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SR-07-11-1978-11C - 802-004Santa Monica, California June 20, 1978 // C J U L 1 1 1978 TO: Mayor and City Council FROM: City Staff SUBJECT: Approval of lease, Carousel Park, Santa Monica Pier ,Introduction Several proposals regarding the Carousel have been received during the last year and a half. In order to facilitate the development of the Carousel, City advertised a "request for proposals" with the 30 day period expiring on May 19, 1978. This report lists the proposals received, provides a general background of the Carousel situation and analyzes and recommends the Carousel Parc proposal. Background Mr. Roy Cruickshank and Mr. Jack Knight, principals of the Carousel Park proposal, desire to lease the Carousel building and the areas to the south and to the east (see Carousel Park lease map, exhibit A). They estimate the cost of the development to be $2,553,391 and no out of pocket funding by the City is required. Their financial statements and resumes are included in the support data, (see exhibit C). For many years the Carousel was operated by Mr. George Gordon, who sold the Carousel and the Wurlitzer Organ to the City on May 10, 1977 (Contract #2310 CCS). Mr. Gordon has been operating it since on a month to month basis; however, because of the short term nature of his lease neither the Carousel nor the organ have been adequately maintained. The area to the east of the Carousel Building has been hazardous for public use for many years and consequently has been fenced off to prevent accidents. To the south of the Carousel Building the parking lot area has been /s JUL 1 1 1978 Santa Monica City Council -2- June 20, 1978 under constant repair, and is in need of a considerable investment to permit parking over the long term. From time to time proposals have come to City Staff for partial use of the Carousel Building, but these have left major portions of the area untouched, or required the expenditure of City funds, (see exhibit. B, Comparison of Proposals). As a consequence, City staff has negotiated from a position of restoration and development of the entire area, i'requiring no expense from the City. City has also required that the historical integrity of the Carousel and the Carousel Building be main- tained and restored as it once was. Discussion The proposal of the Carousel Corporation will require no expenditure of City funds. At the expense of the Carousel Corporation, that area of the pier to be leased will be renovated to the specifications of the City, the Carousel itself will be completely restored by a restoration expert to be approved by the City, the Wurlitzer organ also restored by an expert to be approved by the City, the second floor of the Carousel building will be strengthened and renovated into a turn -of -the -century decor restaurant seating 125 making it the largest restaurant on the Pier. The area surrounding the Carousel will be opened up to resemble the authentic park -like atmosphere of the original Carousel operation with the corners of the building housing a pizzeria, a hot cookie factory, and an ice cream parlor. Finally a water slidewith multiple water filled sliding flumes, wilh be installed, combining the best of the former roller coasters and the other rides no longer on the pier. A bath house to be used by tourists as well as the public for their convenience in changing clothes and securing valuables will be installed 1 I 'manta Monica City Cotuzci_� -3- June 20, :1.9.78 underneath the pier decking, as a part of the water slide. operation.. , Analysis of Lease Provisions Term: .25 years, with two 5 year options (September 15, 1978 to September 14, 2012) ' Rental: : %of Gross. Sales .. Minimum Carousel Restaurant 8%39,312 Ice Cream Parlor, 10% 8,460. Cookie Factory 10% 7,614 ' Pizzeria10% 10,152 Water Slide 72%/15%* 90 000 Bath House 10% ?.,/46 Carousel 15% 71872 $ 165,856 (12% of first $300,000 sales, 15% thereafter. Rental Off -Set: All rent due the City after 'payment of the minimums as above (total $165,856) per year : shall be off -set for five years, to allow lessee. to recapture all