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R 4676 RESOLUTION NO. 4676 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DETERMINING THAT PROPERTY AT 1189 FLORA LANE BE CONSIDERED FOR AGRICULTURAL MITIGATION LAND (APN 007-781-032); APPLIED FOR BY NKT COMMERCIAL WHEREAS, on May 21, 2015, NKT Commercial submitted a request to ensure that required agricultural requirements for the E. Cherry Ave. Specific Plan Subarea 2 could be satisfied through an agricultural conservation easement and associated agreements for water and access for 9.9 acres at 1189 Flora Road; and WHEREAS, Arroyo Grande General Plan Policy AG 1-4 and associated implementation measures specify possible mitigation for loss of areas having prime farmland soils; and WHEREAS, Arroyo Grande Municipal Code Section 16.12.170 further requires and specifies methods to fulfill agricultural mitigation; and WHEREAS, the City Council has considered the request of the property owner to consider a combination of agricultural mitigation land acreage, water and access; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby consider that the proposed agricultural mitigation land at 1189 Flora Road in combination with the stated water rights and access considerations as included in draft form in Exhibit "A" attached hereto and incorporated herein by this reference constitutes appropriate mitigation for the conversion of 9.79 acres of prime agricultural land. On motion by Council Member Brown, seconded by Council Member Guthrie, and by the following roll call vote, to wit: AYES: Council Members Brown, Guthrie, Barneich, Harmon, and Mayor Hill NOES: None ABSENT: None the foregoing Resolution was adopted this 28th day of July, 2015. RESOLUTION NO. 4/6 767 PAGE 2 JIM L, MAYOR A EST: -na KELLY WETMORE, CITY CLE K 4 PP' o D TO/CONTENT: R : RT McFAL INTERIM CITY MANAGER APPROVED AS TO FORM: HEATHER WHITHAM, CITY ATTORNEY EXHIBIT A DEED OF CONSERVATION EASEMENT THIS GRANT DEED OF CONSERVATION EASEMENT is made this day of 2015, by 1189 Flora Road, LLC, a California limited liability company, ("Grantor") in favor of the City of Arroyo Grande a municipal corporation of the State of California("Grantee"). WITNESSETH: WHEREAS, Grantor is the owner of certain rights, as were reserved in favor of Grantor, in the real property located in the City of Arroyo Grande, San Luis Obispo County, California, more particularly described in Exhibit"A" attached hereto and incorporated by this reference (the "Property"); and WHEREAS, the Property can provide natural resource values including productive open space, wildlife and plant habitat, rural character, scenic values; provides an important filter for rain run-off; and, provides for locally grown produce (collectively, "Conservation Values") all of which are of great importance to Grantor, the people of the City of Arroyo Grande, and the people of the State of California; and WHEREAS, both Grantor and Grantee desire to preserve and conserve these conversation values for the public benefit; 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, including, without limitation, those relating to farming and other legal agricultural activities; and WHEREAS, Grantor and Grantee intend that the conservation values of the Property be further preserved and maintained by limiting the total residential development at the Property to a single main residential structure and one guest house (the "Total Residential Development"); and, WHEREAS, Grantor further intends, to convey to Grantee the right to preserve and protect the conservation values of the Property in perpetuity, subject to the provisions of this grant; and WHEREAS, Grantee is a 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; WHEREAS, Grantee acknowledges and agrees that the Grantor's rights as herein conveyed were reserved by Grantor for the specific purpose of providing this Grant, and except as provided in such reservation, Grantor is not currently the owner of the Property fee. Following the recording of this conveyance, all references to Grantor shall be deemed to refer to the current owner of the Property fee title ("Owner"). Deed of Conservation Easement Page 1 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 as herein described in gross and in perpetuity over of the Property (the "Conservation Easement"). 1. Purpose. It is the purpose of this Easement to assure that the Property, subject to the legal farming and agricultural uses, and the limited Total Residential Development described herein, will be retained forever for such uses and to prevent any use of the Property that will significantly impair or interfere with the conservation values of the Conservation Easement. The conservation values of particular importance include scenic quality of the undeveloped fanned land that is visible from the surrounding community, and the use of the land in the existing and potential production of agricultural crops. 