HomeMy WebLinkAbout12/20/2001, B-1 - ACCEPTANCE OF A CONSERVATION EASEMENT FOR A PORTION OF THE BOWDEN RANCH NEAR WOODLAND DRIVE council Ma UM Dal/s 4W-oi
A acEnda REpont
C IT Y OF S AN L U IS O B I S P O U
FROM: Wendy George, Assistant City Administrative Officer
Prepared By: Neil Havlik,Natural Resources Manager
SUBJECT: ACCEPTANCE OF A CONSERVATION EASEMENT FOR A PORTION OF
THE BOWDEN RANCH NEAR WOODLAND DRIVE
CAO RECOMMENDATION
Authorize the Mayor to accept the donation of a Conservation Easement covering the
approximately 180 acre portion of the Bowden Ranch, which lies adjacent to but outside of the
boundaries of the City of San Luis Obispo, subject to non-substantive changes approved by the
City Attorney.
DISCUSSION
The Bowden Ranch property occupies approximately 220 acres, of which 40 acres are within the
City limits of the City of San Luis Obispo, and the remainder is in the unincorporated area. It
Hes between the City limits and certain City-owned lands in Reservoir Canyon, connecting them
by informal hiking trails. The Bowden Ranch has long been of interest to City residents, and has
been used for walking and hiking for many years. In September 2000, the property was
purchased from its long-time owners by a local partnership for the purpose of residential
development of a portion of the property. This portion (totaling about 12 acres) lies within the
City limit and the urban reserve line. The partnership approached City staff for preliminary
feedback about the constraints of the site, and during the course of discussion proposed that the
portions of the property which would not be developed be either dedicated to the City or
otherwise permanently protected. As these discussions proceeded, the concept of outright
donation of the portion of the property outside City limits was raised. While reluctant to make
outright donation of fee title to the property, the partnership concluded that donation of
development rights attached to the County portion of the property had the potential for significant
tax advantages. Therefore the offer to donate these rights has been made. The partnership is
desirous of concluding the transaction by December 31, 2001, in order to take advantage of the
tax deduction in this tax year.
This offer of donation is exactly that. There is no quid pro quo; the donors are aware that this
donation has no connection to the development proposal currently being put forward, which
focuses on that portion of the property which lies within City limits.
The easement would be permanent. The easement conditions are designed to ensure that the
property remains in its natural state forever. It surrenders the right of the donors to undertake
any action that conflicts with those conditions, and empowers the City of San Luis Obispo to
legally enforce those conditions. Title to the property will remain with the partnership. It is
Council Agenda Report—Conservation Easement for the Bowden Ranch
Page 2
possible, however, that title may be given to the City at a later date. Should that occur, the City
and the donors will address what, if any, changes to the easement will need to be made at that
time.
FISCAL IMPACT
This is an advantageous action for the City of San Luis Obispo, since at basically no cost, the
City will receive a unknown but likely significant value. (There may be some minor costs
associated with escrow closing.) The City will undertake an annual easement compliance
inspection of the property, the cost of which can be accommodated within the Natural Resources
Program budget. There are not expected to be any capital costs resulting from this acquisition.
Attachments:
1. Resolution
2. Property Map
3. Draft Conservation Easement
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ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING ACCEPTANCE OF A CONSERVATION EASEMENT
.ON REAL PROPERTY
WHEREAS, The Bowden Ranch Partners, JV, ("Grantor") is the owner in fee
simple of certain real property in San Luis Obispo County, California, outside of but
adjacent to the City of San Luis Obispo, described as Assessor's Parcel Number 073-
371-002 and commonly referred to as the Bowden Ranch (the "Property"); and
WHEREAS, the Property possesses natural resource values including wildlife
and plant resources, and scenic open space values (the "Conservation Values") of
great importance to Grantor, the people of the City of San Luis Obispo, and the people
of the State of Califomia; and
WHEREAS, due to soil conditions and slopes, the Property has extremely limited
agricultural value; and
WHEREAS, Grantor intends that the conservation values of the Property be
preserved and maintained by the continuation of currently existing land use patterns;
and
WHEREAS, Grantor further intends, as owner of the Property, to convey to the
City of San Luis Obispo the right to preserve and protect the conservation values of the
property in perpetuity; and
WHEREAS, the City of San Luis Obispo is a chartered municipal corporation of
the State of California that is authorized by law to accept Conservation Easements; and
WHEREAS, the City of San Luis Obispo agrees by accepting this grant to honor
the intentions of Grantor stated herein and to preserve and protect in perpetuity the
conservation values of the Property for the benefit of this generation and the
generations to come.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Luis Obispo hereby:
1. Accepts the offer of donation of a Conservation Easement for
Assessor's Parcel Number 073-371-002; and
2. Authorizes and directs the Mayor to accept said Conservation
Easement on behalf of the City of San Luis Obispo.
