CALIFORNIA LAND CONSERVATION CONTRACT

No. _____________

* * * * * *

CLASS B CONTRACT AVAILABLE FOR PARCELS OF AT LEAST

ONE HUNDRED (100) ACRES WITH CERTAIN EXCEPTIONS PROVIDING

FOR A MINIMUM CONTRACT TERM OF TEN (10) YEARS

AND ALLOWING NON-RENEWAL OF THE CONTRACT

BUT NOT ITS IMMEDIATE CANCELLATION

______________________________________________________________

THIS CALIFORNIA LAND CONSERVATION CONTRACT, made and entered into this 24th day of January, 2006, by and between the COUNTY OF SAN MATEO, a political subdivision of the State of California, hereinafter referred to as “COUNTY” and CASCADE RANCH HISTORIC FARM or successors thereof, hereinafter referred to as “OWNER”;

WHEREAS, the OWNER is the legal owner of certain real property herein referred to as the subject property situated in the County of San Mateo, State of California; and

WHEREAS, the subject property is described in EXHIBIT “A” which is made a part of this Contract; and

WHEREAS, the subject property is located in an Agricultural Preserve which has heretofore been established by the COUNTY and a map of which is on file with the Recorder of San Mateo County; and

WHEREAS, the OWNER and the COUNTY desire to limit the use of the subject property to agricultural uses and compatible uses to preserve the limited supply of agricultural land and to discourage the premature and unnecessary conversion of agricultural land to urban uses; and

WHEREAS, the OWNER and the COUNTY recognize that agricultural land has definite public value as open space, that preservation of land in agricultural production will assure an adequate food supply and that such agricultural land constitutes an important social, aesthetic and economic asset to the people of the County and the State of California; and

WHEREAS, both the OWNER and the COUNTY intend that this Contract is and shall continue to be, through its initial term and any extension thereof, an enforceable restriction within the meaning of Section 8 of Article XIII of the State Constitution, and that this Contract shall thereby qualify as an enforceable restriction under the provisions of the California Revenue and Taxation Code, Section 422.

NOW, THEREFORE, the parties, in consideration of the mutual benefits and conditions set forth herein and the substantial public benefits to be derived therefrom, do hereby agree as follows:

1.

AGREEMENT MADE PURSUANT TO CALIFORNIA LAND CONSERVATION ACT

This Contract is made and entered into pursuant to the California Land Conservation Act of 1965 (Chapter 7 of Part 1 of Division 1 of Title 5 of the California Government Code commencing with Section 51200), hereinafter referred to as the Act, and is subject to all provisions thereof.

2.

CONSIDERATION

It is agreed that the consideration for the execution of this Contract is the substantial public benefit to be derived by the COUNTY from the preservation of land in agricultural or compatible uses, and the advantage which will accrue to the OWNER as a result of the effect on the method of determining the assessed value of the subject property, including any reduction thereto due to the imposition of limitations on its use set forth in this Contract. Neither the COUNTY nor the OWNER shall receive any payment in consideration of the obligations imposed herein.

3.

SUCCESSORS IN INTEREST

This Contract shall run with the land described herein and shall be binding upon and insure to the benefit of all successors in the interest of the OWNER. This Contract shall also be binding upon and insure to the benefit of any succeeding city or county acquiring jurisdiction over all or any portion of the subject property, except as provided in Section 51234(b) of the Act in the case of certain annexations to cities.

4.

DIVISION OF SUBJECT PROPERTY

In the event the subject property is divided, the OWNER or successors thereof, as the case may be, agree as a condition of such division to execute such contract or contracts as will restrict any parcels created by said division to the same extent as the subject property is restricted by the Contract at the time of division. The COUNTY shall, as a condition of approving the division of the subject property, require the execution of the contracts provided for in this paragraph.

The OWNER of any parcel created by division of the subject property may exercise, independently of any other OWNER of a portion of the divided property, any of the rights of the OWNER executing this Contract, including the right to give notice of non-renewal as provided in Paragraph 8. The effect of any such action by an OWNER of a parcel created by a division of the subject property shall not be imputed to the owners of the remaining parcels and shall have no effect on the contracts which apply to the remaining parcels of the divided land.

