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18-0821_THE ECOLOGY CENTER_License Agreement LICENSE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ECOCENTER, INC., DBA THE ECOLOGY CENTER FOR THE PROPERTY LOCATED AT 32681 ALIPAZ STREET, SAN JUAN CAPISTRANO PARTIES AND DATE This License Agreement ("Agreement") is entered into as of this 21 day of August, 2018 ("Effective Date") by and between the City of San Juan Capistrano, a California municipal corporation (the "City") and Ecocenter, Inc., dba The Ecology Center, a California nonprofit public benefit corporation (the "Licensee"). City and Licensee are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties." RECITALS A. Licensee is a nonprofit organization whose mission is to provide creative solutions for thriving on planet earth. Licensee believes everyone should have access to the tools, knowledge, and skills that promote healthy communities and an abundant future for all. B. City is the owner of a 28.225 acre farm located at 32681 Alipaz Street, San Juan Capistrano, California, which was acquired by the City to be maintained as open space. C. Licensee desires to conduct farming operations on approximately 27.475 acres of the property, with 0.50 acres set aside for City use. D. Licensee has farming expertise and experience and desires to manage the maintenance and operations of the agricultural activities on the property. TERMS NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Grant of License. 1 .1 . Scope. The City grants to Licensee a license to manage, maintain and operate a fruit and vegetable farm on 27.475 acres of the property located at 32681 Alipaz Street, San Juan Capistrano (herein after "Property") as described below: 1 .1.1. The Property subject to this Agreement is specifically depicted in the Site Plan attached hereto as Exhibit "A" and is incorporated hereby this reference. 1 .1 .2. The Joel Congdon House is not subject to this Agreement, but is subject to a separate license agreement between City and Licensee dated May 4, 2016. 1 1 .1 .3. All crops harvested on the Property during the term of this Agreement shall be the sole property of Licensee. 1 .1.4. City makes no warranty of the suitability of the Property for the growing of crops. 2. Term. This Agreement shall commence on //// , 2018 ("Commencement Date") and shall be effective for three (3) years ("Initial Term"), except as otherwise provided in this Agreement. This Agreement may be extended for two (2) additional one (1) year terms, upon the written request of the Licensee. Such notice of the extension shall be submitted to the City in writing no less than thirty (30) days before the expiration of the Term. 3. License Fees. 3.1. License Fees. In consideration of Licensee's nonprofit status and mission as well as the terms of this Agreement, the Licensee agrees to annually pay the license fees to City as follows: 3.1 .1. Twenty-five thousand ($25,000) dollars annually for the use of the Property for the Initial Term. 3.1 .2. Should Licensee exercise the additional one (1) year extension(s) pursuant to Section 2 of the Agreement, then the Licensee agrees to pay City the fee amount of thirty-five thousand ($35,000) dollars annually for the use of the Property for each extension year. 3.2. The initial payment of the annual License fee shall be due within five (5) working days of the Commencement Date. Each subsequent payment of the License fee shall be due annually on each anniversary of the Commencement Date. 4. Licensee obligations. 4.1 . Licensee shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. 4.2. Operation of Farm. Licensee shall be responsible for the supervision and management of every aspect of running a farming operation of produce for human consumption on the Property in a business-like manner. Supervision and maintenance obligations, shall be performed at no cost to the City, and include but are not limited to: 4.2.1. The employment, supervision and direction of all employees engaged in the farming operation. 4.2.2. Providing for the maintenance of all equipment and supervising its use in a safe and prudent manner. 7 4.2.3. Soil preparation, planting, fertilizing, irrigating, pesticide and herbicide applications, and the harvesting of all crops. 4.2.4. The marketing and sale of crops. 4.2.5. Maintenance of records and accounting for all revenues and expenditures, including employee payroll and related records. 4.2.6. Purchasing of all seeds, plants, fertilizers, herbicides, pesticides, and other materials and supplies, such as boxes and packaging materials, required for marketing and sale of the crops. 4.2.7. All operations shall be performed in a competent manner, consistent with the standards of the industry and in accordance with all applicable Federal, State and local regulations, including the City's Municipal Code. 4.2.8. Licensee shall farm the Property in a manner that protects the soil in accordance with sound agricultural practices commensurate with the custom and practice within Orange County, California. Should Licensee desire to implement any unique agricultural practices, the Licensee shall seek written approval from the City in advance of implementing the unique agricultural practices. 