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; Continuing Life Communities LLC; 2013-0003377; Easement
RECORDING REQUESTED BY Chicago Title Company AND WHEN RECORDED MAIL TO: City of Caiisbad /'^OO Qftrl&lxid }l,lllLt^ S, Carisbad, CA 92008 {1^ P DOCtt 2013-0003377 illllllllllllllllllliilil JAN 03, 2013 8:00 AM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr., COUNTY RECORDER FEES: 0.00 OC: NA PAGES: 881 26 WITH CONFORMED COPY TO: Continuing Life Communities, LLC 1940 Levante Street Carlsbad, CA 92009 and Center for Natural Lands Management 27258 Via Industria, Suite B Temecula, CA 92590 ^i3>MS3Di5z <^^/ Space Above Line for Recorder's Use Only CONSERVATION EASEMENT DEED La Costa Glen Upland Preserve DOCUMENTARY TRANSFER TAX $ THIS CONSERVATI^N^EASEMENT DEED ("Conservation Easement") is made as of tiie ^^'^ dav of .ijL^Jr 2012, by Continuing Life Communities, LLC, a California limited liability com^ny (199716210004) ("Grantor" or "Continuing Life Communities"), in favor of City of Carlsbad, a municipal corporation of the State of California ("Grantee"), with reference to the following facts: RECITALS A. Grantor is the sole owner in fee simple of certain real property containing approximately 104.05 acres, located in the City ofCarlsbad ("City"), County of San Diego ("County"), State of California ("State"), and designated as Assessor's Parcel Number ("APN") 255-012-21-00, ("La Costa Glen Upland Preserve" or "Preserve"). The Preserve is legally described in Exhibit A and depicted in Exhibit B attached to this Conservation Easement and incorporated in it by this reference. The Preserve is located with in the coastal zone as that term is defined at California Public Resources Code Section 30103. B. The Preserve possesses wildlife and habitat values of great importance to Grantor, Grantee, the people ofthe State of Califomia and the people ofthe United States. The Preserve will provide high quality natural, restored, and enhanced habitat for federally-listed coastal California gnatcatcher (Polioptila californica californica) and CONSERVATION EASEMENT Page 1 of 22 882 other listed sensitive species, collectively, these wildlife and habitat values comprise the "Conservation Values" ofthe Preserve. C. The California Department of Fish and Game ("CDFG") has jurisdiction over the conservation, protection, and management offish, wildlife, native plants and the habitat necessary for biologically sustainable populations of these species pursuant to California Fish and Game Code Section 1802. CDFG is authorized to hold easements for these purposes pursuant to California Civil Code Section 815.3, Fish and Game Code Section 1348, and other provisions of California law. D. The United States Fish and Wildlife Service (the "USFWS"), an agency within the United States Department ofthe Interior, has jurisdiction over the conservation, protection, restoration and management offish, wildlife, native plants, and the habitat necessary for biologically sustainable populations of these species within the United State pursuant to the federal Endangered Species Act, 16 U.S.C. Section 1531, etseq., the Fish and Wildlife Coordination Act, 16 U.S.C. Sections 661-666c, the Fish and Wildlife Act of 1956, 16 U.S.C. Section 742(f), et seq., and other provisions of federal law. E. The California Coastal Commission ("Commission") has jurisdiction under the California Coastal Act of 1976 to regulate the use of land and water in the coastal zone. F. Grantor and Grantee acknowledge that CDFG, USFWS, and CCC are each a Third-Party Beneficiary ("Third-Party Beneficiary") of this Conservation Easement with the right of access to the Preserve and the right to enforce all of the obligations of Grantor including, but not limited to. Grantor's obligations under Section 7, and all other rights and remedies ofthe Grantee under this Conservation Easement. G. Ttie Center for Natural Lands Management ("Center") is a tax-exempt nonprofit organization qualified under section 501(c) (3) ofthe Internal Revenue Code of 1986, as amended, and qualified to do business in California, which has as its primary and principal purpose and activity the protection and preservation of natural lands or resources in its natural, scenic, agricultural, forested, or open space condition or use. H. Grantee is authorized to hold this conservation easement pursuant to California Civil Code Section 815.3. I. The Preserve is being conserved in accordance with the City's November 2004 final Habitat Management Plan ("HMP") to protect "listed species" under the federal Endangered Species Act ("ESA") and sensitive plant and wildlife species that are covered under the 2003 County's North County Multiple Habitat Conservation Program ("MHCP") in concurrence with USFWS and CDFG. J. The City has zoned the Preserve as open space. CONSERVATION EASEMENT Page 2 of 22 883 K. Commission issued Grantor Coastal Development Permit No. 6-96-18 ("Permit") on May 7, 1996 conditioned, in part, upon Grantor recording an open space deed restriction over certain property including the Preserve ("Open Space Deed Restriction"). The Open Space Deed Restriction was recorded February 27, 1998 in the County of San Diego as document number 1998-0105198. L. Management and monitoring of the Preserve shall be conducted pursuant to the "(Final Draft) Open Space Land Management Plan for the La Costa Glen Uplands" ("Management Plan") dated July 18, 2008. The Management Plan is intended to function as an adaptive habitat management plan, one which may be revised from time revised from time to time with City approval and which is incorporated herein by reference. M. Grantor hereby informs Grantee that Grantor intends to convey the fee title to the Preserve to Center immediately following the recording of this Conservation Easement and that Center will assume Grantor's duties hereunder. Continuing Life Communities and its successors in interest will retain certain future fuel modification obligations, if any. COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and pursuant to the laws of the United States and the State of California, including California Civil Code Section 815, etseq., Grantor hereby voluntarily grants and conveys to Grantee a conservation easement ("Conservation Easement") in perpetuity over the Preserve. 