5.

USE OF SUBJECT PROPERTY

During the term of this Contract, or any extensions thereof, the subject property shall not be used for any purpose other than the “Permitted Agricultural Uses” or “Compatible Uses” set forth herein. The OWNER shall be limited to these uses, except that if the ordinances, codes or regulations of the COUNTY are more restrictive as to the use of said property than is the Resolution, the ordinances, codes or regulations shall prevail.

A.

“Permitted Agricultural Uses” are defined as follows:

(1)

Land used for the purpose of producing an agricultural commodity for commercial purposes is an agricultural use. An agricultural commodity is any and all plant and animal products produced in the County for commercial purposes. Reference is made to Section 51201 of the Government Code for further detail on the definition of “Prime Agricultural Land.”

(2)

The following as defined in the California Land Conservation Act: (a) a “Scenic Highway Corridor,” (b) a “Wildlife Habitat Area,” (c) a “Saltpond Area,” (d) a “Managed Wetland Area,” (e) a “Submerged Area,” (f) “Open Space Area,” and (g) “Recreational Use.”

B.

“Compatible Uses” are defined as follows:

(1)

One-family dwellings.

(2)

Home occupations.

(3)

Accessory buildings and accessory uses appurtenant to a residential use; provided, however, that such accessory buildings shall not be constructed until the main buildings shall have been constructed.

(4)

Accessory uses and accessory buildings appurtenant to the uses permitted in the district.

(5)

All agricultural uses except hog ranches, as defined in Chapter 7, Part II, Division V of the San Mateo County Ordinance Code.

(6)

The sale of the products of any permitted uses produced upon the premises. This shall include the erection of a temporary or permanent stand for display or sale of any of such products except livestock.

(7)

The following uses subject to the securing of a use permit in each case:

(a)

The keeping or raising of more than twenty-five (25) turkeys, ducks or geese.

(b)

Dogs: (1) dog breeding; (2) commercial dog kennels; (3) dog training schools.

(c)

Temporary trailer parks for seasonal farm labor. The Planning Commission shall establish standards for such trailer parks and may provide standards of construction for improvements which need not comply with Chapter 10 of Division V of the San Mateo County Ordinance Code (Sections 5600.1, et seq.).

(8)

Some uses not listed could be considered as “Compatible Uses” upon determination by the Planning Commission and the Board of Supervisors.

6.

ADDITIONAL USES

The Board of Supervisors of the COUNTY may from time to time during the term of this Contract, or any extension thereof, by resolution revise the lists of “Permitted Agricultural Uses” or “Compatible Uses” for the Agricultural Preserve in which the subject property is located; provided that said Board shall not eliminate any such permitted agricultural or compatible use during the term of this Contract or any extension thereof without the written consent of the OWNER or his successors in interest.

7.

TERM

This Contract shall be effective on the date first written above, hereinafter the anniversary date, and shall remain in effect for a period of ten (10) years therefrom. On each succeeding anniversary date, one (1) year shall automatically be added to the unexpired term unless notice of non-renewal is given as provided in Paragraph 8. If either party gives notice not to renew, it is understood and agreed that this Contract shall remain in effect for the unexpired term.

8.

NOTICE OF NON-RENEWAL

If either the OWNER or the COUNTY desires in any year not to renew this Contract, that party shall serve written notice of non-renewal of the Contract upon the other party in advance of the anniversary date. Unless such written notice is served by the OWNER at least ninety (90) days prior to the anniversary date or by the COUNTY at least sixty (60) days prior to the anniversary date, the Contract shall be considered renewed as provided in Paragraph 7. Upon receipt by the OWNER of a notice from the COUNTY of non-renewal, the OWNER may protest the non-renewal, provided such protest is made in writing and is filed with the Clerk of the Board of Supervisors of the COUNTY not later than thirty (30) days after receipt of said notice of non-renewal. The COUNTY may withdraw the notice of non-renewal at any time prior to the anniversary date. Upon request by the OWNER, the Board of the Supervisors of the COUNTY may authorize the OWNER to serve a notice of non-renewal on a portion of the subject property, provided that such notice is in accordance with the foregoing provisions of this paragraph.