4.2.9. Licensee shall not plant or grow Cannabis otherwise known as Marijuana ("Marijuana"). 4.3. Maintenance of Property. Licensee shall be responsible for the management and maintenance of all on-site improvements, at no cost to the City. 4.3.1 . Temporary housing is subject to City's approval based on all applicable provisions of the City's Land Use Code. 4.3.2. Licensee agrees to accept the Property in its present condition as of the date of execution of this Agreement. Licensee may use the buildings and existing structures on the Property for Licensee's use in farming operations. 4.3.3. Licensee shall use reasonable care to control all weeds, noxious or otherwise, growing on the Property, including those growing in drainage ditches. 4.3.4. Licensee shall reasonably control all rodents, insects, and other pests on the Property. 4.3.5. Licensee shall keep fences, ditches and borders of the Property in good condition and repair. 3 4.3.6. Licensee shall maintain, at Licensee's expense, the Property, including all existing structures and all equipment owned and furnished by Licensee, in a reasonable state of repair and working order. 4.3.6.1. Licensee may plant fruit trees on the Property and shall be responsible for properly maintaining all trees including removal of all tree debris. 4.3.6.2. Licensee understands that the shrubs on the Premises block the wind, limit road dust, and reduce the amount of debris entering the Property. Licensee shall sufficiently maintain the shrubs in order to keep harmful elements away from the crops. 4.3.7. Licensee agrees that "The Letter Agreement Regarding Delinquent Water Bill for the Property located at 32681 Alipaz Street, San Juan Capistrano" ("Letter Agreement") datedbetween City and Licensee was a material inducement for ity entering into this Agreement with Licensee and, as such, any breach of the Letter Agreement shall be considered a breach of this Agreement. 4.4. Retail Stand. 4.4.1. The existing retail stand may be utilized by Licensee solely for retail sales of agricultural products. Related merchandise may be allowed however, sales shall be primarily agricultural products and City reserves the right to prohibit certain merchandise. 4.4.2. Licensee shall not sell Marijuana, Marijuana products or Marijuana accessories as those terms are defined in the San Juan Capistrano Municipal Code that may be amended from time to time. 4.4.3. Licensee is also permitted to allow members of the public to pick their own produce. Sufficient parking on site shall be provided for the retail stand. 4.4.4. Any expansion, regardless of size or scope, is prohibited under this Agreement unless Licensee obtains written approval of the City. 4.5. Improvements: Licensee shall receive written approval from City prior to making any improvements or alterations to the Property and/or facilities. If a permit is required the Licensee shall submit to the Development Services Department, in writing, any desired changes/improvements to the Property and/or facilities. It is the responsibility of Licensee to determine if a permit(s) is required. All required permits must be obtained prior to commencing any improvement work. 4 4.5.1. All improvements undertaken by Licensee shall be the sole financial responsibility of Licensee unless Licensee and City enter into a cost sharing agreement. 4.5.2. The total cost of all improvements shall not exceed ninety thousand dollars ($90,000) during the Initial Term of this License Agreement. 4.6. Domestic and Irrigation Water, Electrical, Gas, Telephone, Television/Cable/ Wireless Services. Licensee shall be solely responsible for any and all expenses related to any and all utilities, including but not limited to domestic and irrigation water, electrical, gas, telephone, television/cable/wireless services, for the Property. Property shall be repaired by Licensee if any damage is done to the Property due to the installation or removal of the utilities and services. 4.7. Access Road. The access road as shown in Exhibit "A" attached hereto and incorporated here shall be accessible for use by the representatives of the wireless phone company to gain access to the antenna site located on the sports park field adjacent to the Property. In addition, a gate and corresponding locks shall be added and maintained at no cost to City. 4.8. Licensee shall, at all times, keep City advised of the name, address, and telephone number of the person(s) responsible for the operation of the Property. 4.9. On or before the termination or expiration of this Agreement, the Licensee at their sole expense shall remove all of Licensee's personal property from the Property and shall surrender possession of the Property to the City in good order and repair, in substantially the same condition at the time of entry into this Agreement, to the satisfaction of the City. Licensee shall leave Property free and clear of all rubbish and debris. Licensee shall not remove any fruit trees or approved improvements at the termination of the Agreement. 