/-3
ATTACHMENT 9
Approved and adopted this 20" day of December, 2001.
On motion of , seconded by and
on the following roll call vote:
AYES:
NOES:
ABSENT:
Allen K. Settle, Mayor
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
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ATTACHMENT 2
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ATTACHMENT 3
FIRST DRAFT
DEED OF CONSERVATION EASEMENT
Bowden Ranch Partners and the City of San Luis Obispo
THIS GRANT DEED OF CONSERVATION EASEMENT dated December **, 2001, by Bowden Ranch
Partners, having an address at********"**"******************* ("Grantor"), in favor of the City of San Luis Obispo, a
chartered municipal corporation of the State of California, having an address at 990 Palm Street, San Luis
Obispo, CA 93401 ("Grantee"), is made with respect to the following:
RECITALS
WHEREAS, Grantor is the sole owner in fee simple of certain real property consisting of one Assessor's
parcel in San Luis Obispo County, California, more particularly described in Attachment A attached hereto and
incorporated by this reference(the"Property"); and
WHEREAS, the Property possesses natural resource values including wildlife and plant resources, and
scenic open space values (collectively, the conservation values) of great importance to Grantor, the people of
the City of San Luis Obispo, and the people of the State of California; and
WHEREAS, due to soil conditions and slopes, the property has extremely limited agricultural value; and
WHEREAS, Grantor and Grantee intend that the conservation values of the property be preserved and
maintained by the continuation of currently existing land use patterns; and
WHEREAS, Grantor further intends, as owner of the property, to convey to Grantee the right to preserve
and protect the conservation values of the property in perpetuity; and
WHEREAS, Grantee is a chartered municipal corporation of the State of California that is authorized to
accept Conservation Easements; and
WHEREAS, Grantee agrees by accepting this grant to honor the intentions of Grantor stated herein and
to preserve and protect in perpetuity the conservation values of the Property for the benefit of this generation and
the generations to come;
NOW, THEREFORE, in consideration of the above and the mutual covenants, terms, conditions, and
restrictions contained herein, and pursuant to the laws of California and in particular Sections 815 and 816 of the
Civil Code - Conservation Easements, Grantor hereby voluntarily grants and conveys to the Grantee a
Conservation Easement in gross in perpetuity over the Property described in Attachment A and referred to
hereinafter as the Property.
1. Purpose. It is the purpose of this Easement to assure that the property, subject to the existing
uses described herein, will be retained forever in its predominantly natural, scenic, and open
space condition and to prevent any use of the Property that will significantly impair or interfere
with the conservation values of the Property. The conservation values of particular importance
include the grassland and woodland communities existing on the site and their importance to
wildlife. These values also include the scenic quality of the undeveloped land that is visible from
the surrounding community, the value of the land as a watershed and the benefits provided with
the prevention to erosion, and protection of water quality, and the value of the land as it supports
riparian vegetation along its drainage ways and creeks.
2. Rights of Grantee. To accomplish the purpose of this Easement, the following rights are
conveyed to Grantee by this Easement:
�— V
( C ATTACHMENT 3
(a) To enter upon the Property at reasonable times in order to monitor Grantor's compliance
with and otherwise enforce the terms of this Easement; provided that such entry shall be upon
prior reasonable notice to Grantor, and Grantee shall not unreasonably interfere with Grantor's
use and quiet enjoyment of the property; and
(b) To prevent any activity on or use of the property that is inconsistent with the purpose of this
Easement and to require the restoration of such areas or features of the property that may be
damaged by any inconsistent activity or use.
3. Prohibited Activities. Any activity on or use of the Property inconsistent with the purpose of this
Easement is prohibited. Without limiting the generality of the foregoing, the following activities
and uses are prohibited from being established:
(a) Subdivision of the land pursuant to the California Subdivision Map Act.
(b) Building or erection of structures of any kind.
(c) Cutting or removal of trees, except as may be necessary for health of the remaining trees or
for public safety.
(d) Mining or other mineral exploration or exploitation of the property.
(e) Grading, other than for purposes of providing hiking or riding trails on the site consistent with
generally accepted standards.
4. Reserved Rights. Grantor reserves to himself, and to his personal representatives, heirs,
successors, and assigns, all rights accruing from their ownership of the Property, including the
right to engage in or permit or invite others to engage in all uses of the property that are not
expressly prohibited herein and are not inconsistent with the purpose of this Easement.