City verified monies for piling , and decking repairs, as well as all monies ad- vanced for restoration costs of the City's Carousel and organ. Five years was ,selected by City Staff following the precedent set in t January, 1978 by City Council with the Boat- house Host restaurant, whose lease was ammended to allow a five year period for investment re- capture. City Staff estimates that the lessee may recapture between 19-57% of the building costs (estimated at $736,000) depending upon .. . Santa Monica City Council -4- June 20, 1978 the growth of business volume, but under no circumstances will more than $829,280 total be recaptured. This is equal to the amount that will be paid to the City for the initial five years of the lease under the minimum rental requirements. Landmarks Commission: On June 20, 1978 the City Landmarks Commission voted a Certificate of Appropriateness for the proposed restoration since the site is on a designated City landmark. Architectural Review Board: Income to the City: On June 21, 1978 the Architectural Review Board voted its approval. At present the City receives $2,400 a year from Mr. Gordon, the operator of the Carousel. The income the City had been receiving from the game machines in the Carousel Building has been transferred to the Playland Arcade, resulting in no loss of income to the City. In the initial five years of the lease for the Carousel Park, the City will be guaran- teed $829,280. Thereafter, the City will receive not only the minimum rent, but the percentages of each operation as indicated on page 3, with the total amount dependent upon the gross sales of each operation. Santa Monica City Council -5- June 20, 1978 Alternatives Because no other proposal immediately developsr and restores the Carousel Building site, not to mention the terribly deteriorating areas immedi- ately south and east of the building, there ap- pears to be no other viable alternative to the Carousel Park proposal. With the exception of the Waterhorn, Inc. propo- sal, which bid only on the construction of a Water Slide, only the Carousel Park proposal in- volves a significant investment by the developer, offers substantial revenues to the City, and does not require initial out of pocket expense by the City. Recommendation It is the recommendation of the City Staff that the City Council direct the City Manager to execute all appropriate lease documents with the Carousel Corporation. Exhibit "A" Standard Pier Lease Map Exhibit "B" Proposal Comparison Exhibit "C" Carousel Park Principals Financial :Statement Prepared by: Jeremy Ferris Peter Kipp Gary Ferguson i, %y LINE OF MUNICIPAL PIER COLORADO AVE. PRODUCED CAROUSEL Ci �.0 SE'Iy LINE OF SANTA MONICA PIER LEGEND SCALE' I 40' O Lease Parcel N° Per Pier Lease Map (5239 sht. I ) ® Existing Open Area Lease Proposed Lease Area PROPOSED "CAROUSEL PARK L EASE (301) Exhibit B INITIAL 'FIVE YEAR ACCUMULATIVE ANAJ',''SIS OF THE FOUR PROPOSALS THP MERRY-GO-ROUND SITE ON THE SANTA MONICA PIER Notes: 1)1 Swenson's require that the City bring Merry -Go -Round up to code and includes no restoration of the Merry -Go -Round or organ. They do propose an additional investment of. '$100,000 to $200,000 for restaruant construction in about the fifth year. 2). Perry/Edwards investment would not restore building adequately to bringtit up to mandated code and includes no Merry -Go -Round or organ restoration. The $62,000 'revenue is guaranteed the City. 1). Swenson's - April, 1977 (Wayne Sansbury.) .... ... ..... 2). Perry/Edwards - November®1977 ....... Initial Investment Accumulative Gross Revenue. Accumulative Revenue To.City.. Initial Investment. Accumulative Gross Revenue Accumulativell Revenue To City 1st Yr. $40-50,000 $150,000 $80,000 .