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HomeMy WebLinkAboutReso 10-1987RESOLUTION 10-87 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE oF CALIFORNIA A RESOLUTION AUTHORIZING A SETTLEMENT AGREEI BETWEEN CONAGRA, INC., THE STATE LANDS COMM AND THE CITY OF SOUTH SAN FRANCISCO lENT SSION, WHEREAS, ConAgra, Inc. owns an approximately 8.4 acye site situated adjacent to San Bruno Canal (old Armour plant site); and WHEREAS, the State Lands Commission asserts a publi~ trust claim in the property because at one time the State believes this area to have been part of the tidelands; and WHEREAS, under legislation enacted in 1925 the City of South San Francisco is the grantee of all salt marsh, tide and submerged lands within the boundar- ies of the City, and holds such lands subject to the trJst rights; and WHEREAS, the State Lands Commission and ConAgra, In~. have indicated the dispute can be settled, in lieu of quiet title litigation, for the sum of $250,000; and WHEREAS, the City as grantee is a necessary party to the settlement; and WHEREAS, such a settlement is statutorily exempt from CEQA pursuant to Public Resources Code Section 21080.11; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that it hereby authorizes the Mayor to sign t~e settlement agreement, attached as Exhibit "A".,~ BE IT FURTHER RESOLVED that it authorizes the Mayor, City Manager and City Attorney, as appropriate, to execute all necessary documents including a quit- claim deed on behalf of the City to effectuate settlement of the disputed title. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 28th day of January , 19 87 by the following vote: AYES: Councilmembers John "Jack" Drago, Richard A. Haffey, Gus Nicolopulos, and Roberta Cerri Teglia NOES: None ABSENT: Councilmember Mark N. Addiego City Clerk -2- EXHIBIT A TO RESOLUTION NO. 10-87 DRAFT COMPROMISE TITLE SETTLEMENT AGREEMENT The parties to this Compromise Settlement Agreement are the State of California, acting by and through the State Lands Commission ("State"), the City of South San Francisco ("City"), and ConAgra, In~., a Delaware Corporation ("Cm~Agra"). RECITALS A. This Agreement concerns a parcel o-' real property in the '~~ ~¥° , State of California, referred to throuohout _ this Agreement, for convenience, as the Settlement Parcel. This parcel~:~- described in Exhibit A and is Shown for reference purposes only on Exhibit B. Both Exhibits A and B are attached to this Agreement and are incorporated herein ~y this reference. B. Upon its admission to the United S~ates of America on September 9, 1850,. the State, by virtue o{ its sovereignty, received in trust for the purposes of commerce, navigation, and Z~sheries,,~ ali -ight,, title, and interest ~n~ previously ungranted tidelands and submerged lands within its boundaries. ~. Pursuant tv the provisions -f~ Division 6 of the Public Resources Code, including Sections 6216 and 6501, the State Lands Commission is vested with all jurisdiction and authority as to all right, ~, ~ ~ ~: and ~nterest in ~:~:~ands and submerged lands held by ~,,e State in trust for the benefit o{ all the people of the State. DRAFT D. By Chapter 545 of the Statutes of ~91=~, as amended by Chapter 56 of the Statutes of 1925 ("Granting Statutes"), the Legislature granted to the City ali right, title, and interest o~ the State in and to all the salt marsh, tidelands, and submerged lands within the City, in trust for harbor E. ConAgra is the current interest in, the Settlement Parcel, dated , and recorded purposes, ~ubject to of, or has an in that deed certain terms, conditions, and reservations, i record Owner as described in Book .... of the Official Records of the County of San ~ateo. , at page .... The State contends that the Settlement Pmrcel, in whole or in part, at ~_.,_ time of the admission of the State -~'~, California into the Union, and in its thereafter, lay waterford of the mean high traversed by sloughs of San Francisco Bay. natural condition ~.de? line, and was The State further contends that, as lands of the legal character of tidelands and submerged lands, the Settlement Parcel is s~b]ect to a public trust ownership, consisting of a fee or an easement, or both, for water-related commerce, navigation, fisheries, other recognized public trust pur~Sses. recreation, ~nd Settlement Parcel has been filled and re~_laimed and removed from ~k ~'k~ ~,,~ ~u~,~c channel. ~,,_ Settie~ent Parcel is no longer available or useful or reasonably susceptible of use or - t, ~ ~ purposes. rmquired z-r publi ~:'s~ DRAFT H. City, There is a bona fide dispute betwemn the State, the and ConAgra as to the existence, extent, nature and location of their respective rights, titles, a~d interests in the Settlement Parcel. I. A resolution of the parties' rights, titles, and interests in the Settlement Parcel would require costly, protracted, and vigorously disputed litiga--ion with uncertain results if the controversy could not be resolved by settlement. J. The parties hereto consider it expedient and necessary and in the best interests of the State, the City, the public, and ConAgra to resolve this title dispute by compromise settlement, thereby avoiding the anticipated substantial costs, requirements, and uncertaintY-_ o~ litigation ~i,,~ interest of settlement, the State, the City, and ConAgra bare conducted independent studies and evaluations of the ~itie evidence, ....... aw and -_he mmrits of the State's, City's, and ConAgra's legal positions. A land appraisal and study completed by the State has shown fha-- tke value of the claimed State sovereign interests les th ~ s an or equal ~ $250,000. '" L. The State is authorized by Resources Code, including Section interests in real property held by in the Settlement Parcel is Division 6 -~ the Publi- 6307 ~ to exchange the State' by reason cf its sovereignty for its interests in other lands of equal or greater 3 DRAFT value. The Granting Statutes do not empower tae City to alienate to private parties any interest in the granted lands. M. Sections 8600 through 8655 of the Public Resources Code authorize the State Lands Commission to conduct land exchanges pursuant to Section 6507 acceptance of money to be of the Public ReSources Code by the deposited into t~e Land Bank Fund created by Section 8610 of the Public Resources Code, and further designate the State Lands Commission ss trustee of the Land Bank Fund, with exclusive jurisdiction and authorit~ to administer the fund and the interests in real property acquired pursuant to these st N. The parties heret~ reached an agreement f~r the claims in the Settlement have, after l~ngthy negotiations, resolution ofi their conflicting Parcel. In general, this Agreement provides that: 1. The City will quitclaim to th~e~ State all of the ~,e City in the Settlement right, title and interest of ~ Parcel which =^isis by virtue of the Gr.a.~ting Statutes 2. The State will quitclaim tc !'~on~gra ail right, titIe and interest of the State ir, ~,, Settlement Parcel, .including the interest described in subp.~ragraph i, abo,~?. 3. The quitclain described in subparagraph ~ above is intended t: terminate any State sovereign interest, including, but not limited to the pubiic itrust for commerce, navigation., and f;sheries, in the Settlement Parcel. DRAFT 4. ConAgra will deposit the sum o~ $250,000 into the Land Bank Fund created by Public Resources Code Section 8610 for the purposes specified therein. 5. The State will accept the monCes to be deposited with the Land Bank Fund in order to purchase other lands useful for trust purposes, which lan~s will be held as sovereign lands subjert to the publi~ tru?t. City will make its best efforts to identify, and Statei will make its best e~forts for a period of three years to ,cquire, such lands within the :~ity. in consideration of ~ ~,,e foregoing recitai~ and the following conveyances and terms, the parties hereby agre!e as follows: .... ~ s ..... tclaim ed State of ~nt-~e ...... sinq from Grantin0 Statutes. City hereby agrees to remise, release ~id forever quitclaim ~ ~ existin~ by virtue to State -:l of its right, title, and i~teres_i of the Granting Statutes (Stats. 