00-1027_BATHGATE RANCH AND PELTZER FARMS_License AgreementLICENSE AGREEMENT
This License Agreement is entered into thisA101 day of &-to Ger 2000,
by and between the City of San Juan Capistrano (hereinafter "City"), and Bathgate Ranch
and Peltzer Farms (hereinafter "Licensee").
RECITALS:
WHEREAS, City is the owner of approximately 3.28 acres of property located in the
City of San Juan Capistrano, which property was acquired to be maintained as open space
within the City; and
WHEREAS, Licensee desires to use a portion of the property to establish and
maintain a Christmas tree farm;
NOW, THEREFORE, City and Licensee hereby mutually agree as follows:
Section 1. Scope of License. City hereby grants to Licensee a license to
establish and maintain a Christmas tree farm on that certain property located in the City
of San Juan Capistrano, California, as depicted on the site plan attached hereto as Exhibit
"A" and incorporated herein by reference (the "Property"). Licensee agrees to immediately
remove all existing diseased Monterey pine trees and, each year during the term of this
Agreement, replant at least one quarter (1/4) of the Property with new pine trees. Licensee
agrees to pay all operational costs, including water usage, for Christmas tree farm
purposes.
Section 2. Additional Uses. Licensee shall be permitted to grow strawberries,
pumpkins, squash and other vegetables and conduct vendor fruitstand activities on the
Property. However, the installation and site plan layout of the fruitstand shall first be
subject to written approval by the City. In addition, should Licensee desire to import
Christmas trees for sale on the Property during the Christmas season, such importation
and sale shall be subject to written approval by City.
Section 3. Compensation. Licensee shall keep all proceeds from the sale of
Christmas trees and produce grown on the Property. In exchange for use of the Property,
Licensee shall pay the City six percent (6%) of two-thirds (2/3) of the total annual gross
sales derived from the Christmas tree farm. This payment shall be made in January of
each year in the form of a check made payable to the City. Licensee shall make available
all financial records of the Christmas tree farm operation to the City if requested for
purposes of conducting an audit to ensure compliance with this Section. Records shall be
presented to City Auditors within ten (10) business days.
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Section 4. Term. The term of this Agreement shall be effective for five (5) years
from the date of execution of the Agreement.
Section 5. Default. In the event of a default by Licensee, Licensor shall give
Licensee thirty (30) days' written notice to cure the default. The notice shall specify in
reasonable detail the nature and extent of the default. If the nature of Licensee's obligation
is such that more than thirty (30) days are required for performance, then Licensee shall
not be deemed to be in default if it shall commence such performance within such thirty
(30) day period and thereafter diligently prosecute the same to completion. If the default
is not cured by Licensee, then Licensor may immediately terminate this Agreement.
Section 6. City's Camino Capistrano Road Widening Project. City has plans to
widen Camino Capistrano as it abuts the Property. This road widening project may
necessitate the City utilizing a portion of the Property (more particularly, approximately
thirty feet (30') in width running the full length of the Property along Camino Capistrano)
during the term of this Agreement. Accordingly, City reserves the right to take possession
of any of the Property deemed necessary to accomplish the road widening during the term
of this Agreement. City will provide a minimum of sixty (60) calendar days advance notice
of City's intent to utilize the needed property.
Section 7. Condition of Property. Licensee accepts the Property in its present
condition upon execution of this Agreement. Licensee agrees, at Licensee's expense, to
use reasonable care to control all weeds growing on the Property, and to keep fences,
ditches and borders of the Property in good condition and repair at all times, reasonable
wear and tear excepted. The duly authorized representative of City may enter upon the
Property at a reasonable time for the purposes of inspection and to perform any necessary
maintenance or repair.
Section 8. Site Modifications. Any modification to the Property, including removal
of trees other than the Licensee's stock, or expansion into the currently unused portion of
the Property, will require prior City Council approval.
Section 9. Insurance. Licensee shall maintain at all times during the term of this
Agreement comprehensive general liability and property damage insurance in the amount
of not less than One Million Dollars ($1,000,000) combined single limit. City shall be
named as an additional named insured on said policies. Other terms and conditions,
including cancellation provisions and endorsement forms, shall be reviewed and approved
by the Office of the City Attorney.
Section 10. Indemnity. Licensee shall defend, indemnify and hold harmless City,
its elected and appointed officials, officers, employees and agents from and against any
and all claims, demands, suits, actions and proceedings, of any kind or nature, for
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damages to property or injuries to or death of any persons arising out of Licensee's actions
and activities as Licensee of the subject Property.
Section 11. No Assignments. Licensee shall not assign its rights under this
Agreement to any third party without the written consent of City.
Section 12. Notices. All notices, demands, consents, or other communications
required to be given under this Agreement shall be accomplished by first class mail,
postage prepaid, and deposited in the U.S. mails, or personally served upon the other
party.
To City:
George Scarborough, City Manager
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
To Licensee:
Pat Bathgate Charles Peltzer
Bathgate Ranch Peltzer Farms
P. O. Box 217 324 N. Hanwood
San Juan Capistrano, CA 92693-0217 Orange, CA 92866
Section 13. Attorney's Fees. In the event any legal action or proceeding is
commenced to interpret or enforce the terms of, or obligations arising out of, this
Agreement, or to recover damages for the breach thereof, the party prevailing in any such
action or proceeding shall be entitled to recover from the non -prevailing party all
reasonable attorney's fees, costs and expenses incurred by the prevailing party.
Section 14. Entire Agreement. This Agreement contains the entire Agreement of
the parties hereto with respect to the matters covered hereby, and no other previous
agreement, statement or promise made by any party hereto which is not contained herein
shall be binding or valid.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.
ATTEST:
MER �I/.�T//i✓J/
APPROVED AS TO FORM:
C, 5
John R. Shaw, City Attorney
CAPISTRANO
By:
Peltzer Farms
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