$-50,000 $ 7,000 _ 2nd Yr. 300,000 100,000 16,000 3rd Yr. 550,00.0 155,000 27,000 _II 4th Yr. 800,000 210,000 42,000 5th Yr. See Note No Estimate 271,500 62,000 3). Waterhorn, Inc. Waterslide - May, 1978 4). Carousel Park - May, 1978 r). Initial Investment. Accumulative Gross Revenue Accumulative Revenue To City Initial Inv.estment.Revenue Accumulative Gross Accumulative Revenue To City 1st Yr. $747,831 $ 627,350 $ 54,735 $2,553,391 $`.1,490;600 $165,856 2nd Yr. 1,254,700 128,564 3,279,320 331,712 3rd Yr. 1,882,050 203,846 5,425,782 497,508 4th Yr. 2,509,400 279'1128 8,001,536 663,424 5th Yr. 3,136,750 354,410 11,092,440 .829,280 Notes: 1)1 Swenson's require that the City bring Merry -Go -Round up to code and includes no restoration of the Merry -Go -Round or organ. They do propose an additional investment of. '$100,000 to $200,000 for restaruant construction in about the fifth year. 2). Perry/Edwards investment would not restore building adequately to bringtit up to mandated code and includes no Merry -Go -Round or organ restoration. The $62,000 'revenue is guaranteed the City. -2- 3). The Waterhorn Waterslide proposal includes no restoration or investment .in the Merry -Go -Round, buildincj, or organ, nor operation of same. Of the projected Revenue To City only $40,000 is guaranteed. 4). Carousel Park's proposal completely restores the Pier area covered, the Merry -Go -Round and organ. The Revenue To City projected is guaranteed. > n. ROY CRUICKSHANK Financial Statement As of January 31, 1978 Assetts Cash Stocks and Bonds (At fair market value) Real Estate (At fair market Value) ®See Attached Note Receivable Auto Boat Motor Home Personal Property Life Insurance Surrender Value Total Assets Notes Payable Owing on Real Estate (See Attached) Owing on Auto Owing on Boat Owing on Motor Home Total Liabilities NET WORTH $ 10,000 )1,000 392,000 23,500 11,000 17,000 20,800 30,000 4,000 $ 1,500 136,250 8,000 7,500 14,000 COWD TIAL 1/ $ 519,300 $ 167.250 $ 352,050 **Life Insurance: Allstate , Face Value $ 140,000.00, Beneficiary Virginia Cruickshank. Prepared Without Audit (WiQQiamcw-gattin Cl"RI PU® C A' WWAHT SIMI, CALIFORNIA 83066 r1 a (h d v'. NH ri N i Oi O O G O I I U (Y I 111` U 0 S'r O OI O O (10 oI c1 (,1 or 0 O a, Oj r1 O $-I (Ni N O I � 4� rl SII i N I U1 ( 0 N ol O O SO -'i 0 4 rl 0 C) n d 11 a) O OCD O d O O OI O cl O O N z: o d r1 N C(1 1 1 sa .G 0 _ n d r' m N C" } l V\ L. (� a O 'O .ry (0 H O I v: cd f l O ' lu d i-1 a v, o C, ^? N >s 6i ,...• .,. �, N rll v th-i ti) .. r1 a (h d v'. NH ri N i Oi O O G O O (Y dl 111` U 0 O O (10 -I� c1 O ul 0 • a, Oj $-I i, i r .W 4� \o SII d Ni I U1 ( 0 0 O �� r �. 0 4 rl 0 C) n d 11 a) O OCD T) d P 1 1 O •,A O 1 1 N C(1 1 1 sa .G 0 _ n d r' m N C" } l V\ L. O � O 'O .ry fl} 0 0 'o 0 G G) O d .4, a v, o C, ^? N >s 6i (Y\ C\ N rll v is � i -, 4` r1 a (h d v'. NH ri N O Oi O O G O O (Y dl O U 0 O O H -I� N O ul 0 0 O Oj O h-1 .i\ 4� \o I I U1 ( 0 0 O O 0 4 0 C) n d 11 a) O OCD U d O 1 1 O U O 1 1 -.... 1 1 sa .G 0 r' m H C" } l H O O a� O 'O .ry fl} 0 0 'o 0 G G) O d .4, a v, o C, ^? H N Cl m N is OI c� -, 11 rl rl r1 a (h d v'. NH ri N O V O U 0 O O O O O ul 0 0 O Oj O h-1 .i\ 4� (N1) N 4. 00 C) OCD U O 1 1 O U O 1 1 -.... 1 1 O .G C" 1 1 O O 0 O 'O 0 0 0 0 'o 0 G d/ O d .4, a v, o C, ^? H N Cl m N c� m • ri (..} F3 0 z 11 H. H Icl u. 'C -H C(I .-i cd � O\ u1 U A M U f•( • O 1- 4 4-) r1 a (h d v'. NH ri N O U 0 O O O O O ul G 0 O Oj O >n (N1) N 4. 00 C) OCD U O 1 1 O U O 1 1 -.... 1 1 O .G O 0 0 O 'O 0 0 0 0 'o 0 G d/ O d .4, a v, o C, ^? N N • ri (..} F3 0 z 11 H. H u. 'C -H C(I .-i cd � O\ u1 U A M U f•( • O 1- 4 4-) ON a) w W F-1 Hr -i+) 111.;, U S~ n� 0 a) .N FI • . Sd Pi Fl 0 ; r, . w 0) rn'm (d ; 'H to a) a) Un r{ O r1 .z N -F.1 (\I m "U N :0 Fa r1 �j ri ` O FA 0 O WN A '� �� 0• " 0 '1 0) O Oi rx. w�(� .-r m rl m u rl &4 to EI Fill all blanks, writing ono" or "none" where necessary to complete Information. SCHEDULE OF STOCKS AND BONDS—LISTED NUMBER OFSHANES OR PAR VALUE OF BONDS VALUATION MORTGAGED LIEN MO. INT. PMT. ATMORTGAGE -No IMPflOVEM ENTS AMOUNT MATURIT CIASSOCK NAMEOF OOFST COMPANY RATE AND MATURITY PAP VALUE MARKET VALUE VALUE ON MY BOOKS i P/. ..Je fT !,✓C/ 0 `HWJL EL �cPJ P.✓T TOTAL t 1 t t TOTAL. ................................. / t yJ^ d SCHEDULE OF STOCKS AND BONDS—UNLISTED _`n ,Wuo ' TOTAL .................................. 1 1 � !' - ... SCHEDULE OF REAL ESTATE AND IMPROVEMENTS LEGAL DESCRIPTION& ADDRESS IEIPLSO GIVE RpIEFIPNY9IICPL f1E8CRIPil0N1 VALUATION MORTGAGED LIEN MO. INT. PMT. ATMORTGAGE -No IMPflOVEM ENTS AMOUNT MATURIT DATE OFCONNECTION DATE CONNECTION TERMINATED F.ceJr !