HomeMy WebLinkAboutRIVER VIEW GOLF COMPANY - LEASE 1961',' ~~.
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L E A S E
PARTIES: THIS LEASE executed in duplicate at Santa Ana,
California, on the ?1st day of "~x~st 1961, between
the CI~i'Y OF SANTA ANA, a itiZunicipal Corporation, and LQOVEL B. JAMES,
hereafter called respectively the "Lessor" and "Lessee" without
regard to number or gender.
I`1' IS AGREED between the parties hereto as follows:
1. DESCRIPTION OF PREi~iISES: 'rhe 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 SANTA ANA, lying between
-the Santa Ana River on the west and bounded on the east by Alona Street
Parr subdivision, except for portions of said property heretofore
leased by the CITY OF SANTA ANA to Santa Ana Chapter Izask Walton
League of America, Inc.; said real property is more particularly
described as follows:
Beginning at a point in the Southerly line of Lot A, Tract
ido. 1008, said point being the Northwesterly corner of Lot 30
of said Tract No. 1608, as shown on a map thereof recorded in
Book 4~, Pages 21, 22 and 23 Miscellaneous l~Zaps, Records of
Orange County, California, and running thence, from said point
of beginning, S8G°47'22"W, along said Southerly line of said
Lot A, and said line extended 590.00 feet, more or less, to an
intersection with the Westerly line of Rancho Santiago de Santa
Ana; thence, Southwesterly along said Westerly Rancho line,
2425.00 feet, more or less, to an intersection with the North-
westerly line 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 LeTorth-
easterly along said 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 South-
westerly line of Lot 135, Tract No. 1724, as shown on a map
thereof recorded in Baok 51, Pages 24, 2S and 26, T~~iscellaneous
Maps, Records of Orange County, California; thence S53°5x'44"E,
along said prolongation, 102.75 feet to the ~b7esterly corner of
said Lot 185, Tract No. 1724; thence Northeasterly along
Subdivision lines, 571.71 feet to the most ~desterly corner of
Lot 64, Tract No. 2122, as shown on a Map thereof recorded in
Book 61, Pages 49 and 50, %~Liscellaneous Maps, Reco:~:ds 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; thence, following along the
boundary of said revised Lease, the following courses:
N64°43'22"W, 144.22 feet; thence, N22°43'40"E, 200.00 feet;
thence, N50°49'55"E, 75.92 feet; thence, S39°54'US"E, 40.00
feet to the Southwesterly corner of the Boy Scout lot described
in Deed to Kiwanis Club of Santa Ana and recorded in Book 2826,
Page 166, Official Records of Orange County, California; thence,
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along said Boy Scout lot, N22°00'00"E, 102.60 feet and S89°54'05"E,
124.74 feet to the Southwesterly corner of Lot 45, Tract No. 1608,
as shown on a Map thereof recorded in Book 48, Pages 21, 22, and
23, i~Tiscellaneous Maps, Records of Orange County, California;
thence, N32°08'32"E, along lot lines of said Tract No. 1608,
1071.06 feet to the point of beginning.
2. EXCEPTIONS AND CONDITIONS: `1'he description in paragraph 1 was
prepared by lessee and includes area that may not be used or improved
by lessee. Lessee agrees that lessor may sell or exchange and deed away
all of its title and interest in and to the real property hereinabove
described which lies Northerly and Westerly of a line beginning at a
point which is distant S32°08'32"W, 20 feet from the Northwesterly
corner of Lot 30 of Tract No. 1608, as shown on a map thereof recorded
in Book 48, Pages 21, 22 and 23, miscellaneous Maps, Records of Orange
County, California, and running thence S86°47'22"LV, parallel to and
distant 20 feet from the Southerly line of Lot A of said Tract No. 1608
to the intersections of said Southerly line of Lot A with the South-
easterly line of the area shown and designated as "Top of Proposed Levee"
on a map attached hereto, mar;ted "Exhibit A" and by reference made a
part hereof; thence continuing Southwesterly, parallel to and distant
Southeasterly 20 feet from said Southeasterly line of the area shown
and designated as '°Top of Proposed Levee" on said map mar~~ed "Exhibit A",
to the intersection of said line with the Westerly line of Rancho
Santiago de Santa Ana. It is agreed that lessor is negotiating with
the County of Orange for an exchange of the real property in this
paragraph 2 described together with other real property for real prop-
erty owned by said County lying Westerly of the Westerly line of Rancho
Santiago de Santa Ana and that such exchange may be effected without
any change in the terms of this lease.
