HomeMy WebLinkAboutRIVER VIEW GOLF COMPANY - LEASE 1964
L E A S E
THIS LEASE executed in duplicate at Santa Ana, California,
this ~~~} ~2,. '~ day of /,'d?..~,t.c~/v~„~it~.:G~t,.~ 1964, between the CITY OF SANTA
ANA, a rnunicipal corporation, hereinafter called ""LESSOR", and
RIVER VIEW GOLF, a California corporation, hereinafter called "LESSEE";
WHEREAS, on August 21, 1961, LESSOR executed a lease with
I~7OVEL B. JA1`2ES as Lessee, which said lease was superseded on July 16,
1962, by a lease with the LESSEE hereinabove named, and it is now
agreed between the parties hereto that said two leases should be
terminated and modified as hereinbelow set out.
NOW, THEREFORE, IT IS AGREED BETWEEN THE PAR'PIES HERETO AS
FOLLOWS:
.L. DESCRIPTION OF PKET~~lISES: LESSOR hereby leases to LESSEE,
and LESSEE hires from LESSOR on the terms and conditions hereinafter
set forth, that certain property of the CITY OF SAN`1'A ANA lying between
the Santa Ana River Channel on the Northwest and Alona Park and Alona
Street 1?ark Subdivision on the Southeast, except for portions of said
property heretofore leased by the CITY OF SANTA ANA to SA1J`I'A ANA
CHAPTER IZAAK WALTON LEAGUE OF AMERICA, INC. Said real property is
more particularly described as follows:
F3eginning at the most Westerly corner of Lot 64, Tract No. 2122,
as shown on a map thereof recorded in Book 61, Pages 49 and 50,
miscellaneous Ntaps, Records of Orange County, California, said
Westerly corner of Lot 64 being the most Southerly corner of the
property described in the revised Lease to the Izaak Walton League;
thetzce, following along the boundary of said revised Lease, the
following courses: N. 64° 43' 22" W., 146.22 feet; thence N. 22°
43' 40" E., 200.00 feet; thence N. 50° 49' 55" E., 75.92 feet;
thezice S. 89° 54' 05" E., 40.00 feet to the Southwesterly corner
of the Boy Scout Lot described in Deed to the Kiwanis Club of
Santa Ana and recorded in Book 2826, Page 166, Official Records
of Orange County, California; thence, along said Boy Scout Lot
N. 22° 00' 00" E., 102.60 feet and S. 89° 54' 05" E., 124.74 feet
to t=he Southwesterly corner of Lot 45, Tract No. 1608, as shown
on a tap thereof recorded in Book 48, Pages 21, 22 and 23, A~Tis-
cellaneous daps, Records of Orange County, California; thence N.
32° 08' 32" E., along Lot lines of said Tract No. 1608, 1071.06
feet: to the angle point in the Northerly line of Lot 30 of said
Tract No. 1608, said angle point being the Northeasterly end of
the line described in that certain Quitclaim Deed from the Orange
County flood Control District to the City of Santa Ana, recorded
in Book G106, Pages 9, 10 and 11, Official Records of Orange County,
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California; thence, in a general Southwesterly direction, following
along the line described in said Quitclaim Deed to an intersection
with the Northwesterly prolongation of that certain course having a
bearing of South 62 2° East, in the Deed to Towner. Manufacturing
Com~ary recorded ~~Tarch 13, 1946 in Book 1399, Page 362, Official
Records of Orange County, California; thence Southeasterly, along
said prolongation, to the most Northerly corner of the property
described in said Deed to !Towner i~hanufacturing Company; thence
ortheasterly, in a direct line, to the most Westerly corner of that
certain property conveyed to the City of Santa Ana, California, as
described in Book 2516, Page 264, Official Records of Orange County,
California; thence Northeasterly, along the Northwesterly line of
said property conveyed to the City of Santa Ana, 780.00 feet, more
or less, to an intersection with the Northwesterly prolongation of
the Southwesterly line of Lot 185, Tract Teo. 1724, as shown on a
T~tap thereof recorded in Book 51, Pages 24, 25 and 26, Jiiscellaneous
l~~lap;s, Records of Orange County, California; thence S. 53° 58' 44" E.,
along said prolongation, 102.75 feet to the Westerly corner of said
Lot 185, Tract No. 1724; thence Northeasterly, along Subdivision
lines 571.72 feet to the most Westerly corner of Lot 64, Tract
No. 2122, and the point of beginning.
