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<br />OFFICE OF THE CITY ATTORNEY <br />OPINION NO. 73-52 <br />AUGUST 13, 1973 <br />SUBJECT: Computation of rent due to City pursuant to <br />lease of Riverview Golf Course land to <br />Novel James. <br />REQUESTED BY: Assistant to City Manager <br />OPINION BY: James A. Withers, City Attorney <br />BY: Richard E. Lay, Deputy City Attorney <br />QUESTION: Where the lease of land by the City calls <br />for payment of 4/ of the '°gross business'° <br />as rent and limits the use of the leased <br />premises to a nine-hole golf course, and <br />where the lessee subsequently acquires <br />adjacent land which he uses to add on an <br />additional nine holes to the golf course, <br />how is the rent due to the City to be <br />computed? <br />ANSWER: The City should require as rent 4/ of "gross <br />business" with "gross business," insofar as <br />it pertains to the golf course, being an <br />amount equal to the number of paying customers <br />times the price charged for nine holes of <br />gol$, irrespective of how many of such cus- <br />tomers pay for 18 holes. This is in additio°z <br />to any other income from activities c-onducte~.i <br />wholly within the leased premises, such as <br />the driving range and putting green. <br />anrnr_veTC . <br />The present lease of Riverview Golf Course, dated <br />November 2, 1964, and running until August 20, 1986, calls fox• <br />rental payments based upon a stated percentage of the '"gross <br />business done by Lessee on all sales and services, excluding <br />food and merchandise." The percentage is set forth in an <br />increasing time scale and is currently at 4%. The lease <br />also provides that the property shall be used only far a <br />clubhouse, nine hole golf course, driving range, and rutting <br />greens. <br />Some two years ago, the lessee acquired other property <br />adjacent to the property leased from Santa Ana whi.cl~ he ~~as <br />