2. Rights of Grantee. To accomplish the purpose of this Easement, Grantee shall have the right to prevent any_activity on or use of the Property that is inconsistent with the purpose of this Conservation Easement and to require the restoration of such areas or features of the property that maybe 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 on the Conservation Property: (a) Subdivision of the Property pursuant to the California Subdivision Map Act. (b) Amending the General Plan to a land use category for the Property that would allow a higher density of development than the Total Residential Development herein described. (c) All activities (also called "uses" by the General Plan of the City of Arroyo Grande) that are not permitted under the General Plan of the City of Arroyo Grande as Agriculture or exceed the Total Residential Development are prohibited. 4. Reserved Rights. Grantor reserves to, and excepts for the benefit of the Owner's and their 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. These rights may be exercised without permission or review by the Grantee and include such activities as the planting, growing, and harvesting of crops, construction and maintenance of other improvements appropriate for ongoing agricultural activities, such as fences, agricultural accessory buildings and structures, roads, and water development; and, the repair, replacement and/reconstruction of existing structures, the repair, replacement and construction of any structures within the confines and limitations of the allowed uses and Total Residential Development, or the sale or leasing of underground mineral rights. Deed of Conservation Easement Page 2 5. Grantee's Remedies. If Grantee determines that an Owner is in violation of the terms of this Easement or that a violation is threatened, Grantee shall give written notice to the Owner 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 the Owner fails to cure the violation within 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 this 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 the Owner's liability therefore, Grantee, in its sole discretion, may apply any damages recovered to the cost of undertaking any corrective action on the Property. If Grantee, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate significant damages to the conservation values of the Property, Grantee may pursue its remedies under this Paragraph without prior notice to the Owner 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 violations 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. 6. Costs of Enforcement. Any costs incurred by Grantee in enforcing the terms of this Easement against the Owner, including, without limitation, costs of suit and attorneys' fees, and any _ costs of restoration necessitated by an Owner's violation of the terms of this Easement shall be borne by the Owner. Notwithstanding the foregoing, if an Owner prevails in any action by Grantee to enforce the terms of this Easement, then the Owner's costs of suit, including, without limitation, attorneys' fees, shall be borne by Grantee. 7. 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 even to any breach of any terms of this Easement 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 breach by an Owner shall impair such right or remedy or be construed as a waiver. 8. 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 Deed of Conservation Easement Page 3 to prevent, abate, or mitigate significant injury to the Property resulting from such causes. 9. No Public Access. No right of access by the general public to any portion of the Property is conveyed by this Easement whatsoever. 10. Taxes. Following this grant, the Owner 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. 11. 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 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 teimination or extinguishment, shall be determined, unless otherwise provided by California law at the time, in accordance with Paragraph 12. Grantee shall use all such proceeds in a manner consistent with the conservation purposes of this grant. 12. Fair Market Value. This Easement constitutes a real property interest immediately vested in Grantee, which the parties stipulate to have a fair market value of ($ ). 13. 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. 14. 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 statute (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 shall continue to be carried out. 15. Certificates. Upon request by Grantor, Grantee shall within twenty (20) days execute and deliver to Grantor any document, including an estoppels 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. 16. 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: To Grantor: 1189 FLORA DRIVE, LLC 684 Higuera Suite B San Luis Obispo, CA 93401 Deed of Conservation Easement Page 4 To Grantee: City of Arroyo Grande c/o Carmel &Naccasha 1410 Marsh 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. 17. Recordation. Grantee shall record this instrument in 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. 18. 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 Owner. 19. Subordination. The priority of the existing mortgage with respect to any valid claim on the part of the existing mortgage holder to the proceeds of any sale, condemnation proceedings, or insurance or to the leases, rents, and profits of the Property shall not be affected thereby, and any lien that may be created by Grantee's exercise of any of its rights under this Easement shall be junior to the existing mortgage. Upon request, Grantee agrees to subordinate his rights under this Easement to the rights of any future mortgage holders or beneficiaries of deeds of trust to the proceeds, leases, rents, and profits described above and likewise to subordinate its rights under any such lien and to execute any document required with respect to such subordination provided any such subordination by the Grantee shall not result in the extinguishment of this Easement. 