HomeMy WebLinkAboutRIVER VIEW GOLF COMPANY - 3RD AMEND TO NOVATION 1996
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s.,~~~~THIRD MODIFICATION OF NOVATION OF LEASE BETWEEN
ta~~~ i~`'~ L" CITY OF SANTA ANA
~~~a d'~6~y` AND
, ` ~i~ RIVERVIEW GOLF
THIS T MODIFICATION TO NOVATION OF LEASE is made this S~~it
day of ~ 1996, by and between the City of Santa Ana, hereinafter referred
to as "LESSOR" nd RIVERVIEW GOLF, a California General Partnership, hereinafter referred
to as "LESSEE".
RECITALS
On March 11, 1974, LESSOR, granted a Novation of Lease to River View Golf, a
California corporation, hereinafter referred to as "Rivers View".
A public project known as the Santa Ana River Mainstem Project ("Project") required
LESSEE to vacate the Leased Land, described in Clause 1 of the Lease, when construction for
the Project commenced within the Leased Land. Construction was completed on May 1, 1996 for
the PROJECT and LESSEE returned to the Leased Land.
LESSOR encourages the continued operation of a golf course from t he Leased Land so
as to provide continued recreational opportunities to the public and additional revenue to the City.
NOW, THEREFORE, the parties mutually agree to amend said Lease as follows:
1. TERM
This sections shall be modified and extended so that the new EXPIRATION DATE for
the NOVATION OF LEASE shall be April 30, 2026.
2. RENT or BASE RENT
This section shall be modified as follows:
a) Green fees, Pro Shop, Driving Range equipment and all other income producing
businesses, except restaurant-cocktail Bar operation. Pro Shop sales merchandise in accordance
with the following percentage rate schedule.
Dates Percentage Rate
08/21/1986 to 08/20/1996 6%
08/24/1996 to 08/20/2006 7%
08/21 /2006 to 08/20/2016 8%
08/21/2016 to 08/20/2021 9%
08/21/2021 to end of lease 10%
1
in full force and effect.
ified and
is unmod
11 remain as
' ns sha
3. All other terms and conditio
IN WITNESS WHEREOF, the parties have executed this "Third Modification to
Novation of Lease" the day and year first above written.
LESSOR: LESSEE:
APPROVED AS TO FORM: RIVER VIEW GOLF,
a California Partnershi
i~
Mary P. Ke e, Genera Partner
City Attorney
CITY OF SANTA ANA G
a municipal corporation Stephen C. Hart, General Partner
Mi Pulido, ayor
ATTEST:
~ ~ _
~
¢e C. Guy
~lerk of the Council
N WI
~~r
2
4 ~~G O
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REQUEST FOR l ~
COUNCIL ACTION Ed'°"t'°n Isr
CITY COUNCIL February S , 1996 CLERK OF THE COUNCIL USE ONLY
MEETING DATE
Ap roved
TITLE LEASE MODIFICATION - As Recommended ~
RIVERVIEW GOLF COURSE 0 As Amended (see Minutes)
~ Ordinance on 1st Reading
C] Ordinance on 2nd Reading
_ Implementing Resolution
0 Set Public Hearing For
~ Continued to:
t `
~ ` ~ ~ c~ , /„/~.-;~`"t t: FILE NUMBER(S): _
CITY MANAGER
RECOMMENDED ACTION
Direct the City Attorney to prepare, and authorize the Mayor and the Clerk
of the Council to execute, a third modification to the lease agreement with
Mary Patricia Keane, dba Riverview Golf Inc.
DISCUSSION
On August 21, 1961, a lease agreement was executed between the City of
Santa Ana and Riverview Golf Inc., for the construction and operation of a
golf course along the southeasterly boundary of the Santa Ana River channel
north of 17th Street. An amendment to said lease was executed on
November 21, 1966, which expanded the operation from a 9-hole to an 18-hole
golf course by combining the City-owned property with that owned by the
County of Orange in the form of parallel leases with the County and City.
The current lease provides for the City to recieve a percentage of gross
receipts, as follows:
Dates Percentage Rate
8/21/86 to 8/20/96 6~
8/21/96 to 8/20/06 7~
8/21/06 to 8/21/11 8~
As a result of the Santa Ana River Mainstem Project, the golf course had to
temporarily reduce to nine holes. Therefore, the County agreed to
renegotiate its term and rental amounts. City staff has also renegotiated
the term and rental amounts to coincide with the County lease. The primary
desire of the operator was to extend the lease so that a full 30-year term
would remain in order to facilitate the obtaining of financing for capital
improvements.
The new term will end 30 years from the first day the reconstruction period
ends. The new rental rate will be based on a percentage of gross receipts
from business conducted on or from the golf course. The percentage of
gross receipts breaks down as follows:
C.S. 383 O
1
Riverview
February 5, 1996
Page 2
Date Amount
8/21/86 through 8/20/96 6$
8/24/96 through 8/20/06 7$
8/21/06 through 8/20/16 8~
8/21/06 through 8/20/21 9~
8/21/21 through end of lease 10~
The only alternative considered would be to not execute the lease
modification, which would result in a loss of revenues for the City.
FISCAL IMPACT
Rental payments for the most recently audited 12-month period averaged
$2,150 per month. It is anticipated that this amount will rise
substantially when the course is once again a full 18-hole operation.
Funds received from this agreement will be deposited into the Riverview
Golf Course revenue account (account no. 011-01-5804).
APPROVED AS TO FUNDS AND ACCOUNT:
Cynthi J. Nel on Rod R. Coloma
Executive Director/ Executive Director/
Community Development Agency Finance & Management Services Agency
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