-�. ULIa.� fw; v/7LLe N•h6ra W<: i h fT !,✓C/ 0 `HWJL EL �cPJ P.✓T TOTAL t 1 t t IS ANY OF ABOVE REAL ESTATE SUBJECT TO DECLARATION OF HOMESTEAD? IF SO, HAS DECLARATION BEEN FILED AND ON WHAT PARCELS? TITLE TO ABOVE REAL ESTATE STANDS ON COUNTY RECORDS IN NAME OF See ScMP.>arLP IF MORE THAN ON E NAM E, GIVE DETAILS AS TO VESTIN G O F TITLE OF EACH PARCEL See St..XOUr-Z BANKING CONNECTIONS ,q( NAMESOFBANKS IN WHICH YOU CARRY ACCOUNTS_JAN{ Oil A, Levy ✓ALJ:9>< 61 A'b±24 OL HAVE YOU PREVIOUSLY BORROWED FROM OTHER BANKS? yer iAHr.. WEREYOUR BORROWINGS UNSECURED, SECUREDOR ENDORSED? PREVIOUS MAXIMUM AMOUNT BORROWED FROM BANKS 11 PAST AND PRESENT BUSINESS CONNECTIONS: NAME OF EMPLOYERS OR ASSOCIATES LOCATION DATE OFCONNECTION DATE CONNECTION TERMINATED F.ceJr !-�. ULIa.� fw; v/7LLe N•h6ra W<: 6 h .� p..P nJq.E. 1^.uL !,✓C/ 0 L 7 G �cPJ P.✓T GENERAL INFORMATION Marital States: AlAtu led 0 Separated 0 Unmarried If you check either of the first Mo boxes, are any of the easels listed community property? O�Yes 0 No If the agswm is "Yes", list spouse's name: =Zj,04vJ ARE YOU LEASING ANY REAL OR PERSONAL PROPERTY? TT r % 6 �/In, a a�J c eJ✓� a L l' IF $O, GIVE DETAILS AS TO TERMS OF LEASES 3�vt L Vi //o ARE ANY OF YOUR STOCKS BONDS OR NOTES RECEIVABLE HELD IN JOINT TENANCV? A",, IF SO, GIVE DETAILS AREANY OF YOUR ASSETS PLEDGED, OR IN ANY OTHER MANNER UNAVAILABLE FOR PAYING DEBTS? N U IF UNAVAILABLE OR PLEDGED, GIVE DETAILS ARE THERE ANY SUITS, JUDGMENTS, EXECUTIONS OF ATTACHMENTS AGAINST YOU PENDING? Ny IF SO, GIVE DETAILS _ HAVE YOU fVFR FAILED IN BUSINESS OR COMPROMISE() OffiTS WITH YOUR CREDITORS?_'L�_U______._- If SO, GIVE DETAILS DATESIGNED 3 A 4?1 OCCUPATION l6wa,�[- ADDRESS TELEPHONE COIfinApwdq! ISIGNATUREI bf Cd >s +) N 0 O (lt a+ N ? V) aS : �J t.ms: w;) :L C Uri;. C 4» 44 CO rl .-� C` N • h C C C C •rl C N C) 1 C R• qo C� 01 Y V m i Y 7 C >nNN h II r, al I L L ('. n) 1 1 41 O m 1 1 N j � >~ F! s~ o a� � m ri r; o + 4) >r r+ o u o :C a) m m c.-: a) j Ua)OU r.i V. v �4 , h n) m C: i v. , 4� : a I O'V H iff m m o v F, r'i a) N.1 � .0 H a) N 'r! O (lt a+ N ? V) aS : �J t.ms: w;) :L C Uri;. C 4» 44 CO rl .-� C` N •rl N R• 01 Y i Y 7 r, al L L ('. O (lt a+ N ? V) aS : �J t.ms: w;) :L C Uri;. C 4» 44 CO rl .-� C` N W F - Q F - !n W J a W w N J ° I O to OD _ w � T T T U 41 QI oT d I T `. T T to a T m E v t N O N C) t O N } Q W O C O O O 0 M Ol O m 3 LL. 0_ >LO o_ 0_ 0- o n w O C� O .Q).. 1 - .0 CD .. 0 \ O s ._ cn - N N _ co > o_ 0_ 0- o_ cl 1- d w N to 2 O^ wv O o f u M CIA N 1 '-T N I O` C O N U N of 0 , r e .m r 4, QTc ,w W 00 w 00 w Z w w y LO O O > C N N �, i ° O T N C W T O Cl) 00 `O O O O O i� W 0� 1 > �w d M C o C M tl' �' � Cl) `O I co 0-a3 w w •j = . 0 vi _ E -do r W G W N 0� —U c N ..D " _ z N � ,o O '- Co2 G ° w 00 c= = 0 n `-° `o E O c O CO 00 • O —0 C 3 Q o ° o ^ '- •j O 00 'Q o N 0. a- 00 O O P 00 00 a, 1 h. 00 U - a. - :: C O W . 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O O S Ln O co O 10 M w w N to O " N 00 M N w O O d I O to OD _ w � i i CD C) A. 0 0 o m Cl) I C� O > O ri \ O s ._ Cl)00 U vl 0 0 0 4.V o 0 2 o O o O o u d 0 LO o $ ° N N N of 'C U N w w O)S O > C y ° O T W > ^ TIS O otf T O 0� 0 > �w E o o o H ~ > 0-a3 N r._ 0 e = . 0 vi _ E -do �. �✓s 0� —U c ..D " U.S ,o -.VUC 0 y ` '- Co2 G ° w c co o Q Up} `-° `o E c o O CN \U O \Y • O —0 C 3 Q •p �N i� 'A M . FINANCIAL STATEMENT — individual form The nppilcnnl, If mnrried, mny apply for a separate account. 1'n: AMERICAN CITY RANK FROM—NAMES) —X10//,.t W. S.S.H Z�C'0 Pill all bhu,ks, venting "no" or "none" where nercilnry to complete inforntn lon. For the putative of pre<nring and establishing credit from time to time with you far negotiable paper of the undersigned or any or either of them. "n flalwiw. dna andersim ed I ... rish the allowing as a true and accurate statement of the FINANCIAL CONDITION OF THE UNDERSIGNISD ON 3-�. 