RIVER VIEW GOLF COMPANY - STAFF REPORTS 1985-1986

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' • HISTORY: (continued) Your attention is called to the enclosed engineering plan dated June 1, 1970 by Civil Engineer Kenneth Harrison and approved by the County. The extended leasehold was constructed to this plan and golf play was started in January 1971. Public acceptance of the 18 hole course was overwhelming, even with the wturf not completely matured. Numerous articles in national industry magazines were written and two Los Angeles television stations carried special telecasts of the innovative design and use of land, and became known as "Recreation by Reclamation". As the developers, we were "copiers" rather than "innovators" because we studied like land usage in Arizona and the Palm Springs area that have sustained good turf in water wash areas with MORE water flow over the turf than that volume of water in the Santa Ana River. Good engineering by Mr. Harrison sustained years of very heavy flows (six occurrences the water was in excess of 7 feet deep), yet we experienced no errosion and within 48 hours of heavy flows, golfers used electric carts to cross the invert and play. During the operating years 1972 thru 1977, we experienced an average of 11 to 31 days per year of only nine hole play as the result of river flowing. Please refer to enclosed "Gross Income 1975-1979" to note that River View exceeded Willowick in 1975. During the last half of 1977 the County of Orange awarded a contract for Santa Ana River channel improvement downstream of the golf course resulting in very heavy damage to the stream-bed section of the golf course. The cause of this damage was litigated through three levels of court during the period 1978-1985 with the decision for River View Golf: "and, therefore, no damage would have been experienced to the golf course except by the act of contractor performing work for the County of Orange." Reduced use of part of the golf course caused drastic reduction of income since 1978. (See "Gross Income 1975-1979".) We are now ready to reconstruct damaged area and return to 18 hole operation. REDEVELOPMENT: Ten (10) of the 18 holes (as used through 1977) are in condition of high quality and used very heavily along with the practice driving range. I submit that logic dictates that the City of Santa Ana should own the reconstructed 18 hole golf course. My reasons are: (1) As the original builder of River View (1961) and the CEO of the present corporation, I have reached 65 years of age and must expect to sell the developed leasehold within the next 5 years or take a muchly reduced working schedule; (2) Grading plans required for reconstruction can secure approval by the County of Orange EMA and the Federal Corps of Engineers much more easily by the City than by a private entrepreneur; (3) Lease and development of Forrest Paull Park as an adjunct to the golf course is in accord with the County's (owner) restrictions and would give Santa Ana an entrance window from the north with a muchly needed banquet/meeting facility. Third party investors are available to develop this very valuable site for suggested use; (4) The entire project can become a cornerstone for further use of the Santa Ana River basin for greenbelt recreation usage. With approximately 60% of the irrigation system in place (in the area needing reconstruction), and the greens and tees needing less than 40% of new construction costs, grading, construction, irrigating, seeding and nurturing new grass Co useful maturity will reduce the costs to less than 35% of new course construction. EXHIBIT B ~ ~ ~ A Pg 2 of 5