9.

ACTION IN EMINENT DOMAIN TO TAKE ALL OR PART OF THE SUBJECT PROPERTY

Upon the filing of an action in Eminent Domain by an agency or person specified in Section 51295 of the Government Code, for the condemnation of the fee title of all or a portion of the subject property or upon the acquisition of the fee in lieu of condemnation, this Contract shall be null and void as provided in said Section 51295.

10.

ABANDONMENT OF ACTION IN EMINENT DOMAIN

In the event a condemnation suit is abandoned in whole or in part, or if funds are not provided to acquire the subject property in lieu of condemnation, the OWNER agrees to execute a new contract for all of the subject property to have been taken or acquired, which contract shall be identical to the Contract in effect at the time the suit was filed or on the date the land was to have been acquired, provided that: (1) a notice for non-renewal was not given by either party prior to the filing of suit or date the property was to have been acquired, and (2) the property at the time of said execution of a new contract is within the boundaries of an Agricultural Preserve.

11.

REMOVAL OF SUBJECT PROPERTY FROM AGRICULTURAL PRESERVE

In the event any proposal to disestablish or to alter the boundary of an Agricultural Preserve will remove the subject property from such a Preserve, the Board of Supervisors of the COUNTY shall furnish such notice of the proposed alteration or disestablishment to the OWNER as required by Section 51232 of the Act. Removal of any of the property from the Agricultural Preserve in which the subject property is located shall be the equivalent of notice of non-renewal, as provided in Paragraph 8, at least sixty (60) days prior to the anniversary date following the removal. The COUNTY shall record the notice of non-renewal in the office of the Recorder of the COUNTY, as required by Paragraph 13 herein; however, the OWNER agrees that a failure of the COUNTY to record said notice of non-renewal shall not invalidate or in any manner affect said notice.

12.

INFORMATION TO COUNTY

The OWNER shall furnish the COUNTY with such information as the COUNTY may require in order to enable it to determine the value of the subject property for assessment purposes and the eligibility of the subject property under the provisions of the Act.

13.

RECORDING OF DOCUMENTS

In the event of the termination of this Contract with respect to any part of the subject property, the COUNTY shall record the documents evidencing such termination with the Recorder of the COUNTY.

14.

ENFORCEMENT OF CONTRACT

Any conveyance, contract, or authorization (whether written or oral) by the OWNER, or his successors in interest, which would permit use of the subject property contrary to the terms of this Contract or the rules of the Agricultural Preserve in which the subject property is located, will be deemed a breach of this Contract. The COUNTY may bring any action in court necessary to enforce this Contract including but not limited to an action to enforce the Contract by specific performance or injunction. It is understood and agreed that the enforcement proceedings provided in this Paragraph are not exclusive and that both the OWNER and the COUNTY may pursue their legal and equitable remedies.

15.

CANCELLATION

This Contract may not be cancelled before completion of its term. The Board of Supervisors has found in its Resolution No. 44396 that cancellation of Class B contracts is not in the best public interest of the County’s citizens. However, the COUNTY or the OWNER has the right to file a notice of non-renewal under Government Code Section 51245 and as provided in Paragraph 8 of this Contract.

IN WITNESS WHEREOF, the parties hereto have executed this Contract on the day and year first written above.

