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SR-01-24-1978-11FSanta Monica, California, January 11, 1978 To: Mayor and City Council From: City Staff JAN 2 4 1978 Subject: Expansion of Hamburger Haven, Santa Monica Pier Introduction: This report gives the background of a proposal to expand one of the fast food locations on the east end of the pier immediately adjacent to the Promenade, following the same approach used in the other pier leases; analyzes the proposed changes; explores the alternatives available to Council; and recommends a waiver of bid on the adjacent location and approval of the proposal of the present operator. Background: The fast food operation at the east end of the pier on the Promenade known as "Hamburger Haven" has been operating under a standard pier lease with Mr. Jack Knight. Terms of the lease are: three year term, to expire June 30, 1979; rental is 12% of gross sales; mini- mum rental is $494 monthly or $4,918.00 per year. During the first year of operation under the standard lease gross sales were $56,700. Immediately adjacent to the location has been the "International Cafe" paying $189 per month or $2.268 per year. It has been closed since mid - summer of 1977 by the Fire Department, the Building Depart- ment, and the County Health Department for building and safety code deficiencies. Plans have been made for its demolition by the City. Proposal by "Hamburger Haven" Operator: Initially, should City Council approve, Mr. Knight will demolish both structures known as "Hamburger Haven" and "International Cafe" �I J AN 2 4 1978 To: Mayor and City Council -3- January 11, 1978 for the first year, with further estimates on the pro -forma page, attached. The minimum return to the City is based upon the existing minimum rental for the two existing businesses, following the policy set by City Council when it approved the standard pier lease. Following the initial three year period, the standard pier lease makes provision for the adjustment of the minimum rental to be paid. In this case, the minimum rental makes allowance for the investment made by the lessee which in the past the City has had to pay for. After the City has received its minimum rental, rent relief on gross sales above the minimum ($81,960) is proposed to totally reimburse him initially for the cost of pier repairs under the presently leased space; then rent relief is proposed at a rate of 4% of gross sales per year on all sales above $81,960 for the first five years of the lease, to compensate for building costs($126,000) that upon com- pletion becomes the property of the City. During this period the City income would be guaranteed at the present minimum of $8,196; then the City would receive 6% of all gross sales above $81,960 and Mr. Knight would receive a 4% rental offset for five years, After five years, rent will reach the full 10% on all sales. The total return to the lessee is dependent upon the gross sales during this five year period, but it is estimated by City staff that this would be a full 100% recapture of the amount advanced for the pier restoration and a 56% return of the amount invested in the building itself. Lessee has posted a performance bond. See Attached. To: Mayor and City Council -4- January 11, 1978 Addition to the Pier Master Lease for Repairs Lessee has also agreed to an addition to the Pier Standard Lease that requires an amount up to 3% of gross sales in the fifth, tenth, fifteenth, and twentieth years be set aside for repairs and upkeep of the building at the direction and approval of the City. Projected Rental Income and Off -Sets See Attached Page Alternatives: 1. Accept the proposal as presented. 