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HomeMy WebLinkAbout19910 ORD - 08/11/1987AN ORDINANCE AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT WITH SINSAN, INC. FOR THE DEVELOPMENT OF A RECREATIONAL FACILITY ON CORPUS CHRISTI BEACH. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager is hereby authorized to execute a lease agreement with SINSAN, Inc., for the development of a recreational facility on Corpus Christi Beach Park, all as more fully set forth in the lease agreement, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A." 06P.038.01 19910 M1CROf 1lMED LEASE AGREEMENT THE STATE OF TEXAS KNOW ALL BY THESE PRESENTS COUNTY OF NUECES This agreement is made and entered into this the day of , 1987, by and between the City of Corpus Christi, Texas, a municipal corporation, hereinafter called "City", and SINSAN, INC., a private Texas corporation, hereinafter called "Tenant", whose principal office and place of business is at 105 American Bank Plaza in the City of Corpus Christi, Nueces County, Texas. I. City, in consideration of Tenant's faithful performance of the covenants described herein, leases to Tenant the following described land, hereinafter called the "leased land": That certain portion of Corpus Christi Beach described by the metes and bounds appearing on the survey attached hereto as "Exhibit A", which is incorporated by reference herein as if same were copied in full at this point. II. PERMITTED USE. The demised premises shall be used for recreational purposes as a Water Theme and RV Park, including but not limited to, a number of swimming and other activity pools, curvilinear and straight flumed water slides, ample sunning and picnic areas, volleyball nets, shuffle board and basketball courts, gift shop, arcades, roller skating rink, food and drink concessions, lockers, showers and changing areas, party pavilion and an RV park accommodating a minimum of 50 parking spaces. The premises shall only be used for the kinds of purposes described above and the land will be improved in phases as further provided by paragraph IV of this lease. Phase I will consist of the necessary improvements to accomodate the recreational facilities described above. III. TERM. The term of this lease shall be for a period of twenty (20) years, commencing with the date that actual construction of the improvements described in paragraph IV begins or October 1, 1987, whichever is earlier, and ending twenty (20) years after the respective beginning anniversary date. Upon commencement of actual construction, Tenant shall immediately notify City of such fact in writing. Tenant shall have an option to extend this lease for an additional ten years, subject to approval by City. Tenant shall submit to City written notice of its desire to so extend 120 days prior to expiration. IV. IMPROVEMENTS TO LAND. Tenant agrees to construct certain improvements an the leased land according to plans and specifications to be agreed upon between the City and Tenant. Such plans and specifications shall provide for a Water Theme and RV Park as well as other amenities as they are generally described above in Section II. Such plans and specifications shall include, at a minimum, the facilities and commitments set forth in Tenant's proposal of April 16, 1987 signed by Patrick J. Sanjenis and Robert C. Sinclair and explained and modified in Mr. Sanjenis' letters of May 4, 1987 and May 15, 1987, [hereinafter the "Proposal"]. The Proposal is attached hereto as Exhibit B, and is incorporated herein and made part of this Lease Agreement, except to the extent that it is modified by this Agreement. Changes in the proposal may be made only upon approval of the City Council. City approval of such plans and specifications shall be based only upon the general location and concept of improvements, and 076.824.03.11 2 shall not contemplate the safety, design, quality, condition, fitness, suitability, serviceability, utility, function or operation of said improvements or the plans therefore, and Tenant shall have exclusive control over all such matters. The parties further agree that City will not have any responsibility, control or authority with regard to the safety, design and operation of the water theme park facilities, RV facilities, and other facilities placed on the leased premises under this agreement. Tenant will employ and consult with its own experts in the area of safety, design and operation of such facilities. Construction shall be performed in accordance with the construction schedule attached as "Exhibit C. City may terminate this agreement for failure of Tenant to meet said construction schedule unless Tenant's failure to meet the construction schedule is a result of Tenant's inability for reasons beyond its control to obtain or to use equipment or material or by operation of force majeure. Notwithstanding the construction time schedule, Tenant's lease shall terminate, if construction has not been commenced by February 4, 1988 and completed by July 4, 1988. The parties contemplate a Phase 2 and Phase 3 future development program by Tenant of the Proposal. Said development shall be character, and for the same purposes Proposal. Such future development will premises beyond that specified in the of the same kind, quality, nature and as set forth in paragraph II and the proceed only after the submission to the City Manager for approval of plans and specifications, describing the intended future use/development, 60 days prior to the anticipated start of construction, and the City Manager will not unreasonably withhold approval. WETLANDS. V. The leased land contains several officially designated Wetlands. Tenant agrees that said wetland areas will not be altered, damaged or constructed upon unless a proper permit has been obtained from the appropriate 078.824.03.11 3 regulating entities. If the approved plans and specifications require tenant to alter or fill in a designated Wetland, or portion thereof, and the regulating authorities require