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CC 2016-06-14 Items Rec'd at Mtg cRim(c1 J;m Bw/ta.yy 0" RESOLUTION OF THE BOARD OF TRUSTEES OF THE CALIFORNIA-PACIFIC ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH This Resolution was passed by written consent of the Board of Trustees of the California- Pacific Annual Conference of the United Methodist Church("the California-Pacific Conference"or "Conference"),with reference to the following facts and circumstances: A. WHEREAS the California-Pacific Conference is a regional body of The United Methodist Church, made up of some 80,000 members in almost 360 local churches throughout Southern California,parts of Central California,Hawaii,the Pacific Islands,Guam and Saipan,and whose people have been dedicated for more than a century to realizing the vision of inspiring the world as followers of Jesus Christ and through God's life-giving love; B. WHEREAS the California-Pacific Conference is a California nonprofit religious corporation that provides programs and support services to,and on behalf of,the member churches, and requires that, following the "Book of Discipline and the connectional structure of The United Methodist church,all assets and equity of the Conference are held"in trust," such that they shall be kept,maintained,and disposed of for the benefit of The United Methodist Church and subject to the usages and the Discipline of The United Methodist Church." C. WHEREAS the mission and ministry of the Conference has included throughout its history the United Methodist camp and retreat ministries,which create environments of Christian hospitality and learning within natural settings designed specifically to help persons and groups affirm and expand their faith in God,learn and practice Christian discipleship, grow in wisdom and in healthy self-esteem,establish relationships with one another and all creation,develop as spiritual leaders who move out to inspire faith communities and society at large to "seek God and to do justice," and find renewal, encouragement, and support as leaders and participants from a host of religiously affiliated and non-profit organizations; D. WHEREAS the California-Pacific Conference has six camping and retreat ministry sites located throughout Southern California that provide a wide range of opportunities for people who wish to retreat to affirm and expand their faith in God in a natural setting. These sites include Aldersgate,Arroyo Grande,Cedar'Glen,Colby Ranch,Lazy W Ranch,and Wrightwood. Each site is different,providing a unique place for people'to dialogue together or to bealone,but ultimately to help individuals draw closer to God; E. WHEREAS the Conference's Arroyo Grande camping and retreat ministry site originated with that certain grant deed dated June 17, 1897,recorded in Book 34,Pages 467-470 of the records of San Luis Obispo County,whereby J.F.Beckett and Souria B.Beckett granted to the Arroyo Grande M.E. Church approximately fifteen(15) acres of land as described therein, "to be held . . . in trust for the use and benefit of the members of the Methodist Episcopal Church of San Luis Obispo, Santa Barbara, Ventura, Kern, Kings, Tulare and Fresno Counties, as a religious, educational and pleasure resort," subject to the proviso that"should said property for any reason cease to be used for the purposes herein before set forth,then in that case the title to said property --- - shall immediately revert to the grantors. . ."; 994545.10 1 • F. WHEREAS the Conference's Arroyo Grande camping and retreat ministry site increased in size with that certain grant deed dated September 19, 1910 recorded in Deeds Book 87, pp.42-43, of the records of San Luis Obispo County,whereby J.F. Beckett granted to the Arroyo Grande Methodist Episcopal Church approximately 29 acres of land(the"Property") as described therein,including the acres previously conveyed by the deed dated June 17, 1897 described above, provided that the Property "shall be held by said grantee corporation . . . in trust for the use and benefit of the members of the Methodist Episcopal Church of San Luis Obispo, Santa Barbara, Ventura,Kern,Kings,Tulare and Fresno Counties . . ."; G. WHEREAS at all times from the execution of the 1897 Deed to the execution of the 1910 Deed,J.F.Beckett was directly affiliated with the Arroyo Grande Methodist Episcopal Church and, in connection with his conveyances to the Arroyo Grande Methodist Episcopal Church by means of the 1897 Deed and the 1910 Deed, the church expressly or impliedly agreed to use the Property for church purposes and did in fact so use the Property, as evidenced by construction of a tabernacle on the site conveyed by the 1897 Deed,the use of the tabernacle for church prayer and church meetings, and the continuous use of the land for camp and retreat ministry purposes; H. WHEREAS subsequent to the 1897 Deed and the 1910 Deed,the Property has been conveyed to diverse successors in interest,each successor an entity of or person associated with the Methodist Church, with title presently held to Assessor's Parcel Number 007-011-022 by the California-Pacific Annual Conference of the United Methodist Church,as legally described on the attached Exhibit A, and with title to Assessor's Parcel Numbers 007-011-021 and 007-011-049 presently held by the