3. TERIJI: The term of the within lease shall be for twenty-five (25)
years, commencing on the 21st day of August, 1961, and ending on the
20th day of August, 1986.
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4. RENT: Lessee agrees at his own cost and expense to construct,
within three hundred and sixty-five (365) days from the effective date
of this lease, a nine (9) hole golf course and driving range and such
building or buildings as in lessee's discretion shall be required for
the operation of the same, all of the foregoing to be in accordance
with plans and specifications to be approved by the City Council of
the CITY OF SATNTA ANA. In the event lessee fails, for any reason, to
construct and develop a nine (9) hole golf course with grass greens
and fairways and other appurtenant facilities within said three hundred
and sixty-five (365) days, this lease shall terminate and lessee shall
have thirty days from notice of such termination to remove all struc-
tures from said property. Said facilities shall be open daily during
hours as specified by the City Council, but in no event later than
9:30 o'cloc;c P.~.
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 first year of said lease, no rental shall be
paid in order to permit lessee to perform the necessary construction
and to get the course in operation.
B. During the next nine (9) years, three percent (3/) of the
gross business done by lessee on all sales and services, excluding
foods and merchandise.
C. During the next ten (10) years, four percent (4°/) of the
gross business as defined hereinabove.
D. During the next five (5) years, five percent (5%) of said
gross business as defined hereinabove.
E. The rental percentages set forth hereinabove in paragraph
4, B and C were arrived at on the premise that within one year from
the date of this lease lessor will have effected an exchange of property
with the County of Orange as hereinabove referred to and will have made
available to lessee, as property covered by this lease, approximately
that real property shown on said "Exhibit A", bordered in green, which
lies North of the Westerly extension of the South line of 19th Street.
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In event lessor has not obtained title, or use of said
property and delivered possession of the same to lessee within said
one year period the rental percentages in said paragraph 4, B and C,
shall become two percent (2%) and three percent (3;%), respectively, and
shall not be again increased to three percent (3!0) and four percent (4%),
respectively, until lessor has obtained and made available to lessee
approximately that real property herein referred to for addition to the
leased property. Lessor shall have no obligation to obtain or make
available to lessee any land other than that let hereby.
F. Said amounts of rent herein provided for shall be due as
follows: the first payment shall be due upon the first day of January,
1963 and shall be the rent for the period beginning August 21st, 1962,
th rough December 31st, 1952, 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 excepting the first and last payments to be
upon a calendar quarterly basis and to be paid in lawful money of the
United States of America or by checl~ or draft to the order of "CITY OF
SAI7TA ANA" and mailed or delivered to lessor's Director of Finance at
the City Hall, Third and P~Zain Streets, Santa Ana, California, on or
before the 15th day of the month following the due date of said payment.
G. Lessor shall have the right at all reasonable times to
inspect lessee's boo7cs and records .pertaining to lessee's operations
on the leased property. Between the first and fifteenth of July of
each year during the term of this lease, commencing in 1962, lessee,
at his own cost, shall furnish to lessor a complete audit by a
certified public accountant of lesses's operations.
5. NO VvTARRANTY OF 'TITLE: It is agreed that lessor does not
warrant its title to the property herein described and will not warrant
its title to any other or furt;ler property acquired by lessor and added
to property covered by this lease. Parties izereto agree that there are
uncertainties regarding the nature of title now held by lessor, and the
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responsibility to ascertain the nature, extent, limitations, exceptions
and reservations affecting lessor's title is upon lessee.
6. USE Or PROPERTY: The leased property shall be used only for
a clubhouse, nine hold golf course, driving range and putting greens.
Golf and related sporting goods items and equipment may be sold and
food and drink may be served to the public, but the sale of beer and
other intoxicating liquors is prohibited.
7. LESSEE TO CONTPLY V~ITH Sr1~ATUTES AND ORDINANCES: Lessee agrees
that in his use and occupancy of the leased property he 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, whether
or not said laws, rules, statutes, regulations and ordinances are
mentioned herein.
8. LESSOR T~TAY INSPECT LEASED PROPERTY: Lessor may enter upon
the leased property at any reasonable time for the purpose of inspecting
the property and/or lessee's facilities.
9. ':CARES: Lessee agrees to pay when due all taxes levied upon
or assessed against lessee's property situated in or upon the leased
property and upon lessee's possessory interest in the real estate
hereinabove described.