mitigation for the lost wetlands, City will use best efforts to assist in the permitting process and provide a mitigation site. City will be deemed to have used its best efforts to assist in the permitting process if it files an application timely prepared and submitted to it by Tenant, and a majority of the City Council adopts a resolution supporting the application. Provided, however, City shall not be required to provide any mitigation site which would require expenditure by the City beyond dedication of a site already owned by City, and City shall not be required to provide any site which the City Council deems essential to other City purposes or needs. VI. RENTAL. As consideration (rent) for the leased land, Tenant agrees to pay and remit unto the City, beginning with the opening of the Water Theme/RV Park, or any other commercial activities, a percentage of the gross receipts derived by Tenant or any of Tenant's concessionaires, assignees or sublessees from any activity on the leased premises, including but not limited to the operation of the Water Theme/RV Park, games, rentals, food, drinks, gifts, lockers, and all other activities and concessions on the leased premises. As used herein, the term "Gross Receipts" shall mean all receipts and payments actually made in cash, by check or by credit cards, and all amounts which could have been recovered through reasonable diligence, less applicable sales taxes. Said percentage shall be set at three percent (3.0%) for the first seven (7) years of the lease payable after the date of the opening of the Water Theme/RV Park or other commercial activities, four percent (4.0%) for the eighth through twelfth years, and five percent (5.0%) for the thirteenth through fifteenth years, and seven percent (7%) for the last five (5) years of the term. Provided, however, 07G.824.03.11 4 the rental paid to City hereunder shall not be less than twenty-five thousand dollars ($25,000.00) per year as calculated from the commencement of rentals becoming due hereunder. Any deficiency in said minimum payment shall become due as rent on the tenth day of the last month at the end of the year and shall be subject to all other provisions in this Lease concerning rent. The above rental shall be calculated on a monthly basis, and shall be paid on or before the tenth (10th) day of each following month. The first monthly payment shall be due and payable on or before the tenth day of the month following the month, or portion thereof, in which the Water Theme/RV Park or activity opens for business. Subsequent rental payments shall be due and payable on or before the tenth day of each calendar month thereafter. Tenant shall keep strict and accurate books of account of all receipts collected. Tenant agrees to furnish City certified monthly statements of gross receipts itemizing the individual dates of operation. Such statements shall be formulated according to generally accepted accounting practices and in a form prescribed by the City's Director of Finance which form may be changed from time to time by said Director. The said books of account shall be open for inspection by the City at all times. All underlying documentation for Tenant's certified monthly statements, including cash register tapes, shall be preserved by Tenant for at least five years. City may terminate this lease for failure to preserve such records or provide them to City upon request. VII. LESSEE RESPONSIBILITIES. Tenant shall be exclusively responsible for the following: 07G.824.03.11 5 a. Cost for installation and use of all utilities, including, but not limited to, water, sewer, sanitation, electricity, natural gas, and telephone. b. Compliance with all federal, state, and local laws, ordinances, rules and/or regulations, as amended, including, but not limited to, Chapter 12 of the City of Corpus Christi Code of Ordinances. c. All employees shall be covered by Workers' Compensation Insurance, carried at the expense of Tenant. d. Obtain and carry a policy of general liability insurance on the leased land and improvements thereon, including coverage for every activity to be engaged in on the premises including coverage for poisoning or illness from food or drink, by terms of which the city shall be named as additional insured. Such policy shall include coverage in the amount of Five Hundred Thousand Dollars ($500,000.00) for bodily injury or death to any one person, One Million Dollars ($1,000,000.00) for bodily injury or death for any one occurrence, and One Hundred Thousand Dollars ($100,000.00) for a claim of property damage. The City shall be furnished with a certified copy of such effective policy of insurance prior to the commencement of the lease term. Said policy shall include a provision that the policy may not be canceled or terminated until the City has been given thirty (30) days written notice of such cancellation. City may require reasonable increases in said coverage so that the present real value of said coverage is not diminished over the course of this lease. e. Tenant shall keep the buildings and improvements upon the premises insured against loss or damage by fire, windstorm or other damage or destruction for their full insurable value with companies satisfactory to the City, and shall furnish the City with a complete list of all 07G.824.03.11 6 such insurance; shall pay all the premiums necessary for those purposes immediately as they become due, and deliver to the City the receipts therefor; shall make all insurance payable to the Tenant and City, and shall deliver to the City a true copy of the policies of all insurance payable to Tenant and City; provided, that if the Tenant shall at any time fail to insure or keep insured as aforesaid, the City may do all things necessary to effect or maintain such insurance, and any moneys expended by it for that purpose shall be repayable by the Tenant, with interest at the rate of ten percent per year, or the highest legal rate if less than ten percent, upon demand. In case of