5. Baseline Documentation. The parties agree that the specific conservation values of the
property shall be documented in a report ("the Baseline Report") that shall be completed within
thirty days of the transfer of this Deed of Conservation Easement, and that both Grantee and
Grantor shall receive true copies of this report. The Report shall consist of maps, photographs,
and other documentation that the parties agree provide an accurate representation of the
Property at the time of this grant and which is intended to serve as an objective information
baseline for monitoring compliance with the terms of this grant
6. Arbitration. Any controversy arising from this Easement or its breach shall be determined by
three arbitrators appointed as set out below:
(a) Within thirty (30) days after a notice by either party to the other requesting arbitration
and stating the basis of the party's claim, one arbitrator shall be appointed by each party. Notice
of the appointment shall be given to each party and to the other party when made.
(b) The two arbitrators shall immediately choose a third arbitrator to act with them. If a
party fails to select an arbitrator within the time allowed or if the two arbitrators fail to select a
third arbitrator within 14 days after their appointment, on application by either party the third
arbitrator shall be promptly appointed by the then presiding judge of the Superior Court of the
State of California in and for the County of San Luis Obispo acting as an individual within 14
days. The party making the application shall give the other party 14 day's notice of the
application.
The arbitration shall be conducted under the Code of Civil Procedures (Section 1280-1294.2).
Hearings shall be held in San Luis Obispo County, California.
ATTACHMENT 3
The arbitration shall be conducted under the Code of Civil Procedures (Section 1280-1294.2).
Hearings shall be held in San Luis Obispo County, California.
Both parties agree by signing this Easement that they are agreeing to have any dispute arising
from the matters included in the Arbitration provisions of this Easement decided by neutral
arbitration as provided by California law and that each party is giving up any rights to have the
dispute litigated in a court or by a jury trial. By signing this Easement, each party is giving up
their judicial rights to discovery and appeal unless such rights are specially requested in the
notice requesting Arbitration or as permitted by CCP 1280 et.seq. If either party refuses to
submit to arbitration, they may be compelled to arbitrate under the authority of the California
Code of Civil Procedure.
7. Grantee's Remedies. If Grantee determines that Grantor is in violation of the terms of this
Easement or that a violation is threatened, Grantee shall give written notice to Grantor of such
violation and demand corrective action sufficient to cure the violation and, where the violation
involves injury to the property resulting from any use or activity inconsistent with the purpose of
this Easement, to restore the portion of the property so injured. If Grantor fails to cure the
violation within a thirty (30) days after receipt of notice thereof from Grantee, or under
circumstances where the violation cannot reasonably be cured within a thirty (30)-day period,
fails to begin curing such violation within the thirty (30)-day period, or fails to continue diligently
to cure such violation until finally cured, Grantee may bring an action at law or in equity in a
court of competent jurisdiction to enforce the terms of the Easement, to enjoin the violation, ex
parte as necessary, by temporary or permanent injunction, to recover any damages to which it
may be entitled for violation of the terms of this Easement or injury to any conservation values
protected by this Easement, including damages for the loss of scenic, aesthetic, or
environmental values, and to require the restoration of the Property to the condition that existed
prior to any such injury. Without limiting Grantor's liability therefore, Grantee, in its sole
discretion, may apply any damages recovered to the cost of undertaking any correction action
on the Property. If Grantee, in its sole discretion, determines that circumstances require
immediate action to prevent or mitigate significant damage to the conservation values of the
Property, Grantee may pursue its remedies under this Paragraph without prior notice to Grantor
or without waiting for the period provided for cure to expire. Grantee's rights under this
Paragraph apply equally in the event of either actual or threatened violation of the terms of this
Easement, and Grantor agrees that Grantee's remedies at law for any violation of the terms of
this Easement are inadequate and that Grantee shall be entitled to the injunctive relief described
in this Paragraph, both prohibitive and mandatory, in addition to such other relief to which
Grantee may be entitled, including specific performance of the terms of this Easement, without
the necessary of proving either actual damages or the inadequacy of otherwise available legal
remedies. Grantee's remedies described in this.Paragraph shall be cumulative and shall be in
addition to all remedies now or hereafter existing at law or in equity.
8. Costs of Enforcement. Any costs incurred by Grantee in enforcing the terms of this Easement
against Grantor, including, without limitation, costs of suit and attorneys' fees, and any costs of
restoration necessitated by Grantor's violation of the terms of this Easement shall be borne by
Grantor. If Grantor prevails in any action to enforce the terms of this Easement, Grantor's costs
of suit, including,without limitation, attorneys'fee, shall be borne by Grantee. If Grantee prevails
in any action to enforce the terms of this Easement, Grantee's costs of suit, including without
limitation, attorneys'fees, shall be borne by Grantor.
