Loading...
HomeMy WebLinkAboutC-5515 - 2808 Lafayette Boundary Line AgreementRecorded at the request of- STATE £STATE OF CALIFORNIA CALIFORNIA STATE LANDS COMMISSION WHEN RECORDED mail to: California State Lands Commission 100 Howe Avenue, Suite 100 - South Sacramento, CA 95825-8202 Attn: Legal Division (916) 574-1850 STATE OF CALIFORNIA - OFFICIAL BUSINESS Document entitled to free recordation pursuant to Government Code Section 27383 NO DOCUMENTARY TRANSFER TAX DUE REVENUE AND TAXATION CODE SECTION 11922 C.S.L.C. AD 651/ G-09-02.11 Above Space for Recorder's Use Orange County APN: 047-023-06 MOREHART / CALIFORNIA STATE LANDS COMMISSION / CITY OF NEWPORT BEACH 2808 LAFAYETTE BOUNDARY LINE AGREEMENT The parties to this Agreement are the State of California, acting by and through the California State Lands Commission, "STATE," the City of Newport Beach, a trustee pursuant to, inter alfa, Chapter 74 of the Statutes of 1978, as amended, referred to as "CITY," and 2808 Lafayette Property, LLC, a California Limited Liability Company, which is wholly owned by Mr. John M. Morehart and Ms. Lisa Cervantes-Morehart, referred to as "MOREHART," the above collectively referred to as "Parties". RECITALS A. This Agreement concerns the setting and permanently fixing a Common Agreed Boundary Line at real property located in the City of Newport Beach, County of Orange, State of California, bounded on the west side by Lafayette Avenue and the east by the western edge of the Rhine Channel within Newport Bay, referred to throughout this Agreement, for convenience, as the "Subject Property" and shown for reference purposes only on Exhibit A and as defined on Exhibit B. B. Upon its admission to the United States of America on September 9, 1850, the State of California ("State"), by virtue of its sovereignty under the Equal Footing Doctrine of the Constitution of the United States, received in trust for the people of California all right, title, and interest in previously ungranted tidelands and submerged lands within its boundaries for certain public trust purposes including but not limited to commerce, navigation and fisheries. 2808 Lafayette Boundary Line Agreement C. Pursuant to provisions of Division 6 of the Public Resources Code, including Sections 6216 and 6301, STATE is vested with all jurisdiction and authority as to the right, title, and interest in all ungranted tidelands and submerged lands held by the State in trust for the benefit of all the people of the State and the reversionary and residual interest of the State as to public trust lands legislatively granted to local governments. D. CITY is trustee of the tide and submerged lands granted to it by the California Legislature, pursuant to, inter alfa, Chapter 494 of the Statutes of 1919, repealed and replaced by Chapter 74 of the Statutes of 1978, as amended, ("Granting Statutes"), which granted to the City of Newport Beach the State's right, title and interest in and to all of the State's tidelands and submerged lands, within the then existing boundaries of the City of Newport Beach in trust for the public, and subject to certain terms, conditions, exceptions and reservations. CITY is not authorized to set agreed boundaries or otherwise settle title to the lands granted to it by the Legislature. E. In 2005, Westminster Living, L.P., a limited partnership granted title by use of a grant deed of the Subject Property to 2808 Lafayette Property, LLC, a California Limited Liability Company. 2808 Lafayette Property, LLC is wholly owned by MOREHART. F. The Subject Property derives its base title from the patent, S&O #3089, issued by the State Surveyor General on February 6, 1891, pursuant to the authority of Title 8 of the Political Code. The Subject Property was included in a patent of 420.85 acres to a James McFadden and comprises a portion of Lot 6 (32.02 acres) of Section 28 (T.6S, R.IOW, SBM) and Lot 2 (38.67 acres) of Section 33 (T.6S, R.IOW, SBM). G. In 1982, the Legislature added Ca1.Pub.Res.Code Section 7552.5, which provides that areas patented as swamp and overflowed that become in with water as a result of dredging are impressed with a navigational easement. There is a bona fide dispute between the STATE and MOREHART as to whether or not a 1982 statute can create a navigational easement over dredging which occurred prior to 1923. H. The Rhine Channel appears to have been dredged sometime between 1915 and 1923 and today a portion of the Rhine Channel outside the boundaries of the Subject Property is maintained by CITY in what appears to be the same configuration as it was when it was originally dredged. In 2011, CITY dredged a portion of the Rhine Channel outside the boundaries of the Subject Property using tidelands trust monies to remove contamination within the Rhine Channel that had accumulated as part of the historical fishing operations along the Rhine Channel. 