PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.B
Meetin Date: Septembe 15, 2026
TITLE:
Transfer of the Chapman Estate Real Property to the Chapman Estate Foundation Pursuant to a Disposition and Operations Agreement, and Designation of the Property as Local Historic Resource
RECOMMENDATION:
1. Adopt a Resolution approving the transfer of certain City-owned real property to the Chapman Estate Foundation pursuant to a Disposition and Operations Agreement, and authorizing the City Manager to execute all necessary documents;
2. Adopt a Resolution designating the City-owned property located at 1243 Ocean Boulevard (APNs 010-302-030 and 010-30-031), known as the Chapman Estate, as a Local Historic Resource.
DISCUSSION:
The Chapman Estate (Estate) was donated to the City on December 13, 2013, by the Clifford W. Chapman Trust through a Distribution Agreement that includes several obligations the City must adhere to in exchange for donation of the Estate to the City.
On August 6, 2024, the City Council reviewed an assessment of the Estate related to the financial cost to repair and maintain the property. The Council subsequently directed staff to start the process of disposing of the property, based on the high cost of operations and maintenance of the Estate.
On February 3, 2026, the City Council adopted Resolution R-2026-006 declaring the property surplus land as required by the Surplus Land Act (SLA). The California Department of Housing and Community Development provided a letter to the City on August 21, 2026, confirming that the City had satisfied all applicable requirements of the SLA for the purpose of disposing of City owned property.
The Agreement
The City and Chapman Estate Foundation (Foundation) have negotiated a Disposition and Operations Agreement (Agreement, Attachment 1.A), which provides for the transfer of the Property to the Foundation while ensuring the long-term continuity, performance and adherence to the use, event and public access requirements outlined in both the 2013 Distribution Agreement and the April 20, 2021, Conditional Use Permit/Coastal Development Permit.
The Agreement also requires reimbursement to the City for prior capital improvements at the Estate in the amount of $1.66 million dollars, increased by annual CPI, based on the All Urban Consumers, Los Angeles, Long Beach, Anaheim, CA (see Section 3.2).
Payment would be triggered upon any future sale of the property.
Council Agenda 9-15-2026 12.B-1
The Foundation will also receive $200,000 through escrow from insurance proceeds received by the City for repair of the Gull Cottage.
Historic Designation
During Agreement negotiation, the City raised concerns regarding Fire Code and Building Code compliance for the various use areas on the property. Section 4.1 of the Agreement (Use and Operation of the Property) limits use of the Estate to areas that comply with all applicable Building and Fire Code requirements.
The Foundation expressed concern about its ability to comply with this requirement, particularly with respect to indoor use of the facilities and associated ADA path-of-travel requirements. In response, the Foundation inquired about the potential designation of the site as a historic resource, which could allow the use of the State Historical Building Code, which provides greater flexibility in the means and methods used to achieve compliance with applicable building and fire code requirements for qualified historic properties.
Chapter 17.063 of the Pismo Beach Municipal Code (Archaeological and Historic Sites Overlay) establishes procedures for the designation of structures, sites and features of historical, architectural, cultural or archaeological significance as Local Historic Resources. An historic evaluation of the site was conducted in November 2013 by Rebecca Loveland Anastasio, which identified the potential for the Property to qualify for listing as a Local Historic Resource and a State Historic Resource, and possibly as a Federal Historic Resource. The resolution provided as Attachment 2 to this staff report includes the findings necessary for the City Council to declare the property a Local Historic Resource. The local historic designation is specific to the following on site improvements:
Garage
Lighthouse
Main House
Guest House
Windmill
Landscape features: the Cypress trees, field stone landscape walls, the seawall, and pool.
Conclusion and Recommendation
Staff recommends the City Council adopt a resolution (Attachment 1) approving transfer of the Chapman Estate to the Foundation pursuant to the Disposition and Operations Agreement and authorizing the City Manager to execute all related documents.
Staff also recommends City Council adopt a resolution (Attachment 2) designating the Chapman Estate as a Local Historic Resource.
FISCAL IMPACT:
The fiscal impact of adopting both subject resolutions would include the transfer of $200,000.00 in insurance proceeds received by the City for storm damage to the Gull Cottage. In addition, the City would no longer provide approximately $60,000 annually in Council Agenda 9-15-2026 12.B-2
General Fund support for the Chapman Estate and would avoid future property insurance costs and reduce the amount of staff time supported by the General Fund associated with the property. Staff would also remove the property from the City’s fixed asset records.
As part of the proposed Disposition and Operations agreement, the Foundation would execute and record a deed restriction or other appropriate legal instrument, along with a promissory note in favor of the City, to protect the City’s approximately $1.66 million in prior capital investments in the Chapman Estate. The outstanding amount would be adjusted annually based on the Consumer Price Index. Payment to the City would be triggered upon any future sale or transfer of the property.
ATTACHMENTS:
1. Resolution - Transfer of Chapman Estate to the Chapman Estate Foundation Exhibit A - Disposition and Operations Agreement
2. Resolution - Historic Resource Designation
Submitted by:
Scot Graham, Community Development Director
City Manager Approval:
Council Agenda 9-15-2026 12.B-3
RESOLUTION NO. R-2026-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH
APPROVING THE TRANSFER OF CERTAIN CITY-OWNED REAL PROPERTY TO
THE CHAPMAN ESTATE FOUNDATION PURSUANT TO A DISPOSITION AND
OPERATIONS AGREEMENT, AND AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL NECESSARY DOCUMENTS
WHEREAS, the City of Pismo Beach (“City”) is the owner in fee simple of certain real property located at 1243 Ocean Boulevard, bearing Assessor’s Parcel Numbers (APNs) 010-302-030 and 010-302-031 (“Property”) and further known as the Chapman Estate (the “Estate”); and
WHEREAS, the City originally acquired the Property as a donation from the Clifford W.