John Wade

“Owner, Cascade Ranch Historic Farm”

COUNTY OF SAN MATEO

By

President, Board of Supervisors

“County”

ATTEST:

Clerk of Said Board of Supervisors

(NOTARIAL ACKNOWLEDGMENT)

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EXHIBIT “A”

To

CALIFORNIA LAND CONSERVATION CONTRACT NO. _____

PARCEL 1

Being a portion of Parcel B, as shown on the Parcel Map recorded April 29, 1976, in Volume 31 of Maps at pages 39 and 40, San Mateo County Records, and also being a portion of the lands described in the deed to the State of California, recorded December 31, 1985 (Document No. 85140453), Official Records of San Mateo County, being more particularly described and bounded as follows:

BEGINNING at a point on the northeasterly boundary of State Highway 56-A, known as the Cabrillo Highway, or Highway 1, as it is shown on the California State Highway Monument Map SM-56-A, Sheet S-40.2, a copy of which is in the file of the County Surveyor, from which point the northwesterly terminus of the course labeled “N. 35°07’57” W. 303.63’ “ as shown on said map bears N. 35°07’57” W., a distance of 202.98 feet;

THENCE from said Point of Beginning, the following courses:

Along the northeasterly boundary of said highway:

1.

N. 35°07’57” W. 202.98 feet to a point;

2.

N. 29°25’19” W. 100.50 feet to a point;

3.

N. 35°07’57” W. 1,700.00 feet to a point;

4.

N. 37°40’39” W. 303.73 feet to a point;

5.

Along a tangent curve to the left, having a radius of 2,060.02 feet and a central angle of 24°18’21”, 873.90 feet to a point;

6.

Along a non-tangent curve to the left, from which the radius bears S. 27°13’39” W., having a radius of 630.01 feet and a central angle of 14°49’54”, 163.08 feet to a point;

7.

N. 66°02’31” W., at 427.57 feet to a point from which a 3/4-inch pipe tagged LS 5114 bears N. 71°06’09” E., a distance of 19.22 feet, a total distance of 535.16 feet to a point;

8.

S. 23°57’29” W. 10.00 feet to a point;

9.

N. 66°02’31” W. 715.58 feet to a point;

Thence leaving said northeasterly boundary of said highway, and following the northwesterly boundary of the lands of the California State Coastal Conservancy, the following courses:

10.

N. 19°37’48” E. 225.84 feet to a point;

11.

N. 34°35’06” E. 326.57 feet to a point;

12.

N. 34°35’06” E. 326.57 feet to a point;

13.

N. 38°12’49” W. 19.32 feet to a point;

Thence leaving said boundary, and continuing the following courses:

14.

N. 39°29’02” E., at 0.93 feet a 3/4-inch pipe tagged LS 5114, a total distance of 117.31 feet to a 3/4-inch pipe tagged LS 5114;

15.

N. 57°26’59” E. 466.78 feet to a 3/4-inch pipe tagged LS 5114;

16.

S. 49°02’49” E., at 245.68 feet and 527.69 feet a 3/4-inch pipe tagged LS 5114, a total distance of 1,322.11 feet to a 3/4-inch pipe tagged LS 5114;

17.

S. 19°57’13” E. 128.52 feet to a point in the middle of a creek;

Thence generally following the middle of the creek, the following courses:

18.

S. 88°22’21” E. 12.49 feet to a point;

19.

S. 51°13’21” E. 89.98 feet to a point;

20.

S. 75°06’53” E. 108.70 feet to a point;

21.

S. 24°19’38” E. 58.29 feet to a point;

22.

S. 66°26’38” E. 112.28 feet to a point;

23.

N. 89°08’55” E. 84.59 feet to a point;

24.

S. 73°36’45” E. 99.02 feet to a point;

25.

S. 12°12’03” E. 104.19 feet to a point;

26.

S. 67°13’53” W. 25.63 feet to a point;

27.

S. 30°54’24” E. 125.60 feet to a point;

28.

S. 55°47’35” E. 191.22 feet to a point;

29.

S. 57°25’23” E. 182.41 feet to a point;

30.

S. 42°50’25” E. 170.25 feet to a point;

31.

N. 85°52’47” E. 74.39 feet to a point;

32.

S. 68°15’55” W. 90.12 feet to a point;

33.

S. 68°00’26” E. 5.59 feet to a point;

34.

S. 34°05’44” E. 19.30 feet to a point;

35.

S. 71°59’59” E. 38.56 feet to a point;

36.