20. General Provisions. (a) Controlling Law. The interpretation and performance of this Easement shall be governed 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 and 816 f 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, Deed of Conservation Easement Page 5 negotiations, understanding, 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 and representatives, heirs, successors and assigns and shall continue as a servitude running perpetually with the Property. (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. CITY: 1189 FLORA ROAD,LLC: , City Manager By: Tompkins Trust Dated November 14,2007 ATTEST: Managing Member, Nicholas J. Tompkins,Trustee Kelly Wetmore, City Clerk APPROVED AS TO FORM AND LEGAL EFFECT: HEATHER WHITHAM, City Attorney Deed of Conservation Easement Page 6 GRANT AND AGREEMENT RE:WATER RIGHTS,FACILITIES THIS GRANT AND AGREEMENT ("Agreement') is entered into effective this day of , 2015, between 1189 Flora Road, LLC, a California limited liability company ("FLORA") as the owner of certain rights in the real property more particularly described in Exhibit "A" and by this reference hereby incorporated (the "Property") ; and, the City of Arroyo Grande("City"). RECITALS 1. WHEREAS, FLORA is the owner, by reservation, of certain water rights, and related water facility easements at the Property(the"Water Rights"); 2. WHEREAS, City is desirous of acquiring FLORA's Water Rights. 3. WHEREAS,there currently exists upon the Property, an existing well(the"Existing Well") which allows for providing water for the use of the Owners and/or the occupants of the Property (hereinafter collectively the "Occupants"); which also provides water for all of the agricultural uses for which the Property can now or hereafter be utilized (the "Agricultural Uses"). For purposes of this Agreement, Occupants shall also include tenants utilizing the Property for Agricultural Uses. The approximate location of the Existing Well is depicted on Exhibit `B" (the "Well Site") and by this reference is hereby incorporated. FLORA's water rights at the Existing Well are limited to only that water produced at the Existing Well which exceeds the demands and/or requirements of the Occupants and the Agricultural Uses at the Property (hereinafter the "Excess Water") NOW THEREFORE for valuable consideration hereby acknowledged, and upon the terms and conditions contained herein, FLORA does hereby grant and convey to the City: (1) the right to take and remove FLORA'S Excess Water as produced or otherwise available from the Existing Well and/or the Well Site; (2) an easement for removing the water produced therefrom as more particularly hereafter described(the Underground Easement") ; and, (3) such additional easements as reasonably required at the Well Site for installation and maintenance related water pipes , conduits and related improvements, as necessary and for production and transfer of the Excess Water from the Well Site for the purpose of all allowable uses, in accordance with the terms of this agreement. THE PARTIES HEREBY AGREE AS FOLLOWS: 1. FACILITY LOCATION: That the locations of Existing Well, Well Site and Underground Easement and other matters are depicted on Exhibit"B" attached to this agreement. 2 UNDERGROUND EASEMENT: The Underground Easement shall be a 'five (5) foot wide easement in favor of the City for the maintenance of underground water lines, conduits, utility systems and related underground improvements for purposes of pumping, obtaining, and conveying Excess Water from the Existing Well off the Property, at the location shown on Exhibit "B"and by this reference hereby incorporated. 3. ALLOWABLE USES: Allowable uses for the Excess Water shall be any and all lawful uses for the public benefit including use by the City at Strother Park. 3. PROPERTY WATER REQUIREMENTS: FLORA and the City agree that the Occupants of the Property, and all Agricultural Uses shall have a priority right to water produced at the Existing Well and the Well Site for as much water as is required to meet the needs and/or requirements of the Occupants at the Property, and the Agricultural Uses being conducted at the Property(collectively the "Property Water Requirements"). The Parties acknowledge and agree that all Property Water Requirements must be satisfied before any Excess Water exists and that City,in exercising any rights hereunder, shall ensure that the Property Water Requirements are met and satisfied before taking and using any Excess Water. 