Chapman 1986 Trust by a Distribution Agreement dated December 13, 2013, which sets forth numerous specific obligations of the City in exchange for the donation of the Estate to the City; and
WHEREAS, the City Council, on August 6, 2024, reviewed an assessment of the Estate related to the financial cost to repair and maintain the property and subsequently directed staff to start the process to dispose of the property due to the high cost of operations and maintenance of the Estate; and
WHEREAS, on February 3, 2026, the City Council adopted Resolution R-2026-006 declaring the Property surplus land. Subsequently, by letter dated August 21, 2026, the California Department of Housing and Community Development confirmed that the City had satisfied all applicable requirements of the Surplus Land Act for purposes of disposing of the Property; and
WHEREAS, the City and the Chapman Estate Foundation (“Foundation”) have negotiated a Disposition and Operations Agreement, incorporated as Exhibit A to this Resolution, which provides for the transfer of the Property to the Foundation while ensuring long-term continuity, performance, and adherence to the unique preservation and public access obligations established in the 2013 Distribution Agreement and 2021 Conditional Use Permit and Coastal Development Permit (Resolution R-2021-030).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the transfer of the real property located at 1243 Ocean Boulevard (APNs 010-302-030 and 010-302-031), known as the Chapman Estate, to the Chapman Estate Foundation.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby authorizes, empowers and directs the City Manager to execute the Disposition and Operations Agreement (Exhibit A), deed of trust, escrow instructions, and any supporting or regulatory documents necessary to complete the transaction on behalf of the City.
Council Agenda 9-15-2026 12.B-4
Attachment 1
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15th day of September 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Kirkwood, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Kirkwood, City Clerk
Council Agenda 9-15-2026 12.B-5
Attachment 1
DISPOSITION AND OPERATIONS AGREEMENT
by and between
City of Pismo Beach,
and
The Chapman Estate Foundation
DISPOSITION AND OPERATIONS AGREEMENT
AGREEMENT
Definitions. The following capitalized terms used in this Agreement shall “Agreement” means this Disposition and Operations Agreement.
1.1.2 “Approved Title Exceptions” is defined in Section 2.4.1.
1.1.3 “City” means the City of Pismo Beach.
1.1.4 “Close of Escrow” is defined in Section 2.3.
Council Agenda 9-15-2026 12.B-6
Attachment 1.A
1.1.5 “Conditional Use Permit” shall mean the conditional use permit regulating activities on the Estate issued by the City.
1.1.6 “Default” is defined in Section 6.1.
1.1.7 “Deposit” is defined in Section 2.2.
1.1.8 “Disapproved Title Exceptions” is defined in Section 2.4.1.
1.1.9 “Distribution Agreement” means the Distribution Agreement by and between the Clifford W. Chapman 1986 Trust and the City of Pismo Beach dated December 13, 2013.
1.1.10 Escrow” is defined in Section 2.3.
1.1.11 “Escrow Holder” means Fidelity National Title Company or another licensed escrow holder mutually selected by the Parties.
1.1.12 “Estate” means the land described on Exhibit “A” attached hereto and the Improvements located thereon.
1.1.13 “FIRPTA Affidavit” is defined in Section 2.8.1.3.
1.1.14 “Force Majeure Delay” is defined in Section 6.7.
1.1.15 “Grant Deed” is defined in Section 2.4.5.
1.1.16 “Hazardous Materials” means any chemical, material or substance now or hereafter defined as or included in the definition of hazardous substances, hazardous wastes, hazardous materials, extremely hazardous waste, restricted hazardous waste, toxic substances, pollutant or contaminant, imminently hazardous chemical substance or mixture, hazardous air pollutant, toxic pollutant, or words of similar import under any local, state or federal law or under the regulations adopted or publications promulgated pursuant thereto applicable to the Estate, including, without limitation: the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601, et seq. (“CERCLA”); the Hazardous Materials Transportation Act, as amended, 49 U.S.C. 1801, et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq.; and the Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901, et seq. (“RCRA”) The term Hazardous Materials shall also include any of the following: any and all toxic or hazardous substances, materials or wastes listed in the United States Department of Transportation Table (49 CFR 172.101) or by the Environmental Protection City as hazardous substances (40 CFR. Part 302) and in any and all amendments thereto in effect as of the Close of Escrow Date; oil, petroleum, petroleum products (including, without limitation, crude oil or any fraction thereof), natural gas, natural gas liquids, liquefied natural gas or synthetic gas usable for fuel, not otherwise designated as a hazardous substance under CERCLA; any substance which is toxic, explosive, corrosive, reactive, flammable, infectious or radioactive (including any source, special nuclear or by-product material as defined at 42 U.S.C. 2011, et seq.), carcinogenic, mutagenic, or otherwise hazardous and is or becomes regulated by any governmental authority; asbestos in any form; urea formaldehyde foam insulation; “Improvements” means all buildings, landscaping, infrastructure, utilities, and other improvements on the Estate
1.1.18 Party” means any party to this Agreement, and “Parties” means all parties to this Agreement.
1.1.19 “Permitted Exceptions” is defined in Section 2.4.5.
1.1.20 “Project” means the Estate and Improvements.
1.1.21 “Project Area” is that real property particularly described on defined in Exhibit A.
1.1.22 “Purchase Price” is defined in Section 2.1.
1.1.23 “Released Parties” is defined in Section 2.9.4.
1.1.24 “Term” means twenty-five (25) years after this Agreement is fully executed by all parties.
1.1.25 Title Company” shall mean the Escrow Holder (i.e., the Title “Transfer” is defined in Section 4.1.1.
1.1.27 “Transferee” is defined in Section 4.1.2.
1.1.28 “Withholding Affidavit” is defined in Section 2.8.1.2.
2.PURCHASE AND SALE OF THE PROPERTY; PURCHASE PRICE; DEPOSIT.
Consideration for Transfer.
Council Agenda 9-15-2026 12.B-7
Attachment 1.A
2.2 Deposit.
2.2.1 Within ten (10) business days after the date this Agreement is executed by the City and delivered to Foundation, the Foundation shall deposit the sum of Three Thousand Dollars ($3,000) with Escrow Holder (together with all interest thereon, the “Deposit”).