California Pacific Annual Conference Camp Commission of the Methodist Church,an entity which has merged into the Conference,as legally described on attached Exhibit B; I. WHEREAS the right of reverter as referenced in the 1897 Deed became void as of January 1, 1987, due to lapase of time and failure to comply with the requirements of Civil Code section 885.030 et seq.; J. WHEREAS with the passage of years,use of the tabernacle and surrounding land for church purposes has become increasingly infeasible, and the costs of maintaining,preserving and operating the campground has become a burden which detracts from the ability of the Conference to carry out its mission and ministry, such that continued ownership of the Property is no longer in accord with the policies or best interests of the Conference; K. WHEREAS the Conference has in good faith concluded that use of the Property for the general purposes of the Conference as effectuated by a sale of the Property in lieu of the specific purpose for which the Property was contributed is warranted and necessary in order best to carry forward the mission and ministry of the Conference; L. WHEREAS the First United Methodist Church of Arroyo Grande,formerly known as the Arroyo Grande Methodist Episcopal Church,has likewise in good faith concluded that use of the Property for the general purposes of the Conference-as effectuated by sale of the Property in lieu of the specific purpose for which the Property was contributed is warranted and necessary in order best to carry forward the mission and ministry of the First United Methodist Church of Arroyo Grande, as a member of the Conference; 994545.10 2 M. WHEREAS the good faith decisions of the Conference and the First United Methodist Church of Arroyo Grande to sell the Property were made in recognition of their increasingly infrequent use of the site, the unsuitability of the site to the current needs and membership of the Conference and the church,the unending and escalating costs associated with the maintenance of the Property's land and structures, the inability of the Conference to defray this financial burden through rentals of the Property to church groups and non-profit individuals and organizations whose camping and retreat purposes must be consistent with the ministry of the Conference, and the financial understanding that the Property has no continuing use within the mission of the California-Pacific Conference except as an important source of revenue to be generated by a sale,the proceeds of which will further the ministry of The United Methodist Church; N. WHEREAS the California-Pacific Conference engaged the services of a professional real estate brokerage firm to market and offer the Property for sale in November 2015, received inquiries from several prospective purchases including developers who wish to build housing on the Property in place of the current camp and tabernacle structures,has not entered into an agreement to sell the Property, has been advised by its real estate broker that the receipt of offers and the consummation of a sale have been impeded by the recent initiation by the City of Arroyo Grande (the"City")of the historic designation process described below,and has been further advised by its real estate broker that any historic designation of the Property by the City will substantially reduce the field of prospective purchasers and the Property's purchase price because the designation will impose new City limitations,constraints and discretionary approvals on the future use,development and maintenance of the Property; 0. WHEREAS the California-Pacific Conference learned in April 2016 that voice messages had been left by the City for the on-site camp director of the Property advising him that the Historical Resources Committee of the City of Arroyo Grande had scheduled hearings to consider designating the Property as a historical resource of the City; P. WHEREAS the Conference thereafter concluded that,because no advance written notice was published or provided to the California-Pacific Conference of public hearings held by the City's Historical Resources Committee on March 11 and April 15, 2016, at which the historical designation of the Property was discussed, the City of Arroyo Grande did not follow its own municipal code procedures in initiating the designation of the Property as a historic resource; Q. WHEREAS in response to the oral and written request of the California-Pacific Conference on May 3 and 4, 2016, the City has required its Historical Resources Committee to restart its proceedings to initiate consideration of designation of the Property as a historic resource, and formally notified the Conference in writing on June 3,2016 that the rescheduled consideration by the Historical Resources Committee will occur at a public hearing on June 10,2016; R. WHEREAS California Government Code section 37361 ("Section 37361") provides in subdivision(b)that the legislative body of a city"may provide for places,buildings,structures, works of art,and other objects,having a special character or special historical or aesthetic interest or value,special conditions or regulations for their protection,enhancement,perpetuation or use,which may include appropriate and reasonable control of the use or appearance of neighboring private property