2 2808 Lafayette Boundary Line Agreement I. The Rhine Channel is no longer in a state of nature because of the dredging and bulkheading that has occurred and because of the bulkheading on either side of the majority Rhine Channel, it will not return to a state of nature in the foreseeable future. The last known survey to have occurred prior to the dredging of the Rhine Channel that has been located is the United States Army Corps of Engineers (Corps) "Newport Bay, Cal: Survey of 1912." The Corp prepared two plats to accompany the survey. On the first plat (approved October 1912) shows the larger area of Newport Bay (including the Subject Property) with the blocks and streets overlaying the survey. In the second plat (approved August 1913), the overlay of the development is not present. K. The location of the historic ordinary high water mark as it relates to the Subject Property on the Survey of 1912 is subject to interpretation. PARTIES strenuously disagree as to the utility of the Survey of 1912 in relation to the Subject Property and whether any portion of the Subject Property was tidelands, rather than submerged and overflowed lands, prior to the dredging of the Rhine Channel. L. Currently, MOREHART and the California Coastal Commission are in litigation (Case No. 30-2013-00647282-CU-WM-CJC) regarding special conditions in Coastal Development Permit (CDP) #5-11-178, regarding in part, a requirement to irrevocably dedicate, construct, and maintain a public easement across the proposed bulkhead. This requirement is predicated on the STATE determining that the location of the proposed bulkhead is either located on sovereign fee land or on private lands impressed with the Public Trust Easement. That court case is functionally in abeyance until the STATE makes a determination or enters into an agreement with MOREHART regarding the title of the Subject Property at the location of the proposed bulkhead. M. There is a bona fide dispute between STATE and MOREHART as to the existence, nature and location of their respective rights, titles and interests in the Subject Property, specifically as to whether the Subject Property was actually swamp and overflowed when it was patented, which was after the last Curative Act, and correspondingly whether there is a defect in the base title. N. In the interest of settlement, STATE and MOREHART have both worked diligently, by reviewing prior maps, surveys, reports and court cases, particularly City of Newport Beach v. Newport Bay Dredging Company, et al. (Case No. 23685), in an effort to ascertain the title to and the location of the ordinary high water mark prior to the dredging and filling at the Subject Property. O. If not consummated by Agreement of the PARTIES, resolution of the title, land use and boundary issues involving the Subject Property would require costly, protracted, and vigorously disputed litigation, with uncertain results. Further, an 2808 Lafayette Boundary Line Agreement agreement between the PARTIES may result in a dismissal of Case No. 30-2013- 00647282-CU-WM-CJC. P. STATE is authorized by Division 6 of the Public Resources Code, and in particular Section 6357, to establish by Agreement the ordinary high water mark of the swamp, overflowed, marsh, tide or submerged lands of this State, whenever it is deemed expedient of necessary. Q. In order to effectuate the settlement contemplated by this boundary line agreement, the PARTIES will set the Common Agreed Boundary Line as outlined in this Agreement. R. The Common Agreed Boundary Line will divide the Subject Property at the eastern edge of MOREHART's recorded deed, as described in Exhibit C. In addition, MOREHART will grant a Public Trust Easement over portions of the Subject Property, as described in Exhibit D, which shall be administered by the CITY in the manner in which other tidelands within Newport Harbor are administered. S. The California State Lands Commission, by approval of agenda item # 73 at its meeting of August 19, 2015, approved and authorized execution of this Agreement by STATE. T. The Newport Beach City Council, by motion approved and authorized execution of this Agreement by CITY at its meeting of June 25, 2013. U. The Parties consider it expedient, necessary and in the best interests of STATE, CITY, and MOREHART, and the public to resolve this title dispute by Agreement to avoid the potential substantial costs, time delays, and uncertainties of litigation and have reached the following AGREEMENT. V. This Agreement is self-executing and contains all of the conveyances necessary to effectuate its provisions. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, the terms set forth below and for valuable consideration, the receipt of which is acknowledged, the PARTIES agree to the following terms and conditions and to convey certain property rights as follows: I. Establishment of Common Agreed Boundary Line 1. Pursuant to Pub.Res.Code §6357, the location of the Agreed Common Boundary Line is hereby established and along the ORDINARY HIGH WATER MARK, as that certain permanently fixed line is described as the easterly boundary of Lots 5 4 2808 Lafayette Boundary Line Agreement and 6 of Block 425 of Lancaster's Addition as per map recorded at Book 5, Page 14 of Maps, in the Office of the County Recorder of Orange County, California and more particularly described in Exhibit B attached hereto and incorporated herein by this reference. The herein agreed to location of the Agreed Common Boundary Line is the boundary between the STATE's ownership in its sovereign capacity of the tidelands, granted in trust by the California Legislature to CITY, of the Rhine Channel and the private uplands of MOREHART. 2. MOREHART shall not retain any interest in the lands waterward of the Agreed Common Boundary Line, except (1) any and all wharfage rights created and retained as part of the Lancaster's Addition subdivision and (2) the same non- exclusive rights as that possessed by all other members of the public. STATE, acting by and through the California State Lands Commission, and CITY, acting by and through the City of Newport Beach in its capacity as a trustee, shall not retain any property interest in the lands landward of the Agreed Common Boundary Line, except for a Public Trust Easement to be confirmed on the EASEMENT PARCEL. 4. The location of the Agreed Boundary Line, herein agreed to as the PARTIES' common boundary with the Subject Property (Exhibit A), is not intended as a meander line. It is intended as a permanently fixed and certain boundary line according to the courses and distances set forth in the description of the Agreed Boundary Line as described in Exhibit C attached hereto. The boundaries shall not change due to accretion or erosion, whether from natural or artificial influences. 5. However, should the land owned by MOREHART become submerged or subject to the ebb and flow of the tide below the elevation of mean high water from waters of the Rhine Channel, Newport Bay or other tidally influenced waters, whether due to either erosion or sea level rise ("Inundation"), those lands, for so long as Inundation exists, shall be subject to the Public Trust Easement; provided, however, that the Public Trust Easement shall not attach unless and until Inundation has existed continuously for five years. Prior to the attachment of the Public Trust Easement, neither the Public Trust Easement nor the Commission shall prevent the right of the owner(s) of those lands to reclaim or otherwise restore them to their pre -Inundation condition so long as activities evidencing the exercise of such right have commenced within one year of Inundation. The submittal of an application for any permit required for reclamation or restoration and reasonable efforts to complete the permitting process are sufficient, but not necessary, to evidence the exercise of the right to perform such reclamation or restoration. The Commission may, by resolution based upon its finding that reclamation or restoration could not be completed with the five-year period of Inundation specified herein, delay the attachment of the Public Trust Easement for a specified period. 2808 Lafayette Boundary Line Agreement 6. Nothing in this Agreement obligates STATE or CITY to protect or cause to be protected the property owned by MOREHART, including, but not limited to, constructing or causing to be constructed any protective structures that benefit any privately held uplands. Further, neither CITY nor STATE shall in any manner be liable to the MOREHART for failure to provide protection against sea level rise. Nothing in this section is intended to increase or diminish the rights of any Party under existing law, including without limitation, the rights of any Party to undertake protective measures to maintain the boundaries at the locations established pursuant to this Agreement. II. Property Conveyances Relating to the EASEMENT PARCEL. a. MOREHART to STATE. 