2. Reject the proposal and go out to public bid for a new operator prior to June 30, 1979. Accept the Proposal as Presented A number of strong factors tend toward this alternative: A) Repair of the pier through the use of private capital, rather than through the use of City funds; B) Approval of the present lessee to con- tinue in operation, encouraging their investment for expansion, similar to the policy set previously by City Council with the Surf View Cafe and Moby's Dock. Mitigating against this proposal: A) The drop in rental percentage from 12% to 10 %, however, this percentage is in line with other similar operations on the pier, B) 4% rental offset to repay for investment in pier restoration and building construction. It should be noted that Mr. Knight is required to handle all forms and appearances before the Southwest Regional Coastal Commission. To: Mayor and City Council -5- January 11, 1978 Reject the Proposal This would allow the City, at the expiration of the present lease, June 30, 1979, to go out to public bid to locate another developer to replace the rundown structures and build either one or two food operations. Meanwhile revenue to the City is lower due to one operation being closed and the other operating on a smaller scale. Recommendation: It is the recommendation of the City staff that the proposal of Mr. Jack Knight be accepted and that Council waive public bids for the area immediately adjacent to enable the proposal to be placed before the Southwest Regional Coastal Commission, and that the City Manager be authorized to execute applicable documents. Attachments: Pro -Forma estimates sales and rental. Photo, Artist's conception "Captain Jack's ". Photo, area existing buildings. Map of area of proposed lease. Letter of agreement from Mr. Jack Knight. Performance Bond. Proposal of Mr. Jack Knight with resume and financial statement. Prepared by: DTA:11 Donald T. Arnett Peter Kipp G Cl 3 c) A G7 U rti r v. 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G 0 0 0 0 0 0 O O O O O O 4 W 0 0 0 0 0 0 O 0 0 0 0 0 0 .41 j N ul Lfl •rl P O G c o O o 0 0 0 0 •rl ) w w) 0 0 0 0 0 0 +� u cn 0 0 0 0 0 0 ro ro a)) a v •H n 0 0 0 0 0 0 nL Jj G 'd 4J .C: .0 11 O N <1' cn to l0 �O O cn O N N 13 aJ ca S-1 P U •,1 G 4-I k W 0 yr v)- tn- tn- yr yr LH •rA (1) ,-4" O •rl •r-I O WOF+W N N ro ro I cd +.)m 't't o t t I vw W O r P ro a) C- CD C- <D C) i-1 U 0 (° 0 0 0 0 0 ('+ }) ri 0c xw N tiS 11 N Cl) It ul �O N 'J+ �n ,w m 0 Im j 7 r ,n r � z n r v G• 0 � n v $ 0 � 0 D r m N O" IN -N O O {erg9 O O O > w O ' > 1 1 z .S� Ml > K aM D r m N O" {erg9 K { 1 1 . > w Z ' > 1 1 z .S� > K ryry� 6_ °°9 z M m a) D r m N O" January 10, 1979 Mayor and Members of the City Council City of Santa Monica City Hall 1685 Main Street Santa Monica, California 90401 Members of the City Council: I agree to the following terms for a lease to be prepared by the City Manager for a restaurant on the Santa Monica Pier adjacent to the Promenade to be known as "Captain Jack's ": Location: Approximately 5,000 square feet in the south - west corner of the Santa Monica Pier, adjacent to the Promenade, as per map attached. Term: Twenty years, as required by lender, in accordance with the standard Pier lease, Rental: Ten percent of gross sales with a minimum of $ 8,196. rent per year payable 1/12 each month, as per standard pier lease. Rental offset: A rental offset to reimburse lessee for repairs to that portion of the pier which is now under lease from the City will be given for all rent due on sales above $ 81,960 per year until paid. It is agreed that the square footage now under lease is approximately 1412.5 square feet, and that the average cost per square foot of all repairs to the pier done by the lessee shall be used in the determination of the amount to be offset. In addition, it is agreed that the City shall give lessee an additional.four percent rental offset - -- after reimbursement for pier restoration of sales above $ 81,960. for the first: five years of the lease. Maintenance Fund: A maintenance fund of up to three percent of gross sales in the fifth, tenth, fifteenth, and twentieth years will be set aside for maintenance of the site as needed at the discretion and with the approval of the City. In consideration for the lease, I agree to: Demolition: Remove the two existing shacks known as "Hamburger Haven" and International Cafe "; remove all sub - standard pilings, caps, stringers, and decking in the leased location to the satisfaction of the City Engineer. Build: Replace pilings, caps, stringers, and decking as needed to the satisfaction of the City Engineer; make all appearances and accomplish all forms as required by the Santa Monica Architectural Review Board, the Santa Monica Planning Commission, the Santa Monica City Council, and the California State Southwest Regional Coastal Commission; and build a two story restaurant seating 285 as per plans submitted. Very my yours, %' Jack Knight i a E IL10II1uLrrr. IinVr.NA -. -. - - -. .913 1060 OCEAN` AVL., NO. 6 SANTA MOS ICA, CALIF. 