2.2.2 The Deposit shall be held by Escrow Holder in an interest-bearing account.
2.2.3 The Deposit shall be credited to the Purchase Price and any Escrow Fees at the Close of Escrow.
2.2.4 In the event the Close of Escrow does not occur due to a default by Foundation, the Deposit shall be delivered to and retained by the City.
2.3 Opening and Closing of Escrow.
2.3.1 Within five (5) business days after the Effective Date of this Agreement is executed by City and delivered to Foundation, the City and the Foundation shall cause an escrow (the “Escrow”) to be opened with Escrow Holder for the sale of the Estate by the City to Foundation.
2.3.2 The Parties shall deposit with Escrow Holder a fully executed duplicate original of this Agreement as the escrow instructions for the Escrow. The City and Foundation shall provide such additional instructions as shall be necessary and consistent with this Agreement.
2.3.3 Provided that each of the conditions to closing described in Section 2.7 have been satisfied, Escrow shall close (the “Close of Escrow”) on or before September 30, 2026.
2.3.4 If the Close of Escrow does not occur by such date, any party not then in default may terminate this Agreement by written notice to the other and, all funds and documents deposited with Escrow Agent shall be promptly refunded or returned, as the case may be, by Escrow Agent to the depositing party, except that all escrow and title cancellation fees shall be paid by Foundation.
2.4 Condition of Title; Title Insurance.
2.4.1 Foundation hereby approves all title exceptions of that certain preliminary title report dated April 6, 2026, issued by the Title Company as Order No. 4009- 7398746 (the “Approved Title Exceptions”).
2.4.2 At the Close of Escrow, the City shall convey title to the Estate to Foundation by grant deed substantially in the form attached hereto as Exhibit “C” (the “Grant Deed”). Title to the Estate shall be conveyed subject to: (i) nondelinquent current real property taxes and assessments not yet due for the tax year during which the conveyance occurs, (ii) all Approved Title Exceptions, (iii) this Disposition and Operations Agreement, and (iv) any matters Conditions to Close of Escrow.
Costs; Escrow Holder Settlement Statement.
Foundation shall be solely responsible for all costs and expenses related to all surveys, title policies (and endorsements thereto), escrow charges, recording fees, and transfer taxes.
2.7 Condition of the Property.
“As-Is” Sale. Foundation acknowledges and agrees that, except as Council Agenda 9-15-2026 12.B-8
Attachment 1.A
compliance with any laws, and Foundation is not aware of and does not rely upon any such representation to any other party. Except as expressly set forth herein, neither City nor any of its representatives is making or shall be deemed to have made any express or implied representation or warranty, of any kind or nature, as to (a) the physical, legal or financial status of the Estate, (b) the Estate’s compliance with applicable laws, (c) the accuracy or completeness of any information or data provided or to be provided by City, or (d) any other matter relating to the Estate.
2.7.2 City to provide prior to close of escrow, Within ten (10) calendar days after City executes this Agreement, City shall provide Foundation with copies of all, documents within its possession, custody or control related in the condition of the Estate or any work performed on the Estate inspections, including, without limitation, reports, photographs, plans, permits, inspections, invoices, warranties, or other similar documents. Documents shall be provided in an electronic format and upon acceptance, all further records requests shall be submitted or requested related to any records, reports, or inspections or prior work shall be submitted in accordance with the California Public Records Act.
2.7.3 Acknowledgement of Inspections. Foundation has inspected the Estate and its physical characteristics and existing conditions and has observed or has had sufficient opportunity to inspect or observe, conducted or had sufficient opportunity to conduct such investigations and studies on and of said Estate and adjacent areas as it deems necessary, and hereby waives any and all objections to or complaints regarding the Estate and its condition, including, but not limited to, federal, state or common law based actions and any private right of action under state and federal law to which the Estate is or may be subject, including, but not limited to, CERCLA (as defined in Section 1.1.15), RCRA (as defined in Section 1.1.15), physical characteristics and existing conditions, including, without limitation, structural and geologic conditions, subsurface soil and water conditions and solid and hazardous waste and Hazardous Materials on, under, adjacent to or otherwise affecting the Estate. Foundation further hereby assumes the risk of changes in applicable laws and regulations relating to past, present and future environmental conditions on the Estate and the risk that adverse physical characteristics and conditions, including, without limitation, the presence of Hazardous Materials or other contaminants, may not have been revealed by its investigations.
2.7.4 Releases and Waivers. Foundation and anyone claiming by, through or under Foundation hereby waives its right to recover from and fully and irrevocably releases City, City and its council members, board members, employees, officers, directors, representatives, agents, servants, attorneys, successors and assigns (“Released Parties”) from any and all claims, responsibility and/or liability that it may now have or hereafter acquire against any of the Released Parties for any costs, loss, liability, damage, expenses, demand, action or cause of action arising from or related to (i) the condition (including any defects, errors, omissions or other conditions, latent or otherwise, and the presence in the soil, air, structures and surface and subsurface waters of materials or substances that have been or may in the future be determined to be Hazardous Materials or otherwise toxic, hazardous, undesirable or subject to regulation and that may need to be specially treated, handled and/or removed from the Estate under current or future federal, state and local laws regulations or guidelines), valuation, salability or utility of the Estate, or its suitability for any purpose whatsoever, and (ii) any information furnished by the Released Parties under or in connection with this Agreement. This release includes claims of which Environmental Indemnity. Except for the presence of Hazardous Materials on the Estate known by City and not disclosed to Foundation, from or after the Close of Council Agenda 9-15-2026 12.B-9
Attachment 1.A
Escrow, Foundation shall indemnify, protect, defend and hold harmless the City, and the City’s officials, officers, attorneys, employees, consultants, agents and representatives, from and against any and all claims, liabilities, suits, losses, costs, expenses and damages, including but not limited to attorneys’ fees and costs, arising directly or indirectly out of any claim for loss or damage to the Estate or for the cost of remediating the Estate and removing Hazardous Materials therefrom, by reason of Foundation’s release of Hazardous Materials on the Estate, or by reason of any statutes, ordinances, orders, rules or regulations of any governmental entity or City requiring the remediation of any Hazardous Materials that Foundation releases on the Estate.