damage or destruction, the Tenant shall repair, restore, or rebuild the buildings and improvements on the premises, in accordance with plans and specifications to be approved by the City as in paragraph IV, with all reasonable dispatch, and in any event within six months from the time of such damage or destruction; provided, that in case of any such damage or destruction the City shall apply any insurance money recovered by it to such repair, restoration or rebuilding under plans and specifications approved by the Lessor; and provided further that all insurance money recovered and not paid to the Lessor shall first be so applied; and provided also that in case the Tenant shall not so repair, restore, or rebuild within six months, then such insurance money recovered by the City may be retained by it to the extent of its damages for the breach of the Tenant's covenant to repair, restore or rebuild, but City shall not be limited to such amount as damages. Nothing herein shall prevent City from terminating this agreement for failure to maintain the required insurance. f. Cost for publishing in the legal section of the local newspaper the lease description required by the City Charter. 07G.824.03.11 7 g. Filing a certified monthly statement of revenue as described in Paragraph VI on or before the tenth (10th) day of each month, and at the same time paying City the rental amount described in Section VI. h. Regularly inspecting and maintaining fire fighting and safety systems and equipment in the highest degree of readiness, and regularly training employees in fire prevention, safety and emergency procedures. i. Payment of all operating expenses incurred by Tenant in connection with the said Water Theme/RV Park. j. Tenant shall at all times during the continuance of this lease keep and maintain in good repair and attractive condition all buildings and improvements and personal property on said premises and in the event any structure or structures now erected on said demised premises or improvements thereto, or any structures erected in place thereof are damaged or destroyed, the Tenant, as soon as the same may be done, will repair such injury, or in case it does not repair the same it will rebuild said structure or structures upon said premises in as good condition and value as they were before such damage or destruction; and the said Tenant shall commence such rebuilding or repairing as soon as practicable after such injury or destruction, and complete the same without delay in accordance with subparagraph "e". The Tenant further agrees that all moneys received by it as the proceeds of insurance policies against loss on the buildings and improvements now or hereafter during the term of this lease erected on said demised premises on account of destruction or damage to same shall be devoted to repairing or rebuilding such damaged or destroyed building or the erection of a new building on the demised premises. All improvements and new buildings shall be of a good and substantial 07G.824.03.11 8 character, suitable to the locality, and such as will not tend to decrease the value of the land hereby leased. k. No part of the leased property shall be used in such manner as to create a nuisance or for any unlawful purpose. 1. Tenant, before taking possession of the leased premises, shall be solely and exclusively responsible for thoroughly and sufficiently inspecting the leased premises and ascertaining solely from such inspection any premises defects located thereon, and shall be solely and exclusively responsible for correctingevery such premises defect prior to commencing any construction or recreational operations thereon. m. Tenant, consistent with ,the proposal and letter amendments thereto agrees to keep the Water Theme/RV Park' open 12 months a year with certain facilities/amusements running open or closed depending upon necessary adjustments to accomodate the changing seasons and demand affected thereby. Particular facilities which shall be open for business shall include at a minimum but not be limited to the following: (1) all facilities on the leased premises: every day at least ten hours from the first day of the Memorial Day weekend through the last day of the Labor Day weekend; (2) Winter Texan programs: every day at least eight hours from the end of the Labor Day weekend through March, which shall include the pavillion being open; (3) the concession area, shuffleboard courts, skating area, and spa: every day at least eight hours all twelve months, subject to weather conditions which make a particular activity or all activities impracticable. The requirements in this paragraph may be modified with the written consent of the City Manager. Quarterly schedules 07G.824.03.11 9 will be submitted to the City identifying planned hours of operations, and those facilities and amusements to be open and closed. VIII. ASSIGNMENT OR SUBLEASE. Tenant may not assign this lease nor sublease the premises nor any part thereof without written consent of the City Manager, but the City Manager will not unreasonably withhold approval of any such assignment, provided further that Tenant may assign this lease without such written approval to a limited partnership, general partnership, joint venture or other corporation in which Tenant maintains a majority controlling interest in the operation. Provided, however, no assignment without written approval shall be effective unless Tenant provides 30 days prior written notice to the City, in connection with which Tenant shall provide full, complete, detailed information demonstrating the ownership arrangement. Provided, further, no subletting or assignment shall relieve Tenant individually of any obligation under this lease, and Tenant shall remain personally responsible for each and every obligation hereunder. Nothing in this paragraph prohibits Tenant from granting concessions to other vendors and/or operators of businesses that may be operated on the leased land as long as Tenant maintains control over the concessions and remains primarily responsible to the City for the business's management and the accounting of the revenues. It is agreed that at the inception of this agreement Patrick J. Sanjenis and Robert C. Sinclair are the sole shareholders of SINSAN, INC. For purposes of this paragraph, "assignment" includes a change or changes in ownership over any period of time of more than twenty-five percent of SINSAN's voting shares, or any change in share ownership which changes or may change effective control of the corporation. 