5. Multi-Use Trail Project. Licensee shall cooperate with the City, and City shall involve Licensee, during the design, environmental review, and construction of a multi-use trail project (hereinafter "Trail") through the Kinoshita Farms site connecting the adjacent Vermeulen property, located north of Via Positiva, to the Joel Congdon House located in the southeast quadrant of the Kinoshita Farm property. Licensee shall not be liable for any costs associated with the Trail. Licensee hereby agrees that the City and the contractors of the Trail shall have access to the Property as necessary for the construction of the Trail. Upon completion of the Trail, Licensee hereby agrees that City and members of the public shall have access to the Trail. 6. Event Parking. Licensee shall provide, on-site vehicle parking for any event held at the Property that exceeds one hundred (100) participants. 5 7. Reservations to City 7.1. City reserves the right to enter the Property at any reasonable time for the purpose of inspection. Any rights herein reserved shall, moreover, not be exercised in any manner which will unreasonably interfere with Licensee's use and occupancy of the Property for the purposes stated in this Agreement. 7.2. City also reserves the right to enter the Property for purposes of maintenance, which may include the need for Licensee to vacate Property for a reasonable temporary period to be specified at that time, with provision of ninety (90) days' notice, except for repairs deemed to be for emergency/public safety reasons no notice shall be required. 7.3. Fourth of July Celebration. City shall have use and access to the Property at no cost to the City in order to host the fireworks celebration for the Community from the Property each July 4th on an annual basis throughout the term of this Agreement. This access shall include, but is not limited to, all set up, coordination, and take-down activities necessary for the annual fireworks display. City shall clean up and return the Property to its ordinary state at the conclusion of such event. 8. Indemnification. 8.1 . Indemnification of City by Licensee. The Licensee shall defend (with counsel approved by City), indemnify and hold the City, its officials, officers, employees, and agents (the "City Indemnified Parties") free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to acts, omissions, and/or operations by the Licensee, its officials, officers, personnel, employees, contractors, and/or subcontractors as well as its contractors' and/or subcontractors' officials, officers, employees, and agents. 8.2. Indemnification of Licensee by City. The City shall defend (with counsel approved by Licensee), indemnify and hold the Licensee, its officials, officers, employees, and agents (the "Licensee Indemnified Parties") free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to (i) the construction, operation, use, or maintenance of the Trail on the Property, (ii) any other acts, omissions, and/or operations on the Property by the City (including, but not limited to, any activities conducted pursuant to Section 7) by City's officials, officers, personnel, employees, contractors, and/or subcontractors as well as its contractors' and/or subcontractors' officials, officers, employees, and agents. 8.3. The Parties' obligations under this Section 8 (Indemnification) shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, regardless of whether or not the City has prepared, 6 supplied, or approved any plans or for the uses allowed by this Agreement, and regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. 8.4. The City's Rights. The City does not and shall not waive any rights against the Licensee that the City may have under the indemnification provision in this Section 8 (Indemnification) because of the City's acceptance of any security deposits or insurance policies. 8.5. Survival. The indemnification provision in this Section 8 (Indemnification) shall survive the termination or expiration of this Agreement. 9. Insurance 9.1. On or before beginning any of the services or work called for by any term of this Agreement, Licensee, at its own cost and expense, shall carry, maintain for the duration of the Agreement, and provide proof thereof that is acceptable to City, the insurance specified below with insurers and under forms of insurance satisfactory in all respects to the City. Insurance required herein shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A-Class VII or better. 9.1 .1 . Throughout the term of this Agreement, Licensee at Licensee's sole cost and expense, shall maintain in full force and effect the following insurance against liabilities arising out of Licensee's activities on the Property: 9.1 .1 .1 . Comprehensive General Liability coverage in an amount not less than two million dollars ($2,000,000), per occurrence combined single limit coverage, and three million dollars ($3,000,000) aggregate; 9.1 .1.2. Worker's Compensation in an amount not less than one million ($1 ,000,000) per accident and to include a Waiver of Subrogation; 9.1 .1.3. Automobile Insurance covering all owned, non-owned and hired vehicles with a limit of one million dollars ($1 ,000,000) each accident for bodily injury and property damage; and, 9.1 .1.4. The insurance coverage required herein shall be primary insurance as respects the City, its officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officials, employees, or volunteers shall be in excess of the insurance required herein and shall not contribute with it; and 7 9.1 .1.5. The City, its officials, employees, and volunteers are to be covered as additional insureds, and the coverage shall contain no special limitations on the scope of the protection afforded to the City, its officials, employees, or volunteers. 