10. MECHANICS' LIENS: Lessee agrees to keep the demised premises
free from the claims of persons, firms or corporations, who, at the
request of lessee, or lessee's contractor, furnish labor or material
to or for the benefit of the leased property. Lessor may at any time
post and keep posted on said premises appropriate notices of non-
responsibility to protect lessor against such claims,
11. REPAIRS: Lessee agrees that at his own cost and expense he
will keep and maintain the leased property in good condition and repair,
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including the watering and landscaping of said golf course.
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, lessee shall have the right to remove said
structures within thirty (30) days of such termination. In the event
that said structures are removed, lessee shall place the portion of
the premises underlying said buildings or structures in a level con-
dition 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.
12. UTILITIES: Lessee shall pay for all water, gas, heat, light,
power, telephone service, and all other service supplies to the said
premises.
13. 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,
then lessee shall at his own cost and expense forthwith remove the
damaged buildings and structures and shall be otherwise released from
all obligations under this lease.
14. ASSIGNT~IEN'1' OR SUBLE~i'TING: Lessee shall not have the right to
assign nor sublet this lease or any concession thereunder without the
prior written consent of the City Council of the CITY OF SANTA ANA,
except that no consent shall be required to assign to a corporation in
which NOVEL B. JAMES is majority stoc7~holder.
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15. BANKRUPTCY: An adjudication that lessee is a bankrupt
automatically shall terminate this lease and all rights of lessee
under this lease. If (a) receiver (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 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.
16. DEFAULT: Except as provided in paragraph 15, (relating to
ban}cruptcy, 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
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 days after written notice of default has been served.
17. HOLDING OVER: If lessee with the consent of lessor continues
in the possession of the leased property after the expiration of the
term of this lease, then lessee shall be deemed to be holding the
leased property on a month to month tenancy subject to all the pro-
visions of this lease, and the rent during such period of holding over
shall be as determined by lessor through its City Council.
18. 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
premises whether or not lessee has departed from, abandoned or vacated
the premises and to lessor at City Hall, Santa Ana, California.
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19. WATER: Lessee may, if he 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 and expense, and
lessee 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 their 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 the lessor's water
department charges other municipal departments for water service.
20. INSURANCE:
A. Lessee shall keep at his own cost and expense public
liability insurance covering all of lessee's operations, the liability
under such insurance to be not less than $300,000.00 for any one person
injured or $500,000.00 for any one accident, or $25,000.00 for property
damage. ~1'hese policies shall insure the contingent liability of lessor
and are to be placed with lessor.
B. Lessee at his own cost and expense shall ::eep all buildings
and structures erected on the leased premises adequately insured for
fire and extended coverage, malicious mischief and vandalism. A loss
payable clause shall be included in favor of lessor as its interests
may appear.
21. 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
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all of the parties hereto; and all of the parties hereto shall be
jointly acid severally liable hereunder.
IN WITNESS ~~iEREOF, lessor and lessee have executed this lease
on the 21st day of lugust 1961.
CITY OF SANTA ANA,
a Municipal Corporation
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By~ / MAYOR
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ESSOR
ATTEST:
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CLERK OF THE COUNCIL
APPROVED AS TO FORM:
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CITY' ATTORNEY
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CALIFORNIA ~.ett02'S bP 8lttc10k1E'~ 't0 NOS,*E?~
" Augus t 7 , 1961 J~.mes' lease of r ty ~?roperty
btn Along, St. .~; S.A.River. ~ ~~•auth
r P~¢as¢ address rep~ies fo: Of' ~7811t1.c'3~T0 ~I'ee~C.
308 City Hall
A. A. Hall
Royal E. Hubbard
Henry H. Schlueter
City Hall
Santa Ana, California
Re: Request for Long Term Lease
Between Along Street and the
South of Santiago Creek
Gentlemen:
of City Property
Santa Ana River
At the request of Mayor Hall for a supplement to my letter
of August 1, 1961, regarding the possible lease of City awned
property for golf course purposes limited expressly to whether or
not it is necessary to advertise for bids, I would report as
follows:
Section 200 of the Charter of this City gives this City
"the power to exercise any and all rights, powers, privileges
heretofore or hereafter established, granted, or prescribed by any
law of the State, by this Charter, or by other lawful authority,
or which a municipal corporation might or could exercise under the
Constitution of the State of California."
It is perfectly clear that for many years cities have had
the right to lease property owned or held or controlled by it.
Government Code Section 37380.
A city may lease property for commercial development for
business purposes, when the governing body determines by ordinance
or resolution that such property is not required for other city
purposes. Government Code Section 37395, adopted 1954.
