Non-native vegetation will be replaced with native riparian, coastal sage scrub and oak woodland species, and picnic tables will be installed.
The grant requires a conservation easement or deed restriction over the property.
Parking could be provided, but getting California Department of Transportation approval for access could be challenging, as could expensive additions to the project that would not be covered by the grant, said foundation President Derek Ostensen.
In a separate vote, the council decided what to do with three cottages that were moved to the Big Bend site to make way for the Susi Q senior center and community center at 380 Third St.
Councilman Kelly Boyd, who voted against the relocation four years ago, said it is time to demolish the deteriorated cottages.
However, developer Ken Fischbeck is working on incorporating two of the cottages into a project his company is preparing for the Wendt property on Arch Street.
The council voted to divide into the Arch Street property into three parcels, with the stipulation that nothing be done to diminish the Heritage Committee E-rating on the Wendt home. Iseman recused herself because she owns property within 500 feet of the Wendt property
The cottages may be enlarged up to 1,500 square feet. Fischbeck has two years to move the cottages to the Arch Street site.
Condominiums were originally proposed for two of the parcels.
The council voted 4 to 1, with Boyd opposed, to allow two cottages to stand for two more years — the outer limit of time the council was willing to allow Fischbeck to get his project approved.
If the cottages have not been removed by the deadline, the foundation's original proposal to demolish them will be revived.
The third cottage will not be preserved.