9.1.2. Proof of Insurance Requirements/Endorsement: Licensee shall submit the insurance certificates, including the deductible or self- retention amount, and an additional insured endorsement naming City, its officers, employees, agents, and volunteers as additional insured as respects each of the following: liability arising out of activities performed by or on behalf of Licensee, including the insured's general supervision of Licensee; products and completed operations of Licensee; or premises owned, occupied or used by Licensee. The coverage shall contain no special limitations on the scope of protection afforded City, its officers, employees, agents, or volunteers. 9.1.3. Notice of Cancellation/Termination of Insurance: The above policy/policies shall not terminate, nor shall they be canceled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 9.2. Copy of Policy and Endorsements. The Licensee shall provide the City with a copy of the policy, including an endorsement that states that the policy will not be cancelled except after ten (10) days' notice in writing to the City. 10. Termination. This Agreement may be terminated upon the default of one of the Parties if such default is not cured within ninety (90) days following written notice of such default from non-defaulting Party. In the event of a dispute between the Parties, City and Licensee shall meet and confer regarding the matter. If the dispute cannot be resolved through a meet and confer session, then the Agreement may be terminated by the non-defaulting Party 10.1 . In the event Licensee files for bankruptcy or is found to be in a state of insolvency, then City shall have the right to terminate this Agreement and all further rights and obligations thereunder by ten (10) days' written notice to Licensee. Upon the expiration of the ten (10) days' notice this Agreement shall automatically terminate. 11 . Possessory Interest Tax Notice. Licensee hereby recognizes and understands that this Agreement may create a possessory interest subject to property taxation, and that Licensee may be subject to the payment of property taxes levied on such interest. Any such imposition of a possessory interest tax shall be a tax liability of Licensee solely, notwithstanding any provision of this Agreement to the contrary. Licensee shall promptly notify City of any possessory interest tax imposed against Licensee's interest in the License Area, and shall provide City with a copy of any bill or assessment imposing the possessory interest tax. 8 Licensee shall remit to the taxing agency the amount of the possessory interest tax imposed against Licensee, and shall notify City in writing of the payment. Licensee acknowledges that City, in accordance with California Revenue and Taxation Code Section 107.6, has given notice to Licensee that Licensee may be subject to property taxation, and that Licensee may be subject to the payment of property taxes levied on the possessory interest created by this Agreement and license. Licensee shall be fully responsible for the payment of all possessory interest taxes levied and/or assessed during the term of this Agreement regarding the license. 12. Attorneys' 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 attorneys' fees, costs, and expenses incurred in the action or proceeding by the prevailing Party. 13. Governing Law and Venue. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County. 14. Waiver. The City's failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or the City's waiver of any breach hereunder, shall not relieve the Licensee of any of its obligations hereunder, whether of the same or similar type. The foregoing shall be true whether the City's actions are intentional or unintentional. Further, the Licensee agrees to waive as a defense, counterclaim, or setoff any and all defects, irregularities, or deficiencies in the authorization, execution, or performance of this Agreement as well as any laws, rules, regulations, ordinances, or resolutions of the City with regard to this Agreement. 15. Supplement, Modification, and Amendment. No supplement, modification, and/or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 16. Assignment or Transfer. 16.1 . No Assignment without the City's Consent. The Licensee shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of the City. Any attempt to do so shall be null and void, and any assignee, hypothecatee, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer. Unless specifically stated to the contrary in the City's written consent, any assignment, hypothecation, or transfer shall not release or discharge the Licensee from any duty or responsibility under this Agreement. 