1913, Ch. .... ~, as amended) in the Settlement Parc~! described in Exhibit A. 2. State#s Quitclaim of Intarmsts in tb~ Settlement Parcel to CcnAqra. Stats agrees to r~mise, release, and ¥1grever quitclaim to ConAgra. al~ ~z the State's right, t~e, and iinterest existing by ORAFT virtue of its sovereignty, interest held by the State as commerce, navigation, and including, but not limited to, any trustee of the public trust for fisheries, anid including those interests quitclaimed to be the State by the City pursuant to Paragraph 1, above, in the Settlement Parcel ~escribed in Exhibit AB 5. . ConAqra's Contribution Fund. ConAgra agrees to contribute ~O,OOo to the Land Band $250,000 (Two hundred fifty thousand dollar~~ and no cents) to the Land Bank Fund by Public Resources Code Section 8610 any and ail State sovereign -~-~ Settlement Parcel. ~ 4. State Lands Commission Findin0s. The State Lands Commission, by .its authorizatim,~- of the execution of this Agreement: a. Finds and declares, upon recordation of this as fulil compensation for ~, or znterest in the approval and Agreement, that the filled, and reclaimed, and any public channels, is · susceptible of being used Settlement ~=,~_--_~i has been i motored ,. has thereb-, been excluded from not avai!aOle or useful or n~t for naviqatiCn_ . and fisheri_r~?= .~;_ in fact tidelands and submerged lands, and is Yree from the -"~ e " ~ for . ; .... ic _r~s~ commerce, navigation and fisheries; b. Finds and d~ciares that this Agreement ~-.= in the interests of the State for: 6 DRAFT (1) shoreline ~or the improvement upland; and The improvement of navigation; The enhancement of the configuration of the of ~=~,,_ water and the (5) The protection, preservation, and enhancement of the tidelands and submerged lands and public access thereto pursuant to the public trust. c Finds and declares ~ -~ · ~h~ the conveyances made pursuant to this Agreement will not substantially interfere with ~ = -~hts of fishing --' ,, ~h-_, . ~,,~ navigation ~- San Francisco Bay or~ts tributary channel~-~, d. Finds and declares that the value ~f sovereign interests in the o~lement Parcel is less ~ - ~ ..... a~, or equal to . ~inds that dispute and is Environmental ~ual ity S~ction 2iC~o,~ ~ I this Agreement is in settlement of a therefore Act pursuant to Public Resources Code land~ within the City ~;hich may =._en._ wi~h the public ~r~=~ and . n of Exchanqe Lands in Acquisltio ~:~y shall in ~ood ~aith make its ........ ~fforts to id=n be acquired z~,.n- purposes_ the ~ - ~ . ~nt~n~ ~ the Kapiloff ' -~n~ ~ Bank Act, O,'b~-~ ~ ~ Rescurc~s C~de Sections 8600 et seq., and State shall ~n ~ood ~aith ---~-' _ ......... e its bes~ efforts consistent with ..... to acquire such 'ands 7 acceptable to the City and the DRAFT State with the $250,000' contributed to the Land Bank Fund pursuant to this Agreement, and shall not oppose legislation to amend the Granting Statutes to grant to City any exchange lands in the City acquired pursuant to this Agreement, provided,, that should a parcel suitable for such acquisition not be purchased within three years of the effective date of this Agreement, the State shall not be bound to use its best efforts to expend the $250,000 for acquisition within the City. 6. Acceptance of Recording. By their execution of agree to accept the herein Conveyances and C=nsent to this Agreement, the parties hereto described conveyances of land and ~n the recording of this Agreement, and money, and hereby consent ~ other documents ~xecuted pursuant to this Agreement, pursuant to Paragraph 20, below. 