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-r <br /> ~ • <br /> MEMORANDUM ~ i ~ <br /> To: _ Deputy City Manager Date: _ Mav 16, 1988 <br /> Executive Director/ <br /> From• Community Development Agency <br /> <br /> Subject: ASSIGNMENT OF THE RIVERVIEW GOLF COURSE LEASE <br /> STATEMENT OF THE ISSIIE <br /> On August 21, 1961, a lease agreement was executed between the City of <br /> Santa Ana and Riverview Golf, a California corporation, for the <br /> construction and operation of a golf course along the southeasterly <br /> boundary of the Santa Ana River channel north of 17th Street. An <br /> amendment to said lease was executed on November 21, 1966, which <br /> expanded the operation from a 9-hole to an 18-hole golf course by <br /> combining the City-owned property with that owned by the County of <br /> Orange in the form of parallel leases with the County and City. <br /> Riverview Golf is presently operating in the third year of a 25-year <br /> option term. The City receives rent in the form of a percentage of <br /> receipts of the operation. <br /> Provision 12 of said lease stipulates that an assignment of the lease <br /> requires approval by the City Council. Mary Patricia Keane, president <br /> of Riverview Golf Company, has negotiated an agreement with Novel B. James, <br /> president of the Riverview Golf Corporation, to assume the lease and <br /> has requested that the City approve the assignment. <br /> The facility has been operating only as a 9-hole course since <br /> incurring severe flood damage in 1983. Mrs. Keane plans to renovate <br /> the facility and have all 18 holes operable. The restaurant and pro <br /> shop will be improved and enlarged, and the sign adjacent to <br /> Memory Lane will be rehabilitated to incorporate their new logo. <br /> ALTERNATIVES CONSIDERED <br /> The only alternative considered is not to approve the assignment and <br /> continue with Riverview Golf Corporation as the Lessee. However, <br /> there appears to be no grounds within the lease for the City Council <br /> to disapprove the assignment. Furthermore, the present operators <br /> desire to retire from this business. Staff has conducted extensive <br /> interviews with the proposed assignees, and is convinced they have the <br /> ability and desire to operate an improved facility. <br /> FISCAL IMPACT <br /> The City will continue to receive rent in accordance with the <br /> Riverview Golf Lease. Rental payments for the most recently audited <br /> 12-month period averaged $1,275.00. It is anticipated that this amount <br /> will rise substantially when the course is once again a full 18-hole <br /> operation. <br /> F~ ~ ~ 1J <br /> I <br /> CS-808 <br /> <br />