2808 Lafayette Property, LLC, a California Limited Liability Company, acting by and through Mr. John M. Morehart and Ms. Lisa Cervantes- Morehart, shall grant to STATE, acting by and through the California State Lands Commission, a Public Trust Easement interest in that certain real property which is the easterly 28.81 feet of the MOREHART's parcel, as is more particularly described in Exhibit D (EASEMENT PARCEL) attached hereto and incorporated by this reference. b. MOREHART'S Use of the Easement Parcel. Under the current policies of the STATE and the CITY, neither party issues leases for private facilities located on privately owned fee land even when it is impressed with the public trust easement. Both the STATE and CITY acknowledge that this is a significant issue to MOREHART. In the event that the STATE or CITY change their policies, it is agreed that MOREHART will be entitled to a lease or other entitlement that caps the annual rent at no more than $10.00 for the remainder of the 49 -year time period from the date this Agreement is effective. III. Additional Provisions. 1. Effective Date. This Agreement shall become binding and effective upon execution by all Parties. 2. No Effect on Other Lands. It is hereby expressly understood and agreed by PARTIES that the provisions set forth herein have been agreed upon for the purposes of compromise and settlement of the dispute over the interest and titles of PARTIES and of the boundary between their respective properties. This Agreement shall not constitute an expression on the part of STATE as to the extent or location of any other interest or boundary of the lands of the STATE except as may be expressly determined and provided herein. 2808 Lafayette Boundary Line Agreement 3. Binding Agreement. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administrators, successors, assigns and beneficiaries of PARTIES hereof. 4. Exemptions and No Effect on Other Government Jurisdiction. This Agreement related conveyances provided herein are exempt from 1) the Subdivision Map Act pursuant to Government Code Section 66412(e), 2) the California Environmental Quality Act pursuant to Public Resources Code Section 21080.11, 3) the California Coastal Act pursuant to Public Resources Code Section 30416(c), and 4) the Property Acquisition Law pursuant to Government Code Section 15853(c). Other than the exemptions so specified, above, this Agreement does not exempt the Parties from any regulatory, environmental, land use or other jurisdictional requirement of any federal, state, local, or other government entity. 5. Acceptance of Conveyances and Consent to Recording. By execution of this Agreement, MOREHART agrees, and by the attached Certificate of Acceptance STATE agrees to accept the herein described conveyances easements and hereby consents to the recording of the conveyances and other documents executed pursuant to this Agreement. 6. Further Assurances. So long as authorized by applicable laws to do so, Parties hereto will perform such acts, and execute, acknowledge and deliver all further documents, conveyances and other instruments, that may be necessary to effectuate fully the provisions of this Agreement. Parties, hereto, consent to the entry of all orders and judgments necessary or appropriate to effectuate the Agreement. 7. No Admission or Effect if Agreement Not Made Effective. In the event this Agreement does not become effective, nothing herein shall constitute, or be construed as, an admission by any party or evidence concerning the boundaries, physical character, or character of title to or interest in the subject property. The provisions of this Agreement do not constitute, nor are they to be construed as, an admission by any party or evidence concerning the boundaries, physical character, or character of title to or interest in any lands outside the subject property. 8. Counterparts. This Agreement may be executed in any number of counterparts and each executed counterpart shall have the same force and effect as an original and as if all of the Parties to the aggregate counterparts had signed the same instrument. All Parties shall receive an original signed counterpart of this Agreement. 7 2808 Lafayette Boundary Line Agreement 9. Indemnity. MOREHART agrees to pay all costs and assumes all risk and liability associated with dredging the Public Trust Easement Parcel and installing improvements therein. This includes the costs related to permitting, dredging, disposal, permit compliance, and any potential hazardous material or claims related to hazardous material. 10. Modification. No modification, amendment, or alteration of this Agreement shall be valid unless in writing and signed by all of the Parties. 11. Headings. The title headings of the sections of this Agreement are inserted for convenience only and shall not be considered in construing this Agreement. 