1. Purposes. (a) The purposes of this Conservation Easement ("Purposes") are to ensure that the Preserve will be retained and managed forever in its natural, restored, or enhanced condition and to prevent any use of the Preserve that will impair or interfere with the Conservation Values ofthe Preserve. Grantor intends that this Conservation Easement will confine the use of the Preserve to activities that are consistent with such Purposes, including, without limitation, those involving the preservation, restoration and enhancement of native species and their habitats implemented in accordance with the Management Plan. (b) Grantor certifies to Grantee that the Open Space Deed Restriction does not conflict with this Conservation Easement. (c) The natural condition of the Preserve existing at the time this Conservation Easement is executed is evidenced in part by the depiction of the Preserve, generally showing all relevant and plottable property lines, easements, dedications, improvements, boundaries and major, distinct natural features. Grantor has CONSERVATION EASEMENT Page 3 of 22 884 delivered further evidence ofthe present natural condition to Grantee and City consisting of (1) a color aerial photograph(s) ofthe Preserve at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (2) an overlay of the boundaries of the Preserve on such aerial photograph(s); and (3) on-site color photographs showing the major, distinct natural features ofthe Preserve. 2. Prohibited Uses. Any activity on or use of the Preserve that is inconsistent with the purposes of this Conservation Easement is prohibited. Without limiting the generality of the foregoing, the following uses and activities are expressly prohibited: (a) Supplemental or unseasonable watering except for habitat maintenance, restoration, and enhancement activities; (b) Use of fertilizers, pesticides, or other agricultural chemicals; weed abatement activities; incompatible fire protection activities; and any and all other activities and uses which may impair or interfere with the purposes of this Conservation Easement, except for as specifically provided in the Management Plan and/or required to maintain the native resources on the site; (c) Agricultural activity of any kind, except grazing for vegetation management by Grantee as specifically provided in the Management Plan; (d) Recreational activities, including, but not limited to, hiking, horseback riding, biking, or hunting or fishing except as specifically provided for in the Management Plan; (e) Commercial, industrial, residential, or institutional uses; (f) Any legal or de facto division, subdivision or partitioning of the Preserve; (g) Construction, reconstruction, erecting or placement of any building, billboard or sign, or any other structure or improvement of any kind except as specifically provided in the Management Plan; (h) Depositing or accumulation of soil, trash, ashes, refuse, waste, bio- solids or any other materials; (i) Planting, introduction or dispersal of non-native or exotic plant or animal species; G) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extracting minerals, loam, soil, sand, gravel, rock or other material on or below the surface of the Preserve, or granting or authorizing surface CONSERVATION EASEMENT Page 4 of 22 885 entry for any of these purposes; (k) Altering the surface or general topography of the Preserve, including but not limited to any alterations to habitat, building roads or trails, paving or OthenA/ise covering the Preserve with concrete, asphalt or any other impervious material except for those habitat management activities specified in the Management Plan; (I) Removing, destroying, or cutting of trees, shrubs or other vegetation, except as required by law or as provided in the Management Plan for (1) fire breaks or (2) prevention or treatment of disease; (m) Manipulating, impounding or altering any natural water course, body of water or water circulation on the Preserve, and any activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub-surface waters except as specifically provided in the Management Plan; (n) Without the prior written consent of Grantee, which Grantee may withhold, transferring, encumbering, selling, leasing, or otherwise separating the mineral, air or water rights for the Preserve; (o) Engaging in any use or activity that may violate, or may fail to comply with, relevant federal, state, or local laws, regulations, or policies applicable to Grantor, the Preserve, or the use or activity in question; and (p) Any activity or use prohibited by the Open Space Deed Restriction. 3. Access. This Conservation Easement does not convey a general right of access to the public. The Conservation Easement will allow for access to the Preserve for Grantee and its designees and third-party easement holders of record at the time this Conservation Easement is recorded at locations designated in easements and reservations of rights in the chain of title to the Preserve. This Conservation Easement will allow for the Preserve to be available for approved scientific investigations. 4. Grantee's Rights. To accomplish the purposes of this Conservation Easement, Grantor hereby grants and conveys the following rights to Grantee and the Third-Party Beneficiaries (a) To preserve and protect the Conservation Values of the Preserve. (b) To enter the Preserve at reasonable times (which entry may be made by Grantee or its designees), in order to (1) monitor the condition ofthe Preserve and to enforce the terms of this Conservation Easement, and (2) conduct scientific CONSERVATION EASEMENT Page 5 of 22 886 research and for interpretive purposes provided, however, that Grantee shall not unreasonably interfere with Grantor's exercise of the rights retained by Grantor hereunder. (c) To prevent any activity on or use of the Preserve that is inconsistent with the Purposes of this Conservation Easement and to require the restoration of such areas or features of the Preserve that may be damaged by any act, failure to act, or any use or activity that is inconsistent with the purposes of this Conservation Easement. (d) All mineral, air and water rights necessary to protect and sustain the biological resources of the Preserve, provided that any exercise or sale of such rights by Grantee shall not result in conflict with such Conservation Values. (e) All present and future development rights are hereby terminated and extinguished, and may not be used on or transferred to any portion of the Preserve, nor any other property adjacent or othenA/ise, except as to future easements not inconsistent with the purposes of this Conservation Easement, appurtenant to, allocated, implied, reserved or inherent in the Preserve. (f) The right to enforce by means, including, without limitation, injunctive relief, the terms and conditions of this Conservation Easement. 