CC 2016-10-11_11a Approval of Methodist Campground Agreement MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR
HEATHER K. WHITHAM, CITY ATTORNEY
SUBJECT: CONSIDERATION OF APPROVAL OF AGREEMENT WITH THE
CALIFORNIA-PACIFIC ANNUAL CONFERENCE OF THE UNITED
METHODIST CHURCH REGARDING THE METHODIST CAMPGROUND
AND TABERNACLE
DATE: OCTOBER 11, 2016
RECOMMENDATION:
It is recommended the City Council approve and authorize the Mayor to execute the
agreement with the California-Pacific Annual Conference of the United Methodist Church
regarding the Methodist Campground and Tabernacle.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There will be no financial impact, but there will be impact on personnel resources
related to the proposed action in attempting to locate a buyer or formulating and
implementing a plan.
BACKGROUND:
The Methodist Campground and Tabernacle located at 250 Wesley Street (the
“Methodist Property”), which is owned by California-Pacific Annual Conference of the
United Methodist Church (“Cal-Pac”) has a long tradition in the City. John F. Beckett is
the name largely associated with the Methodist Property, having donated more than
fifteen acres for the development, which will be 120 years old next year. The Methodist
Property was the host of many revivals and was also the site of chautauquas, which
was an adult education movement, started in the 1880s in New York. These events
drew many locals and visitors, helping to shape the community in the early years. The
site currently consists of the Tabernacle, a number of cabin structures, a pool, caretaker
residences and other miscellaneous structures.
The Arroyo Grande Historical Resources Committee (“HRC”) meeting scheduled for
June 10, 2016 included an agenda item to consider initiating the designation process for
the Methodist Property as a local historical resource. At the June 7, 2016 City Council
meeting, during public comment, attorney James Buttery, representing Cal-Pac,
presented the City Council with a Resolution of the Board of Trustees of Cal-Pac (the “Cal-
Pac Resolution”), wherein they objected to the designation as an historic resource and
availed itself of a religious exemption pursuant to Government Code Section 37361(c).
Legal analysis of this objection has determined that it is valid. The June 10, 2016 HRC
Item 11.a. - Page 1
CITY COUNCIL
APPROVAL OF AGREEMENT WITH THE CALIFORNIA-PACIFIC ANNUAL
CONFERENCE OF THE UNITED METHODIST CHURCH REGARDING THE
METHODIST CAMPGROUND AND TABERNACLE
OCTOBER 11, 2016
PAGE 2
meeting was cancelled due to the lack of a quorum. At the July 8, 2016 HRC meeting,
Mr. Buttery appeared and objected to the historic designation and provided the HRC
with the Cal-Pac Resolution. As a result of the valid legal objection presented by Cal-
Pac, the HRC was forced to discontinue its consideration of the historical designation of
the Methodist Property at that time.
Due to the inability to designate the Methodist Property as a local historic resource, the
City has negotiated an agreement with Cal-Pac to allow the City the opportunity to locate a
buyer who will preserve the site or formulate and implement a plan to relocate the
Tabernacle (the “Agreement”). Under the terms of the Agreement, the City may not delay
the issuance of a demolition permit; however, Cal-Pac will agree not to exercise its right to
demolish the Tabernacle as long as the Agreement remains in effect and the deadlines
have not expired. The City has until December 31, 2016, to formulate the plan. If it is
demonstrated that reasonable progress is being made, Cal-Pac can provide the City up to
six (6) additional months to complete the plan. A copy of the Agreement is included with
the report.
The Methodist Property is an extremely valuable asset to the community. The City has
consistently informed potential buyers of the land use designation (Community Facility)
and zoning (Public Facility) of the property, the use limitations associated with the zoning
district, and the need for a General Plan Amendment and Development Code Amendment
if a buyer were to propose a use not consistent with the existing zoning. Additionally, the
City has reached out to the Land Conservancy, Camp Fire, other community members
and groups, and neighboring jurisdictions regarding options for the purchase and
preservation of the Campground and Tabernacle.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve the Agreement with Cal-Pac and authorize the Mayor to execute it;
2. Do not approve the Agreement with Cal-Pac; or
3. Provide direction to staff.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 11.a. - Page 2
1008345.1 1
AGREEMENT
This agreement (the “Agreement”) is made by and between the California-Pacific Annual
Conference of the United Methodist Church (the “Church”) and the City of Arroyo Grande (the
“City”), this ___ day of September, 2016 (“Effective Date”). (City and Church shall be referred
to collectively herein as the “Parties,” and individually as a “Party.”)