14 7p . The undersigned agree to and o -ill nails you immediately in writing of am material change in the financial condition Irl the nudersignal and in the absence -(Irish notice ar of a new and lidl emblem setement, this nay he sentineled .a continuing statement :cod mintan..illy ar.ee,: and it is hershv expressly agreed that openaPedest els for further credil, this statement shall have the same farce and effect as If delivered as an oricinal statement "l the financial condition of the undersigned at the lime such further could is requested. In consideration of the Renting of such coslb the Imdur sigma ;cod tall of in,. agree that if the undersigned or all, ar either of them, or nap endoricr or Ruaranor of the obligalinnn of the undersigned nr any nr either ,d thea m :my lime fail to become insolvent or c nsui .tin uu "1' honk mpty, or it ' any deposit account of f he undersigned or any or either M Ihcnn will, s"" " . r v other prm o operty of the undersigned or any either of them held he sou he mt,al,ted by be obtained or hod by writ of execution. garnishment, aleohnraup ar ... ,et legal powers, or if any of the o,us,emations made below prove m he,uune or ill he emkr,umad ar any ar either of them fail 10 not if, you if., by material change as above agreed, or if any x,tell arsenal change ""cars. Ibex and in ell lie, case xli abiigal inns of the undersigned or any or either of them held by tau battier of she 11 bed it, became due and parable witlmud demand "t anill. 'File andersignai and each each of them hereby give you a continuing lien upon tine a nv daaNl xme"nul of she undersigned ac mo e, either"f them csi tin, with you lin. time to time and upon any other personal prop ely of the undersigned it an, "r either or them in your la—ession. Pram dime to time, m sa"are all oblb. ion of d,e undersigned and each of them, either as bortower, or gsu ramor. held w .Ind amulet agree that x11 abloati"n, or:mv part tense(, lathe andenigned "t mayor ca ter of ahem held by gnus boll, manned and nn r. lime be charged against the halmee of any deposit ...auto it the andersa see nr any or either "f ahem with was, withnm notice to the mdw,,, suss ASSETS _�-- -- — - LIABILITIES -- Cashonfinedandinbank .................suss Accounts Rocoivable—current................. Notes Receivable—eunent .................... Stocks and bonds listed onexchanges (details on schedulcl ...................... 9 /3.1 0—p iv -J-0 Notes payable to bank Other notes payable, due within one year........ Open Accounts, not due ...................... Open Accounts, Past due..................... 9_� Hrneflelary _ Othprcura '.9.1mandof hatcompasut: L 'v 3�Oga Ducmrelafives......................... Trust dards, moroaque, or at her Ilene on real regale, due within one year .:.............. Company aenofieiory (list cash surrender value, it any, under access. and loan predicated thereon, if any, under liabilities) Combat mortgages bonds, etc.) ...........suss Other liabilities: due within one year. ............ Public liahilitvs _ Colhmm,9___ -- va TOTAL CURRENT ASSETS /7Y.(U INCOMETAXES DUE AND/OR ACCRUED Nates secured by first trust deeds, mortgages or TOTAL CURRENT LIABILITIES 477r other loans on .at estate, all goad........... Notes secured by second trust deeds, mortgages or other liens on rest estate, all good ........ Trustdeeds, mortgages, or other liens on real estate, due after one year. ........... ­ ... ear.................. Accbunts and notes receivable,slow ............ Notes and bills pays his, due after one year....... Due boat relatives.... I ....................... Other liabilities, and of what composed: Stocks and bonds not listed on exchange Just on schedulal 3o, m Read Present ca h demalan nder value of ....sura......., Present cash nd o value of life insurance moo (report amount borrowed in other liabililiosl.. pr rryear ".7 Automobile: Make 76 Ir'rect CAni Oro Other assets and and o� sed: ' TO ALINDERTEONESS .................. 4 O?a 7 �Y TOTAL ............................... k Y2.1 Y 4J"D NET WORTH TOTAL................................. r;NGENr Liniiii.111Ca For endorsements or guarantees 9 Give details ANNUAL INCOME AND EXPF.NSG FOR PERIOD FROM TO INCOME cyan�are� Salary ............. Rentals ........... ie......... Interest..................�.....�....C.J...r....//.e. .f�...,�.A.A.r..[.. 