4. COMMON WELL FACILITIES: The common well facilities shall consist of the Existing Well, as more particularly shown on Exhibit`B",the well casing,pump, electrical service lines, the existing generator and other related equipment as necessary for the production of water at the Well Site. (hereinafter"Common Well Facilities") 5. MAINTENANCE OF WELL AND FACILITIES: (a) Common Well Facilities: Once the City exercises its rights to utilize the Excess Water under this agreement, the City shall therafter pay all costs and expenses: associated with maintaining the Common Well Facilities in proper working and sanitary order and operating the -Common Well Facilities for so long as it is possible to procure and distribute the Excess Water from the Existing Well. These operation and maintenance obligations shall not be construed to include obligations with respect to the quality of water that may be produced at the Existing Well, and are hereby limited to operating and maintaining the Common Well Facilities in good working order and repair; (b) Pump and Power System: While Existing Well remains powered by an on-site electric generator, the costs of maintenance and operation of such generator shall be deemed a part of the Common Well Facilities under this Agreement. In the event that the Well Site is hereafter served by a metered electrical utility service provider, the City shall ensure that there are two (2) separate metered installations, consisting of(a) a meter measuring the City's electric use at the Well Site; and (b) a meter measuring all electric use associated with meeting the Property Water Requirements. Following the installation of such electric services and both of these meters,the City shall not be responsible for the electrical expenses and charges associated with the pumping of the Property Water Requirements. (c) Replacement Well: As part of the City's obligation to maintain the Common Well Facilities, the City shall have the obligation to drill a replacement well and place it in operation if the Existing Well should sand up or become inoperative and it is reasonably possible to drill another well within the Existing Well site. (d) Original Users: Notwithstanding anything otherwise stated in this agreement to the contrary,the parties hereby acknowledge and agree that the Occupants of the Property are currently the only users of the Existing Well and the Common Well Facilities (the "Original Users"). Until the City makes any installations of conduit,piping or other improvements so as to allow the City to enjoy the rights herein conveyed, the Original Users shall be solely responsible for all repair, maintenance, costs and expenses associated with operating the Existing Well. 6. INDIVIDUAL WATER SYSTEMS: Both the City and the Original Users shall have the right to install, maintain and repair pipelines, conduit, valves, timers and other well and water equipment and facilities at the Existing Well site, at the installing parties sole cost and expense to enjoy their respective rights. Any such installations by the Occupants, or for purposes of the Agricultural Uses associated solely with the distribution of the Property Water Requirements, shall not be considered a part of the Common Well Facilities. 7. WELL REPAIR AND REPLACEMENTS: In the event that the pump, or other Common Well Facility equipment fail(s), or deteriorate(s) to a condition that requires repair, or replacement for purposes of meeting the Property Water Requirements (hereinafter collectively referred to as "well failure"),the City shall exercise all reasonable and best efforts in order to cause, commence and diligently pursue the repair of the Existing Well and/or Common Well Facilities within 24 hours of either written or telephonic notice of the well failure. 8. CITY'S RIGHT TO RELINQUISH: The City shall have the right to relinquish all rights granted hereunder, and thereby terminate all future obligations hereunder EXCEPT ANY OBLIGATIONS ARISING UNDER PARAGARPH 13, by express unequivocal and unambiguous written notice directed to FLORA, together with a recorded Quitclaim Deed reconveying the City's rights hereunder to FLORA. All future obligations of the City with respect to the operation and maintenance of the Common Well Facilities under this agreement will be extinguished upon delivery of such notice and recorded deed, however the City shall remain liable for all costs and expenses associated with the Common Well Facilities which accrued through the date of the delivery of the notice and recorded deed. 9. PROPERTY OWNER'S OTHER WATER RIGHTS: Nothing contained herein shall be considered as any limitation upon, or conveyance of,the right of the owners of the Property, or their authorized agents, or tenants to drill any and all new wells which the owners deem necessary for any legal use at the Property. 10. WATER LINES, PIPES, AND CONDUIT: The City and the Occupants shall each be solely responsible for the maintenance of their separate pipes, conduits and equipment which serve solely to distribute their water as produced by the Common Well Facilities. In the event of a material leak of pipe failure the City shall have the right to perform any such repairs reasonably necessary to protect the Common Well Facilities at the City's sole cost and expense. 11. NO GUARANTY AS TO QUALITY OR QUANTITY: FLORA does not and cannot make any warranty or guaranty concerning the quantity or quality of the Excess Water which may be available to the City hereunder, or concerning the continuing availability of such Excess Water. City understands and hereby acknowledges that FLORA is not a public utility, is not guaranteeing any specific quantity or quality of water, is not the sole owner of the water rights subject to this agreement, and is not the owner the underlying Property. 