2.8 Deposits into Escrow.
2.8.1 The City hereby covenants and agrees to deliver to Escrow Holder prior to the Close of Escrow the following instruments and documents, the delivery of each of which shall be a condition of the Close of Escrow:
2.8.1.1 A Grant Deed duly executed and acknowledged by the City, in the form attached hereto as Exhibit “C”.
2.8.1.2 The affidavit as contemplated by California Revenue and Taxation Code § 18662 (“Withholding Affidavit”);
2.8.1.3 A Certification of Non-Foreign Status in accordance with I.R.C. Section 1445 (the “FIRPTA Certificate’);
2.8.1.3.1 Two Hundred Thousand Dollars ($200,000.00) pursuant to Section 4.3 of this Agreement; and
2.8.1.3.2 Such amounts as are necessary to satisfy any monetary obligations on the part of the City to close Escrow.
2.8.1.4 Such proof of the City’s authority and authorization to enter into this transaction as the Title Company may reasonably require in order to issue Foundation’s policy of title insurance.
2.8.2 Foundation shall deposit with Escrow Holder, prior to the Close of Escrow, an executed and acknowledged counterpart of this Disposition and Operations Agreement and funds sufficient to satisfy Foundation’s monetary obligations at Closing in accordance with this Agreement.
2.9 Authorization to Record Documents and Disburse Funds.
2.9.1 Escrow Holder is hereby authorized to record the documents and disburse the funds and documents called for hereunder upon the Close of Escrow, provided each of the following conditions has then been fulfilled:
(i)The Title Company can issue in favor of Foundation an ALTA Extended Coverage Owner’s Policy of Title Insurance, with liability equal to the Escrow’s Closing Actions.
On the Close of Escrow, Escrow Holder shall:
2.10.1.1 Record the Grant Deed and then the Disposition and Operations Agreement with the San Luis Obispo County Recorder (which shall be deemed delivery of said instruments to Foundation);
2.10.1.2 Issue the Title Policy (or cause the Title Company to issue the Title Policy);
2.10.1.3 Prorate taxes, assessments, rents, and other charges as of the Close of Escrow in accordance with the settlement statements approved by the Parties.
2.10.1.4 From funds deposited by Foundation, pay prorated amounts and charges to be paid by or on behalf of Foundation, and return any excess to Foundation;
2.10.1.5 Prepare and deliver to both Foundation and the City one signed copy of Escrow Holder’s closing statement showing all receipts and disbursements of the Escrow; and
2.10.1.6 Deliver the FIRPTA Certificate and the Withholding Affidavit to Foundation.
2.11 Additional Instructions.
Council Agenda 9-15-2026 12.B-10
Attachment 1.A
3.OPERATOR’S USE COVENANTS.
3.1 Operations.
Except as set forth below, Foundation shall use the Estate subject to the Distribution Agreement, and all requirements of any and all applicable federal, state and local laws, rules and regulations (including any conditions of approval required by the City), and all other terms, conditions and requirements of this Agreement. Foundation shall comply in the time and manner provided by this Agreement, provided that the obligations of Foundation set forth therein which are to be performed after the Close of Escrow shall be tolled by Force Majeure Delays, if applicable, and provided, further, that the City Manager of the City may extend any deadline therein in his or her sole and absolute discretion. During the Term of this Agreement, the Foundation shall provide the City, as reasonably requested by the City, a status report regarding the operation of the Estate. This paragraph is subject to the limitations and terms as specified in Section 4.1.
3.2 Reimbursement to City for Prior Capital Investments to the Estate.
Foundation agrees to execute and record a deed restriction or other legal instrument and a promissory note in favor of the City ensuring the City will be made whole on those capital investments made by City to the Estate prior to the date of this Agreement in the amount of $1.66M, which amount will increase by annual adjustments on any outstanding unpaid amounts using the annual CPI All Urban Consumers, Los Angeles - Long Beach - Anaheim, CA. This provision shall survive this agreement and runs with the property.
3.3 Operations of Open Gates., Foundation agrees to continue the Open Gates program in conformity with the Conditional Use Permit requirements or with any later-issued conditional use permit if such program is included as a condition.
3.4 Local, State and Federal Laws. Foundation shall use the Estate in conformity with all applicable federal, state and local laws, including all applicable federal and state occupation, safety and health standards, City codes and the Conditional Use Permit and Coastal Development Permit.
3.5 City and Other Governmental Agency Permits and Approvals.
Foundation shall (at Foundation’s expense) secure, or cause to be secured, any and all permits which may be required by the City or any other governmental agency having jurisdiction over the Estate.
3.6 Revision to Conditional Use Permit. Foundation may operate under the existing Conditional Use Permit for up to 3 years after the Close of Escrow. Within 365 days of Close of Escrow Foundation shall apply for a revision to the Conditional Use Permit for the Estate. subject to the limitations and terms as specified in Section 4.1.
3.7 No City Maintenance. After the Close of Escrow, all maintenance of the Estate is the responsibility of the Foundation and City has no maintenance duties or obligations related to the Estate.
Council Agenda 9-15-2026 12.B-11
Attachment 1.A
4. USE AND OPERATION OF THE PROPERTY.
4.1 Upon Close of Escrow, the public use of the Estate shall be limited to those areas that comply with all applicable required building and fire codes. The Foundation understands and agrees that “public use” shall include access by the public, whether for a fee or without cost, except for Foundation employee, volunteers, architects, engineers, contractors, vendors, consultants or others providing service to the Foundation in connection with the evaluation, maintenance,repair and operations of the Estate or any portion thereof.