12. Allocation of Costs and Expenses. a. Escrow. The Parties agree to set up an escrow account. The cost for said escrow account will be borne by MOREHART. b. Title Insurance. The parties may elect to obtain title insurance. If so desired, the Party that desires title insurance will be responsible for the associated costs. 13. Condition of Close of Escrow. An escrow account will be opened at a mutual agreed upon company. Once this Agreement has been fully executed and approved by the Governor, it will be deposited into the escrow account. Escrow will not be closed until MOREHART has received all necessary approvals to allow the dredging of the area covered by the Public Trust Easement to a reasonable depth to accommodate docks for the mooring of vessels and the installation of such docks. If any such approval is subject to terms or conditions to which MOREHART objects, for the purposes of this Agreement it shall not be considered an approval. Such approvals shall be received within two years of the effective date hereof or this Agreement shall terminate and no party shall have any further obligation to any other party. The two years can be extended upon written authorization of the STATE and the CITY, which shall not be unreasonably withheld. Upon receipt of all documents, Escrow Agent shall notify the Parties of its intention to close escrow and to record the Agreement and deeds, in the manner and subject to the requirements of escrow instructions submitted to the Escrow Agent by the Parties. 14. Warranty. Each party to this Agreement warrants that it has the authority to execute this Agreement. 2808 Lafayette Boundary Line Agreement 15. Judicial Confirmation of Validity of Agreement. a. Judicial Confirmation. The Parties may choose to submit this Agreement to a court of competent jurisdiction to confirm its validity by court judgment pursuant to Code of Civil Procedure Sections 760.010 through 764.080, inclusive. All Parties shall cooperate in obtaining such a confirmatory judgment. Upon entry of a judgment confirming the validity of the Agreement, each party shall be deemed to have waived any right to appeal from such judgment. b. Entry Date of Agreement for Purpose of Judicial Confirmation. For the purpose of bringing an action to confirm the validity of this Agreement pursuant to Code of Civil Procedure Sections 760.010 through 764.080, this Agreement shall be deemed to be entered into on the date of its execution by the Executive Officer of the Commission. IV. EXHIBITS The exhibits to this Agreement are as follows: Exhibit A Subject Parcel Site Plan (for reference purposes only) Exhibit B Subject Parcel Description Exhibit C Agreed Boundary Line Description Exhibit D Description of Easement Parcel Exhibit E Form of Quitclaim Deed from MOREHART to STATE (Easement Parcel 2808 Lafayette Boundary Line Agreement VI • (rest of page left intentionally blank) 10 2808 Lafayette Boundary Line Agreement STATE OF CALIFORNIA CALIFORNIA STATE LANDS COMMISSION Date: By: Jennifer Lucchesi Executive Officer ACKNOWLEDGEMENTS OF SIGNATURE TO BE ATTACHED 11 2808 Lafayette Boundary Line Agreement Approved as to form: Kamala D. Harris Attorney General of the State of California LIM Deputy Attorney General Attorney for California State Lands Commission 12 2808 Lafayette Boundary Line Agreement Date: Approved as to form CITY OF NEWPORT BEACH, AS TRUSTEE OF STATE City Manager City Attorney ACKNOWLEDGEMENTS OF SIGNATURE TO BE ATTACHED 13 2808 Lafayette Boundary Line Agreement 2808 Liabil Date: By: Approved as to form Attorney LLC, a California Limited ACKNOWLEDGEMENTS OF SIGNATURE TO BE ATTACHED 14 2808 Lafayette Boundary Line Agreement CALIFORNIA• . •• A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of Oc-?-,n c� ip) On u ' before me, o Date \ _ Here Insert Name and Title oft icer personally appeared Jc�� Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s)-whose name(s)_Ware subscribed to the within instrument and acknowledged to me that he/sha they executed the same in his/hefft#eirauthorized capacity(ies�nd that by his/ffei�signature(s)-on the instrument the person'(s)., or the entity upon behalf of which the person(s) 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. TODD F. JACK WITNESS my hand and official seal. Commission # 1985591 Notary Public California Signature Orange County 9 My Comm. n fres Jul 2U, 2016 Signature Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document I Title or Type of Documen: � 1- Document Date: Number of Pages: Signer(s) er Than amed Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ElZor oo rate Officer — Title(s): ❑ Partner — ❑ Limit eneral ❑ Individual ❑ Attorney in Fact-----, ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Signer's Name: 0'6 orate Officer — Title(s): ❑ Partner Limited ❑ General ❑ Individual