Chapman Estate Property Transfer and
Estate Historic Designation
Item 12-B
By Scot Graham
Community Development Director
Meeting Date: September 15, 2026
Background
•December 13, 2013 – Chapman Estate is donated to the City by the Clifford W. Chapman Trust through a Distribution Agreement that includes multiple obligations/requirements the City must adhere to.
•August 6, 2024 - Council received an assessment of the Chapman Estate related to the financial cost to repair and maintain the property.
•Due to high cost of operations and maintenance Council directed staff to start the process to divest from the property •August 19, 2025 – Council adopts Resolution R-2025-061 declaring the property “Exempt Surplus Land” due to property restrictions for recreational and general public use stemming from the Distribution agreement.
Background (cont.)
-August 27, 2025 – 60 Day Notice of Availability is sent out to Parks and Recreation entities. -October 2025 – HCD contacts staff with notice they are rejecting City’s finding that the property qualifies as “Exempt Surplus” land -December 2025 – HCD meets with staff and suggests using regular SLA process following Govt. Code section 54227(b) allowing City to identify preference to sell property to an entity that will use property for park/public use.
Background (cont.)
- February 3, 2026 – Council adopts a second SLA Resolution declaring the property surplus land.
- City subsequently issues a 60-day NOA
- City receives one response to the NOA from the
Chapman Estate Foundation
- City enters into negotiation of the Disposition
Agreement with the Foundation
-August 21, 2026 – City receives letter from HCD
confirming satisfaction of all applicable SLA
requirements.
Disposition Agreement
Disposition Agreement (Agreement)
-City and Foundation have negotiated the Agreement attached to the staff report. -Agreement provides for the transfer of the property to the Foundation while ensuring adherence to the requirements of both the 2013 Distribution Agreement and the 2021 CUP/CDP. -Agreement also requires reimbursement to the City for prior capital improvements in the amount of $1.66 million dollars, increased by annual CPI, should the property be sold or transfer. -Foundation will also receive $200,000 from insurance proceeds received for repair of the Gull House
Historic Designation
-Building and Fire Code Compliance - During negotiation of the Agreement the City raised concerns related to Fire and Building code compliance for some of the use areas on the property. -Section 4.1 of the Agreement limits use of the Estate to areas that comply with all applicable Building and Fire Code Requirements -The Foundation expressed concern regarding its ability to comply with Section 4.1, especially in relation to indoor use of the facility and with ADA path of travel requirements throughout the Estate. -The Foundation inquired about use of the Historic Building Code and whether that could provide some relief from strict adherence to the Building and Fire Code
Historic Designation
Historic Building Code – can provide flexibility in the means and methods used to achieve compliance with the
Building and Fire Codes. Requires Historic Designation.
Chapter 17.063 of the ZC (Archaeological and Historic
Sites Overlay) - establishes procedures for designation of structures/sites as a locally historic resource.
November 2013 Historic Evaluation – identifies the
potential for the Estate to qualify for listing as a Local Historic Resource, State Historic Resource and Federal
Historic Resource.
Historic Designation
Historic Designation for Certain Estate Improvements –
Consistent with Chapter 17.063 of the PBMC and the
November 2013 Historic Evaluation a resolution has been prepared (Attachment 2) that includes the findings
necessary for the City Council to declare the property a Local Historic Resource.
Historic Designation Applies to:
-Main House & Garage - Landscape Features:
-Lighthouse - Cypress Trees
-Guest House - Field Stone Walls
-Windmill - Seawall and Pool
Recommendation
1.Council adopt a resolution (Attachment 1) approving transfer of the Estate to the Chapman Estate Foundation, pursuant to the Disposition and Operations Agreement & authorizing the City Manager to execute all related documents
2.Council adopt a resolution (Attachment 2) designating the Chapman Estate as a Local Historic Resource.
Questions
Standard SLA Process
Background
2013 Distribution Agreement
-Agreement is with City and Trust
-If City sells the property, Distribution agreement requires:
-City shall negotiate a sales agreement under which some portion of the property is preserved for park/recreational use, any sale proceeds shall proportionally augment the Chapman trust for the SLO Symphony, SLO Foundation for the Public Arts Center, Pacific Opera, GALA, and Marianne Tally Foundation, under no circumstances shall any proceeds of the property benefit City or any private entity, however, City shall be reimbursed for any capital improvement expenditures.