12. LANDSCAPING, IMPROVEMENTS: City acknowledges that the Occupants have the right to improve, landscape or otherwise utilize all portions of the Property immediately surrounding the Existing Well site so long as such use does not unreasonable interfere with the rights of the City herein conveyed In the event that the City's installations, repairs,maintenance or any other servicing of the Common Water Facilities or the City's underground water and utility systems, as installed pursuant to Paragraph 2, effect or otherwise damage such Property improvements, landscaping or other use, the City shall be responsible, at the City's sole cost and expense,to return such improvements, landscaping to the same condition they enjoyed prior to the commencement of such repair, service or other work by the City. 13. INDEMNITY: HOLD HARMLESS: This agreement is made on the express condition that FLORA is to be free from all liability with respect to any claim for damages by reason of any injury to any person or persons, or any injury to property of any kind whatsoever and to whomever belonging, from any cause or causes whatsoever, while in, upon or in any way connected with the City's exercise and enjoyment of the City's rights under this Agreement, other than those arising from the intentional or grossly negligent act of FLORA. City hereby covenants and agrees to indemnify and save harmless FLORA from all liability, loss, cost and obligations (including, without limitation, reasonable attorney's fees and expenses), on account of or arising out of any such injuries or losses,however occurring. 14. ASSIGNMENT AND BINDING ON HEIRS: This Agreement shall be binding on the parties hereto and on their successors-in-interest, and shall run with the land. 15. NOTICES: Any and all notices or other matters required or permitted by this Agreement or by law to be served on, given to, or delivered to either party hereto by the other party to this Agreement shall be in writing and shall be deemed duly served, given, or delivered when personally delivered to the party to whom it is directed, or, in lieu of such service, when deposited in the United States mail, first-class postage prepaid to: FLORA: 1189 FLORA DRIVE,LLC 684 Higuera Suite B San Luis Obispo, CA 93401 City of Arroyo Grande CITY: Attn: Kelly Wetmore, City Clerk P. O.Box 550 Arroyo Grande, CA 93421 With copy to: Heather Whitham CARMEL&NACCASHA LLP PO Box 15729 San Luis Obispo, CA 93406 or at such address, and to such addressee(s) as the parties or their successors shall hereafter provide the other by notice in accordance with this paragraph. In the event that any parties' successor(s) in interest fail to provide such addresses to the other, then notice may be directed by publication under applicable statutory law. Whereas the Parties have executed this Agreement effective as of the date first written above. CITY: 1189 FLORA ROAD,LLC: , City Manager By: Tompkins Trust Dated November 14, 2007 ATTEST: Managing Member, Nicholas J. Tompkins,Trustee Kelly Wetmore, City Clerk APPROVED AS TO FORM AND LEGAL EFFECT: HEATHER WHITHAM, City Attorney RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Arroyo Grande City Clerk . 300 East Branch Street Arroyo Grande, CA 93421 EASEMENT AGREEMENT This Easement Agreement ("Agreement") is made and entered into by and between the CITY OF ARROYO GRANDE, a municipal corporation of the State of California (hereinafter referred to as "City") and 1189 FLORA ROAD, LLC, a California limited liability company (hereinafter referred to as "FLORA "). RECITALS WHEREAS, FLORA is the owner of various rights reserved, in favor of FLORA, in certain real property located in the City of Arroyo Grande as said real property is more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference (the "Property"); WHEREAS, City desires to acquire a pedestrian and bicycle public trail easement across the Property (the "Trail Easement') for purposes of providing non-motorized, non-vehicular Pedestrian and bicycle access to Strother Park, which park lies adjacent to the Property; and WHEREAS, City desires to further acquire a temporary easement on the Property for purposes of construction and staging, relative to the construction of the Trail Easement and for purposes of the construction of a bridge and/or pathway connecting the Trail Easement to Strother Park (the "Connecting Improvements") . AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference. 1 OF 4 2. Trail Easement: FLORA does hereby grant to City, and City hereby accepts from FLORA, a pedestrian and bicycle access easement (the "Trail Easement") approximately fifteen (15) feet in width over, upon and across the Property as said Trail Easement is more particularly depicted on Exhibit "B" attached hereto and incorporated herein by this reference. The portion of the Trail Easement marked as "Bridge Access Area", may be improved by City with portions of a bridge or other similar access feature for pedestrian and/or bicycle access spanning the existing riparian area and connecting directly to Strother Park. 3. Use of the Easement: The Trail Easement shall be used only for Pedestrian and Bicycle access to Strother Park. There shall be no use of the Trail Easement by motorized or engine powered vehicles or equipment whatsoever, and all Trail Easement improvements shall be designed and installed by the City so as to effectively limit all uses of the Trail Easement as herein set forth. 