7. Judicial Confirmation of Judqment ~ - ' =~i conveyances necessary to At such time ds this Agreement, =~ accomplish this Agreement, a cashier's check in the amount of $250,000, and written approval title to the Settlement Parcel as commitment, ha~e been Paragraph 19, below? settlement by ConAgr.2 ~f the condition of shown in a pro forma title deposited into escrow as provide~ in the parties hereto will submit the embodied in this Agreement to a court of competent jurisdiction to confirm the validity of said settlmment Judgment. 8 by Court DRAFT 8. Further Assurances. So long as authorized by parties hereto will perform acknowledge and~=~-~iver all instruments, .... t parties all of the r~spective i~terests, estates, rmmedies, c=nveyed or provided F~- by thi~ consent to the entry of all appropriate to e~¥ectuate this Judgment described herein may ............ upon entry cf said ~"~ ...... ~ 9. Acpeai~ ~. Each party hereby ~;aives any right 10. Al 1 documents applicable laws to do so, the such other acts, and execute, further conveyances and other may be necessary to fully assure to the other properties, powers and Agreement. rights, titles, p-ivile~e , g $ to be The parties hereto orders and ]udoments necessary or Agreement and stipulate that the be made ~uily effective and final to appeal from sai~ Execution o= ~ ~,_, Pub ' ' · .*_for_ a ..... ~ar], l~c. ~ of the parti.=-~= ~ .... ~=- ggreement an~=~11 signatures mxecuted pursuant to this ~,~reement shal acknowl _~d.ged be.~or~ a N~tary Public ar.: a acknow!~dgment shall be attached to the ~x~cut~d ~gr~em~nt and other documents to allow them t~ be recorded in the Office Recorder of the Cot~nty o~ San Mat~o~ California. 11. Count~rpart~. This Agr~emmnt may bm ~xeczrt~d in any number of counterDarts and ~ach mx~c~ted c~unterpart shall hav~ the ~ame fcrc~ and be DRAFT effect as an original aggregate counterparts signature page of this and as if all of the parties to the had signed the same instrument. Any Agreement may be detached by the Escrow Agent established pursuant to Paragraph 19, below, from any counterpart of this Agreement without impairing any signatures thereon, and may be attached to another counterpart of this Agreement i~_n~i_al in form hereto but having attached to it one or more additional -~gnature=, pages, for the purpose of creating an integrated document for recording. .,. Aqreem~nt f ~ Compromise and Settlement. It is expressly understood by the parties hereto thmt the provisions set forth in this Agreement have been agreed upon for purposes of compromi~.ng and settling the respective disputed interests ~-~ fbe parties ~,, the Settlement Parcel 13. No Admi~_i=q o,~, or Effect if Aqreement Not Made Effective. ~-~_~, the event this. Agreement does no~.. become effective, nothing herein shai~ .... ~"~ - ~ ~_~=~,_,~_, or be construed .~s, an admiss~on by any party hereto or evidence concerning the boundaries, physical character, or character Settlement Parcml. · 14. No Effect on Other lands. of title -_~ cr interest in the The provisions of this Agreement do not constitute, nor are they to be construed as, in admission by any party or evidmnce concerning the boundaries, physical charmcter, or character of title to or interest in any lands outside the Settlement Parcel. DRAFT 15. Aqreement Bindinq on Weirs, Assiqns. Et Cetera. Ail the terms, provisions, and conditions of this Agreement shall be binding upon and inure to the benefit of the respective heirs, administrators, executors, successors, and assigns of the parties. !6. Modification. No modification, amendment, or alteration of this Agreement shall be valid unless in writing and signed by all of the parties to this Agreement. 17. No Ef~'~u-~ on Other Government Jurisdi~_~ion. This Agreement has no effect whatsoever -- ~ ...... e regulatory, environmental or other jurisdiction of any federal, state, local, or other government entity not a party to this Agreement. 18. Headinqs. The title headings of the sections of this Agreement ~-_ inserted for convenience construing this Agreement. 