within public view, or both."; 994545.10 3 • S. WHEREAS subdivision(c) of Section 37361 provides: "Subdivision(b)shall not apply to noncommercial property owned by any association or corporation that is religiously affiliated and not organized for private profit,whether the corporation is organized as a religious corporation, or as a public benefit corporation,provided that both of the following occur: (1)The association or corporation objects to the application of the subdivision to its property. (2) The association or corporation determines in a public forum that it will suffer substantial hardship,which is likely to deprive the association or corporation of economic return on its property,the reasonable use of its property,or the appropriate use of its property in the furtherance of its religious mission,if the application is approved."; T. WHEREAS the California Supreme Court has confirmed that that the exemption provisions of Section 37361 "prohibit application of any local landmark preservation law to property owned by a religious entity that satisfies the statutory criteria through which the-owner may exempt its noncommercial property." East Bay Asian Local Development Corp.v.State of California(2000) 24 Ca1.4th 693, 102 Cal.Rptr.2d 280, 13 P.3d 1122; and U. WHEREAS,to satisfy the exemption criteria of Section 37361,the California-Pacific Conference must object to designation of the Property as a historic resource by the City of Arroyo Grande, and must determine in a public forum that, if designation by the City is approved, the Conference will suffer substantial hardship which is likely to deprive it of economic return on its Property,the reasonable use of its Property,or the appropriate use of its Property in the furtherance of the religious mission of the Conference. - NO W THEREFORE,BE IT RESOLVED that the California-Pacific Annual Conference of The United Methodist Church: 1. Objects to the City's application of its historic resource designation process to the Property and to designation of the Property as a historic resource of the City of Arroyo Grande. 2. Determines that, if the City continues its historic resource designation process or approves a historic resource designation,the Conference will suffer substantial hardship which is likely to deprive it of economic return on the Property and the reasonable and appropriate use of the Property as a source of revenue to be generated by the Property's sale, which revenue shall be applied to further the religious mission of the California-Pacific Conference and The United Methodist Church. 3. Determines that it is impractical or impossible for the Conference to devote the Property to the specific purpose for which it was contributed to the First United Methodist Church and in good faith concludes and hereby records in writing that the stated purpose for which the Property was contributed is no longer in accord with the policies or best interests of the Conference, thereby ratifying use of the Property for general purposes of the Conference rather than the specific purpose for which its was contributed. 4. Instructs its Chancellor to take all necessary and appropriate actions to ensure that this Resolution, including its contents and its determination regarding the Property, are stated in the public forum of the Historical Resources Committee hearing that the City of Arroyo Grande has 994545.10 4 calendared in this matter for June 10,2016, or at another near-term public forum provided by the City if the June 10,2016 hearing date is changed. 5. Directs its Chancellor to work cooperatively with the City of Arroyo Grande to donate the tabernacle structure to the City,without charge or payment to the Conference of any kind, subject to the obligation of the City and/or its designees to relocate the tabernacle structure by December 31,2016(or by such other reasonable date that will not deprive the Conference of sales revenue) from the Property to an off-site location of the City's choosing, so long as all costs, expenses and liabilities arising out of the effort to relocate the tabernacle are borne by the City and/or its designees,with appropriate insurance and indemnification agreements for the benefit and protection of the California-Pacific Conference. 6. BE IT FURTHER RESOLVED,that the Chancellor shall report back to the Board of Trustees as maybe necessary and appropriate regarding the Property and the matters that are the subject of this Resolution. • ., 42111/14 Archana Carey I Date Conference Treasurer 994545 10 5 CERTIFICATE OF SECRETARY The undersigned hereby certifies that he/she is the duly elected and qualified Secretary (Interim) of the California-Pacific Annual Conference of The United Methodist Church, a nonprofit religious corporation duly formed pursuant to the laws of the state of California, and that the foregoing is a true_record of a resolution duly adopted by the Board of Trustee of the California-Pacific Annual Conference of The United Methodist Church,in accordance with state law and the Bylaws of the above named Corporation, and that said resolution is now in full force and effect without modification or rescission. IN WITNESS WHEREOF,I have executed my name as Secretary (Interim)this 7 of June 2016. • aPNILI-L.-1' Rev.Dan Lewis Conference Secretary(Interim) 994545 10 6