5. Grantee's Duties. To accomplish the Purposes of this Conservation Easement as described In Section 1, Grantee shall: (a) Not reduce the Conservation Values of the Preserve by performing any activity contrary to the Purposes of this Conservation Easement; and (b) Perform routine compliance inspections of the Preserve to the extent it determines that staff and funding are available. Grantee has no responsibilities or obligations relating to creation, restoration, or enhancement within the Preserve required by any mitigation requirement. 6. Reserved Riahts. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from Grantor's ownership ofthe Preserve, including the following: CONSERVATION EASEMENT Page 6 of 22 887 (a) The right to engage in or permit or invite others to engage in all uses of the Preserve that are not prohibited or limited by, and are consistent with the Purpose of this Conservation Easement; (b) The right to grant easements for a public purpose and necessary for the public health, safety, and welfare, so long as such easements are consistent with the Purpose of this Conservation Easement; (c) The right to perform restoration and management activities which are necessary to maintain the Preserve and protect Its Conservation Values; (d) The right to plant and maintain native trees, shrubs, and other native landscaping elements so long as consistent with the Purpose of this Conservation Easement; and (e) The right to install and maintain fences which are necessary to maintain the Preserve and protect its Conservation Values. 7. Grantor's Duties. To ensure that the Purposes of this Conservation Easement as described in Section 1 are being accomplished, Grantor or its successors and assigns shall: (a) Preserve and retain the Preserve for its Conservation Values; (b) Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the Conservation Values of the Preserve or that are othenA/ise inconsistent with this Conservation Easement; (c) Undertake all necessary actions to perfect and defend Grantee's rights under Section 4 of this Conservation Easement, and to observe and carry out the obligations of Grantor under the Management Plan; (d) Repair and restore damage to the Preserve directly or indirectly caused by Grantor, Grantor's guests, representatives, employees or agents, and third parties within Grantor's reasonable control; (e) Establish an endowment to be held in trust solely for the purposes of preserving the Conservation Values of the Preserve under this Conservation Easement in perpetuity ("Endowment"); and include the following principles of fiduciary duty in the endowment fund agreement: (1) The endowment holder shall have a fiduciary duty to hold the endowment funds in trust for the Preserve. CONSERVATION EASEMENT Page 7 of 22 888 (2) The endowment holder shall not commingle the endowment funds with other funds. Funds may be pooled for investment management purposes only. (3) The endowment holder shall have a duty of loyalty and shall not use the endowment funds for its own personal benefit. (4) The endowment holder shall act as a prudent investor of the endowment funds. (5) The endowment holder shall not delegate the responsibility for managing the funds to a third party, but may delegate authority to invest the funds with Grantor's oversight. The endowment holder shall act with prudence when delegating authority and in the selection of agents. (6) The endowment holder shall have an annual audit of the endowment performed by a licensed CPA, and shall submit the auditor's written report to the Grantee upon completion. (f) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement conducted by Grantor, and any such activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders, or other requirements; (g) Grantor reserves the right for creation, restoration and enhancement activities within the areas identified in and pursuant to the July 18, 2008 "(Final Draft) Open Space Land Management Plan for the La Costa Glen Uplands," a copy of which has been provided to Grantee; (h) During the conduct of required mitigation restoration activities, remove plant species listed as problematic, pest, and/or invasive by the California Native Plants Society (CNPS), California Exotic Pest Plant Council, California Invasive Plants Council, or State; and (i) Fuel modification is the sole responsibility of Continuing Life Communities and its successors in interest. Should fuel modification within the Preserve become necessary. Continuing Life Communities shall maintain all fuel modification areas. Continuing Life Communities or its successor and assigns shall promptiy undertake to implement such obligations, including obtaining necessary permits from the City and any other governmental agencies with jurisdiction over the proposed activities, scheduling and performing the work, and paying for the work. If such additional modifications are ordered and/or permitted. Continuing Life Communities shall cooperate with Center in scheduling and carrying out its work so as not to impair the Conservation Values or unreasonably interfere with Center's management of the Preserve. CONSERVATION EASEMENT Page 8 of 22 889 8. Enforcement. (a) Notice of Violation. If Grantee determines that Grantor is in violation of the terms of this Conservation Easement or that a violation is threatened. Grantee may demand the cure of such violation. In such a case. Grantee shall issue a written notice to Grantor (hereinafter "notice of violation") informing the Grantor of the actual or threatened violations and demanding cure of such violations. (b) Time to Cure. Grantor shall cure the noticed violation within fifteen (15) days of receipt of said written notice from Grantee. If said cure reasonably requires more than fifteen (15) days. Grantor shall