07G.824.03.11 10 IX. NON-DISCRIMINATION. Tenant warrants that it is and will continue to be an Equal Opportunity Employer and hereby covenants that no employee or customer shall be discriminated against because of race, creed, color, or national origin. X. INSPECTION. City personnel shall have the right to enter upon the leased premises at all times for purposes of inspection to protect its interest as lessor. Nothing in this lease agreement shall be construed to restrict City in the exercise of its police powers. XI. LEASE RELATIONSHIP. It is specifically agreed and understood that the parties intend and do hereby create a landlord/tenant relationship, and this agreement shall be construed conclusively in favor of that relationship. Nothing herein contained shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto, it being understood and agreed that neither the method of computation of rent, or any other provision contained herein, or any of the acts of the parties hereto, shall be deemed to create any relationship between the parties herein other than that of Landlord and Tenant. 07G.824.03.11 11 XII. TERMINATION. 1. Termination of Lease. Upon occurrence of any Event of Default, City may, at its option, in addition to any other remedy or right given hereunder or by law, (a) Give notice to Tenant that this lease shall terminate upon the date specified in the notice, which date shall not be earlier than five (5) days after the giving of such notice, or (b) immediately or at any time after the occurrence of such Event of Default, and without notice or demand, enter upon the demised premises or any part thereof in the name of the whole, and upon the date specified in such notice, or in any other notice pursuant to law, or upon such entry, this lease and the term thereof shall terminate. 2. Event of Default Defined. Each of the following shall be deemed as Event of Default: (a) default in the payment of rent or other payments hereunder; (b) intentional, knowing or fraudulent failure under paragraph VI to maintain strict and accurate books of account, to furnish an accurate statement of gross receipts to the City, or to furnish said books of account to City for inspection. (c) failure to have in effect at all times a policy of liability insurance as provided in paragraph VII, subdivision "d". (d) if Tenant shall default in the performance or observance of any other covenant or condition of this lease by the Tenant to be performed or observed, or if Tenant shall fail to make reasonable efforts in the light of the surrounding circumstances to keep substantially all the premises occupied and open for business, the expiration of the period of fifteen 07G.824.03.11 12 (15) days after giving notice of such default or failure to Tenant by Landlord; (e) abandonment of the premises; (f) the filing or execution or occurrence of (1) a petition in bankruptcy by or against the Tenant; (2) a petition or answer seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution or other relief of the same or different kind under any provision of the Bankruptcy Act; (3) adjudication of Tenant as a bankrupt or insolvent; or insolvency in the bankruptcy or equity sense; (4) an assignment for the benefit of creditors, whether by trust mortgage or otherwise; (5) a petition or other proceeding by or against the Tenant for, or the appointment of, a trustee, receiver, guardian, conservator or liquidator of Tenant with respect to all or substantially all of its property; (6) a petition or other proceeding by or against the Tenant for its dissolution or liquidation, or the taking of possession of the property of the Tenant by any governmental authority in connection with dissolution or liquidation; (7) the taking by any person of the leasehold created hereby or any part thereof upon execution, attachment or other process of law or equity. 3. Repossession. Upon termination of this lease as hereinabove provided, or pursuant to statute, or by summary proceedings or otherwise, the City may enter forthwith without further demand or notice upon any part of the premises, in the name of the whole, if it has not theretofore done so, and resume 07G.824.03.11 13 possession either by summary proceedings, or by action at law or in equity or by force or otherwise, as the Landlord may determine, without being liable in trespass or for any damages. In no event shall such reentry or resumption of possession or reletting as hereafter provided be deemed to be an acceptance or surrender of this lease or a waiver of the rights or remedies of Landlord hereunder. 4. Damages. Upon termination of this lease in any manner as herein provided, or by summary proceedings or otherwise, Tenant shall pay to Landlord forthwith without demand or notice the sum of the following: (a) all rent accrued to the date of such termination and a proportionate part of the rent otherwise payable for the month in which such termination occurs; (b) the cost of making all repairs, alterations and improvements required to be made by the Tenant hereunder, and of performing all covenants of the Tenant relating to the condition of the premises during the term and upon expiration or sooner termination of this lease; (c) the cost of the following: (1) obtaining possession of the premises; (2) removal and storage of Tenant's or other occupant's property; (3) restoration of the land to its original condition. (4) reasonable expenses and attorneys fees necessary to enforce this agreement. The