9 _ ........C.C. �.......9 Other income IDESCRIREdhormae from alimony, child support, of maintenance Payments need not be disclosed) — D _ TOTAL INCOME ....................... 9 Interest.....................................9 Taxes and Assessments .......................9 Upkeep an real estate ...................... .. 9 Protocols upon mortgages, sentence, mc........ I Personal living expense ........:..........:... 9 Othutopemse...............................9 TOTAL EXPENSE......................9 INSURANCE — --- Firnmsurnnceoabuildings 8 Company As cid,mt insuramaComtiny --.. _ Hrneflelary R,•aldh he'll aacn 9CompnnY Onnnlicinry _--�__� Lite tomtits" 9 Company aenofieiory (list cash surrender value, it any, under access. and loan predicated thereon, if any, under liabilities) Aummnbl,,firm Erthmft9 Public liahilitvs _ Colhmm,9___ Property Damegn9 va JACK KNIGHT Financial Statement As of January 31, 1978 Assets Cash $ 10,025 Stocks -Litton Industries 1,680 -Ships A Sailin', Inc. 20,000 Real Estate (At Fair Market Value) -6351 Dana, Simi Valley, CA 51,000 -4424 Apricot, Simi Valley, CA () 32,500 -1355 Kuehner, Simi Valley, CA (2) 60,000 Accounts and Notes Receivable 18,500 37'Pacemaker Boat 28,000 Hamburger Haven -1624 Promenade, Santa Monica 125,000 Autos- Dodge Van and 280 Z 8,000 ! Life Insurance surrender Value 600 Total Assets Liabilities and Net Worth Notes Payable $ 2,738 Owing on House -6351 Dana, Simi Valley, CA 18,000 -4424 Apricot, Simi Valley, CA(2) 11,812 Owing on Property -1355 Kuehner, Simi Valley, CA(j) 21,500 Owing on 3711'acemaker Boat 8;W Owing on Auto -Datsun 280Z 5,252 Total Liabilities Net -Worth 1_1L2 u4K G Life.lnsurance: Metropolitan Life, Face Value $ 50,000, Mary.Knight-beneficiary G.I. Face Value $ 10,000, Mary Knight -beneficiary Prepared Without Audit �U)iQQia m�lA1. �attin ! CERTIFIED M DDC ACC UN AM SIMI, CALIFORNIA 93065 Accountants;'... ilevard-;$Olte 1000- illfornia 90064' the personal ass ROBERT NANCE ST:','TIl!!-,NT OF ASSISTS & I:IADILITIES (unaudited) December 31, 1377 9 SATS: ROBlSRT NANCE STATP;NENT OA' ;.S'St:T t° LIABILITIES DEC IiBP.R 31, 1977 c/ Cost or Approximate Balance mv/ Estimated Market Value Cash - Security Pacific Bank (Chatsworth Branch) 1 21,334 c Cash - Security Pacific Bank (Simi Branch) 2,668 c ii Cash - Security Pacific Bank (Simi Branch) (Savings) 2,141 c !i Second Trust Deeds Receivable: Mr. Steve Posthumus ( 1200/mo. ) 1 30801 3,801 c Residence - Chatsworth 11400,000 my if Partnership Interest (1/6) in Lake Tahoe Condo 61500 my 100% Stock Ownership, Bob's Tire Center,Inc. 425,000 mv(i Loan Receivable from r-=-lated Co. Tire King, Inc. 150800 my ,. 50% Stock Ownership, Capital Limousine Service 99000 my[' 1971 Ford Pinto 600 my 1977 Chevrolet Blazer 9,000 my 1975 Dodge Motorhome 14,000 my Market Real Estate Investments: Cost Value 1806 Los Angeles Ave., Simi 1360y000 $. 500,000 3 Acres, Chatsworth 12,000 40,000 1590 L.A. Ave „ Simi 269000 47,500 0.96 Acres, Red Bluff 2659000 2650000 2468 Thousand Oaks Blvd., T.O. 110,000 2009000 80 Acres, Cayuma 18,000 75,000 Total Real Estate Investments, at Mar; at 1,127,500 mvl Personal Effects 90,000 mv; TOTAL ASSETS $ 39127,344 (Unaudited) i ROBE?T MANCE STATEMENT OP ASSc%TS & LIABILITIES DECEMBER 31, 1977 f:7ABILITIES; Real Estate Mortages (Schedule attached) Contract payable to Security'Pacific Bank secured by 1977 Chevy Blazer Contract payable to Ojai Valley State Bank secured by 1975 Dodge Motorhome Loan payable to Inglewood Thrift & Loan secured by Real Estate Possible Tax Liability Reserve TOTAL LIABILITIES EXCESS OF ASSETS OVER LIABILITIES $ 2,428,442 (Unaudited) 5 512,090 ll 6,200 6,079 24,533 150,000 $ 698,902 i I 1. r , II 'i I SUPPORTING SCHEDULE C - '.".BAL :_.$TATE MORTGAG ;S PAYABLE Payable. to Monthly Payment 1. Security Pacific Bank — Simi $ 11379 Carl Ruesell none until 1982 . Home Savinqs 8 Loan — No. Hollywood 75 Bank of A. Levy — Simi 200 North Valley Bank — Red Bluff 12300 Pyr. & Pairs. harry Rohr annual 2$46 Federal Land Bank annual 21653 6. Southern California Savings 304 United California Bank 701 Total Real Estate Mortgages Mortgage Balance $ 1111825 135,000 8j138 12,066 162,767 20,124 31,101 28,893 2,176 $512.090_ STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30. 