4. Easement Improvements: The parties further acknowledge and agree that the City shall construct all improvements within and upon the Trail Easement as required by the City, subject to the use restrictions herein setforth. In addition to the Trail Easement, the City shall have an easement to access, construct, install, improve, maintain, operate, and repair any such improvements as City determines necessary or appropriate, provided that such work does not unreasonable interfere with the quiet enjoyment of the Property by the owners of the Property (the "Owners") or their tenants. The Trail Easement surface, other than the Bridge Access Area improvements, shall at all times consist solely of pervious materials. 5. Type of Easement: The Trail Easement, and related easements herein described above shall be non-exclusive and in gross. 6. Construction of Improvements. For purposes of the initial construction of the Tail Easement Improvements, The City shall further have a temporary license to enter upon the Trail Easement and Bridge Access Area for the purpose of storing, equipment, tools, and other materials, and performing work related to the construction of the Trail Easement improvements (the "Improvements"). During the construction of the Improvements, the City shall maintain these areas and all of the adjacent Property subject to this agreement in a good and clean condition, free of all trash and debris and any hazardous waste or other materials generated, used, maintained or otherwise brought to the Property by the City, or any of the City's agents, employees or contractors. The City shall have the right to temporarily fence the Trail Easement and Bridge Access Area, provided that (x) such fencing shall not in any way interfere with the farming or agricultural activities at the Property upon which these areas are located, or (y) the rights and quiet enjoyment of the Owners or their tenants. In the event that the City installs any such temporary fencing, the City shall remove said fencing upon completion 2 OF 4 of the construction of the Improvements (the "Completion"). This temporary license shall be extinguished and expire upon the Completion or following the passage of eighteen (18) months from the commencement of the construction of the Improvements, which ever first occurs. The City shall indemnify and hold the Owners and their tenants harmless from and against any injury, claim, loss, damage or expense (including reasonable attorney's fees) for any personal injury or property damages arising out of its use of the use of this license, except for such claim, loss, damage, or expense which arises out of the gross negligence or the intentional misconduct of the Owners, their tenants, agents, employees or representatives. 6. Successors and Assigns. All of the provisions, agreements, rights, covenants and obligations in this Agreement shall be binding upon and shall burden and inure to the benefit of the parties hereto, their respective heirs, successors and assigns. 7. Attorney's Fees. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party shall be entitled to receive from the other party, in addition to any other relief that may be granted, the reasonable attorney's fees, costs and expenses incurred in the action or proceeding by the prevailing party. 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of California. The parties hereto agree that all actions or proceedings in connection with this Agreement shall be tried and litigated in the Superior Court located in the County of San Luis Obispo, State of California. 9. Severability. If any term or provision of this Agreement is determined to be illegal, unenforceable, or invalid in whole or in part for any reason, such illegal, unenforceable, or invalid provision or part thereof shall be stricken from this Agreement, and such provision shall not affect the legality, enforceability, or validity of the remainder of the Agreement. If any provision or part thereof of this Agreement is stricken in accordance with the provisions of this section, then such stricken provision shall be replaced, to the extent possible, with a legal, enforceable, and valid provision that is as similar in tenor to the stricken provision as is legally possible. 10. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 30F4 IN WITNESS WHEREOF, this Agreement is hereby executed by said owner and City on the day and year first written above. CITY: ' 1189 FLORA ROAD,LLC: , City Manager By: Tompkins Trust Dated November 14, 2007 ATTEST: Managing Member, Nicholas J. Tompkins,Trustee Kelly Wetmore, City Clerk APPROVED AS TO FORM AND LEGAL EFFECT: HEATHER WHITHAM, City Attorney 40F4 Reserving to, and for the benefit of Grantor, and the Grantor's successors and assigns (collectively"Grantor"), all of the following interests and rights (collectively the "Reservations"): 1) The right of the Grantor to hereafter establish and convey to the City of Arroyo Grande or any entity described under California Civil Code 815.3„ a Conservation Easement, as described in Section 851 et seq of the California Civil Code, which shall serve to limit development of the Real Property so as to not allow more than one residence and one guest house to exist upon the Real Property(the "Residential Improvements"), and shall otherwise limit the future use of the real property to the occupation of the Residential Improvements, and legal agricultural uses (the "Agricultural Uses"),upon the terms and conditions setforth in the Conservation Easement Agreement attached hereto as Exhibit" " and by this reference hereby incorporated. or as otherwise may be modified or determined by Grantor in Grantor's sole and reasonable discretion. 