S. 38°32’30” E. 46.08 feet to a point;

37.

S. 55°10’43” E. 28.00 feet to a 3/4-inch pipe tagged LS 5114, set on the southeast side of a road known as Chalk Mountain Road;

Thence following the road, the following courses:

38.

N. 14°45’43” E. 61.44 feet to a 3/4-inch pipe tagged LS 5114;

39.

N. 14°19’24” E. 120.10 feet to a 3/4-inch pipe tagged LS 5114;

40.

N. 25°27’l6” E. 143.76 feet to a 3/4-inch pipe tagged LS 5114;

41.

N. 47°58’56” E. 140.64 feet to a 3/4-inch pipe tagged LS 5114;

42.

N. 89°56’11” E. 119.54 feet to a 3/4-inch pipe tagged LS 5114;

43.

N. 85°48’18” E. 34.52 feet to a 3/4-inch pipe tagged LS 5114 set on the westerly side of a pedestrian and equestrian trail to the southeast;

Thence along the trail, the following courses:

44.

S. 44°29’43” E. 63.38 feet to a 3/4-inch pipe tagged LS 5114;

45.

S. 27°21’12” E. 73.83 feet to a 3/4-inch pipe tagged LS 5114, from which pipe a 60d spike set in a 48-inch Monterey pine bears S. 42°51’17” E., a distance of 34.12 feet;

46.

S. 9°41’41” E. 69.33 feet to a 3/4-inch pipe tagged LS 5114;

47.

S. 32°00’35” E. 57.90 feet to a 3/4-inch pipe tagged LS 5114;

48.

S. 38°31’38” E. 56.42 feet to a 3/4-inch pipe tagged LS 5114;

49.

S. 2°37’50” E. 44.30 feet to a 3/4-inch pipe tagged LS 5114;

50.

S. 14°38’45” E. 59.61 feet to a 3/4-inch pipe tagged LS 5114;

51.

S. 11°11’21” W. 48.30 feet to a 3/4-inch pipe tagged LS 5114;

52.

S. 7°08’51” E. 59.33 feet to a 3/4-inch pipe tagged LS 5114;

53.

S. 59°34’51” E., at 25.97 feet a 3/4-inch pipe tagged LS 5114, from which pipe an 8-inch spike set on a 48-inch juniper tree bears N. 84°50’47” W., a distance of 56.83 feet, a total distance of 26.30 feet to a point on the southerly boundary of the lands of the California State Coastal Conservancy;

Thence along said boundary, the following courses:

54.

N. 88°32’29” W. 226.07 feet to a point;

55.

N. 66°57’09” W. 89.83 feet to a point;

56.

S. 57°58’22” W. 208.32 feet to a point;

57.

S. 40°16’30” E. 175.36 feet to a point;

58.

S. 48°44’27” E. 105.41 feet to a point;

59.

S. 31°26’58” E. 125.10 feet to a point;

60.

N. 70°49’53” E. 76.73 feet to a point;

61.

S. 34°20’33” E. 291.20 feet to a point;

62.

S. 55°39’30” W. 32.46 feet to a point;

63.

S. 34°20’30” E. 969.78 feet to a point;

64.

S. 58°15’12” W. 939.33 feet to the Point of Beginning.

PARCEL 2

So much of the following described parcel as lies westerly of State Route 1 (Cabrillo Highway) as established by the Deed to the State of California, recorded in Book 3504, Official Records of San Mateo County, at page 679 (File No. 98710-Q).

BEGINNING at a point which was known as the most southerly corner of the Schofield Ranch, on the shore of the Pacific Ocean, said point of beginning being on the south boundary of the parcel of land described in Deed from Barzilla M. Schofield to R. E. Steele, dated September 24, 1872, and recorded September 26, 1872, in Book 17 of Deeds at page 291, Records of San Mateo County, California; thence from the said point of beginning, along said south boundary (magnetic variation 15°45’ East), North 42°45’ East 193 chains to the easterly boundary of the said Punta del Año Nuevo Rancho; thence along the said easterly boundary, South 6°45’ East 125.5 chains and South 27°30’ East 51 chains, to a stake from which a small oak (on September 4, 1871) marked with 3 notches, bears South 40° East 17 links distant; thence South 57° West 50.70 chains to a post in the corner of a fence, on the east side of the road leading from Pescadero to Santa Cruz (as it existed September 4, 1871); thence South 63°30’ West 76.50 chains to sandy land; thence following the same course, to the shore of the Pacific Ocean; thence along the shore northerly to the point of beginning.