4.2 Maintenance by Foundation. During the Term, Foundation and its successors in interest with respect to the Estate shall maintain the Estate (including landscaping) in a manner substantially comparable to the level of maintenance provided to other properties of similar age and quality to the Project located in San Luis Obispo County. The Foundation shall maintain the Estate in good repair and working order, and in a neat, clean and orderly condition, including the walkways, driveways, and landscaping, and from time to time make all necessary and proper repairs, renewals, and replacements. Failure to maintain the Estate is a material breach of this Agreement. Notwithstanding anything to the contrary herein, the parties acknowledge that, at the time of this Agreement, the Estate is in need of extensive repairs and upgrades and that such repairs and upgrades will require time and resources to return the Estate to good repair and working order. The Foundation will proceed to reasonable diligence to make such repairs and upgrades.
However, in determining whether the Foundation has met its obligations under this Section 4.2, the condition of the Estate at the time of this Agreement and the time, resources and reasonable diligence to return the Estate to good repair and working order, shall be taken into consideration.
4.3 Gull Cottage. Foundation agrees to take full responsibility for the Gull Cottage in its current “as-is” condition and will be provided $200,000 from insurance proceeds available from insurance claims made for prior damage. Said amount shall be deposited into escrow
4.4 Responsibility for Assetsand Inventory. Not later than sixty (60) days prior to the Close of Escrow, City shall complete an inventory of all personal property located on the Estate and provide the Foundation with a copy of that inventory. Concurrently with providing a copy of the inventory, the City shall provide the Foundation with a list of all items which the City intends to remove from the Estate. All such identified personal property shall be removed from the Estate prior to the Close of Escrow. Any personal property remaining on the Estate after the Close of Escrow shall become the property of the Foundation, which shall hold and utilize it specifically to carry out the provisions of the Distribution Agreement.The Foundation will insure the full value of the personal property assets which are displayed publicly at the Estate. If the Foundation seeks to liquidate any such personal property assets, the item(s) identified for liquidation shall first be offered to the City, which will hold first right of refusal to reclaim ownership of such items, at no cost. No current or former Foundation board member, staff, or their families shall be permitted to acquireliquidated assets.
4.5 Events Open to the Public. Foundation will comply with all laws, rules, building and fire codes, and regulationsapplicable to the use of the Estate for public eventssubject to the limitations and terms as specified in Section 4.1.
5. EVENTS OF DEFAULT, REMEDIES AND TERMINATION.
5.1 Defaults - Definition. Subject to the provisions of Section 5.6 hereof, the occurrence of any or all of the following shall constitute a default (“Default”) under this Agreement:
5.1.1 Foundation’s failure to perform its obligations on a timely basis as contained herein or any breach of this Agreement by any Party involving the payment of money, and the continuance of such breach for a period of ten (45) days after the non-defaulting Party has given written notice to the defaulting Party, as specified in Section 9.1;
5.1.2 Except as otherwise provided in Section 5.1.1 hereof, a breach of any material term of this Agreement by any Party not involving the payment of money and failure of such Party to cure such breach within sixty(60) days after the non-defaulting Party has given written notice to the defaulting Party; provided, however, if such breach is not reasonably curable within such sixty (60) day period, then such Party shall be deemed in Default only if such Party does not commence to cure such breach within such sixty (60) day period and thereafter fails to diligently prosecute such breach to completion;
5.1.3 The failure to comply with any of the insurance requirements of Section 6 below.
5.1.4 The failure to maintainthe Estate as required by Section 4.2.
5.2 Remedies.
5.2.1 Remedies for Default After the Close of Escrow. In the event of a Default by any Party after the Close of Escrow, a non-defaulting party shall be entitled to the following remedies, as applicable:
(i) A defaulting Party shall be liable to the non-defaulting Party for all damages, costs and losses incurred by the non-defaulting Party, and the non-defaulting Party may seek against the defaulting Party any available remedies at law or equity, including but not limited to the right to receive damages or to pursue an action for specific performance; and
(ii) Prior to any sale of the Estate, the Foundation shall use good faith efforts to sell the Estate or applicable portion thereof to a qualified and responsible party or parties who will assume the obligation of operating the Estate in accordance with the uses specified for such property by law. The rights established in this Section are to be interpreted in light of the fact that the City will convey the Estate to the Foundationfor continued operations in substantial compliance with the Distribution Agreement and not for speculation.
This provision shall not relieve the Foundation of any requirements of applicable law nor shall it permit substantial compliance with said laws when absolute compliance is required.
Council Agenda 9-15-2026 12.B-12
Attachment 1.A
5.3 No Personal Liability. No representative, agent, attorney, consultant, or employee of the City or the Foundation shall personally be liable in the event of any Default or breach by the either Party, or for any amount which may become due to any party or successor in interest, on any obligation under the terms of this Agreement.
5.4 Rights and Remedies are Cumulative. The rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same time or different times, of any other rights or remedies for the same default or any other default by the non-defaulting Party; provided, however, that liquidated damages specified herein shall constitute the sole damages recoverable for the default giving rise to such liquidated damages.
5.5 Inaction Not a Waiver of Default. Any failures or delays by either Party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies or deprive either such Party of its rights to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. The acceptance by a Party of less than the full amount due from the other party shall not constitute a waiver of such Party’s right to demand and receive the full amount due, unless such Party executes a specific accord and satisfaction.
5.6 Force Majeure. Following the Close of Escrow, and notwithstanding anything to the contrary in this Agreement, nonperformance shall be excused when performance is prevented or delayed by reason of any of the following forces reasonably beyond the control of such party (a “Force Majeure Delay”): (i) failure to perform by Foundation affecting all similar works of construction in the San Luis Obispo County, California, area, attributable to any strike, lockout or other labor or industrial disturbance (whether or not on the part of the employees of either party hereto), civil disturbance, pandemic, future order claiming jurisdiction, act of the public enemy, war, riot, sabotage, blockade, embargo, inability to secure customary materials, supplies or labor through ordinary sources by reason of regulation or order of any government or regulatory body; and (ii) delay attributable to severe weather, lightning, earthquake, fire, storm, hurricane, tornado, flood, washout, explosion, or any other similar industry-wide cause beyond the reasonable control of the party from whom performance is required, or any of its contractors or other representatives. Any prevention, delay or stoppage due to any Force Majeure Delay shall excuse the performance of the party affected for a period of time equal to any such prevention, delay or stoppage (except the obligations of either party to pay money to the other party or to close escrow) provided that the Party claiming the Force Majeure Delay notifies the other Party of the Force Majeure Delay within a reasonable time (not to exceed ten business days) after the commencement of the Force Majeure Delay.