2) The right of the Grantor to hereafter establish and convey to the City of Arroyo Grande a fifteen(15) foot wide easement for non-motorized pedestrian and bicycle ingress and egress across the Real Property for purposes of accessing Strother Park, and for the construction of a bridge or similar access improvements to said park, lying approximately adjacent to the eastern and northern boundaries of the Real Property, at the location and upon the terms and conditions set forth in Exhibit" " and this reference hereby incorporated or as otherwise may be modified and determined by Grantor in Grantor's sole and reasonable discretion. This reservation includes the right of Grantor to establish and utilize temporary staging and construction areas at the Real Property for purposes of constructing and installing all easement improvements, including by way of example, a bridge to Strother Park. 3) The rights to water lying below the surface of the Real Property, including,but not limited to, all rights of access to such water,the right to install,repair and maintain wells on the Real Property, including all necessary conduits,power and utility systems and all related water well improvements as Grantor deems necessary (the "Water Estate")upon the terms and conditions set forth in Exhibit" " and this reference hereby incorporated or as otherwise may be modified and determined by Grantor in Grantor's sole and reasonable discretion,provided that such Water Estate shall consist solely of all available water above and beyond the amount of water that is reasonably necessary for the use of Owners and/or occupants (collectively"Owners") of the Residential Improvements at the Real Property, and the pursuit of the Agricultural Uses permitted under the Conservation Easement at the Real Property. Grantor's use and enjoyment Water Estate reserved hereunder shall not be otherwise limited, and may be hereafter conveyed or assigned by Grantor in whole or in part to any person or entity,including but not limited to the City of Arroyo Grande. 4)A Power of Termination, as described under California Civil Code 885.010, for the benefit of the Grantor in order to terminate the estate granted hereunder in order to address the failure of the Grantee Parties to fulfill the conditions of this grant or otherwise interfere with the rights reserved by the Grantor. This conveyance is made, and Grantee accepts this conveyance subject to the foregoing Reservations and upon each of the following conditions: (1) That Grantee shall hereafter execute any and all deeds, conveyances, agreements, or instruments which are hereafter required by Grantor in order to allow Grantor, and Grantors' successors and/or assigns,to quietly enjoy and any and all of the Reservations. This obligation is not a personal covenant, and is accepted by Grantee as a condition subsequent. (2)Neither Grantee, or the Grantee's successors and assigns shall interfere with the Grantor's, or the Grantor's successors and assigns, future exercise of the rights reserved by Grantor herein. (3) Subject to the Reservations, the Grantee shall have immediate possession of the Real Property, and may continue in possession thereof only so long as Grantee faithfully performs and complies with each and all of the terms herein contained, (4) The foregoing Reservations, and the terms and conditions of this deed shall be deemed to be reversion conditions running with the land in favor of the Grantor, and the breach of any of the same shall cause the Real Property to revert to the Grantor, its successors and assigns, each of whom respectively, shall have the power of termination and the right of immediate re-entry upon the Real Property. (5) By accepting this deed, Grantee acknowledges and agrees, for itself and all of its successors and assigns, that but for the Reservations and reversion conditions, Grantor would not otherwise sell or convey the Real Property to Grantee, and that Grantor would otherwise maintain ownership and control of the Real Property for so long as Grantor required in order to exercise and enjoy the rights herein reserved by Grantor, and/or to convey and provide any of such rights to the City of Arroyo Grande or Grantor's successors in interest as herein provided. It is the Grantor's expressed intention, for the benefit of Grantor, its successor and assigns,that the failure of the Grantee and its successors and assigns (the "Grantee Parties")to comply with the terms of this Grant shall serve as a basis for then terminating the Grantee Parties entire interest in the Real Property. OFFICIAL CERTIFICATION I, KITTY NORTON, Deputy City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 4676 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 28th day of July, 2015. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 31st day of July 2015. V; `711-- - KITTY N',TON, DEPUTY CITY CLERK ,