EXCEPTING THEREFROM lands conveyed from Albert K. Yonaoshi, et al., to the State of California, by Deed dated July 7, 1975, and recorded August 13, 1975, in Book 6910 of Official Records at page 659 (File No. 78783-Al).

ALSO EXCEPTING THEREFROM lands conveyed from Albert K. Yonaoshi, et al., to the State of California by Deed dated March 10, 1978, and recorded April 28, 1978, in Book 7738 of Official Records at page 1576 (File No. 59818-AM).

ALSO EXCEPTING THEREFROM the following described parcel:

Commencing at a 1/2-inch iron pipe with tag stamped R.C.E. 10439, said monument being on the boundary line formerly common to the lands of Janet M. Bickford and Theodore Char, et al., as described in the Grant Deed to the State of California, recorded August 13, 1975, in Volume 6910, Official Records of San Mateo County, at page 659, said common boundary line being also the southerly boundary of said Cascade Ranch, from which a 1/2-inch iron pipe with tag stamped R.C.E. 10439 bears South 64°52’29” West 1,143.88 feet;

Thence along said common boundary North 64°52’29” East 370.00 feet to the southeast corner of the lands described in said Volume 6910, page 659 and the True Point of Beginning of the herein described parcel;

Thence from said True Point of Beginning, leaving said common boundary and along the easterly line of last said lands, North 1,433.41 feet to a 2-inch iron pipe with Parks and Recreation brass disk stamped “PROP COR, LS 3588, 1986”;

Thence leaving said easterly line, South 26°39’40” East 1,257.78 feet to a 2-inch iron pipe with Parks and Recreation brass disk stamped “LINE MON, LS 3588, 1986”;

Thence continuing South 26°39’40” East 40.5 feet, more or less, to said common boundary;

Thence along said common boundary South 64°52’29” West 643.42 feet, more or less, to the True Point of Beginning.

PARCEL IIA

A portion of those certain lands conveyed to the State of California by Grant Deed recorded August 13, 1975, in Volume 6910, Official Records of San Mateo County, at page 659 in the Rancho Punta del Año Nuevo, in the County of San Mateo, State of California, said portion being more particularly described as follows:

COMMENCING at a 1/2-inch iron pipe with tag stamped R.C.E. 10439, said monument being on the boundary line formerly common to the lands of Janet Bickford and Theodore Char, et al., as described in said Grant Deed, from which a 1/2-inch iron pipe with tag stamped R.C.E. 10439 bears South 64°52’29” West 1,143.88 feet;

Thence along said common boundary North 64°52’29” East 370.00 feet to the southeast corner of the lands described in said Grant Deed;

Thence leaving said common boundary and along the easterly line of the lands described in said Grant Deed, North 1,433.41 feet to the True Point of Beginning of this description, said point being marked by a 2-inch iron pipe with Parks and Recreation brass disk stamped “PROP COR, LS 3588, 1986”;

Thence from said True Point of Beginning, leaving said easterly line, North 24°50’22” West 1,318.75 feet to a 2-inch iron pipe with Parks and Recreation brass disk stamped “PROP COR, LS 3588, 1986”;

Thence North 66°12’56” East 605.39 feet to a point on said easterly line, said point being marked by a 5/8-inch reinforcing bar;

Thence along said easterly line South 1,440.90 feet to the True Point of Beginning.

Said above described Parcels II and IIA were set forth as Parcels T-2 and N in that certain approval of Lot Line Adjustment recorded on September 19, 1995, as Document No. 95098991, Official Records of San Mateo County, California.