foregoing rights and remedies given to the City are, and shall be deemed to be, cumulative of any other rights of City under law, and the exercise of one shall not be deemed to be an election, and the failure of City at any time to exercise any right or remedy shall not be deemed to operate as a waiver of its right to exercise such right or remedy at any other or future time. 07G.824.03.11 14 XIII. NOTICES. Any notices provided for under this lease may be given, in writing, to the City, by delivering or mailing the notice to the Director of Park and Recreation Department Office at P. 0. Box 9277, Corpus Christi, Texas 78469, and to the Tenant by delivering or mailing the notice to 105 American Bank Plaza, Corpus Christi, Texas 78475. XIV. MODIFICATIONS. No changes or modifications to the lease shall be made, nor any provision waived, unless in writing signed by a person authorized to sign agreements on behalf of each party. XV. DELINQUENCY. Tenant shall be deemed "delinquent" if the City has not received Tenant's monthly rental payment and financial statement on or before 5:00 p.m. on the tenth (10th) day of the month. If the tenth day of the month falls on a weekend or a holiday, payment and financial statement shall be tendered on the first business day thereafter. Tenant shall be in default for purposes of paragraph XII if Tenant fails or refuses to pay the amount due and/or provide the required financial statement within five (5) days after City has sent written notice to Tenant of delinquency. In the event Tenant is delinquent, the amount of rental owing under paragraph VI shall increase by five percent (5%). Should said rental not be received by the twentieth day of the month, it is agreed that the full rental amount due or any portion remaining owing shall bear interest at the rate of ten percent (10%) per annum from said twentieth day until paid. Such interest shall be considered additional rent 076.824.03.11 15 hereunder, shall not be considered as a deduction from percentage rental, and shall be payable immediately upon demand. XVI. INDEMNITY. Tenant shall indemnify and hold the City, its officers, employees, agents, and representatives, harmless from and against all claims, demands, causes of action, costs, attorney's fees, liabilities of any nature whatsoever arising out of this agreement, and the use, operation, or occupancy of the Water Theme/RV Park and entire leased premises (including conditions therein and arising therefrom), whether such use, operation or occupancy is authorized or not, or from any act or omission of Tenant, or its officers, agents, employees, guests, customers, or invitees. XVII. TAXES AND CHARGES. Tenant shall timely pay all ad valorem and other taxes, if any, which have been or shall be levied, assessed or otherwise imposed on the demised premises and improvements thereon during the lease term. It is the intent of this lease that City shall receive the rental specified in this lease net and clear of all costs or charges relating to the demised premises, and that Tenant shall pay all charges and expenses of every nature that may be imposed upon the demised premises and its appurtenances during the term of this lease. XVIII. OWNERSHIP AND CONDITION OF IMPROVEMENTS. Upon expiration of this lease at the conclusion of the full twenty-year term, all leasehold improvements shall become property of the City. Upon termination of this lease prior to conclusion of the full twenty-year term, all leasehold improvements shall, at option of the 076.824.03.11 16 City, exercised in writing within thirty days of termination, become property of the City. Tenant shall, at its sole expense, remove any such improvements not so accepted by the City within thirty days of notification by the City of non-acceptance, and shall restore the land to its original condition. Upon expiration or termination of the Lease, the premises and all improvements shall be delivered to City in the maintained condition required by this Lease, and Tenant shall be liable to the City for the cost of repairing the premises or improvements to such maintained condition. Tenant herewith will deposit at the commencement of the Lease with City the sum of Thirty-Thousand Dollars ($30,000.00) the receipt whereof is hereby acknowledged, the same to be held by City as security for the full and faithful performance and observance by Tenant of its duty under this Agreement, to remove improvements, maintain the premises and improvements, and restore the land to its original condition after termination or expiration. It is expressly convenanted and agreed that the sum so deposited is not an advance payment of or on account of the rent herein reserved, or any part or installment thereof, or a measure of City's damages. If upon expiration or termination of this Lease, Tenant shall fail to return the premises or improvements to City in the condition required by this Lease, City may expend the deposits hereunder as necessary to accomplish such condition. The remainder of said deposit, if any, shall be returned to Tenant. Interest on the deposit shall be used to increase the deposit, and shall be maintained and distributed as part of the deposit. Prior to approval of Phase 2 and Phase 3, an addition to the deposit shall be agreed to by City and Tenant in an amount reasonably sufficient to cover additional maintenance or restorationcosts which may be necessitated thereby. Use of the deposit provided for herein shall be cumulative of all other legal remedies available to City. Provided, however, the deposit provided for hereunder may be satisfied by a surety bond which provides the same degree of protection to City as contemplated by the deposit. 