Above described property outlined on Yiap attached hereto, marked
"Exhibit A" .
2. TER~'I: ~l'he term of the within Lease shall be for twenty-five
(25) years, commencing on the 21st day of August, 19Ei1, and ending on
the 20th_~~ of Au~ust~ 1986.
3. RENT: LESSEE agrees to pay and LESSOR agrees to accept as
rent for the leased property for the term of said Lease the following
sums:
A. During the nine (9) years beginning on the 21st day of August,
1962, and ending on the 20th day of August, 1971, three percent (3/) of
the gross business done by LESSEE on all sales and services, excepting
food and merchandise.
B. During the next ten (10) years, four percent (4%) of the gross
business as defined hereinabove.
C. During the next five (5) years, five percent (5`/) of said gross
business as defined hereinabove.
D. Said amounts of rent herein provided for shall be due as
follows: The first payment hereafter shall be due upon the first day
of January, 1965, and shall be the rent for the period beginning
October 1, 1964, through December 31, 1964, and rent thereafter shall
become due quarterly on the first day of April, the first day of July,
the first day of October, and the first day of January of each and
every year thereafter, all payments hereafter, excepting the last
payment, to be upon a calendar quarterly basis and to be paid in
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lawful money of the United
the order of "CITY OF SANTA
Director of Finance at the
before the 15th day of the
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States of America or by check or draft to
~ AI~tA" and mailed or delivered to LESSOR's
City Hall, Santa Ana, California, on or
month following the due date of said payment.
E. LESSOR shall have the right at all reasonable times to inspect
LESSEE'S books and records pertaining to its operations on the leased
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property. Between the-fiftee-nth and the thirtieth of .i)eeeml~r of each
year during the term of this Lease, LESSEE, at its own cost, shall
furnish to LESSOR a complete audit of its operations during the
preceding fiscal year ending November,30th prepared by an accountant
licensed by the State of California.
4. LESSEE is hereby granted an option_to-senEw-this Lease for
an additional period of twenty-five (25) years commencing on the 21st
day of August, 1986, and ending on the 20th day of August, 2011. This
option may be exercised by the giving of a notice in writing of the
intention to exercise the same between July 1, 1985, and January 1,
1986. Said notice shall be served on the Clerk of the Council and on
the City Manager of LESSOR. If this option be exercised, LESSEE agrees
to pay and LESSOR agrees to accept as rent for the leased property for
the new term the following sums:
A. During the first ten (10) years, six percent (6/) of the gross
business done by LESSEE on all sales and services, excluding food and
merchandise.
B. During the next ten (10) years, seven percent (7/) of the gross
business as defined next hereinabove.
C. During the last five (5) years, eight percent (8%) of said
gross business as defined.'~in sub-paragraph numbered A in this paragraph 4.
All of the terms of this Lease shall apply to said option period.
5. USE OF PROPERTY: The leased property shall be used only for
a clubhouse, nine hole golf course, driving range and putting greens.
Golf and related sporting goods items and equipment may be sold and
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food and drink may be served to the public, but the sale of beer or
other intoxicating liquors is prohibited.
ci. COMPLIANCE WITH STA'T'UTES AND ORDINANCES: LESSEE agrees that
in its use and occupancy of the leased property it will comply with all
applicable laws, rules, statutes, regulations and ordinances of all
governmental bodies whose authority extends to the leased property or
to any business conducted upon the leased property.
7. TAXES: LESSEE agrees to pay when due all taxes levied upon
or assessed against LESSEE's property situated in or upon the leased
premises and upon LESSEE's possessory interest in the real estate
hereinabove described.
