RIVER VIEW GOLF COMPANY - NOVATION OF LEASE 1974

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• ~ City Manager Page 2 driving range driving range possible because of County addition cart rental cart rental 12 year history of successful operation potential risk due to flooding COMPARISON OF TERMS A review and comparison of the City leasehold and the County leasehold are presented below: The City lease provides that rent shall be based on gross business, excepting food and pro shop sales of golfing supplies, clothing, equip- ment and similar merchandise. Under the County lease, income upon which percentage rentals are based includes all items upon which the City receives rent in addition to deposits in any pay telephone or coin operated vending machine, fair rental value of office space, and other facilities used for purposes other than the business proposed, and that portion of the pro shop sales of golfing supplies, clothing, equipment, and similar merchandise above the average annual sales of $54,000. Furthermore, under the County lease agreement, rent shall be charged as a percentage of restaurant and cock- tail bar operations. Since a major portion of the leased land from the County is in the Santa Ana River and subject to flooding, a provisions has been made that should golf holes located within the leased land of the County become unplay- able for a period in excess of 7 consecutive days because of water flow- ing in the Santa Ana River or because of construction undertaken to repair flood damage or destruction or to modify or improve flood control or water conservation facilities, income produced by business operations on or from the River View Golf Course during such periods shall not be included in the gross receipts for the purpose of calculating percent- age rental payable to the County. The County leasehold agreement has a minimum annual rental of $2,400, whereas the City agreement has no minimum annual rental.