6. INSURANCE; INDEMNITY.
6.1 Insurance.
From and after the Close of Escrow and for so long as title to the Estate has not reverted to by the City, Foundation shall obtain and maintain at no cost or expense to the City, with a reputable and financially responsible insurance company reasonably acceptable to the City, (i) commercially reasonable casualty insurance for the Estate in an amount not less Three Million Indemnity. From and after the execution of this Agreement, Foundation any of Foundation’s activities on the Estate, or
(v) the activities of Foundation’s agents, employees, lessees, representatives, licensees, guests, invitees, contractors, subcontractors, or independent contractors on the Estate), regardless of whether such losses and liabilities shall accrue or are discovered before or after termination or expiration of this Agreement, except to the extent such losses or liabilities are caused by the gross negligence or willful misconduct of the City.
6.3 The City may in their discretion, and at their own cost, participate in the defense of any legal action naming the City. The provisions of this Section 6.2 shall survive the Close of Escrow or the termination of this Agreement.
7. REPRESENTATIONS AND WARRANTIES.
Foundation Representations. Foundation represents and warrants to the Foundation is a California Non-Profit validly existing and in good standing under the laws of the State of California.
Council Agenda 9-15-2026 12.B-13
Attachment 1.A
(ii) Foundation has duly authorized the execution and
performance of this Agreement and the execution and performance of all of the closing documents set forth herein.
(iii) Foundation’s execution and performance of this Agreement and the closing documents will not violate any provision of the Foundation’s operating agreement or any deed of trust, lease, contract, agreement, instrument, order, judgment or decree by which Foundation is bound.
(iv) The Foundation has not engaged a broker with respect to the purchase of the Estate contemplated herein.
7.2 City Representation. The City hereby represents and warrants to the Foundation that the City has not engaged a broker with respect to the purchase of the Estate as contemplated herein.
8. TERM. The Term of this Agreement shall be for a period of twenty-five (25) years from the Effective Date. Upon expiration of the Term or upon prior termination as set for in this Agreement, City shall record a Notice of Termination in the Office of the San Luis Obispo County Recorder.
9. GENERAL PROVISIONS.
9.1 Notices. All notices and demands shall be given in writing by certified mail, postage prepaid, and return receipt requested, or by personal delivery. Notices shall be considered given upon the earlier of (a) one business day following deposit or delivery with a nationally recognized overnight courier delivery charges prepaid, or (b) three (3) business days following after deposit or delivery shown on the return receipt in the United States mail, postage prepaid, certified or registered, return receipt requested. Notices shall be addressed as provided below for the respective Party; provided that if any Party gives notice in writing of a change of name or address, notices to such Party shall thereafter be given as demanded in that notice:
City:
City Manager
760 Mattie Road
Pismo Beach, CA 93449
With a copy to: City Attorney
Foundation:
Attn: Board of Directors
PO Box 3014
Pismo Beach, CA 93449
9.2 Construction. The Parties agree that each Party and its counsel have reviewed and revised this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply in the interpretation of this Agreement Interpretation. In this Agreement the neuter gender includes the feminine Time of the Essence. Time is of the essence of this Agreement.
Warranty Against Payment of Consideration for Agreement. Foundation Attorneys’ Fees. If any Party brings an action to enforce the terms hereof Entire Agreement Waivers and Amendments. This Agreement, together Severability. Each and every provision of this Agreement is, and shall be Council Agenda 9-15-2026 12.B-14
Attachment 1.A
the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected hereby, and each term and provision of this Agreement shall be valid and shall be enforced to the extent permitted by law.
9.9 Headings. All section headings and subheadings are inserted for convenience only and shall have no effect on the construction or interpretation of this Agreement.
9.10 No Third-Party. This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement.
9.11 Governing Law; Jurisdiction; Service of Process. This Agreement and the rights of the Parties shall be governed by California law. The Parties consent to the exclusive jurisdiction of the California Superior Court for the County of San Luis Obispo. If any legal action is commenced by Foundation against the City, or by City against Foundation, service of process on the City shall be made by personal service upon the City Clerk of the City, or in such other manner as may be provided by law. If any legal action is commenced by City or City against Foundation, service of process on Foundation shall be made by personal service onthe then- president/chairman of the Foundation Board of Directors, or in such other manner as may be provided by law. Foundation agrees, for the benefit of the City, that it shall designate an agent for service of process in the State of California in the manner prescribed by law.
9.12 Assignability. Except as otherwise expressly provided in Section 4.2, Foundation may not assign, transfer or convey its rights and obligations under this Agreement without the prior written consent of the City, which City may withhold in its sole and absolute discretion.
9.13 Survival. The provisions hereof shall not merge into, but rather shall survive, any conveyance hereunder (including, without limitation, the delivery and recordation of the Grant Deed) and the delivery of all consideration.
9.14 Estoppel Certificates. Upon written request of Foundation, City shall within thirty (30) days of the date of such request, execute and deliver to Foundation, a written statement:
certifying, to the best of such City’s knowledge, that (a) this Agreement in full force and effect, if such is the case, and has not been modified or amended, except as shall be stated; and (b) that no default by Foundation exists under this Agreement.
9.15 City Actions. The City hereby authorizes the City Manager to deliver such approvals, consents as are contemplated by this Agreement, waive requirements under this Agreement, and modify this Agreement, on behalf of the City provided that the applicable approval, consent, waiver or modification is minor (i.e., does not change the fundamental business transaction between the Foundation and the City, as determined by the City Manager in his or her reasonable discretion).