begin cure within the fifteen (15) day period and work diligentiy to complete such cure. If Grantor disputes the notice of violation, it shall issue a written notice of such dispute (hereinafter "notice of dispute") to the appropriate agency within fifteen (15) days of receipt of written notice of violation. If Grantor fails to cure the violation within thirty (30) days after receipt of a Notice of Violation, or ifthe cure reasonably requires more than thirty (30) days to complete and Grantor fails to begin the cure within the thirty (30)-day period or fails to continue diligentiy to complete the cure. Grantee may bring an action at law or in equity in a court of competent jurisdiction for any or all of the following: to recover any damages to which Grantee may be entitied for violation of the terms of this Conservation Easement or for any injury to the Conservation Values of the Preserve; to enjoin the violation, ex parte as necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of othenA/ise available legal remedies; to pursue any other legal or equitable relief, including but not limited to, the restoration of the Preserve to the condition in which it existed prior to any violation or injury; or to otherwise enforce this Conservation Easement. Without limiting the liability of Grantor, Grantee may apply any damages recovered to the cost of undertaking any corrective action on the Preserve. (c) Failure to Cure. If Grantor fails to cure the noticed violation(s) within the time period(s) described in Section 8(b) above, or Section 8(d)(2) below. Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor with the terms of this Conservation Easement. In such action, the Grantee may: (1) Recover any damages to which Grantee may be entitied for violation by Grantor ofthe terms of this Conservation Easement subject to the limitations in Section 8(g) and Section 8(1) below . Grantee shall first apply any such damages to recovered to the cost of taking corrective action on the Preserve. (2) Enjoin the violation, ex parte if necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. CONSERVATION EASEMENT Page 9 of 22 890 (3) Obtain other equitable relief, including, but not limited to, the restoration of the Preserve to the condition in which it existed prior to any such violation or injury. If Grantee, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate injury to the Conservation Values of the Preserve, Grantee may pursue its remedies under this Conservation Easement without prior notice to Grantor or without waiting for the period provided for cure to expire. Grantee's rights under this section apply equally to actual or threatened violations of this Conservation Easement. Grantor agrees that Grantee's remedies at law for any violation of this Conservation Easement are inadequate and that Grantee shall be entitied to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitied, including specific performance of this Conservation Easement, without the necessity of proving either actual damages or the inadequacy of othenA/ise available legal remedies. Grantee's remedies described in this section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including but not limited to the remedies set forth in California Civil Code Section 815, ef seq. The failure of Grantee to discover a violation or to take immediate legal action shall not bar Grantee from taking such action at a later time. (d) Notice of Dispute. If Grantor provides Grantee, with a notice of dispute, as provided herein. Grantee shall meet and confer with Grantor at a mutually agreeable place and time, not to exceed thirty (30) days from the date that Grantee receives the notice of dispute. Grantee shall consider all relevant information concerning the disputed violation provided by Grantor and shall determine whether a violation has in fact occurred and, if so, whether the notice of violation and demand for cure issued by Grantee are appropriate in light ofthe violation. (1) Grantee agrees to consider the following principles in making a determination: a. Management activities shall be chosen for their long- term benefits to the Property's Conservation Values rather than for short-term benefits; b. Management activities that benefit habitat protection shall be chosen in favor of management activities designed to benefit individual species, except where State or federally listed species are at issue; c. Habitat maintenance is of primary importance in protecting the long-term Conservation Values of the Property; d. Management activities shall be chosen according to the following order of preference: CONSERVATION EASEMENT Page 10 of 22 891 i. Preventative actions shall be taken to avoid additional impact; ii. Natural restoration shall be used if appropriate, based on the magnitude of the impact, the impacts on listed or sensitive species, and the estimated time for recovery to occur; iii. Active restoration shall be required only where there are severe, long-term impacts to the Property's Conservation Values, or where highly sensitive species are impacted; e. If, and for so long as. Grantor is a non-profit entity organized for conservation purposes. Grantee shall consider the cost of management activities and the resources available to Grantor or its successor. (2) If, after reviewing Grantor's notice of dispute, conferring with Grantor, and considering all relevant information related to the violation. Grantee determines that a violation has occurred. Grantee shall give Grantor notice of such determination in writing. Upon receipt of such determination. Grantor shall have fifteen (15) days to cure the violation. If said cure reasonably requires more than fifteen (15) days. Grantor shall begin cure within the fifteen (15) day period and work diligentiy to complete such cure. (e) Immediate Action. If Grantee determines that circumstances require immediate action to prevent or mitigate significant damage to the Conservation Values ofthe Preserve, Grantee may immediately pursue all available remedies, including injunctive relief, available pursuant to both this Conservation Easement and state and federal law after giving Grantor at least twenty four (24) hours written notice before pursuing such remedies. So long as such twenty four (24) hour notice is given. Grantee may immediately pursue