rney in Fact —gZws� tee ❑ Guardian servator ❑ Other: Signer Is Representing: `d4 �s' �a/ �a/4� �'✓ -d 'b4�4�d 'd 'L� 'd 'd 'd 'b4-d4�a/ 'b 'b 'U 'd 'b4�.4�d 'b 'd 'd d 'U 'dy`y4'O� 't/ 'b d 'd -d 'd 'N4�d/'d 'N 'b ' 0 1 � • • ' • • • • • • ill � " i11 i • •: - •1 IN APPROVAL WHEREOF, I EDMUND G. BROWN, JR., Governor of the State of California have set my hand and caused the seal of the State of California to be hereunto affixed pursuant to Section 6107 of the Public Resources Code of the State of California. Given under my hand at the City of Sacramento this day of 2015. Dated: EDMUND G. BROWN, JR. Governor, State of California Attest: Secretary of State 15 2808 Lafayette Boundary Line Agreement u IN / Ali EAST LINE OF BLOCK 425 OF LANCASTER'S ADDITION APN 047-023-06 LOTS 5 & 6 OF BLOCK '425 OF LANCASTER?s ADDITION �j 4' \� 7 p° V E fe PROPOSED PUBLIC - J TRUST EASEMENT 4pr djD EXHIBIT A DJF 09/24/2015 SUBJECT PARCEL G09-02.11, 2808 LAFAYET'IE CALIFORNIA STATE ORANGE COUNTY LANDS COMMISSION EXHIBIT B G 09-02.11 SUBJECT PARCEL All that real property situate in the City of Newport Beach, County of Orange, State of California described as follows: Lots 5 and 6 of Block 425, as shown on the Map of Lancaster's Addition to Newport Beach by S.H. Finley, C.E., recorded in Book 5, Page14 of Maps, in the Office of the County Recorder of said County, State of California. END OF DESCRIPTION Prepared 9/24/2015 by the California State Lands Commission Boundary Unit. EXHIBIT C G 09-02.11 AGREED BOUNDARY LINE That line situate in the City of Newport Beach, County of Orange, State of California described as follows: Being the East lines of Lots 5 and 6 of Block 425, as shown on the Map of Lancaster's Addition to Newport Beach by S.H. Finley, C.E., recorded in Book 5, Page14 of Maps,. in the Office of the County Recorder of said County, State of California. END OF DESCRIPTION Prepared 9/24/2015 by the California State Lands Commission Boundary Unit. 11 EXHIBIT D G 09-02.11 EASEMENT PARCEL. All that real property situate in the City of Newport Beach, County of Orange, State of California described as follows: Being the easterly 28.81 feet of Lots 5 and 6 of Block 425, as shown on the Map of Lancaster's Addition to Newport Beach by S. H. Finley, C. E., recorded in Book 5, Page14 of Maps, in the Office of the County Recorder of said County, State of California. END OF DESCRIPTION Prepared 9/24/2015 by the California State Lands Commission Boundary Unit. RECORDED AT THE REQUEST OF AND WHEN RECORDED MAIL TO: STATE OF CALIFORNIA State Lands Commission 100 Howe Avenue, Suite 100 -South Sacramento, CA 95825-8202 Attn: Legal Department STATE OF CALIFORNIA OFFICIAL BUSINESS Document entitled to free recordation pursuant to Government Code Section 27383 SPACE ABOVE THIS LINE FOR RECORDER'S USE Orange County APN: 047-023-06 S.L.C. AD 651/ G-09-02.11 MOREHART Easement Grant (Easement Parcel) WHEREAS, the State Lands Commission, at its public meeting in Burbank, California on December 17, 2014 approved Calendar Item No. 73, which authorized a boundary line agreement ("Boundary Line Agreement") between the 2808 Lafayette Property, LLC, a California Limited Liability Company, which is wholly owned by Mr. John M. Morehart and Ms. Lisa Cervantes-Morehart ("Morehart"), the City of Newport Beach ("City"), a trustee pursuant to inter alia, Chapter 74 of the Statutes of 1978, as amended, and the State of California ("State"), acting by and through the State Lands Commission, pursuant to Public Resources Code section 6357; and WHEREAS, pursuant to that Boundary Line Agreement, Morehart, must grant to the State, acting by and through the State Lands Commission, a public trust easement in the Easment Parcel, as more particularly described and depicted in Exhibit A, attached and incorporated by reference; WHEREAS, under the current policies of the State and the City, neither party issues leases for private facilities located on privately owned fee land even when it is impressed with the public trust easement. Both the State and City acknowledge that this is a significant issue to Moreahrt. In the event that the State or City change their policies, it is agreed that Morehart will be entitled to a lease or other entitlement that caps the annual rent at no more than $10.00 for the remainder of the 49 -year time period from the date this Agreement is effective; and 2808 Lafayette Boundary Line Agreement Exhibit E WHEREAS, it is the intent of the State, acting by and through the State Lands Commission, to accept said public trust easement, as more particularly described in Exhibit B, attached and incorporated by reference. Now, THEREFORE, Morehart does hereby grant to the State, acting by and through the State Lands Commission, a public trust easement in the Easement Parcel. 