90401 90 -2883 J.�• T 1�_ 1222 t� 011`1tid / // °/� ✓ �91Z1)lilt Ul' /- T`- d`y!l�L C g O �� _lam OI I 1RS '1 Santa Monica Bank t, 2 POP 5 MONICA BOULEVARD Santa Monica, Calif. 90404 ' �i'000 9 b iii° 2 2 2 111 288 31 b0 3 70114 ASSIGN4ENT JACK KNIGHT , hereinafter called ASSIGNOR, whose principal place of business is 1624 Promenade, Santa Monica, CA 90401 do (does) hereby assign, and set over to the City of Santa Monica, all right, title, and interest of whatever nature of assignor, in and to the insured account of assignor in SANTA MONICA CITY EMPLOYEES FEDERAL CREDIT UNION, evidenced by an account in the amount of $ 816.90 , numbered which is delivered to the City of Santa Monica herewith. Assignor agrees that this assignment carried with it the right in the insurance of the account by the) National Credit Union Administration and includes and gives the right to the City of Santa Monica to redeem, collect and withdraw the full amount of such account at any time WITHOUT NOTICE TO ASSIGNOR. This assignment is given as performance bond in connection with a lease. Assignor hereby notified the above named SANTA MONICA CITY EMPLOYEES FEDERAL CREDIT UNION of this assignment. Dated this 12th day of January 1978 n S RECEIPT FOR SECURITY AND DIRECTION TO PAY EARNINGS Receipt is acknowledged of the above assignment and the account identified in the above assignment. The Santa Monica City Employee Federal Credit Union named in the above assignment is hereby authorized and directed to pay any earning on the above - identified account to the above -named assignor on or after November 15 of each year until otherwise notified in writing by the City of Santa Monica. Dated this 12th day of January 1978, CITY OF SANTA MONICA BY Table of Contents 1. What we propose to do. 2. Disbursement of funds. 3. Lease. 4. Financial Statement 5. Resume' - Sack Knight 6. Resume' - Mary Knight 7. Experts under contract 8. Other similar restaurants 9. Why a new restaurant. 10. Support data a. Letter First Federal b. Letter C. Kanner c. Letter List of equipment. d. Letter Pier reconstruction. e. Letter Equipment buyer. WHAT WE PROPOSE TO DO We plan to remove both the Hamburger Haven Restaurant and the International Cafe, including their associated patios. We will remove and rebuild the portion of the pier these two restaurants currently occupy, approximately 4,700,sq.ft. On this site will be constructed a beautiful new establishment called Captain Jack's Restaurant. The exterior of Captain Jack's will be rough sawn cedar to blend with the wooden nature of the pier. Two of the three patios sur- rounding Captain Jack's will be shaded by umbrellas and the roof garden by awnings, all brightly colored to highlight the cheerful atmosphere of the beach area. All three of the patios will be land- scaped with potted trees and shrubs. The patio perimeter will be defined with three foot bollards made from piling stumps and connected with old anchor chain. The roof garden, in addition to being landscaped with potted trees and shrubs, will feature hanging plants, flowers, an aquarium and a lighted waterfall. Captain Jack's menu will remain essentially the same with emphasis on hand held fast food items high in quality, yet reasonably priced. However, some new additions will be made to the menu. A line of breakfast and brunch items as well as a limited number of .dinner se- lea tions will also be added. Every Sunday will feature a champaign brunch in the roof garden. For the sports enthusiasts all significant televised 'events will be shown in the roof garden on wide screen TV. To simulate a game site atmosphere, beer, lemonade, sodas, hot dogs, peanuts and popcorn will be sold at a reduced rate