16.2. Merger. The transfer of a majority of the ownership interests in the Licensee, however accomplished, and whether in a single transaction or in a series of related or unrelated transactions, or the merger of the Licensee into any other entity in which the Licensee is not the surviving entity, or the 9 sale of all or substantially all of the Licensee's assets, shall be deemed an assignment of the Licensee's rights hereunder subject to the requirements of Section 16.1 (No Assignment without the City's Consent). 17. No Relocation Benefits. This Agreement is not intended to convey a property interest but to permit the Licensee to use the property as provided for herein. The Licensee acknowledges the rights granted by State and/or Federal Relocation Assistance Laws and regulations and, notwithstanding any other provision of this Agreement, expressly waives all such present and future rights, if any, to which the Licensee might otherwise be entitled from the City with regard to this Agreement and the business operated on the property. The Licensee shall not be entitled to relocation assistance, relocation benefits, or compensation for loss of goodwill upon the termination of this Agreement. 18. Construction, References, and Captions. 18.1. Simple Construction. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. 18.2. Section Headings. Section headings contained in this Agreement are for convenience only and shall not have an effect in the construction or interpretation of any provision. 18.3. Calendar Days. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. 18.4. References to the City. All references to the City shall include, but shall not be limited to, City Council, City Manager, City Attorney, City Engineer, or any of their authorized representatives. The City shall have the sole and absolute discretion to determine which public body, public official or public employee may act on behalf of the City for any particular purpose. 18.5. References to the Licensee. All references to the Licensee shall include all officials, officers, personnel, employees, agents, contractors, and subcontractors of Licensee, except as otherwise specified in this Agreement 19. Relationship Between the Parties. The Parties hereby mutually agree that neither this Agreement, nor any other related entitlement, permit, or approval issued by the City for the Property shall operate to create the relationship of partnership, joint venture, or agency between the City and the Licensee. The Licensees' contractors and subcontractors are exclusively and solely under the control and dominion of the Licensee. Nothing herein shall be deemed to make the Licensee or its contractors or subcontractors an agent or contractor of the City. 20. Notices. All notices to be given hereunder shall be in writing and may be made either by personal delivery or by registered or certified mail, postage prepaid, return receipt requested. Mailed notices shall be addressed to the parties at the I0 addresses listed below, but each Party may change the address by written notice in accordance with this Section 20 (Notices). Notices delivered personally will be deemed communicated as of actual receipt; mailed notices will be deemed communicated as of two (2) days after mailing. To City: To Licensee: City of San Juan Capistrano Evan Marks, Executive Director 32400 Paseo Adelanto The Ecology Center San Juan Capistrano, CA 92675 32701 Alipaz Street Attn: City Manager San Juan Capistrano, CA 92675 21 . Entire Agreement and Severability. 21.1 . Entire Agreement. This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements, either written or oral, express or implied. 21 .2. Severability. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. 22. Binding Effect. 22.1 . The Parties. Each and all of the terms and conditions of this Agreement shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. 22.2. Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 22.3. Not Authorization to Assign. This Section 22 (Binding Effect) shall not be construed as an authorization for any Party to assign any right or obligation under this agreement other than as provided in Section 16 (Assignment or Transfer). Signatures on next page. 11 SIGNATURE PAGE TO LICENSE AGREEMENT LICENSE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND ECOCENTER, INC., DBA THE ECOLOGY CENTER FOR THE PROPERTY LOCATED AT 32681 ALIPAZ STREET, SAN JUAN CAPISTRANO In witness thereof, the Parties here to have executed this Agreement City of San Juan Capistrano Ecocenter, Inc. A California municipal corporation By. C - By. AMIG EVAN MARKS, ity Mana er Executive Director ATTEST' M C MO" r , City Clerk APPROVED AS TO FORM: By: JEF A gER City Attorney 12 EXHIBIT "A" SITE PLAN J. r Sports Pari( 1 , • 111Mnr— / • ___ _.. . . .. .. c. _._ , , :, .. • I 4 � . I Access Road y Kinoshita FarmN 27.475 Acres A . if , . t as. if. y ', ... lb,. °/ ? - .. Ecology Center P:- ,. 75 Acre l :6*, ',4,;" (Congdon House) f i - itf ',k � M y r` r .W !fir } a « 4 Vi'l. r z • r - fdlillOt Air widla • A-1