07G.824.03.11 17 XIX. PREMISES DEFECTS UPON TERMINATION. In the event of termination of this lease at any time, or expiration at the end of the lease term, Tenant shall notify City in writing of any premises defects on the land or improvements thereon. XX. CHANGES IN LEASE. This lease contains the entire agreement between the parties. None of the covenants, terms or conditions of this lease shall in any manner be altered, waived, changed or abandoned except by a written instrument, duly signed by the parties hereto, and not otherwise, and no act or acts, omission or omissions or series of acts or omissions, or waiver, acquiescence or forgiveness by the City as to any default in or failure of performance either in whole or in part by the Tenant as to any of the covenants, terms or conditions of this lease, shall be deemed or construed to be a waiver by the City of the right at all times in the future to insist upon the full and complete performance by the Tenant of each and all the foregoing covenants, terms and conditions thereafter to be performed according to the provisions of this lease in the same manner and to the same extent as the same are herein covenanted to be performed by the Tenant. XXI. LIABILITY OF TENANT. Tenant shall be liable to City for any damage to City property caused by Tenant, or its officers, agents, or employees. City does not and will not in any way be responsible or liable for any of the financial obligations which may be incurred or created by Tenant, or its officers, agents, or employees. 07G.824.03.11 18 XXII. SUBORDINATION. The City Manager may agree with Tenant to subordinate City's rights in improvements under this agreement to a lender who finances the improvement for Tenant, to the extent that the lender shall be permitted to remove the improvement from the premises if removal can be accomplished so as to restore City's land to its original condition. XXIII. CAPTIONS. The captions employed in this lease are for convenience only and are not intended to and shall not in any way limit or amplify the terms or provisions herein. EXECUTED IN DUPLICATE ORIGINALS this the day of 1987, by the authorized representatives of the parties. ATTEST: Secretary ATTEST: TENANT: SINSAN, INC. By CITY OF CORPUS CHRISTI, TEXAS By Armando Chapa, City Secretary Craig A. McDowell, City Manager APPROVED: day of , 1987 BIT—George, City Attorney By Assistant City Attorney 078.824.03.11 19 That the foregoing ordinance was read for the second reading on this the (Aday of following vote: first time and passed to its , 19 g', , by the Betty N. Turner David Berlanga, Sr. Leo Guerrero Frank Mendez Q«' That the foregoing ordinance wgs read third reading on this the /// day following vote: Betty N. Turner David Berlanga, Sr. Leo Guerrero Frank Mendez atzi That the foregoingordimance gwaass dread this the /1 day ofau Betty N. Turner David Berlanga, Sr. Leo Guerrero Frank Mendez Clif Moss Bill Pruet Mary Rhodes Mary Pat Slavik Linda Strong for the second time and passed to its of D�1Q� , 19V-7 , by the Clif Moss Bill Pruet Mary Rhodes Mary Pat Slavik Linda Strong for the third time and passed finally on , 19 q-1 , by the following vote: Clif Moss Bill Pruet Mary Rhodes otz,ek Mary Pat Slavik Linda Strong PASSED AND APPROVED, this the /1 day of ATTES : , 19 V. City Secretary " MAkOR THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: AY OF HAL GEORGE, CI Y ATTORNEY By Assistant City £,�`l ney 99.044.01 19E: 19910 VOSS AND VOSS ENGINEERING & LAND SURVEYING STATE OF TEXAS X x COUNTY OF NUECES X 5350 So. Staples, Suite 205 Corpus Christi, Texas 78411 512/993-0140 Job No. 87-418 City of Corpus Christi 21.194 Acres -Proposed Lease Area ALL that certain tract or parcel of land situated in Nueces County, Texas, a part of the Brooklyn Addition recorded in Volume A, Pages 30-32, Map Records of Nueces County, Texas, same lying within the corporate City Limits of Corpus Christi, Texas, same being a part of those lands either conveyed or claimed to or by -the City of Corpus Christi, Texas, and described by metes and bounds as follows, to -wit: 12.239 Acres BEGINNING at a 5/8" irom pin set for the West corner,same being the West ,corner of Block 72 of said Brooklyn Addition, same lying in the Southeast .light -of -Way margin of U.S. Highway 181, same lying in the Northeast margin of Golden Street; THENCE, NORTH 41°45'56" -EAST 444.57 feet to a 5/8" iron pin set for a corner, same -lying in the Southeast Right -of -Way margin of said U.S. Highway 181; THENCE, along the Southeast Right -of -Way margin of said U.S. Highway 181, NORTH 49°43'25" EAST 234.01 feet to a concrete monument found and NORTH 55°46'00" EAST 787.90 feet to a 5/8" iron pin set for the North corner, same lying in the Southwest margin of Hull Street; THENCE, along the Southwest, West, and Northwest margin of said Hull Street as it turns into Timon Blvd. along a curve to the right with the following Curve Data: R = 225.00 feet, Lc = SOUTH 7°05'48". EAST 348.44 feet, and central angle = 101°29'13" to a 5/8'.' iron pin set for a corner; THENCE, along the Northwest margin of said Timon Blvd. as established on'the ground, SO'JTH.46°01'08" WEST 510.17 feet to a 5/8" iron pin set for a point ofcurvature and along a curve to the left with the following curye'data; R = 3018.49 feet, Lc = SOUTH 40°06'43" WEST 621.28 feet,`�and" central angle = 11°48'50" to a 5/8" iron pin set for the South corner, same lying in the Northeast margin of Golden Street; THENCE, along the,Northeast margin of said Golden Street, NORTH 58° 12'00" WEST /••72.67 feet to the place of beginning containing 12.239 acres of land. 6.555 Acres BEGINNING at a 1"iron pipe found for the most Easterly South corner, same being the South corner of Block 384 of the said Brooklyn Addition, same lying in the Northeast margin of Foggs Street and the North- west margin of Gulfbreeze Blvd; THENCE, along the Northeast margin of Foggs Street, NORTH 58°31'19" WEST 340.00 feet to a 5/8" iron pin set for an interior corner, same lying in the Northwest margin of Surfside Blvd; THENCE, along the Northwest margin of said Surfside'Blvd., SOUTH 31°28'41" WEST 360.00 feet to a 5/8" iron pin set for the most West South corner, same lying in the Northeast margin of Golden Street; VOSS AND VOSS ENGINEERING & LAND SURVEYING Page 2 5350 