E3. itiIECHANIC'S LIENS: L"ESSEE agrees to keep thec~mised premises
free from all claims of persons, firms or corporations, who, at the
request of LESSEE or its contractor, furnish labor or material to or
for the benefit of the leased property. LESSOR may at any time post
and keeF> posted on said premises, appropriate notice of non-responsi-
bility f,-or protection against such claims.
a. REPAIRS: LESSEE agrees at its own cost and expense to keep
and maintain the leased property and all structures it has placed
thereon in good condition and repair, including the watering and land-
scaping of said golf course. Failure on the part of LESSEE to maintain
the plar~tings, landscaping, and structures herein referred to in good
condition and repair will be grounds for cancellation of this Lease if
not corrected within six (6) manths after notice so to do served by
LESSOR on LESSEE, it being the desire of LESSOR that said property
shall cantribute to the beauty of the City and provide an attractive
recreational area for the citizens of Santa Ana.
Any buildings or structures constructed or erected on said
premises shall be and remain the property of LESSEE and upon any
termination of this Lease, it shall have the right to remove said
structures within thirty (30) days of such termination. In the event
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that said structures are removed, LESSEE shall place the portions of
the premises underlying said buildings or structures in a level
condition and shall remove therefrom any and all concrete and metal.
In the event that LESSEE does not remove said buildings or structures
within thirty (30) days after any termination of this Lease, said
buildings and structures shall revert to and become the property of
the LESSOR.
:LO. UTILITIES: LESSEE shall pay for all water, gas, heat,
light, power, telephone service, and all other service supplies to the
said premises when the same became due.
:L1. DESTRUCTION OF OR DAMAGE TO LEASED PROPERTY: If, by earth-
quake, flood, or other similar calamity, or by fire, act of war, act
of God, or other similar cause, the buildings to be erected by LESSEE
on the .leased property are destroyed or damaged to a substantial degree,
and if, within six months after the date when such destruction or
damage occurs, LESSEE has not commenced their repair or construction,
LESSOR may terminate this Lease by written notice to LESSEE. If so
terminated, LESSEE shall, at his own cost and expense, forthwith remove
the damaged buildings and structures and shall be otherwise released
from al.l obligations under this Lease.
12. ASSIGNMENT OR SUBLETTING: LESSEE shall not have the right
to assign nor sublet this Lease or grant any concession thereunder
without the prior written consent of the City Council of the CITY OF
SANTA AiVA .
13. BANKRUPTCY: An adjudication that LESSEE is a bankrupt shall
automatically termi ate this Lease and all rights of LESSEE under this
Lease. If (a)r2 re ~"ver (apart from a bankruptcy proceeding) is
appointed to take possession of all or substantially all of the assets
of LESSEE, or if (b) LESSEE shall make a general assignment for the
benefit of creditors, and if such appointment or assignment continues
for a period of thirty (30) days, then LESSOR, at its election, may
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terminate this Lease and all rights of LESSEE under this Lease, and it
shall not be necessary for LESSOR to give notice to LESSEE of such
termination.
14. FORECLOSURE: It is agreed, however, that in event the
rights under this Lease are used as security for any loan or the
repayment or replacement of any loan, the proceeds of which were used
to develop and improve the property let hereby for the limited purposes
set forth in this Lease, and said lender desires to foreclose said
loan for non payment thereof or to accept an assignment of this Lease
in lieu of such foreclosure, then and in that event, said lender or a
purchaser from said lender will be accepted as lessee in lieu of the
LESSEE named herein, and such foreclosure sale or assignment shall
not terminate this Lease.
15. DEFAULT: Except as provided in Paragraph 13 (relating to
bankruptcy, etc.), a default in the performance of any promise of or
of any obligation imposed upon LESSEE shall not constitute a breach
of this Lease unless LESSEE fails to cure such default within six (6)
months after written notice of default has been served by LESSOR,
except that failure to cure a default in a payment of rent shall
constitute a breach of this Lease if such default is not cured within
five (5) days after written notice of default has been served.
16. HOLDING OVER: If LESSEE with the consent of LESSOR con-
tinues in the possession of the leased pro
of the term of this Lease or any extension
granted, then LESSEE shall be deemed to be
on a month to month tenancy subject to all
and the rent during such period of holding
by LESSOR through its City Council.