9.16 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed as original but all of which together shall constitute one and the same instrument.
IF THE TRANSACTION HEREIN PROVIDED SHALL NOT BE CLOSED BY REASON
OF FOUNDATION'S DEFAULT UNDER THIS AGREEMENT WHICH DEFAULT OR
BREACH IS NOT CURED WITHIN FIVE BUSINESS DAYS AFTER WRITTEN
NOTICE OF SUCH DEFAULT OR BREACH IS RECEIVED BY FOUNDATION FROM
CITY, THEN THE TOTAL DEPOSIT SHALL BE DELIVERED TO CITY AS FULL
COMPENSATION AND LIQUIDATED DAMAGES UNDER THIS AGREEMENT FOR
SUCH FAILURE TO CLOSE, AND NEITHER PARTY SHALL HAVE ANY FURTHER
OBLIGATION OR LIABILITY TO THE OTHER (OTHER THAN THOSE
OBLIGATIONS, INCLUDING THOSE CONTAINED IN THIS SECTION, THAT EXPRESSLY SURVIVE A TERMINATION OF THIS AGREEMENT). IN
CONNECTION WITH THE FOREGOING, THE PARTIES RECOGNIZE THAT CITY
WILL INCUR EXPENSE IN CONNECTION WITH THE TRANSACTION
CONTEMPLATED BY THIS AGREEMENT AND THAT THE PROPERTY WILL BE REMOVED FROM THE MARKET; FURTHER, THAT IT IS EXTREMELY
DIFFICULT AND IMPRACTICABLE TO ASCERTAIN THE EXTENT OF
DETRIMENT TO CITY CAUSED BY THE BREACH BY FOUNDATION UNDER THIS
AGREEMENT AND THE FAILURE OF THE CONSUMMATION OF THE
TRANSACTION CONTEMPLATED BY THIS AGREEMENT OR THE AMOUNT OF
COMPENSATION CITY SHOULD RECEIVE AS A RESULT OF FOUNDATION'S BREACH OR DEFAULT. CITY WAIVES ANY AND ALL OTHER RIGHTS AND
REMEDIES AGAINST FOUNDATION, INCLUDING WITHOUT LIMITATION, SPECIFIC PERFORMANCE. THE PAYMENT AND RETENTION OF SUCH AMOUNT
AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369,
BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO CITY PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. CITY
HEREBY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTIONS 1680 AND 3389. UPON ANY SUCH BREACH OR DEFAULT BY FOUNDATION
HEREUNDER, THIS AGREEMENT SHALL BE TERMINATED AND NEITHER
PARTY SHALL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER,
EACH TO THE OTHER, EXCEPT FOR THE RIGHT OF CITY TO RETAIN SUCH LIQUIDATED DAMAGES.
____________________ __________________
City’s Initials Foundation Initials
IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the day and year first above written.
OPERATOR:
Council Agenda 9-15-2026 12.B-15
Attachment 1.A
By: _____________________________
“CITY”:
CITY OF PISMO BEACH
By: _______________________________
Jorge Garcia
Cit Mana er
ATTEST:
__________________________________
By: Erica Inderlied
City Clerk
APPROVED AS TO FORM
By: __________________________
Dean J. Pucci, Cit Attorne
EXHIBIT “A”
LEGAL DESCRIPTION (1243 Ocean Blvd. / APN: 010-302-013 and 010-302-012)
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PISMO
BEACH, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
Lots 3, 4, 5, 6, 7, 8 and 9 of Block 1, in the City of Pismo Beach, County of San Luis Obispo, State of California, shown upon that certain map entitled Shell Beach Subdivision No. 2, filed for record in Book 3 of Maps at Page 73, San Luis Obispo County Records, into two (2) parcels of land described as follows:
Parcel 1:
BEGINNING at the most northwest corner of said Lot 3;
THENCE, along the northwesterly line of said Lot 3, South 29°43' West, 62 feet, more or less, to the southwesterly corner of said Lot 3, being a point on the ordinary high water line of the Pacific Ocean;
THENCE, southeasterly and easterly along the southwesterly lines of said Lots 3, 4, 5, 6 and 7, also being said ordinary high water line, to the southeasterly corner of said Lot 7;
THENCE, along the southeasterly line of said Lot 7, North 29°43' East, 95 feet, more or less, to a point in a line that is parallel with and 100 feet southwesterly from the northeasterly line of said Lot 7;
THENCE, along said parallel line, North 60°17' West, 45 feet, to a point In a line that is parallel with and 5 feet southeasterly from the northwesterly line of said Lot 7;
THENCE, along last mentioned parallel line and it's northeasterly prolongation, North 29°43' East, 120 feet, to a point in the southwesterly line of Ocean Boulevard as created by the 20 foot abandonment recorded in Book 149, at Page 303, San Luis Obispo County Official Records;
THENCE, along said southwesterly line of Ocean Boulevard, North 60°17' West 77.9 feet;
THENCE, continuing along the southwesterly line of Ocean Boulevard, North 45°17'West, 131.52 feet, to a point on the northeasterly prolongation of said northwesterly line of Lot 3;
Council Agenda 9-15-2026 12.B-16
Attachment 1.A
A-2
Exhibit “A”
Legal Description
(continued)
THENCE, along last mentioned prolongation, South 29°43' West, 20.5 feet, more'or less, to the POINT OF BEGINNING.