during the game or event. All holidays will be celebrated with a promotion tailored - 1 - i Page 2 of What; We Propose To Do. to the specific day, i.e. Dinner for two for the price of one on Valentine's Day for lovers, a rose for Mother on Mother's Day, etc. The key to a successful restaurant is: 1. Location 2. Service 3. Good Food. First, our location is excellent., Over 3 million people come to Santa Monica Pier each year. Second, to serve the 3 million people we just mentioned, we have designed a facility with em- phasis on maximum output and comfort. Hamburger Haven and the International Cafe were designed to serve a relatively small number of people at a time, and had a combined seating capacity of 50 in very shabby surroundings. Captain Jack's will seat 285 people. The inside dining area will seat 56, the roof garden 100 and the patios 129 all in clean, beautiful surroundings that everyone will enjoy. Third, Good food. We have always prided ourselves in serving well above average quality food. However, Captain Jack's will serve the very best food it is possible to produce. We have added a butcher to our staff. We will cut our own meat on the premises. We will grind our own burger meat fresh each day. No canned or frozen food items will be used where fresh foods are.available. We are going back to the basics to build a reputation for fine food. - 2 - Page 3 of What We Propose To Do Any one of these three keys to success can secure the future of a restaurant. We are fortunate that we have all three. In New York's Coney Island the place to go is Nathans. On the Santa Monica Pier it will be Captain Jack's. I 0 r 'i - 3 - DISBURSEMENT OF FUNDS It is our intention to spend approximately $298,522 building The Captain Jack's Restaurant. These funds will be expended in the following manner: Building construction $126,000 A & E 7 % 8,200 Pier reconstruction 4,700 sq.ft. @ $9 per sq.ft. 42,300 A & E 7% 2,961 Buy Outs 28,028 Fixtures 56,019 Furniture 24,104 Kitchen Consultant fee 5,200 Inventory 2,500 Operating capital 1,800 Start -up cost (licenses, insurance, permits) 1,500 $298,522 Interest on 1st Federal note 108,376 Contingency money set aside 12,700 Total dollar commitment to this project $419,598 LEASE We are requesting a 25 year lease on the 4,700 sq.ft. area presently occupied by Hamburger Haven and International Restaurants. As compensation for this lease we intend to commit $419,598 to the establishment of a new restaurant. We will pay the City 8% of our gross against a $8,196 mini- mum. This represents the combined minimums of the Hamburger Haven and the International Cafe. Of the $419,598 we are committing to this project, $112,300 is for pier restoration. Under the general terms of the pier leasing contract, it is the City's responsibility to provide these funds. We are requesting as part of this lease that 100% of the pier restoration cost and 75% of the basic building construction cost be returned to us in the form of rent relief. This will represent about $136,800 to be returned at a rate of 4% of our gross, until the $136,800 is repaid. To secure financing from 1st Federal Savings and Loan, it is a prerequisite that we obtain a 20 year lease on the building site. The additional 5 years requested of the 25 year lease is to compensate us for the $419,598 we will be committing to this project interest free. INDI , L)iJd- L t"ii'df-ANGiFAL v i hAi f:llr. N i ' �) ) TFixa l I; AND IRAN ASSOCIATION OF SANTA MONICA ,1AyM'E ADDRESS CITV/ TELEPHONE q `' mego oc &A N A Vs, C.'j �• ! /• �{pN /UMBFR .:J 6 eJ" C.7 C.J . _ aUSINF.SS - ADDRESS CITY TELEPHONE NUMBER 62 4 'PR O t°� 4 I�t A� S. P 9 • :3 9 )t � The Undersigned, for the purpose of procuring and establishing credit from time to time with you and to induce JBIRTH DATE au to permit the Undersigned to become indebted to you on notes, endorsements, guarantees, overdrafts,. iunmercial paper, chattel'paper or otherwise, furnishes the following (or in lieu thereof the attached) which is the recent statement prepared by or for the Undersigned and which is hereby warranted as being the most recent statement prepared by or for the