9. Grantee's Discretion. Enforcement of the terms of this Easement shall be at the discretion of
Grantee, and any forbearance by Grantee to exercise its rights under this Easement in the event
of any breach of any term of this Easement by Grantor shall not be deemed or construed to be a
waiver by Grantee of such term or of any of Grantee's rights under this Easement. No delay or
omission by Grantee in the exercise of any right or remedy upon any beach by Grantor shall
impair such right or remedy or be construed as a waiver.
—�
ATTACHMENT 3
11. Acts Beyond Grantor's Control. Nothing contained in this Easement shall be construed to entitle
Grantee to bring any action against Grantor for any injury to or change in the Property resulting
from causes beyond Grantor's control, including, without limitation, fire, flood, storm, and earth
movement, or from any prudent action taken by Grantor under emergency conditions to prevent,
abate,or mitigate significant injury to the Property resulting from such causes.
12. Taxes. Grantor shall pay all taxes, assessments, fees, and charges of whatever description
levied on or assessed against the property by competent authority (collectively "taxes"),
including any taxes imposed upon, or incurred as a result of, this Easement, and shall furnish
Grantee with satisfactory evidence of payment upon request subject to the right to contest any
such taxes.
13. Hold Harmless. Grantor shall hold harmless, indemnify, and defend Grantee and its directors,
officers, employees, agents, and contractors and their heirs, personal representatives,
successors and assigns of each of them (collectively "Indemnified Parties") from and against all
liabilities, penalties, costs, losses, damages, expenses, causes of action, claims, demands, or
judgments, including, without limitation, reasonable attorney's fees, arising from or in any way
connected with: (1) injury to or death of any person; (2) physical damage to any property,
resulting from any act, omission, condition, or other matter related to or occurring on or about
the Property, regardless of cause, unless due to the sole negligence of any of the Indemnified
parties; (3)the obligations specified in paragraph 12; or(4)the existence of this Easement.
14. Extinguishment. If circumstances arise in the future such as render the purpose of this
Easement impossible to accomplish, this Easement can only be terminated or extinguished,
whether in whole or in part, by judicial proceedings in a court of competent jurisdiction, and the
amount of the proceeds (if any) to which Grantee shall be entitled, after the satisfaction or prior
claims, from any sale, exchange, or involuntary conversion of all or any portion of the Property
subsequent to such termination or extinguishment, shall be determined as provided by California
law.
15. Condemnation. If the Easement is taken, in whole or in part, by exercise of the power of
eminent domain, Grantee shall be entitled to compensation in accordance with applicable law.
16. Assignment. This Easement is transferable, but Grantee may assign its rights and obligations
under this Easement only to an organization that is a qualified organization at the time of transfer
under Section 170(h) of the Internal Revenue Code of 1954, as amended (or any successor
provision then applicable), and the applicable regulations promulgated thereunder, and
authorized to acquire and hold conservation easements under state statue (or any successor
provision then applicable). As a condition of such transfer, Grantee shall require that the
conservation purposes of this grant is intended to advance continue to be carried out.
17. Subsequent Transfers. Grantor agrees to incorporate the terms of this Easement in any deed
or other legal instrument by which they divest themselves of any interest in all or a portion of the
Property, including, without limitation, a leasehold interest. Grantor further agrees to give written
notice to Grantee of the transfer of any interest at least twenty (20)days prior to the date of such
transfer. The failure of Grantor to perform any act required by this paragraph shall not impair the
validity of this Easement or limit its enforceability in any way.
18. Certificates. Upon request by Grantor, Grantee shall within twenty (20) days execute and
deliver to Grantor any document, including an estoppel certificate, which certifies Grantor's
compliance with any obligation of Grantor contained in this Easement and otherwise evidences
the status of this Easement as may be requested by Grantor.
19. Notices. Any notice, demand, request, consent, approval, or communication that either party
desires or is required to give to the other shall be in writing and either served personally or sent
by first class mail, postage prepaid, addressed as follows:
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ATTACHMENT 3
To Grantor: Bowden Ranch Partners
rxrrrrrrrrrxxxx
xxrrrxxxxxxxxxx
To Grantee: Mr. Ken Hampian, City Administrative Officer
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
or to such other address as either party from time to time shall designate by written notice to the
other.
