stated herein shall not exist and cannot be exercised if the demised premises shall be oordar
enador taken by pottier of eminent domain,or if the Property R comeyetl to
an entity acting as or on behalf of any public entity which has the power of eminent domain.
10. If at anytime the highway view of the Lessees displays is obstructed or obscured.orthe advertising value of the displays is impaired or diminishes or the use
a installation of such displays is prevented or restricted by law gr by the Lessee's inability to obtain any necessary permits or licenses or if the Lessee is unable.for any
period of ninety(90)consecutive days or more.to secure and maintain a suitable advertising contract for the displays.or if there Orru Ma diversion f'ftHe'iecn(15)days. ,.
change in the direction oftrafficonhighways leading past the L'MifesiAstills aaesm!Y.atitsoption.terminate this leas&by4 i^rl� inMispara-
writtennaticaandu*LWar4pgrspstorslundt.QWLe�ae¢gt9lM4l±N? S 4f:0 1b1°'� irr6aieuenabitemiecongjlipr Q s
gmphsMlatony"WtemporariiyexisLthmftLesaeemw.alhooption.AuadolUrmirafYrP�reen'dttedtoanabatemanioPreriEpay hereunderdJrmg
the period such eonditfona or any of them exist and to the refund of any rent paid in advance fur the period of such abatement ..
it. All structures,displays and materials placed upon the said property bythet.esseeare Lessee's:radefixtures and equipment,and shall beandremain the Les- �-
see's property,and maybe removed try the Lessee at afry time Prior to orwithin a reasonable time attar the termination of this lease oo' extension thereof.laet any tiime.
agrees to enowtheLessee lull access to the property Occupied by the displaya for the pOrpom of erecting.maintaining.changing _
12. The Lessor agrees not to erector permit any other parry to erect arty adverfisrtq disp*icr other advertising matter on any property owned orco^ronedby
Leaaae
the Lessor within a radius of six hundred(600)feet of 's displays.nor to permit any other obstruction to partially or completely obsYure a normal highway
of said displays and the Lessee is hereby authorized to remote any such other adver isiy display or other obstruction at its option.
13. The Lessee agrees to save the Lessor harmless from any and ail claims or demands on account of bodily injury or physical property damage.caused by or
resulting from any negligent or willful act of the Lessee's agents or employees in the construction.maintenance,repair,change or removal of the Lessees displays On- _
brie property.and agrees to carry.at itrown'cost and expense,adequate public liability insurance coveting any such contingency so long as this lease shall remain in
effect.The Lessor agrees to save the Lessee harmless from any and all claims or demands do account of bodily injury or physical propenydemage caused by Of resulting
Iromany negligent orwillful act ofthe Lessor. • ;Jq C:'dA—; 10 Hrf--i.? s3=1 .
: .
. . . . . . . . . .
. -
tr ..
LEGAL DESCRIPTION OFLEAS+Ef 17111 ISISES(for;k"ngburposeb).i
.i ' SIS .3 ••-1 ��• � rir\-'a ) �f'
i \
. . . . .
i
.T ..I \
State of
ss.
County of ) •i. t
On this day of 19—.before me. (Print Name of Notary)
known to me I or satislactdnly
the undersigned officer.DefaOrtiltyappeared
proven)to be the person whose name IssutlscribOd tothe above instrurnent,and being imunmedotthecontents of said instrument.acknowledgetl Chit ha Otshe v0luntinly
executed the same for the uses and purposes herein contained.
In witness whereof,.have hereunto set my hand and official seal.
EXISTING STRUCTURE LEASE LESSOR WARRANTS THAT SINCE (Signature of Officer)
.*EA.R..........T .IS.....CATi......... S.8......
19
OR EARLIER,THIS LOCATION HAS BEEN OCCUPIED BY THE EXI$TING (Title of Officer)
SIGN STRU CTURE WHICH STRUCTURE HAS NOW BECOM ELESSORS '
OWN PROPERTY-AND LESSOR HEREBY ASSIGNS TO LESSEE ALL OF
LESSOR'S RIGHTS To SUCH STRUCTURE My Commission Expires 19
LESSORS
SIGNATURE
Exhibit C
Estoppel Certificate
TO: CITY OF SAN LUIS OBISPO
Attn: Dr. Neil Havlik
The undersigned certifies that:
1. I am a tenant and present occupant of , San Luis Obispo, California,
commonly known as the"Johnson Ranch" and more particularly described in the attached
Lease,_("the Premises").
2. The premises are leased under a lease commencing A copy of the lease is_
attached. The Lease contains all the agreements between the landlord and myself.
3. Rent of$ per month has been paid through
4. The Lease term begins on and expires on . I intend to voluntarily vacate
the premises at the end of the lease term, and any applicable extension thereof.
5. I have no option or right of first refusal to purchase the premises or any buildings. My only
interest in the Premises or the Buildings is the Lease.
6. The sum of$ was paid to the landlord as a security deposit and the sum of$ was
paid for the last month's rent. (If none paid, insert"none.")
7. All work required of the landlord by the Lease has been completed in accordance with the
terms of the Lease, and I have accepted, and I am now in possession of, the Premises.
8. No person or fine other than myself is in possession and to the best of my knowledge no other
person or firm other than the landlord has a future right to the Premises.
9. I have not assigned or entered into any subleases of the Lease, except as follows: (If
no subleases exist, insert"none.")
10. I claim no offset against the landlord, and the landlord is not in default under the Lease or in
connection with the Premises or the Buildings.
11. All uses of the Premises and Buildings are in accordance with the Lease and with all applicable
County, State, and Federal regulations, ordinances, and codes.
12. I am not in bankruptcy, and I am not now contemplating filing bankruptcy.
13. The statements in this letter may be relied on by the landlord,the purchaser of the Property, and
any lender who extends credit in connection with the purchase of the Property. I agree that I
will give the Purchaser notice of any default by the landlord during the tern of the lease and a
reasonable period after the default within which the Purchaser may cure the default.
This certificate was executed on
Signature of Tenant Printed Name
10