Undersigned as Test cnstittlting a full, true and correct statement of the financial condition of the Undersigned on the date shown below, agrees to notify you immediately of the extent nd character of any material adverse change in said financial condition; and agrees that it the Undersigned or any endorser or guarantor of any of the obligations of the Indorsigned at any time tails in business or becomes insolvent, or commits an act of bankruptcy, should make an assignment for benefit of or offer a composition or Aension with creditors, or dies, fails to pay when due any obligation to you, claim_ s homestead exemption on real property listed in this statement, fail; to notify you mmediately of any material adverse change in financial condition as shown herein, tails to remove any lien or encumbrance or liquidate any liability when requested as a ! 'ondition to any borrowing It on you, or any proceedings under the Federal Bankruptcy Art are commenced by or against the Undersigned, a receivet is appointed for ';e Undersigned's business or property or any part thereof, or if any assessment for taxes against the Undersigned, other than taxes on real property, is made by any ;avernment or political subdivision thereof, or if the business, or any interest therein of the Undersigned is sold, or if the Undersigned fails to notitf you of any >:uterial adverse change of financial condition, or the Undersigned's financial condition shall in your opinion so deteriorate to the extent that you in good faith shall :Seemi yodrself insecure, then and in any such event, all of the obligations of the Undersigned to you and held by you shall at your option immediately become due and - :oyable without demand or notice, except as otherwise provided by law; and further, any commitments or obligations to grant credit to the Undersigned or for the ih;denigned's benefit shall be immediately terminated. The Undersigned agrees to keep proper, accurate and current books of account and other records, and to produce them for examination, audit and inspection 6y any accountant or representative selected by you, to permit copies thereof or extracts therefrom to be made for you, and to comply with all requests for concerning the Undersigned's affairs and for the inspection of the undersigned's records, whether or not confidential. ^�___� _information —' FINANCIAL CONDITION AS OF �OW4�YKS E_R_, Ig_77 ' ASSETS AMOUNT LIABILITIES sAMOUNT _ CASH- � ®� ®� NOTES PAYABLE —.— -- Other Banks (Detail) Other (Itemize, Schedule 4) TO BANKS STOCKS sl OCttS Listed (Schedule 1) p ®� OTHER Real Estate Loans (Schedule 2) —� - - -- Unlisted (Schedule t) 00 Sales Contracts &See. Agrmts.ISch. 41 1 Atdp NOTESAND - Loans on Life Insurance Policies (Sch.4A) �- QUICK _ I. BONDS ACCOUNTS PAYABLE m Improved (Schedule 2l �t "" 0 0 ©IJ on REAL Unimproved (Schedule 2) Current Year's Income Taxes Unpaid Prior Year's Income Taxes Unpaid ESTATE Trust Deeds & Mortgages (Schedule 3 B.000 ®(} TAXES Real Estate Taxes Unpaid ^_ PAYABLE LIFF. Cash Surrender Value M •�_ INSURANCE Unpaid Interest ' Relatives and Friends (Schedule 4) 6,0 0 00. Other. (Itemize, Schedule 4) — _ ACCOUNTS OTHER LIABILITIES — Collectible (Schedule 4) ® 0 0 _ I� =D—' 0 C) Doubtful (Schedule 4) _� _ AND NOTES RECEIVABLE A U 14A 6N l O® 00 17 F CE A M »PZ C�t6 Co R OTHER AutomobilrDaDgE VAN (7t [� !'j��j ®8) Q ®� TOTAL LIABILITIES - - � NET WORTH PERSONAL PROP =RTV - 1-" Other (Itemize, Schedule 40130 :d., 0 00g� O0 - TOTAL I- ' .J OO TOTAL S(J Y'-6 �..) [.�i o le�En ro «EnERa� •,�„E ANNUAL INCOME _— (vE�rDE —H�­„- ANNUAL EXPENDITURES ry ct SA LARX OR WAGES - 0(J PROPERTY TAXES AND ASSESSMENTS P!V Y j i..AIA- DIVIDENDS AND INTEREST FEDERAL AND STA TE INCOME TAXES - i;� .;:�0(,10o RENTALS (GROSS) REAL ESTATE LOAN PAYMENTS °�j If,' nU SIN ESS OR PROFESSIONAL INCOME (NET) at p' 0 C) PAYMENTS ON CONTRACTS AND OTHER NOTES _ OTHER INCOME (DESCRIBE) INSURANCE PREMIUMS _ _�y,�% ESTIMATED LIVING EXPENSES _j 27 `i,�_ OUr. A TOTAL INCOME 972 00 OTHER � TOTAL EXPENDITURES ;2, !s FACE AMOUNT BENEFICIARY COMPANY ® �._ ' ,_�A�� �+I T _ , A A•? �'s��.— ..— INSURANCE -� -�-� it 0 -A 6a R iq !c_Fj _r -- _`7 _7�� --_ . 