19. Escrows. only and a. The parties have agreed ~=,~tIe insurance company) shall q~t be considered in an ~scrow wi th Agent"). Joint ~scrow instructions will be submitted by the parties. (I) City sha~l deposit into escrow: (a) Certified 11 the foll~wing documents copies of duly enacted DRAFT resolutions of its City Council showing the City's approval of this authorization that it forth in Paragraph 1, City's behalf; and Agreement and the City's and the Quitclaim as set above, be executed on the (b) This Agreement, duly mhd properly executed by the City; and (c) A quitclaim by the City to the State, as set forth in Paragraph 1, above, duly and propmriy m~scuted on behalf of the City. (2) State =ha~ i~.~-~,,~.~ e~crow: (a)_ A ~mrti~ied copy Stats Lands C~mmission public Commission's approval of thi following documents a minute item of a hearing showing the Agreement and the Commission's authorization tha~it and the quitclaim as set Zorth in Paragraph above be executed on t,~= State s behai*: and (b) This Agremment, "~uiy executed by the State; and and p~operlv (c) A patent qui~r'=, the ~_~ a. iming . Parcel to forth ,..., ~ n ~,,..j, ~, in Paragraph above, duly and properly mxecuted by State. (3) ConAgra shall depr~si~ the follo~ging document~ DRAFT Board of Agreement and ConAgra's behalf Directors of ConAgra, approving this authorizing its execution on and the contribution of $250,000 to the Land Bank Fund as set forth in Paragraph 5, ab ore; Cb) This Agreement, duly and properly executed by ConAgra, and '.c) A cashier = check for $250,000 payable t~ the State Lands Commission - Kapiloff Land Bank Fund. (d> condi ti o~,. Written approval by ConAgra of the of ~ _men~ Parcel .... e to the Settl= ~ sho~n in a pro forma titi=- commitment. 20. Close of Escro~ and Recordation Upon entry of Judgment by the Cour:~, receipt of all documents and funds dmscribed in Paragraph 19, above, and the written approval by ConAgra of the condition of title to the Settlement Parcel as shown ~n~ a pro z~rma,~ title commitment, Escrow Agent -~i=,~.~ notify the parties of its intention to cios~ escrow .... to record thS s Agremmmnt and any r~Iated ' "--~-~ ~ shall =~ ~-~- s~ .~ c~rtain for 8:00 a.m., ~r as early as c~ose of escrow, Escrow Agent shall record this such recordation and cl~sing. At Dossibl=_ ~-~., the date chosen for thm Agreement in the Offic9 of the ~' ~' ..~un~y Recorder for the 13 Ccunty of San Mateo, DRAFT California. Escrow Agent shall then release the $250,000 check to the State Lands Commission. 21. Purpose to Perfect Title. The Settlement Parcel will be quitclaimed by the State to ConAgra pursuant to this Agreement solely for the purpose of perfecting title to said disputed land and, accordingly, for tax assessment purposes, said quitclaim does not involve a change in ownership pursuant to Section 62(b) of the California Revenue and Taxation Code. 2~ Ai~~ of Costs and Expenses The expenses and fees of escrow incurred by Escrow Agent, ' ~,l= Agreement and including those associated with recordation of ~'- other documents necessary to effectuate this Agreement, shall be borne by ConAgra. Ail attorney, engineer or other party hereto i- connection other fees, costs and expenses of any person employed or retained by a with the transac it~on underlying this Agreement shall be borne by that party· ~ Effective Date. This Agreement shall become effective Judgment confirming this Agreement and only upon e.gtry of recordation of th'-i= Agreement, the documents executed pursuant £o this Agreement~,~and a certified copy of said Judgment. To become effective, ~,,is Agreement must be recorded by July 1, 1-987. [' 'T I1 14 DRAFT To witness this Agreement, a duly authorized officer of each party has executed it below on the date opposite each signature. DATED: STATE OF CALIFORNIA STATE LANDS COMMISSION By: Claire T. Dedrick Executive Officer DATED: By: Approved -- ~- ' ~ K. VAN DE KAMP Attorney General Stat~ ~z Californ~- By: Dennis M. Eagan Deputy Attorney General DATED: CITY OF SOUTH SAN FRANCISCO Approved as to form: VALERIE City Attorney 15 [ 'T II