So. Staples, Suite 205 Corpus Christi, Texas 73411 512/993-0140 THENCE, NORTH 58°31'19" WEST 129.50 feet along the Northeast margin of Golden Street to a 5/8" iron pin set for the West corner, same lying in the Southeast margin of Timon Blvd; THENCE, along the Southeast margin of Timon Blvd., along a curve to the Right with the following curve data: R = 2958.49; L = North 40°06'47" EAST 608.81 feet, and central angle = 11048C41" to a 5/8" iron pin set and NORTH 46°01'08" EAST 510.17 feet to a 5/8" iron pin set for the North corner, same lying at the inter- section of the Southeast margin of .Timon Blvd. and the Southwest margin of Gulfbreeze Blvd; TI-IENCE, along the Southwest, West, and Northwest margin of said Gulfbreeze Blvd. along a curve to the Right with the following curve data: R = 210.0G feet, Lc = SOUm'H 20°32'21" EAST 316.73 feet, and central angle = 97°53'42" to a 5/8" iron pin set and SOUTH 31°26'43" WEST 540.89' feet to the place of beginning containing 6.555 acres of land. • 2.400 Acres BEGINNING at a 5/8" iron -pin set, same being the South corner of a 1.068 acre tract of land leased by Edward E. Hogan with the City of Corpus Christi dated September 13, 1970, same lying in the Southeast margin of Timon Blvd.; THENCE, along the Southeast boundary of the said Edward E. Hogan 1.068 acre lease and the Southeast margin of said Timon Blvd., NORTH 47°19'54" EAST 482.00 feet to a 5/8" iron pin set for the North corner, same being the East corner of the said Edward E. Hogan 1.068 acre lease, same lying on a high bank of ground above a line of mean high high tide of Corpus Christi Bay; THENCE, along the said high bank, SOUTH 63°11'22" EAST 46.10 feet to a 5/8" iron pin set, SOUTH 23°30"17" WEST 104.00 feet to a 5/8" iron pin set, SOUTH'24°01'55" WEST 94.21 feet to a 5/8" iron pin set, SOUTH 23°53'10" WEST 98.81 feet to a 5/8" iron pin set, SOUTH 23°48'32" WEST 103.10 feet to a 5/8" iron pin set and SOUTH 23°42'15" WEST'98.3 feet to a 5/8" iron pin set; THENCE, SOUTH 36°22'46" WEST 225.07 feet to a 5/8" iron pin set for the South corner, same being in the Northeast margin of Gulfbreeze THENCE, along the Northeast margin of said Gulfbreeze Blvd. along a curve to the left with the following curve data: R.= 270.00 feet, L'= NORTH 28°29'11" NEST 293.61 feet, and central angle = 65°52' 3i' to a 5/8" iron pin set for the West corner, same lying in the Southeast margin of Timon Blvd; THENCE, along the Southeast margin of said Timon Blvd., NORTH 47°19' 54" EAST 109.44 feet to the place of beginning containing 2.400 acres of land. I hereby certify that this survey as reflected in the above Field Notes and attached plat conforms to the current Texas Surveyors Association Standards and Specifications for a Category IB Condition Standard Land Survey. Dated this the 24-t day of y , 1987. RONALD A. VOSS Ronald A. Voss Registered Public Surveyor No. 2293 4/1‘113/7- • / •S71. 7oi7'1.1A70.00' / l SRi1v N.0 0. / }C i Sea1{A,.........,—,- .' /?ii /T Stzrna.rir/• Ay., CORP<tS CVR/ST/ BAY n. f ^ yj�, +�b -LOW 'I • /41k sT. • ; 57111 R/'J7'J/{01/0• SeriEr ,?� C ?ia j.• X IZS00' - t $1,,,,,,,,,...,,41.• 4 •S7GSW d.UU 1. #y 6.J`SiFs :Rau Sers-„r 0/77.<ERE GOLDEN ST. -70 1E<rA .. . - VOSS andVOSS Engineering 8, Land Surveying•:, • 535•) S. STAPLES. SUITE 205 Corium Chrl.tl, Tnsns 111411' N Cycn<s C„s,sr. gcwc. 'Aeu 2117QAges- 4,off 5Eo / re ALC., Orr or(o/PaJGvt/sr/ Oar off B*ooccro Aoa/r o.✓ (1464•!.56:52 "oz.) lo.vvi Cer/srf • Maces Cou.vrr, TEXAS April 16, 1987 City of Corpus Christi RE: Request for Proposal/March 1987 Publication Number 87-051 In response to the City of Corpus Christi's request for proposals for a public/private venture to lease acreage on the north end of Corpus Christi Beach for the development of a tourist/recreational facility, the undersigned present the following proposal and submit that (when rated by the cities criteria) the same constitutes the use of the applicable land. PROPOSAL: Build and operate a water theme park containing a number of swimming and other activity pools as well as curvilinear and straight flumed water slides extending from 48' towers and containing splash down terminus pools and or deceleration ramps at the end of the rides. Additional entertainment and necessary facilities will include ample sunning and picnic areas, volley ball nets, gift shop, arcades, roller skating rink, food concessions, lockers, showers and changing areas. The park will be open year around with heated swimming, concession, arcade, party pavilion and skating in the winter time. The water rides as well as the rest of the facilities in the park will be open from mid March (Spring Break) to the end of October. The site plan, elevations and preliminary plans of the structures and facilities are attached and marked accordingly. II. The project scheduled from the date_ of the anticipated/requested award of the proposal to the o;ending of the facility is as follows: C. C. WATERLAND CRITICAL PATH TO OPENING DAY TASK TO PERFORIM1 TIME FRAME 1. Letter of Intent from City 31 May 1987 2. Completed Lease from City 31 July 1987 3. Surveys, Soil Tests, Arch. and Engineering Services Aug. thru Sept. 4. Order Slides 31 Sept. 1987 5. Building Permits 31 Sept. 1987 6. Site Work & Underground Utilities Oct. thru Nov. 7. Pool -Construction Nov. thru Feb. 8. Foundations of Buildings and Slides Nov. thru Dec. 9. Construction of Slides Dec. thru Feb. 10. Construction of Buildings Dec. thru Feb. 11. Ordering of Equipment Dec. thru Feb. 12. Paving, Walks, and Play Areas Jan. thru Feb. 13. Landscaping and Fencing Feb. thru March 14. Preparation for Start -Up March 1 thru March 15 15. Opening Day March 15, 1988 III. The cost estimate of the completed project is 1.5 million dollars itemized as follows: WATERLAND PROJECT BUDGET 1. Slides in place $ 435,000.00 2. Insurance $ 30,000.00 3. Start-Up/Employees, Supplies, Concessions, Water $ 50,000.00 4. Maintenance Start -Up $ 20,000.00 5. Reserve and Miscellaneous $ 35,000.00 6. Advertising and Promotional