9' 00 13A K of- 9. ...__ tad_ -- --------- --- -W. .-° des of any contingent Labil+ty as endorser or u!, )tor, or on scats or judgments pending. Elf necessar•, •separate sheet. do business with any other hank ?. � (If so, give de lai1S.I D 0 iyP ! you are married, are any of the assets described in this statement your wife's (husband's) separate property ?_ (1 f so, state which.) --- - ----- !AVE YOUR INCOME TAX RETURNS EVER BEEN QUESTIONED BY ANY GOVERNMENTAL AUTHORITY? (If So, most recent year.) tyy,. _ ? ?,VE YOU EVER GONE THROUGH BANKRUPTCY? HAVE YOU EVER MADE A WILL? X1.._2_ HAVE YOU FILED HOMESTEAD An+n nnnl n A'A Anu of the bxlnw Securities uad..d 4Y 4L —. TOTAL UNLISTED -_— n+mmnn n.,,t;,.,ro I -tmnr H H.tln vnveA s STREET ADDRESS AND TYPE OF IMPROVEMENT TITLE IN NAME OF %° O y COST PRESENT VALUE NUMBER OF SHARES WHERE LISTED DESCRIPTION ISSUED IN .THE NAME OF MARKET VALUE OR PAR VALUE i Ile; " (o® I_STEDg°•' ,A t// r� _A, ry �, +•_-y / -- ` TOTAL LISTED f,� ®01d UNLISTED ryry � I�� ^+� � �.Ct::S"X � _I<if -- — I Uoa J;_ {l .i- -� � TOTAL UNLISTED -_— n+mmnn n.,,t;,.,ro I -tmnr H H.tln vnveA s STREET ADDRESS AND TYPE OF IMPROVEMENT TITLE IN NAME OF %° O y COST PRESENT VALUE TRUST DEEDS MORTGAGES OR OTHER LEIb15 _ Unpaid Balance Rate %Monthly Payment] He'd 9" - yal fU.4�1l9t i Ile; " (o® .� ` TOTAL' f,� ®01d ryry � I�� ^+� � �.Ct::S"X � _I<if I Uoa J;_ {l .i- -� � ? — —i i l 1.9,M Anil) —a � Cafe® —t �!). f�'P'i.L p '� �s I , : ,. — - -- TOTAL _� .e_.®.....m.._.d SCNEDULt 3: itiVJI VCCUJ NIVV NAME ImVn+Vrw�.. �,...... STREET ADDRESS AND TYPE OF IMPROVEMENT ORIGINAL AMOUNT UNPAID BALANCE % OWNED - Monthly Ist OR 2nd VALUE OF Payment LIEN PROPERTY �pq � pO /FpPAYO,RR 4- y�"�i.�[5��5 _•ps�H�'�v- �y'tp��.yv,�/°- �s p y�yp �g p�pt �t 35-4 A TA 0J(Ya!�6R —MALL RAN �� -�/� ,�y °�Wj ®iJ IJ — - -. ` TOTAL' f,� ®01d 4: DETAILS RELATIVE TO OTHER IMPORTANT A7_ SSETS ANO LIABILII l � iS cARRI D FoRWA To 7H,5 Taatm 9 of *r14dS Ebel, n, The Undersigned declares that the above statement for in lieu thereof, ' attached statement, as the case may be) and supporting schedules, cot % printed and written are a full, true, and correct statement of the finanm. condition of the Undersigned as of the date indicated. Social Security Number �`'� =�° 67— - - Signature i Signature Social Security Number�� ®`" RESUME -- JACK KNIGHT 1975 to present, owner /operator of Hamburger Haven at 1624 Promenade, Santa Monica. 1976 owner /operator of Pizza Place, 15511 Santa Monica Mall. 6 months, sold. 1973 to present, Knight- Cruickshank Co. Partnership (see personnel financial statement. 1972 to 1975 general manager John Henerys Restaurant,- Simi Valley. Owner died and heirs sold assets. 1962 Engineering, middle management. to 1972 Litton Industries. Left company to manage restaurant for a friend. Education: 1958 San Diego State University. BA Business Adm. 1959 San Diego State Univ. Masters Degree Ind. Eng. ..8M 0 RESUME - MARY KNIGHT 1975 to Owner /operator Hamburger Haven present 1976 Owner /Operator Pizza Place 1970 to Owner /operator (Partner) Tony's Place 1975 Vanowen & Tampa, Canoga Park. Business sold when partner (father) retired. 1967 to Owner /operator (partner) Fronteer Cafe, Sherman Way, 1970 Canoga Park. Sold to open Tony's Place 1960 Waitress in father's restaurant 1967 Lavatos Cafe, Flagstaff, Arizona. Education: 1954 Canoga High 9 -- i EXPERTS UNDER CONTRACT FOR SERVICES Charles G. Kanner, AIA, Architect & Planner 24 years experience Architect selected by the City for Pier restoration and development. Riddle - Gregory, Kitchen Consultants & Designers. 