WHEREAS, the Church owns real property identified as 250 Wesley Street, Arroyo
Grande, California (APNS: 007-011-021 and 007-011-049), upon which are located several
structures and buildings, including a Tabernacle constructed on or about 1896 (the “Property”);
and
WHEREAS, on May 4, 2016, after consideration of substantial evidence regarding the
historic eligibility of the Tabernacle structure, the City initiated the process of designating the
Tabernacle as an historic structure pursuant to Government Code section 37361(b); and
WHEREAS, on July 8, 2016, at a duly noticed City Historical Resources Committee
meeting, the Church formally objected to the City moving forward with the process of
designating the Property as an historic resource or the Tabernacle as an historic building and
availed itself of the exemption set forth in Government Code section 37361(c) through
presentation of a duly adopted Resolution of the Board of Trustees of the Church dated June 7,
2016, the City accepted the Church’s claim of exemption; and the Historical Resources
Committee did not act to designate the Tabernacle or the Property; and
WHEREAS, the Church has listed the Property for sale and intends to demolish some or
all of the buildings and structures thereon, including the Tabernacle; and
WHEREAS, the Church has graciously offered to donate the Tabernacle to the City and
allow the City to relocate the Tabernacle to another site, at the City’s sole cost and expense; and
WHEREAS, the City has requested that the Church allow the City a sufficient amount of
time to identify potential buyers who would acquire the Property in order to preserve the
Tabernacle on site, raise the funds required to acquire the Property and preserve the Tabernacle
on site or find a suitable new location for the Tabernacle and to raise the funds required to
deconstruct and remove the Tabernacle from the Property and reconstruct it at the new location.
NOW, THEREFORE, in consideration of the mutual covenants set forth above and for
other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:
1. Tabernacle Removal and Relocation. The Church agrees to allow the City an opportunity,
from the Effective Date through December 31, 2016 (the “Plan Deadline”), to either find a buyer
willing to preserve the Tabernacle on site or formulate and implement a plan to remove the
Tabernacle from the Property (collectively referred to as the “Plan”), at the City’s sole cost and
expense. The Church agrees that as long as meaningful progress has been made to remove the
Tabernacle from the Property pursuant to the Plan, it will provide the City with six (6) additional
months to complete the removal process through June 30, 2017 (the “Removal Deadline”). In the
event that the removal of the Tabernacle is ongoing and substantially complete, as determined by
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1008345.1 2
the Church in its sole discretion, as of the Removal Deadline, the Church agrees that it will grant
a reasonable extension, the length of which shall be determined in the Church’s sole discretion,
of the Removal Deadline in order for the removal process to be concluded. Any extension of the
Removal Deadline shall be in writing.
2. Demolition Permits. The Church intends to apply for demolition permits affecting all
buildings and structures on the Property, including the Tabernacle. The City shall not delay
issuance of any demolition permits sought by the Church for any reason not applicable to all
other property owners in the City, including that the City shall not rely on the existence of this
Agreement or on any claim of historic resource to delay issuance of any demolition permits
sought by the Church. Notwithstanding any other provision of this Agreement, this Agreement
shall expire and be of no further force and effect if the Church is unable to obtain said demolition
permits within ninety (90) of the Church’s application. Church agrees that when a demolition
permit is issued affecting the Tabernacle, it will not exercise such right to demolish the
Tabernacle as long as this Agreement remains in effect and the Plan Deadline and any applicable
Removal Deadline have not expired.