~erty after the expiration
under the option herein
holding the leased property
the provisions of this Lease,
over shall be as determined
17. NOTICES: All notices to be given to either party may be
given in writing personally or by depositing the same in the United
States mail, postage prepaid, and addressed to LESSEE at the said
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premises whether or not LESSEE has departed from, abandoned or vacated
the premises, and to LESSOR at City Hall, Santa Ana, California.
18. WATER: LESSEE may, if it so desires, drill a water well
on the .premises and install such pumping equipment at the well site as
is reasonably required, all of the foregoing, plus maintenance and
operation thereof,to be done at LESSEE's sole cost acid expense, and it
may use the water produced therefrom for irrigation purposes only.
LESSOR makes no representations as to the quality or quantity of water
which can be produced from drilling on said premises. LESSEE shall
pay promptly any pump or extraction tax due for water produced. LESSEE
shall obtain from the CITY OF SANTA ANA through its Water Department
such water service as shall be required for domestic purposes, all in
accordance with the rules, regulations and ordinances of the Water
Department and the CITY OF SANTA ANA. LESSOR will charge, and LESSEE
will pay for such domestic water service delivered through said Water
Department at the same rates that LESSOR's Water Department charges
other municipal departments for water service.
19. INSURANCE:
A. LESSEE shall keep at his own cost and expense public
liability insurance covering all of its operations, the liability under
such insurance to be not less than $300,000.00 for any one person
injured„ $500,000.00 for any one accident, and $25,000.00 for property
damage. These policies shall insure the contingent liability of LESSOR
and are to be placed with LESSOR.
B. LESSEE at his own cost and expense shall keep all
buildings and structures erected on the leased premises adequately
insured for fire and extended coverage, malicious mischief and vandalism.
A loss ~>ayable clause shall be included in favor of LESSOR as its
interests may appear.
a0. RESERVATION: LESSOR reserves the right to drill water wells
and to construct, reconstruct, repair, maintain and operate pumping
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equipment and pump houses at the well sites and such pipelines, conduits
and drains as LESSOR may require in, on and through the real property
let hereby. LESSOR agrees to drill said wells and to construct said
equipment, structures, and lines in unimproved locations so as not to
interfere with structures, tees, and greens of LESSEE and so as to
cause a minimum interference with LESSEE's fairways by locating at or
near the edge of such fairways, and to cause a minimum of interference
with the operation of said golf course, but LESSOR reserves the right
to cross said fairways where LESSOR decides it is necessary to do so.
LESSOR reserves the right to enter the property at any reasonable
time for the purpose of inspecting the same and to make repairs to any
of LESSOR's installations on the property, levees, trap-gate drains, or
any lines or structures.
21.
LESSOR directs LESSEE'S attention to the case of Towner
Manufacturing Company, a partnership, vs City of Santa Ana, a corpora-
tion, et al., No. 109866, in the Superior Court of th.e State of
California for the County of Orange, and to the Judgment therein
entered in Judgment Book 96, Page 174, on May 21, 1964, which said
litigation resulted in the recognition of- it and gas rights under a
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portion of the land let hereby and reserv Sthe right to enter for the
purpose of exploring and developing the same. LESSOR believes that
it has good title to the property herein described, subject to this
reservation of underground hydrocarbons which exists on the southerly
portion of said property, but LESSOR cannot be bound by a warranty of
its title.
22. BINDING ON SUCCESSORS: All of the provisions of this Lease
and the covenants and conditions herein contained shall apply to and
bind the heirs, successors, executors, administrators and assigns of
all the parties hereto; and all of the parties hereto shall be jointly
and severally liable hereunder.
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IN WITNESS WHEREOF the parties hereto have caused this
Instrument to be executed by the proper officers of each who were
thereunto duly authorized and each party has hereunto affixed its
seal.
ATTEST:
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CLERK OF THE COUNCIL
A~ROVED AS TQ, FORNI:
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~~OHN K . COLWELL
iCity Attorney
CITY OF SANTA ANA, a municipal
corporation,
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RIVER VIEW GOLF, a California
corporation,