all available remedies without waiting for the expiration ofthe time periods provided for cure or notice of dispute as described above. The written notice pursuant to this paragraph may be transmitted to Grantor by facsimile and shall be copied to all other parties listed in Section 15 of this Conservation Easement. The rights of Grantee under this paragraph apply equally to actual or threatened violations of the terms of this Conservation Easement. Grantor agrees that the remedies at law for Grantee for any violation of the terms of this Conservation Easement are inadequate and that Grantee shall be entitied to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitied, including specific performance ofthe terms of this Conservation Easement, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. The remedies described in this section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including but not limited to, the remedies set forth in Civil Code §815, et seq., inclusive. CONSERVATION EASEMENT Page 11 of 22 892 (f) Center Violation. Following the valid transfer of the underlying fee titie interest in the Preserve from Grantor to Center (as described in Recital M, above), if a court of competent jurisdiction determines that Center, as subsequent Grantor, has violated any terms of this Conservation Easement: (1) Liability for damages shall be limited to acts or omissions covered by the Insurance Policy Described in Section 9 below to the coverage limits of the policy, except as described in Section 8(f)(3) below; (2) Endowment funds set aside for the management of the Preserve shall not be used to pay any damages; (3) If a violation arises from an intentional act of Center, it shall be liable for the full extent of damages resulting from the violation; even if beyond the limits of an insurance policy; (4) In lieu of monetary damages. Grantee may agree to accept fee titie to and management responsibility of the Preserve, or direct fee titie and management responsibility to a willing third party, which shall be a public agency or non-profit concerned with conservation and otherwise eligible to hold Conservation Easements under Civil Code Section 815.3. (5) This Section shall only be applicable to Center and shall not be interpreted to apply to any ofthe Center's successors or assigns. (g) Costs of Enforcement. All costs incurred by Grantee, where Grantee is the prevailing party, in enforcing the terms of this Conservation Easement against Grantor, including, but not limited to. Grantee staff time (as calculated at the then current external billing rates) and expenses, costs of suit and attorneys' and experts' fees, and any costs of restoration necessitated by negligence or breach of this Conservation Easement, shall be borne by Grantor. (h) Grantee's Enforcement Discretion. Enforcement of the terms of this Conservation Easement by Grantee shall be at the discretion of Grantee. Any forbearance by Grantee to exercise its rights under this Conservation Easement in the event of any breach of any term of this Conservation Easement shall not be deemed or construed to be a waiver of such term or of any subsequent breach of the same or any other term of this Conservation Easement or of any rights of Grantee under this Conservation Easement. No delay or omission by Grantee in the exercise of any right or remedy shall impair such right or remedy or be construed as a waiver. CONSERVATION EASEMENT Page 12 of 22 893 (i) Acts Bevond Grantor's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Grantor or make any claim on Grantor's insurance policy for any injury to or change in the Preserve resulting from (i) any natural cause beyond Grantor's control, including, without limitation, fire not caused by Grantor, flood, storm, and earth movement; or (ii) any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Preserve resulting from such causes; or (iii) acts by Grantee or its employees, directors, officers, agents, contractors, or representatives; or (iv) acts of third parties (including any governmental agencies) that are beyond Grantor's, its successors' or assigns' control, except to the extent Grantor is obligated to repair and restore the Preserve and so long as Grantor takes reasonable steps to prevent prohibited uses of the Preserve. G) Enforcement: Standino. All rights and remedies conveyed to Grantee under this Conservation Easement shall extend to and are enforceable by the Third-Party Beneficiaries (as defined in Recital F). These enforcement rights are in addition to and do not limit the rights of enforcement under the Management Plan. If at any time in the future Grantor uses, allows the use, or threatens to use or allow use of, the Preserve for any purpose that is inconsistent with or in violation of this Conservation Easement, then despite the provisions of California Civil Code Section 815.7, the California Attorney General and the Third-Party Beneficiaries each has standing as an interested party in any proceeding affecting this Conservation Easement. 9. Insurance. Upon the valid transfer ofthe underlying fee interest in the Preserve from Grantor to the Center (as described in Recital M, above), the Center shall establish and maintain a policy of Commercial General Liability Insurance, in a form reasonably approve by Grantee , with a minimum coverage of Two Million ($2,000,000.00) per incident. The insurance shall be for the legal liability arising out of bodily injury and tangible property damage, including tangible property damage to the Conservation Easement. This policy shall include an endorsement naming Grantee as an additional insured, which policy shall provide primary coverage for Grantee in the event of any claims naming Grantee that is covered by the policy. The policy shall be the source of payment for any liability claims against the Center under this Conservation Easement paid after judgment or settlement, covered by the policy. 