Pacific Grove-Asilomar Operating Corp. v. County of Monterey

Appellants, County of Monterey and City of Pacific Grove, appeal from a judgment in favor of respondent, Pacific GroveAsilomar Corporation (Asilomar), awarding respondent a refund of taxes paid under protest.

Respondent is a nonprofit corporation organized under the laws of the State of California solely for the purpose of managing for and on behalf of the Department of Parks and Recreation, State of California, the real property and all improvements on the “Asilomar Conference Grounds.” The real property and improvements are owned by the State of California.

The City of Pacific Grove (city), pursuant to an “operating agreement” with the State of California (state), managed the conference grounds from 1956 to 1969.

On June 1, 1958, the city and Asilomar entered into an agreement providing for the operation of the conference grounds by Asilomar. In managing the property Asilomar collected all rents, charges, and fees for the use of conference facilities, controlling them to the extent permitted by the agreement, depositing them in the trust accounts required by said agreement, and using them, subject to budgeting controls of the state, to pay expenses and to construct…