20 years of experience Consultants for Norms, Carls Jr.. The Chronicle, El Torritos Cherios, to name only a few. Robert Goodfriend Operations Consultant 25 years experience Currently owner /operator of the very successful Sidewalk Cafe in Venice. Gene Rose, Head Cook 20 years experience Currently employed at Hamburger Haven as head cook. r 5 years as manager of Nu -Way Chile Dog at Pico and Bundy. Tony Lavato, Butcher & Chef. 40 year restaurant, 25 years chef - -owned & operated 5 restaurants during 40 years. - 10 OTHER SIMILAR RESTAURANTti, Sidewalk Cafe -- Promenade, Venice Open all year around Seats 132 outside, 78 inside 1st year gross - $400,000 Current gross $750,000 Sea & Shore Bistro - Promenade, Venice Open all year around Seats 40 outside, 65 inside Average gross per 3 years - $375,000 Earths End - Promenade Venice Open all year around Seats 48 outside, 67 inside Open one year,gross - $350,000 Jack's #1 and Jack's #2 - Huntington Beach Open 22 weeks each year, May thru Sept. Seats 42 outside, 36 inside Average gross - $151,000 each location - 11 - "Why a new Restaurant" Why build a new restaurant? The simple truth is we must rebuild or we will be crushed by all the progress which surrounds us. It's almost like building a restaurant in the middle of. Disneyland. With our location we are nearly the only restaurant on the Santa Monica Beach. There are no restaurants south of us for nearly 2 miles. There are only four small specialty food locations in our area, none of which are any competition to us even with our present restau- rant; We Have a captive group of consumers from which to draw. We know we are losing at least half of these customers, because we cannot wait on them fast enough. They either go onto the Pier to eat, or bring their own food to avoid the hassle of waiting in our long lines. Our new restaurant is designed for maximum speed in output to capture this lost business, and to encourage people to leave their brown bags at home. The Joan Luther public relations firm, which represents the Pier, has expressed a. great interest in promoting the success of the new restaurant. Joan Luther has planned activities to lure people to the Pier all year 'round. The first event to be a Halloween party on October 31, 1977. Today more and more women are working, and because of this, families are eating out more. People are more mobile today than they ever have been in the history of the world. This is particularly true in Southern California, where the weather is warm all year around and there is little rain. More and more the people in the Los Angeles basin are flocking to Santa Monica Pier to eat. It's a fun place to go, and it doesn't have to cost you an arm and a leg. "Why a new Restaurant" The Pier is the only amusement center that is connected to the Los Angeles Area by a bus system. When you couple this with the bike path, which is bringing thousands of people to the.pier by bi- cycles, skateboards and rollerskates, you can easily see the trend is toward even larger numbers of customers. Currently we are open from 13. AM til 6 PM in the winter, and 8 PM in the summer. We do a lunch and early dinner business only. We can seat about 30 people on our patio which is generally full even in the winter season. Our limited equipment, storage and seating all play a part in stifling our growth. The new restaurant will be open 365' days a ,year, from 8 AM to 11 PM. We will serve breakfast each morning and a champagne brunch on Sunday as well as lunch and dinner. Our roof garden will be open all year around with space heaters to add the necessary warmth during those few winter months when needed. If it rains, we will seat our customers inside. Our total seating capacity will be 285: Inside seating for 56 Rear patio 34 Front patio 12 Side patio 73 Roof garden 100 Bar 10 285 "Why a new Restaurant" The Boat House has doubled its gross since they remodeled. In talking with the owners of the restaurants we have sighted as similar to our new .restaurant, they have all said the same thing, "They could double their business if it was possible to increase their seating. In the past year they have all remodeled at least twice, the Sidewalk Cafe 3 times, to get more space for seating. For this reason we have designed our restaurant to take advantage of the optimum in seating and in service to our customers. We have always been known for our excellent food, and it will be even better in the future. There are no better requisites for success in the restaurant business than: excellent food reason- ably priced, excellent location, excellent service. Our new restaurant will have all of these winning ingredients.