10. Costs and Liabilities. Grantor or its successors and assigns retain all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance ofthe Preserve. Grantor agrees that Grantee shall not have any duty or CONSERVATION EASEMENT Page 13 of 22 894 responsibility for the operation, upkeep or maintenance ofthe Preserve, the monitoring of hazardous conditions on it, or the protection of Grantor, the public or any third parties from risks relating to conditions on the Preserve. Grantor remains solely responsible for obtaining any applicable governmental permits and approvals required for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable agency statutes, ordinances, rules, regulations, orders, and requirements. (a) Taxes: No Liens. Grantor or subsequent transferees shall pay before delinquency all taxes, assessments (general and special), fees, and charges of whatever description levied on or assessed against the Preserve by competent authority (collectively "Taxes"), including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee with satisfactory evidence of payment upon request. Grantor shall keep the Grantee's interest in the Preserve free from any liens. (b) Hold Harmless. Grantor shall hold harmless, protect and indemnify Grantee and its officers and employees (each a "Grantee Indemnified Party" and collectively, "Grantee's Indemnified Parties") from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation reasonable attorneys' fees and experts' fees), causes of action, claims, demands, orders, liens or judgments (each a "Claim" and, collectively, "Claims"), arising from or in any way connected with: (i) injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Preserve, regardless of cause, except that this indemnification shall be inapplicable to any Claim due solely to the negligence of Grantee or any of its employees; (ii) the obligations specified in Sections 7 and 10(a); and (iii) the existence or administration of this Conservation Easement If any action or proceeding is brought against any ofthe Grantee's Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee, defend such action or proceeding by counsel reasonably acceptable to the Grantee's Indemnified Party. 11. Warranty. Grantor represents and warrants that (1) there are no monetary liens or conservation easements, except the Open Space Deed Restriction, senior in priority to this Conservation Easement, and (2) the Preserve is not subject to any encumbrances other than those of record. Upon recording of this Conservation Easement, Grantor will obtain titie insurance policies on the Preserve in an amount equal to the fair market value of the Preserve for Grantee. Grantor represents and warrants that is the sole owner of the Preserve. Grantor also represents and warrants that there are no outstanding mortgages, liens, encumbrances or other interests in the Preserve (including, without limitation, mineral interests) which may confiict or are inconsistent with this Conservation Easement. CONSERVATION EASEMENT Page 14 of 22 895 12. Additional Interests. Grantor shall not grant any additional easements, rights of way or other interests in the Preserve (other than a security interest that is expressly subordinated to this Conservation Easement), nor shall Grantor grant, transfer, abandon or relinquish (each a "Transfer") any mineral, air, or water right or any water associated with the Preserve, without first obtaining the written consent of Grantee. Such consent may be withheld if Grantee determines that the proposed interest or Transfer is inconsistent with the purposes of this Conservation Easement or will impair or interfere with the Conservation Values ofthe Preserve. This Section 12 shall not limit the provisions of Section 4(d) or Section 2(n), nor prohibit transfer of a fee or leasehold interest in the Preserve that is subject to this Conservation Easement and complies with Section 14 Grantor shall provide a copy of any recorded or unrecorded grant or Transfer document to the Grantee and Signatory Agencies. 13. No Hazardous Materials Liabilitv. (a) Grantor represents and warrants that it has no knowledge or notice of any Hazardous Materials (defined below) or underground storage tanks existing, generated, treated, stored, used, released, disposed of, deposited or abandoned in, on, under, or from the Preserve, or transported to or from or affecting the Preserve. (b) Without limiting the obligations of Grantor under Section 10(b), Grantor hereby releases and agrees to indemnify, protect and hold harmless the Grantee's Indemnified Parties (defined in Section 10(b)) from and against any and all Claims (defined in Section 10(b)) arising from or connected with any Hazardous Materials or underground storage tanks present, alleged to be present, released in, from or about, or othenA^ise associated with the Preserve at any time, except any Hazardous Matenals placed, disposed or released by Grantee or any of its employees. This release and indemnification includes, without limitation. Claims for (A) injury to or death of any person or physical damage to any property; and (B) the violation or alleged violation of, or other failure to comply with, any Environmental Laws (defined below). If any action or proceeding is brought against any ofthe Grantee's Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from the applicable Grantee Indemnified Party, defend such action or proceeding by counsel reasonably acceptable to the Grantee Indemnified Party. (c) Despite any contrary provision of this Conservation Easement, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee ofthe following: (1) The obligations or liability of an "owner" or "operator," as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601, ef see/.; hereinafter, "CERCLA"); or CONSERVATION EASEMENT Page 15 of 22 896 (2) The obligations or liabilities of a person described in 42 U.S.C. § 9607(a)(3) or (4); or (3) The obligations of a responsible person under any applicable Environmental Laws; or (4) The right to investigate and remediate any Hazardous Materials associated with the Preserve; or (5) Any control over Grantor's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Preserve. (d) The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by-products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials deflned in CERCLA, the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901, ef seq.; hereinafter, "RCRA"); the Hazardous Materials Transportation Act (49 U.S.C. §5101, ef seq.; hereinafter, "HTA"); the Hazardous Waste Control Law (California Health & Safety Code § 25100, etseq.; hereinafter, "HCL"); the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health & Safety Code § 25300, ef seq.; hereinafter "HSA"), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable Environmental Laws now in effect or enacted after the date of this Conservation Easement. (e) The term "Environmental Laws" includes, without limitation, CERCLA, RCRA, HTA, HCL, HSA, and any other federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Grantor represents, warrants and covenants to Grantee that activities upon and use of the Preserve by Grantor, its agents, employees, invitees and contractors will comply with all Environmental Laws. 14. Transfer of Conservation Easement or Preserve. (a) Conservation Easement. This Conservation Easement may be assigned or transferred by Grantee upon written approval of the Grantor, which approval shall not be unreasonably withheld or delayed, but Grantee shall give Grantor and the Third-Party Beneficiaries at least sixty (60) days prior written notice of the proposed assignment or transfer. Grantee may assign or transfer its rights under this Conservation Easement only to an entity or organization: (i) authorized to acquire and hold conservation easements pursuant to California Civil Code Section 815.3 (and any successor or other provision(s) then applicable), or the laws ofthe United States; and (ii) othenA/ise CONSERVATION EASEMENT Page 16 of 22 reasonably acceptable to the Grantor. Grantee shall require the assignee to record the assignment in the county where the Preserve is located. The failure of Grantee to perform any act provided in this section shall not impair the validity of this Conservation Easement or limit its enforcement in any way. Any transfer under this section is subiect to the requirements of Section 14. (b) Preserve. Grantor and Grantee acknowledge that it is the intention of Grantor to transfer fee titie to the Preserve to Center immediately following the execution and recording of this Conservation Easement. Grantor agrees to incorporate the terms of this Conservation Easement by reference in any deed or other legal instrument by which Grantor divests Itself of any interest in all or any portion of the Preserve, including, without limitation a leasehold interest. Grantor agrees that the deed or other legal instrument shall also incorporate by reference the Management Plan, and any amendment(s). With regard to transfers of any interest in the Preserve subsequent to fee titie transfer to Center Grantor further agrees to give written notice to Grantee of the intent to transfer any interest at least sixty (60) days prior to the date of such transfer. Grantee shall have the nght to prevent any transfers in which prospective subsequent claimants or transferees are not given notice ofthe terms, covenants, conditions and restrictions of this Conservation Easement (including the exhibits and documents incorporated by reference in it). The failure of Grantor to perform any act provided in this section shall not impair the validity of this Conservation Easement or limit its enforceability in any way. Any transfer under this section is subject to the requirements of Section 14. 15. Notices. ^ "°*'^®' request, consent, approval, or other communication that Grantor or Grantee desires or is required to give to the other shall be in writing with a copy to each of the Signatory Agencies, and served personally or sent by recognized overnight couner that guarantees next-day delivery or by first class United States mail postage fully prepaid, addressed as follows: To Grantor: Continuing Life Communities, LLC 1940 Levante Street Carlsbad, CA 92009 To Grantee: City Clerk's Office City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 CONSERVATION EASEMENT Page 17 of 22 897 898 To Center: Center for Natural Lands Management 27258 Via Industria, Suite B Temecula, CA 92590 To CDFG: California Department of Fish and Game 1416 9*^ Street Sacramento, CA 95814 To USFWS: U.S. Department ofthe Interior U.S. Fish and Wildlife Service Carlsbad Fish and Wildlife Office 6010 Hidden Valley Road Carlsbad, CA 92009 To CCC: California Coastal Commission San Diego Coast District Office 7575 Metropolitan Drive Ste. 103 San Diego, CA 92108-4402 or to such other address a party or a Signatory Agency shall designate by written notice to Grantor, Grantee and the Signatory Agencies. Notice shall be deemed effective upon delivery in the case of personal delivery or delivery by overnight courier or, in the case of delivery by first class mail, three (3) days after deposit into the United States mail. 16. Amendment This Conservation Easement may be amended only by mutual written agreement of Grantor and Grantee. Any such amendment shall be consistent with the purposes of this Conservation Easement and California law governing conservation easements, and shall not affect its perpetual duration. Any such amendment shall be recorded in the official records ofthe county of San Diego., and Grantee shall promptiy provide a conformed copy of the recorded amendment to the Grantor and the Third- Party Beneficiaries 17. Recording. Grantee shall record this Conservation Easement in the Official Records of the County in which the Preserve is located, and may re-record it at any time as Grantee deems necessary to preserve its rights in this Conservation Easement. 18. Successors. The covenants, terms, conditions, and restrictions of this Conservation Easement shall be binding upon, and inure to the benefit of, the parties and their respective personal representatives, heirs, successors, and assigns, and shall CONSERVATION EASEMENT Page 18 of 22 899 constitute a servitude running in perpetuity with the Preserve. The covenants hereunder benefiting Grantee shall also benefit the Third-Party Beneficiaries. 19. No Forfeiture. Nothing contained in this Conservation Easement will result in a forfeiture or reversion of Grantor's title in any respect. 20. Termination of Rights and Obligations. A party's rights and obligations under this Conservation Easement terminate upon transfer of the party's interest in the Conservation Easement or Preserve (respectively), except that liability for acts, omissions or breaches occurring prior to transfer shall survive transfer. 21. Controlling Law. The laws of the State of California and the laws of the United States shall govern the interpretation and performance of this Conservation Easement. Any subsequent amendment or repeal of state law or order that authorizes this Conservation Easement shall not affect the rights conveyed to the Grantee or its successors or assigns. 