Parcel 2:
BEGINNING at the northeast corner of said lot 9;
THENCE, along the southeasterly line of said Lot 9, South 29°43' West 161 feet, more or less, to the southeasterly corner of said Lot 9, being a point on the ordinary high water line of the Pacific Ocean;
THENCE, westerly along the southerly lines of said Lots 9 and 8, also being said ordinary high water line, to the southwesterly corner of said Lot 8; THENCE, along the northwesterly line of said Lot 8, North 29°43' East, 95 feet, more or less, to a point in a line that is parallel with and 100 feet southwesterly from the northeasterly line of said Lot 7;
THENCE, along said parallel line, North 50°17' West, 45 feet, to a point in a line that is parallel with and 5 feet southeasterly from the northwesterly line of said Lot 7; THENCE, along last mentioned parallel line and it's northeasterly prolongation, North 29°43' East, 120 feet, to a point in the southwesterly line of Ocean Boulevard as created by the 20 foot abandonment recorded in Book 149, at Page 303, San Luis Obispo County Official Records;
THENCE, along said southwesterly line of Ocean Boulevard, South 60°17' East 145 feet, to a point on the northeasterly prolongation of said southeasterly line of Lot 9; THENCE, along last mentioned prolongation, South 29°43' West, 20 feet, more or less, to the POINT OF BEGINNING
B-1
EXHIBIT “B”
DISTRIBUTION AGREEMENT
Council Agenda 9-15-2026 12.B-17
Attachment 1.A
D-1
EXHIBIT “C”
FORM OF GRANT DEED
Recording Requested by and when recorded return to
and mail tax statements to:
Assessor’s Parcel Map No.:
Exempt from Recording Fees Pursuant to
Government Code Section 27383
GRANT DEED
The undersigned grantor(s) declare(s):
Documentary transfer tax is $__________ based on the full value of the property conveyed.
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, ___________________________ (“Grantor”) hereby GRANTS to _______________________, a ______________ (“Grantee”) the following described real property (the “Estate”) located in the City of Pismo Beach, County of San Luis Obispo, State of California:
SUBJECT TO, all easements, covenants, conditions, restrictions, and rights of way of record.
1.This grant of the Estate is subject to a Disposition and Operation Agreement entered into by and between Grantor and Grantee dated as of ________, 2026, (the “Agreement”) the terms of which are incorporated herein by reference. A copy of the Agreement is available for public inspection at the offices of the Grantor at 760 Mattie Road., Pismo Beach, CA 93449.
2.The Grantee covenants by and for itself, its representatives, its successors and assigns and every successor in interest to the Estate or any part thereof, that during construction of improvements and thereafter the Grantee shall not use or permit the use of the Estate in violation of the Disposition and Operations Agreement and City, State and Federal regulations.
3.. All covenants contained in this Grant Deed shall run with the land and shall be binding for the benefit of Grantor and its successors and assigns and such covenants shall run in favor of the Grantor and for the entire period during which the covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land adjacent to the Estate or interest in such adjacent land or any other land. The Grantor, in the event of any breach Council Agenda 9-15-2026 12.B-18
Attachment 1.A
E-2
State of California
County of
)
)
)
On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their 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.
WITNESS my hand and official seal.
Signature (Seal)
Signature of Notary Public
State of California
County of
)
)
)
On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their 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.
WITNESS my hand and official seal.
Signature (Seal)
Signature of Notary Public
Council Agenda 9-15-2026 12.B-19
Attachment 1.A
RESOLUTION NO. R-2026-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA DESIGNATING THE CITY-OWNED PROPERTY LOCATED AT 1243 OCEAN BOULEVARD (APNS 010-302-030 AND 010-302-031), KNOWN AS THE
CHAPMAN ESTATE, AS A LOCAL HISTORIC RESOURCE
WHEREAS, the City of Pismo Beach is the fee title owner of that certain real property located at 1243 Ocean Boulevard, more particularly described as Assessor’s Parcel Numbers 010-302-030 and 010-302-031 (the "Property"); and WHEREAS, Chapter 17.063 of the City of Pismo Beach Municipal Code establishes procedures for the designation of structures, sites, and features of historical, architectural, cultural, or archaeological significance to the City’s Inventory of Historic Resources; and WHEREAS, a Historic Resource Evaluation (HRE), dated November 2013, was prepared by Rebecca Loveland Anastasio, a qualified professional meeting the Secretary of the Interior’s Professional Qualification Standards, which concluded that the Property possesses unique local historical and architectural significance related to the garage, lighthouse, main house, windmill, and some landscape improvements including the cypress trees, field stone landscape walls, the seawall, and pool; and WHEREAS, the Property meets Criterion A, C, and D of the California Environmental Quality Act guidelines related to determining a property as historic because this Property reflects an early example of English Tudor Style architecture on the Central Coast in addition to being a rare example of estate living on the Central Coast; and WHEREAS, the designation of an existing City-owned property as a local historic resource is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for Protection of the Environment) and Section 15331 (Historical Resource Restoration/Preservation).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby finds as follows:
SECTION 1. Recitals. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated into this Resolution as findings of fact.
SECTION 2. Historic Findings. Based upon the administrative record, including the Historic Resource Evaluation, the City Council hereby finds that the Property qualifies for local designation based on the following specific criteria:
1. Historical Significance: The property reflects the local history of Shell Beach, including its early development as a coastal destination and the trend of families from the San Joaquin Valley visiting the Central Coast during the summer months to escape the valley heat.
Council Agenda 9-15-2026 12.B-20
Attachment 2
2. Architectural Significance: The structure embodies the distinctive characteristics of the English Tudor style of architecture on the Central Coast, in addition to being a rare example of estate living on the Coast. Typically, Shell Beach and Pismo Beach summer homes were small cottages of simple design.
3. Prehistory: the Chapman estate lies within the boundaries of a significant archaeological site, CA-SLO-459.
SECTION 3. Designation. The City Council hereby officially designates the City- owned property located at 1243 Ocean Boulevard (APNs 010-302-030 and 010-302- 031)as a Local Historic Resource. The local historic designation is specific to the following on site improvements:
Garage
Lighthouse
Main House
Guest House
Windmill
Landscape features: the Cypress trees, field stone landscape walls, the seawall, and pool.
SECTION 4. CEQA. The City Council hereby determines that this action is categorically exempt from CEQA under Class 8 (14 CCR § 15308) and Class 31 (14 CCR § 15331), and none of the Categorical Exemption exceptions, noted under Section 15300.2, apply to the project.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15th day of September 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Kirkwood, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Kirkwood, City Clerk
Council Agenda 9-15-2026 12.B-21
Attachment 2