I find no requirement that the lease can be executed only
after competitive bidding and no requirement for notice of intention
to lease.
.Respectfully submitted,
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JdHN K. COLWELL
-City Attorney
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A. A. Ha11 ~°
Royal A. Hubbard
Henry H. Schlueter
City Hall
Santa Ana, California
CITY 0~ SflOTfl flflfl
CALIFORNIA
August 1, 1961
P~¢as¢ address relies to:
308 City Hall
Re: Request for Long germ Lease of City Property
Between Alona Street and the Santa Ana River
South of Santiago Creek
Gentlemen:
I have been asked to answer a number of questions submitted
to me regarding the request for the lease of this land.
1. It is my understanding that no description is supplied
because of uncertainty as to just what area will be included. It
is proposed to renegotiate the Isaac Walton lease to reduce their
area. While Public Works could prepare a reasonably accurate
description of the land the City owns, it has been stated by
Mr. James that he proposed to have a survey to stake the boundaries
before the description was prepared. Of course, you could not enter
into a firm lease until you have determined the exact boundaries.
2. Paragraph No. 2 in the Lease provides for a 35 year period.
This is simply a request to you. General Law cities have a right to
lease property under Government Code Section 373~O;insofar as there
is no conflict with the charterR Santa Ana has the same power under
Charter Section 200.
3. Paragraph No. 3 provides for rent as a percentage of gross
income on a sliding scale after the first year of operation. I have
no basis for judgment on these percentage items; however, I am informed
that the National Ins~L-itute of Real Estate Brokers of the National
Association of Real Estate Boards publishes a proposed list of stand-
ards for percentage leases. I might be able to obtain for your benefit
a late copy, and I have started inquiry to locate one.
To your second question as to why "foods and merchandise"
was excluded from gross business, I have no information. "All sales
and services, excluding foods and merchandise" are to be included.
What sales this phrase would include, I do not know. I can think of
nothing except soft drinks, if they were not considered food.
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4. It would be a simple matter to modify Subparagraph (f)
of No. 3, which provides only that payments would be made at 90-day
intervals to provide for quarterly payment dates, so that the date
would always be the same as you have suggested you would desire, and
to provide for an accounting period following the end of the quarter
during which lessee would have to report to you and make his payment.
5. Mr. Thornton informs me, in answer to your next question,
that at one time there was consideration of moving the City nursery
into the area now considered for this lease and making it something
of an arboretum which would be open to the public for viewing and
identification of the various plants, trees and shrubs used by the
City.
6. As to your last question as to whether or not you are re-
quired to go to bid, I might state as pointed out that the language
of the first two paragraphs of Charter Section 1300 are clearly. broad
enough to include such a lease. The first paragraph defines streets
of the City as including any public grounds within or belonging to
the City, and the second paragraph gives the City power to grant
franchises for any service using the streets of the City. This would,
however, be a considerable enlargement of the historic use of the
word "franchise", and reading the other provisions of this Article XIII,
it would appear that the intent was to include franchises which are
under the control of the Public Utilities Commission and not ground
leases of this type. Franchises can only be granted on an indeter-
minate term, which is, in effect, a perpetual franchise, or for not
longer than 25 years. It has been suggested that all renewal
franchises for railroads, electric power, gas, etc. be limited to
25 years in all cases. You certainly have the power to require a
notice period and provide for what is in essence a bidding procedure
if you wish. I am told that this is the custom in most cities for
any leases exceeding 5 years in duration, some cities using a period
of 7 years without bid procedure.
The lease form which you have been handed contains the
terms which Mr. Novel B. James is requesting. It is the opening of
his bargaining procedure and,I am told, is based somewhat upon the
Pasadena lease form.
Re.~spectfull~_. submitted,
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.JOHN K. COLWELL
~`` City Attorney
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C~.EFdFC CF 7FiE COUNCIL `+'~
City Council
Santa Ana,
California
Pursuant to Lease dated the 21st day of August, 1961,
between the CITY OF SANTA ANA and the undersigned and
more exactly, page 8, Paragraph 19, heading "Water".
This is to request authority to drill a water well
on the premises as described in said Lease and install
pumping equipment at the well site as is reasonably re-
quired for irrigation purposes of the golf course. Re-
sponsibilities as to the maintenance of these facilities
and payment of all costs of development, maintenance and
taxes applicable will be born by the Lessee as outlined
in said Lease.
Respectfully requested,
Corporation.) ' a California
ve ame i
(Majori ck holder in
Rive View Golf