22. Liberal Construction. Any general rule of construction to the contrary, this Conservation Easement shall be liberally construed in favor of the grant to effect the purposes of this Conservation Easement and the policy and purpose of California Civil Code Section 815, ef seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. 23. Interpretation in Favor of This Conservation Easement In the event a confiict in interpretation may arise between the Open Area Deed Restriction and this Conservation Easement, this Conservation Easement shall be controlling. 24. Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement, such action shall not affect the remainder of this Conservation Easement. If a court of competent jurisdiction voids or invalidates the application of any provision of this Conservation Easement to a person or circumstance. CONSERVATION EASEMENT Page 19 of 22 such action shall not affect the application of the provision to any other persons or 9 0 0 circumstances. 25. 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 its construction or interpretation. 26. Counterparts. The parties may execute this instrument in two counterparts, which shall, in the aggregate, be signed by Grantor and Grantee; each counterpart shall be deemed an original instrument as against any party who signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. 27. Entire Agreement. This document (including its Exhibits and the Management Plan incorporated by reference in this document) sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements of the parties relating to the Conservation Easement. No alteration or variation of this Conservation Easement shall be valid or binding unless contained in an amendment in accordance with Section 16. IN WITNESS WHEREOF Grantor has executed this Conservation Easement Deed the day and year first above written. SIGNATURES ON FOLLOWING PAGES CONSERVATION EASEMENT Page 20 of 22 GRANTOR: CONTINUING LIFE COMMUNITIES, LLC Q Q ]^ By: E. Justj^n Wilson PrincipaT Date STATE OF CALIFORNIA County of SQA^Dltf^n On M: '^J<^ , 2012, before me, j^f\\^OiV{ f J [fiO^fYYi i/^/^GY) . a notary public in and for said State, personally appeared _ , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ..^..m^.,^^^^.^^^^ Notarv Public ^ 1>SG^ San Diego County \ ^ (Seal) i^^'*r^"^?fVyr?y,^y^J ANN MARIE INGMANSON Commission # 1820832 I California 1 CONSERVATION EASEMENT Page 21 of 22 GRANTEE: City of Carlsbad, 902 A California Municipal Corporation By. Matt'Hall Title /nMjj^ APPROVED AS TO FORM: RONALD R BALL, City Attorney By Title Assistant Citv Attorney CONSERVATION EASEMENT Page 22 of 22 CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT 903 State of Catifomia County of On ^ X-^llQ-before me. personally appeared Ika^ 11 1 J (Here inseijjiame and title of the ofQc^r) who proved to me on the basis of satisfactory evidence to be the person(s) whose name('s) is/trre* subscribed to the within instrument and acknowledged to me that he/che/theyuexecuted the same in his/hef/th©ir authorized capacity(res), and that by his/her/their eignaturefs) on the instrument the person('S*), or the entity upon behalf of which the person(^ acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Notary Seal) MORGEN FRY ^ Commissior\ # 1918442 | Notary Public - California z San Diego County Mv Comm Expires Dec 24.20141 ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) r gib. (\|g,K. 11 pf AM Ee^oAfl^ (Title or description of attached document continued) Number of Pages Document Date dditional information) CAPACITY CLAIMED BY THE SIGNER • Individual (s) • Corporate Officer (Title) • Partner(s) • Attorney-in-Fact • Trustee(s) • Other INSTRUCTIONS FOR COMPLETING THIS FORM Any ackno-wledgment completed in California must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of California. In such instances, any alternative aclmoyvledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in Califomia (i.e. certifying the authorized capacity of the signer). Please check the document carefully for proper notarial wording and attach this form if required. • State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment, • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public), • Print the name(s) of document signer(s) who personally appear at the time of notarization, • Indicate the correct singular or plural forms by crossing off incorrect forms (i,e, he/she/they^- is /are) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording, • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form, • Signature ofthe notary public must match the signature on file with the office of the county clerk, • Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document, • Indicate title or type of attached document, number of pages and date, • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i e, CEO, CFO, Secretary), • Securely attach this document to the signed document 2008 Version CAPA v 12 10,07 800-873-9865 www,NotaryClasses.com September 8, 2 009 JN 021039-03 Page 1 of 1 904 EXHIBIT "A" LEGAL DESCRIPTION PARCEL 1 OF P.M. 20705 M.S. 09-02 PARCEL 1 OF CITY OF CARLSBAD MINOR SUBDIVISION NO. 09-02, LA COSTA GLEN LOT 10 OF MAP 13997, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO PARCEL MAP THEREOF NO. 20705, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, SEPTEMBER 4, 2009 AS FILE NO. 2009-0498702. AREA = 4,533,149 S.F. OR 104.07 ACRES MORE OR LESS. O:\LegalJDe.scripticMis\021039\lot 10-Parcell .Igl.doc 905 l:\021039\0239PLOS01.dwg Sep 08, 2009 9:52am Xrefs: 0239gmap 906 CERTIFICATION FOR ACCEPTANCE DEED OF CONSERVATION EASEMENT This is to certify that the interest in real property conveyed by the Deed of a Conservation Easement dated August 28. 2012 from Continuing Life Communities LLC, a Caiifornia limited liabilitv company to the City of Carlsbad, California, a municipal corporation, is hereby accepted by the City Council of the City of Carlsbad, California, at the regular meeting_held August 28, 2012, by the adoption of Resolution No. 2012- 198 and the grantee consents to the recordation thereof by its duly authorized officer. DATED: August 29. 2012 SHERRY FREISING '//, X ,v\> nior Deputy Clerk