1977 ASSETS ESTIMATED COST BASIS VALUE BASIS Cash9'checking account $ 49500 $ 4,500 Cash, passbook savings 19,800 19,800 Second trust deeds receivable 409700. 40,700 Stock — 49850 7,000 Purebred Arabian Horses (4) - 45,50.0 Purebred Show Dogs 600 _ 1,000 - Mature breeding horses - Arabian (2) 129600 15,000 Residence and improvements - California (pledged) 100,000 200,000, Raw land - California 20,000 50,060 Household furniture and appliances 10,.000' 6,000 Automobiles and motorhome (partially pledged) 22,500 16,000 Art objects and jewelry 69000 83,000 Office equipment 1,40Q00 Kennel property (pledged) 2031500 C 280,0001v5''W �o s Wholly owned corporations (note 1) 2752500 '957,000 Total assets 7212950 126512400 LIABILITIES Note Payable - Imperial Bank 89000 80000 Contract payable - Bank of America, Secured by Motothome 40300 4,300 Mortgages payable secured by residence 61 000 61,000 secured by kennel property 65,000 ' 650000 Miscellaneous payables 500 500 Total liabilities 1382800 1382800 EXCESS OF ASSETS OVER LIABILITIES 583,150$1,512,600 4 0 PENELOPE ORMANDY NOTES TO FINANCIAL STATEMENT SEPTEMBER 30. 1977 1. Wholly-owned corporations The amount show is the total investment in and advances to three wholly- owned corporations. The detail of these amounts is as follows: ESTIMATED ADVANCES INVESTMENT VALUE Aura Investments $ 69000 $ 1,000 $ 72000 Strawberry Moon, Inc. (Rancho Pet Kennel) 20,000 309000 Pennybank Investments, Inc. 244,300 41200 _920,000 $2502300 $25,200 $957,000 The estimated value of Pennybank Investments, Inc. was calculated as follows: Investment (cost basis) and advances $2449300 Market value of 28 acres of land in Santa Rosa Valley 20 acres of land capable of being subdivided, based on comparable sales in the area, net of estimated cost of offsite improvements $9. 704000 8 acres of avacado orchard land 250,000'- 1 acre Rancho Santa Rosa a9.9so 50,000, $ 10164,300 $920,000 I hereby certify that the above information is true and correct to the best of my knowledge. ® 'Penelope Ormandy ®2- Resum6 JACK KNIGHT EXPERIENCE 1975 -Present Owner -Operator --Hamburger Haven Restaurant, Santa Monica Pier 1973 -Present Secretary/Treasurer--Knight-Cruickshank Company. Owner of• Ships A Sailin', Inc. (toy hobby company sold in 1975, now located in New Hampshire) Office building, Simi Valley Industrial Park, Simi Valley Income property in Arrowhead (sold in 1976) The Pizza Place Restaurant, Santa Monica Mall (sold in 1976) Roijac Aquarium Products (product line currently under development) 1972-1975 General Manager --John Henry's Restaurant, Simi Valley (owner died and heirs sold assets) 1962-1972 Section Manager, Engineering --Litton Industries (left to manage restaurant for a friend) 1959-1962 Engineer-Convair, San Diego EDUCATION 1959 M.A., Industrial Engineering --San Diego State University 1958 B.A., Business Administration --San Diego State University OTHER 1954 U.S.A.F.--Honorable Discharge J. COOK GAEI ERX 2407 MAIN ST. SANTA 1�10NICA, CA. 90405 0// Cv To the Mayor and City Council, City of Santa Monica: Last Sunday when reading the Los Angeles Times Real. Estate section, I was amazed to see a rendering of the proposed changes to the merry-go-round building and sux'ounding area at the Santa Monica Pier. Although I understand the need to improve the beach front, I must object to several. parts of the proposal. The first being that ridiculous monstrosityof a water slide, which while bad enough in the arty rendering would be more of an eyesore from the promenade level close up. Here is a perfect spot; for a plaza and bandstand to ease the extreme pedestrian conjestion of the area. I. also question the square box of a building at the south corner next to the promenade. Just what is it's function? What does it have on the roof? and why has it no relevance to the design of the merry-go-round building? I think there are many other questionable aspects relating to the design and objectives of this project which need review. I have lived in the Bay Area all