2808 Lafayette Boundary Line Agreement Exhibit E Morehart Dated: By: EXHIBITS A, B AND ACKNOWLEDGMENT OF SIGNATURE TO BE ATTACHED 2808 Lafayette Boundary Line Agreement Exhibit E Exhibit A G 09-02.11 EASEMENT PARCEL All that real property situate in the City of Newport Beach, County of Orange, State of. California described as follows: Being the easterly'28.81 feet of Lots 5 and 6 of Block 425, as shown on the Map of Lancaster's Addition to Newport Beach by S. H. Finley, C. E., recorded in' Book 5, Page14 of Maps, in the Office of the County Recorder of said County, State of California. END OF DESCRIPTION Prepared 9/24/2015 by the California State Lands Commission Boundary Unit. Q Exhibit B CERTIFICATE OF ACCEPTANCE AND CONSENT TO RECORDING Government Code Section 27281 (EASEMENT PARCEL) This is to certify that the STATE OF CALIFORNIA, acting by and through the CALIFORNIA STATE LANDS COMMISSION, an agency of the STATE OF CALIFORNIA, hereby accepts from the 2808 Lafayette Property, LLC, a duly registered limited liability company registered with the State of California, a grant of public trust easement in the Easement Parcel. The STATE OF CALIFORNIA, acting by and through the CALIFORNIA STATE LANDS COMMISSION, an agency of the STATE OF CALIFORNIA, hereby consents to the recordation of this conveyance in the Office of the Recorder for the County of Orange. The said interests in real property are accepted by the STATE OF CALIFORNIA, in its sovereign capacity in trust for the people of the state, as a public trust easement. This acceptance and consent to recording is executed by and on behalf of the STATE OF CALIFORNIA by the CALIFORNIA STATE LANDS COMMISSION, acting pursuant to law, as approved by Minute Item No. 73 of its public meeting in Burbank, California on August 19, 2015 by its duly authorized undersigned officer. STATE OF CALIFORNIA CALIFORNIA STATE LANDS COMMISSION Dated: By: JENNIFER LUCCHESI Executive Officer 2808 Lafayette Boundary Line Agreement Exhibit E CITY OF NEWPORT BEACH Office of the City Manager June 26, 2013 Jennifer Lucchesi, Executive Officer California State Lands Commission 100 Howe Avenue, Suite 100-South Sacramento, CA 95825 Re: Proposed Boundary Line Agreement 2808 Lafayette Avenue, Newport Beach Lots 5 & 6, Block 425, Lancaster's Addition Dear Ms. On June 26, 2013, the City Council of the City of Newport Beach ("City") took formal action to support 2808 Lafayette Avenue, LLC's ("LLC") April 25, 2013 request to the State Lands Commission to enter into a boundary line agreement related to Lots 5 & 6 in Block 425 in Lancaster's Addition (consolidated by Parcel Map recorded at Book 95, page 44 of Parcel Maps) ("Property"). The LLC provided the City with a survey of the boundaries of the Property. The eastern boundary of the Property is coincident with the Bulkhead Line established by the U.S. Army Corps of Engineers established initially in 1936 and reaffirmed in 1951. The City has treated the Bulkhead Line along the Rhine Channel as the boundary between the navigable waters which the City administers and the private property which is not subject to the public trust. This was affirmed in the prior Boundary Line Agreement 54 entered into between the City, the State Lands Commission, and Coast Capital, Inc. with regard to Block 324 of Lancaster's Addition, which is the Block immediately south of Block 425 and within 160 feet of the Property. Accordingly, the City has determined that it supports, and if necessary is willing to enter into, a boundary line agreement between the LLC and the State Lands Commission relating to the easterly boundary between the Property and the adjacent public tidelands. Based upon available information, the City is willing to establish the boundary at the Property lines as designated in the Tract Map for Lancaster's Addition which are also designated on the Parcel Map recorded at Book 95, Page 44 of Parcel Maps, Official Records, Orange County. The proposed boundary is depicted on the enclosed Property map. Therefore, the City supports the LLC's request to establish a boundary line agreement related to the Property in accordance with the request of the LLC dated April 3, 2013. 829 Harbor Island Drive, Newport Beach, CA 92660 www.newportbeachca.gov (949) 644-3034 2 Please feel free to contact Chris Miller, Harbor Resources Manager at (949) 644-3043 if you have any questions regarding the proposed boundary line agreement or the City's support thereof. Sincerely, Dave Kiff City Manager Enclosure. cc: Warren Crunk, Esq. Mr. Chris Miller, Harbor Resources Manager Mr. John Morehart Sherman L. Stacey, Esq.