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<br />' I
<br />City Manager
<br />-2-
<br />Jan, 30, 1973
<br />YEAR GROSS RECEIPT % AMOUNT PAID
<br />1961 $ 0 $
<br />1962 10,467.31 3 314.02
<br />1963 57,944,21 3
<br />1,738.32
<br />1964 85,933.23 3 2,471.71
<br />1965 87,669,27 3 2,630,08
<br />1966 95,107.48 3 2,853.23
<br />1967 96,727.51 3 2,901,82
<br />1968 123,994.70 3 3,719.84
<br />1969 137,753.81 3 4,132,61
<br />1970 150,217,26 3
<br />4,506.46
<br />1971 153,350,51 3% to 8/20/71, then 4% 5,128,75
<br />Mr, James also has a lease from the County giving him the expanded 18 hole
<br />course and other possibilities. His lease with the County provides for
<br />lease payments as follows on green fees, driving range, equipment rentals,
<br />and vending machines:
<br />2% 1 - 5 years
<br />3% 6 - 10 years
<br />4% 11 years etc. to 8/20/86, with option to renew for 25 yrs.
<br />5% 10 years
<br />6% 15 years
<br />2% straight through on restaurant and cocktail bar; plus 12% on pro-shop goods
<br />and merchandise, and including minimum monthly rental requirements.
<br />It is my understanding that the County~s lease charges its full percentage
<br />against any gross receipts that are generated from the joint properties. The
<br />last time Novel and I discussed the lease arrangement with the City, he was
<br />desirous of amending the lease with the City so that only one-half of the
<br />total green fees generated from the expanded course would be reportable to the
<br />City. This means that the joint properties would have had to double for the
<br />City to maintain its rentals at the 1971 level, He did not have a projected
<br />five year estimate for green fees and it was my opinion that the City would not
<br />have as favorable a position as the Countyf if his pro osal w"`~''~`'
<br />P t to the City
<br />Council, You will notice that the 1971 gross was in excess of $153,000, which
<br />means the City should get lease payments of (+) $6,000 in 1972,
<br />Rge.Lundell, Deputy Treasurer, received the annual statement and lease payment
<br />check from Mr. James on 1/26/73. Apparently this was the same day you talked
<br />with him. Anyway, the gross receipts from Riverview and the lease payments
<br />to the City is calculated as follows:
<br />1st Quarter = $ 52,641.79 @ 4% $2,105.67
<br />2nd, 3rd, & 4th. Quarter = $161, 424 , 51 @ 2% _ ~- --'-="-( --~-=
<br />$3,228,49
<br />$214, 066.30 $5, 334.16 ~r. ~> ' °'
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