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i ~ <br /> Alternatives Considered <br /> Basically, the City can (1) assume control of the golf course, <br /> buying out Mr. James' leasehold interests and contracting <br /> for the management and operation of the golf course with a <br /> new operator, or (2) do nothing. If we do nothing, Mr. <br /> James will exercise his options and proceed to reconstruct <br /> the golf course and restore it to its original 18-hole stature. <br /> The Forrest Paull site would not be developed. As stated <br /> previously, this alternative would net the City an estimated <br /> $40,000 per year in rental income under the terms of the <br /> current lease. <br /> Should the City decide to take over the golf course, the <br /> following benefits could be realized: <br /> 1. Income. Based upon a review of leases with operators <br /> in other cities, and Mr. James' projection of <br /> income for a reconstructed course, we estimate an <br /> annual rent to the City of approximately $200,000. <br /> Even if half of this is paid to the County as rent <br /> for their land, it is more than double the estimated <br /> revenues if Mr. James retains management. Annual <br /> rent could exceed $200,000 if the course is upgraded <br /> to tournament standards; to lower volume, semi- <br /> private course standards; or to a high-end public ~ <br /> course standard. <br /> 2. Image. Quality public golf courses are at a premium <br /> in Orange County (see Exhibit D, Orange County <br /> Register article of June 24, 1985). A high quality <br /> municipal golf course would enhance Santa Ana's <br /> image as a progressive city on the move, a "center <br /> of attention" with regional as well as local appeal. <br /> The inclusion of the Forrest Paull Park site in <br /> the redevelopment of the course would provide a <br /> northern "window" to the City with ready access to <br /> the Santa Ana, Garden Grove and Orange freeways. <br /> In addition it could serve as the northern anchor <br /> for the "greenbelt concept" discussed earlier in <br /> this memo. Also, by assuming the control of the <br /> course, the City could dictate the level and quality <br /> of improvements. <br /> Recommended Solution <br /> Staff recommends that the City assume the operation of the golf <br /> course and explore the concept of expanding the City's open <br /> space through the creation of a greenbelt along the Santa Ana <br /> River. An action plan for the golf course is outlined in Exhibit <br /> E, "Action Plan" and basically involves (1) doing a feasibility <br /> <br /> study to determine the type and level of improvements that should <br /> BOA <br /> ~s~ <br /> <br />