my life and have lived with a series of awful ideas that became r-ality, such as the Pacific Ocean Park disaster just to name a prominent example. Now is the time to move more cautiously with all plans to re- vamp the pier. The people of California voted in favor of a Coastal Commission because of the need for thoughtful planning and to save this natural resource area from the midway, carnival type exploit- ation of the past. Respectfullyub Itttd,� /r, JLY �,.VPyr.,. Pasf President- Pacific Palisades Art; Assn. P t I'redident- Westwood Art Assn. Past President- National Watercolor 'oc Former - Assistant Art Coordinator, City of Los Angeles. Member of the Board- Artists for Economic Action. i J. COOK G-AhIA-t+ARY 2407 MAIN ST. >AJVVA MONICA, C.A. 90405 To the Mayor and City Council, City of Santa Monica: Last Sunday when reading the Los Angeles Times Peal Estate section, I was amazed to see a rendering of the proposed changes to -the merry-go-round building and sur'ounding area at the Santa Monica Pier. Although I understand the need to improve the beach front, 1. must object to several parts of the proposal. The first being that ridiculous monstrosityof a water slide, which while bad enough in -the arty rendering would be more of an eyesore from the promenade level close up. Here is a perfect spot for a plaza and bandstand to ease the extreme pedestrian conjestion of the area. I also question the square box of a building at the south corner next to the promenade. Just what is it's function? What does it have on the roof? and why has it no relevance to the design of the merry-go-round building? I think there are many other questionable aspects relating to the design and objectives of this project which need review. I have lived in the Bay Area all my life and have lived with a series of awful ideas that became reality, such as the Pacific Ocean Park disaster just to name a prominent example. Now is the time to move more cautiously with a1.1 plans to re - 'vamp the pier. The people of California voted in favor of a Coastal Commission because of the need for thoughtful planning and to save this natural resource area from the midway, carnival type exploit- ation of the past. Respectfully subpitted,, Past President- Pacific Palisades Art Assn. Past-Predident- Westwood Art Assn. Past President-- National. watercolor ?_roc Former - Assistant Art Coordinator, City of Los Angeles. Member of -the Board- Artists for Economic Action. �s: Agenda Item 11-C: Presented at this time was a recommendation for approv al of leases for a Carousel Park on Santa Monica Pier. After discussion Councilmember Reed moved to approve the following lease agreements with Roy Cruickshank an Jack Knight, principals of the Carousel Park proposal by award of contracts as follows: Contract No. 3053(CCS) Carousel Restaurant; Contract No. 30S4(CCS) Carousel Ice Cream Parlor; Contract No. 30SS(CCS) Carousel Pizzeria; Contract No. 3056(CCS) Carousel water Slide; Contract No. 30S7(CCS) Carousel Bath House; Contract No. 30S8(CCS) Carousel Merry -Go -Round, and Contract No. 30S9(CCS) Carousel Cookie Factory, with minimum rentals as delineated on Page 3 of the staff report of June 20, 1978. Second by Councilmember Trives. After further dis- cussion, Mayor Pro Tempore Cohen moved an amendment to award Messrs. Cruickshank and Knight, Principals, one master lease for the Carousel Park development with the same minimum rent and recapture provisions as outlined in the staff report dated June 20, 1978, resulting in income to the City over a five year period of approximately $800,000. Discussion ensued, including participation by principal Jack Knight regarding the financial stability of the lessees, after which the amendment failed by the following vote: Council Vote: Affirmative: Councilmembers Bambrick, Cohen, Swink Negative: Councilmembers Reed, Scott, Trives, van den Steenhoven The main motion to approve Carousel Park leases was approved by the following vote: Council Vote: Affirmative: Councilmembers Bambrick, Reed, Trives, van den Steenhoven Negative: Councilmembers Cohen, Scott, Swink CITY COUNCIL MINUTES - JULY 11, 1978