3. Right of First Refusal. The Church intends for its broker to continue its efforts to sell the
Property during the pendency of this Agreement. If prior to the Plan Deadline of December 31,
2016, a legitimate offer to purchase the Property is received by the Church from a third party
buyer who does not intend to preserve the Tabernacle, then in that event the Church shall notify
the City in writing of the terms of said offer and the City will have ten (10) business days in
which to make an offer to the Church matching the terms of that offer.
4. No Historical Designation. For so long as the Church is the Property owner, the City
agrees that it shall not pursue the historical designation of the Property, the Tabernacle (should it
not be relocated) or any other structure located on the Property, without the prior written consent
of the Church.
5. Indemnity. The City shall hold the Church harmless and indemnify the Church from any
and all cost or liability arising out of this Agreement, except to the extent those costs and
liabilities arise from the Church’s negligence or willful misconduct.
6. Entire Agreement. The Parties represent and agree that no promise, inducement, or
agreement other than as expressed herein has been made to them and that this Agreement is fully
integrated, supersedes all prior agreements and understandings, and any other agreement
between the Parties, and contains the entire agreement between the Parties.
7. Governing Law and Jurisdiction. The laws of the State of California shall apply to and
control any interpretation, construction, performance or enforcement of this Agreement. The
Parties agree that the exclusive jurisdiction for any legal proceeding arising out of or relating to
this Agreement shall be the San Luis Obispo County Superior Court and all Parties hereby waive
any challenge to personal jurisdiction or venue in that court.
8. Attorneys’ Fees and Costs for Breach. The prevailing Party in any action to enforce or
interpret this Agreement is entitled to recover from the other Party its reasonable attorneys’ fees.
9. Construction. This Agreement shall be construed as if the Parties jointly prepared it, and
any uncertainty or ambiguity shall not be interpreted against any one Party.
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10. Modification. No oral agreement, statement, promise, undertaking, understanding,
arrangement, act or omission of any Party, occurring subsequent to the date hereof may be
deemed an amendment or modification of this Agreement unless reduced to writing and signed
by the Parties hereto or their respective successors or assigns.
11. Compliance with Law. The Parties shall comply with all laws, statutes, ordinances, and
requirements of all local, county, State, and federal authorities, now or later in force, pertaining
to the Property.
12. Severability. The Parties agree that if, for any reason, a provision of this Agreement is
held unenforceable by any court of competent jurisdiction, this Agreement shall be automatically
conformed to the law, and otherwise this Agreement shall continue in full force and effect.
13. Number. Whenever applicable within this Agreement, the singular shall include the
plural and the plural shall include the singular.
14. Headings. The headings of paragraphs herein are included solely for convenience of
reference and shall not control the meaning or interpretation of any of the provisions of this
Agreement.
15. Counterparts. This Agreement may be executed in several counterparts and all
counterparts so executed shall constitute one agreement binding on all Parties hereto,
notwithstanding that all the Parties are not signatories to the original or the same counterpart.
Facsimile signatures shall be accepted the same as an original signature. A photocopy of this
Agreement may be used in any action brought to enforce or construe this Agreement.
16. No Waiver. No failure to exercise and no delay in exercising any right, power or remedy
under this Agreement shall impair any right, power or remedy which any Party may have, nor
shall any such delay be construed to be a waiver of any such rights, powers or remedies or an
acquiescence in any breach or default under this Agreement, nor shall any waiver of any breach
or default of any Party be deemed a waiver of any default or breach subsequently arising.
[Remainder of page left intentionally blank.]
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17. Authority to Execute. Each individual signing this Agreement, and any other documents
executed in connection with this Agreement, warrants and represents that he or she has full
authority to so execute the Agreement on behalf of the Party on whose behalf he or she so signs.
Each separately acknowledges and represents that this representation and warranty is an essential
and material provision of this Agreement and shall survive execution of this Agreement.
CALIFORNIA-PACIFIC ANNUAL
CONFERENCE OF THE UNITED
METHODIST CHURCH
By:
Its:
CITY OF ARROYO GRANDE
Jim Hill, Mayor
ATTEST:
Kelly Wetmore, City Clerk
APPROVED AS TO FORM:
Heather K. Whitham, City Attorney
Item 11.a. - Page 6