20. Recordation. Grantee shall record this instrument in a timely fashion in the official records of
San Luis Obispo County, California, and may re-record it at any time as may be required to
preserve its rights in this Easement.
21. Monitoring. The Grantee or its designee shall conduct annual monitoring of the conservation
values within the Property. Such monitoring shall be done in accordance with a systematic and
routine checklist designed to facilitate the identification of trends and changes of the
conservation values over time. A copy of each monitoring report shall be given to the Grantor.
22. Subordination. At the time of the conveyance of this Easement, the Property is subject to
mortgage. The holder of this mortgage agrees by execution of this Easement to subordinate its
rights in the property to this Easement to the extent necessary to permit the Grantee to enforce
the purpose of this Easement in perpetuity and to prevent any modification or extinguishment of
this Easement by the exercise of any rights of the mortgage holder..
23. General Provisions.
(a) Controlling Law. The interpretation and performance of this Easement shall be
government by the laws of the State of California.
(b) Liberal Construction. Any general rule of construction to the contrary notwithstanding,
this Easement shall be liberally construed in favor of the grant to effect the purpose of this
Easement and the policy and purpose of the Conservation Act of 1979 as described in Sections
815 through 816 of the California Civil Code. If any provision in this instrument is found to be
ambiguous, an interpretation consistent with the purpose of this Easement that would render the
provision valid shall be favored over any interpretation that would render it invalid.
(c) Severability. If any provision of this Easement, or the application thereof to any person
or circumstance, is found to be invalid, the remainder of the provisions of this Easement, or the
application of such provision to persons or circumstances other than those as to which it is
found to be invalid, as the case may be, shall not be affected thereby.
(d) Entire Agreement. This instrument sets forth the entire agreement of the parties with
respect to the Easement and superseded all prior discussions, negotiations, understandings, or
agreements relating to the Easement, all of which are merged herein.
(e) Successors. The covenants, terms, conditions, and restrictions of this Easement shall
be binding upon, and inure to the benefit of, the parties hereto and their respective personal
representatives, heirs, successors, and assigns and shall continue as a servitude running
perpetually with the Property.
"TTS CHMENT 3
(f) Captions. The captions in this instrument have been inserted solely for convenience of
reference and are not a part of this instrument and shall have no effect upon construction or
interpretation.
(g) Counterparts. The parties may execute this instrument in two or more counterparts,
which shall, in the aggregate, be signed by both parties; each counterpart shall be deemed an
original instrument as against any party who has signed it. In the event of any disparity between
the counterparts produced, the recorded counterpart shall be controlling.
TO HAVE AND TO HOLD unto Grantee, its successors, and assigns forever.
IN WITNESS WHEREOF Grantor and Grantee have set their hands on the day and year first written
above.
For the Grantor:
For the Grantee:
Allen Settle, Mayor
For Deed of Trust Holder
By:
ATTACHMENT 3
ATTACHMENT A.
Legal Description of Property Subject To Easement
(To be provided from Escrow company, prior to close of escrow.)
� . Mr7NG AGENDA
� D>1rc 1L20-0 ITEM #=
BOWDEN RANCH
5875 Stockdale Road
Paso Robles, CA. 93446
December 13, 2001 jiTST
Q CIL O CDD DIR
❑ FIN DIR
❑ FIRE CHIEF
Honorable City Council NEY ❑ PW DIR
City of San Luis Obispo CL RK/ORIa ❑ POLICE CHF
990 Palm Street O t HEAD ❑ REC DIR
❑ UTIL DIR
San Luis Obispo, CA. 93401 ® HA NA
RE: BOWDEN RANCH
Dear Mayor Settle and Councilmembers:
This letter is to confirm discussions held with staff members at the City of San Luis
Obispo in recent weeks. The Bowden Ranch Partners are the owners of a 220 acre
property commonly known as the Bowden Ranch, which lies partly within the city limits
of the City of San Luis Obispo, and partly in the unincorporated area.
The portion of the property in the unincorporated area totals approximately 180 acres.
Although that portion is only a single Assessor's parcel, it comprises three legal parcels
for development purposes. However, the property is very scenic and has long been
identified as having significant open space and wildlife habitat value to the community.
Bowden Ranch Partners hereby extends to the City of San Luis Obispo our offer to
donate a Conservation Easement over that.portion of the Bowden Ranch which lies
within the unincorporated area, which will protect the scenic and wildlife habitat values
of the property in perpetuity.
Thank you for your consideration.
Sincerely,
Karl F. Wittstrom
Managing Partner
FRIE7CEIVED
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17 2001
SLO Cmc COUNCli