Start $ 50,000.00 7. Swimming Pools, Equipment and Decks $ 250,000.00 8. Signage $ 25,000.00 9. Landscaping $ 35,000.00 10. Outdoor Equipment/Tables, Benches, Umbrellas $ 30,000.00 11. A & E Fee $ 25,000.00 12. Other $ 45,000.00 13. Fencing $ 20,000.00 14. Equipment - Concessions and Office $ 50,000.00 15. Buildings and Site S 400,000.00 $ 1,500,000.00 BUILDING AND SITE CONSTRUCTION BUDGET 1. Permits - Building, Plumbing, Electric $ 2,000.00 2. Grading and Drainage $ 10,000.00 3. Entry Plaza and Drive $ 35,000.00 4. Tickets, Gifts, Office $ 40,000.00 5. Dressing, Toilets, Lockers $ 41,000.00 6. Concession, Game, Toilets $ 10,000.00 $ 50,000.00 7. Concession, Office, Toilets $ 10,000.00 $ 50,000.00 8. Party Pavilion and Cover $ 12,000.00 9. Play Area and Sandbox $ 10,000.00 10. Outdoor Showers $ 3,000.00 11. Walks and Kool-Deck $ 30,000.00 12. Service Drawers and Trash $ 10,000.00 13. Skate Slab $ 14,000.00 14. Electrical Service Site $ 15,000.00 15. Site Plumbing $ 10,000.00 16. Contingency $ 20,000.00 17. Overhead $ 28,000.00 $ 400,000.00 POOL CONSTRUCTION BUDGET 1. Main Pool, Activity Pool, Kids Pool, Spa, and Splash Pool $ 170,000.00 2. Slide Equipment $ 8,000.00 3. Pool Decks with Kool Deck and Retaining Wall $ 35,000.00 4. Automatic Chlorine/Ozone Controllers $ 12,000.00 5. Ozonators $ 10,000.00 6. Swimming Pool and Spa Heaters $ 10,000.00 7. Equipment Enclosures $ 5,000.00 $ 250,000.00 IV. The park will be financed with 100% equity capital raised by a local private offering. A private offering circular is being prepared and will be given to investors who have expressed an interest in investing in the offering. Based upon current expressions of interest from investors, it is anticipated that 100% of the projected funds needed for the capital improvements will be subscribed prior to the commencement of construction. A key requirement for the private offering memorandum and the project proforma is the acquisition of the lease from the city. Without a signed lease or commitment from the city„ promised, investments cannot be realized. V. Corpus Christi Beach Park is a water related, residential and tourist area without a major compatible attraction or facility to spur the further development and use of the park by city residents and tourists. In years past, a significant amount of money has been spent by the city to improve the beach as well as similar investments by private hotels and condominiums. Despite these public and private investments on North Beach, Corpus Christi Beach Park has not yet realized its full potential. A water -theme park where the whole family can get some relief from the dog days of summer and enjoy swimming and playing in sparkling clean water is not only compatible with the public recreational and leisure time activities in the park and the projected State Aquarium, it is a must if the City of Corpus Christi is going to progress and attract tourists. VI. The attendance projections and patterns for a three year period are as reflected on the attached schedule. VII. The desired lease will be one consisting of an initial •term of ten (10) years with a fixed option for an additional ten (10) years. The rent to be paid to the city on a semi-annual basis will consist of 3% of the gross receipts for each year in the primary term and 4% of the gross receipts for the second ten (10) year term. The project will not be completed on time unless the city grants and conveys a lease to the undersigned by proper city authority no later than July 31, 1987, with a signed letter of intent/commitment regarding the grant of the lease to be received no later than May 31, 1987. In the grant of the lease, the city will also commit itself to spending budgeted city monies to improve surrounding access roads and parking for the municipal beach park. At the expiration of the second term of the lease, all of the capital improvements will be conveyed to the city. VIII. Standard city disclosure statement attached. Ix. A number of insurance companies have been contacted by W.L. Dinn Insurance Company, the project's local insurance agent. Enclosed herewith is a letter from Lloyd Neal of W.L. DINN & CO. indicating the insurability of the project, etc. Indemnification protection for the city of any and all liability, loss, claims, demands and costs as a result of the construction of the park as well as the activities conducted in the park after construction on a year-round basis will be provided in the lease from the City. Respectfully submitted, Patrick J. •tib enis • Robert C. Sinclair (/ (Plate) r PATRICK J. SANJENIS ATTORNEY AT LAW 1110 AM11:RIL•AN RANK PI AYA ccq' us CHRISTI. TEXAS 78475 5I2.$87--9777 May 4, 1987 Mr. Terry Dopson, Director . Park & Recreation Department City of Corpus Christi 302 S. Shoreline P. O. Box 9277 Corpus Christi, Texas 78469-9277 Re: Water Theme Park Proposal Corpus Christi Beach/Winter Texan Addendum Dear Mr. Dopson: On May 4, 1987 at 12:30 the undersigned, Bob Sinclair. and :David Thomas met in your office and discussed the proposal that we submitted in response to the city's Request for. Proposals 'along with its impact and accessability to our winter Texans. .You asked . us to clarify and expand upon our position with regard to the park's attractions for our typical winter visitors..;,In -response to same and, to further expound, upon our original'proposal, please be advised that our park will offer the £ollowing:activities which are specifically designed for the winter Texan:•_ 1. -.In _addition to our large outdoor whirlpool spa,, our pools will be .heated for continuous year-round swimming. 2. Our party pavilion, currently planned• as a 40' x 40' gazebo structure,will be enclosed in .the winter time with breakaway walls so that in the winter the building will be available for meetings,' bingo, 'movies,•:small dances and/or parties. • ' 3. _One of the park's concession buildings will be'open for -.the preparation of food year-round. • 4.• We will offer six shuffle board courts, horse shoes and an 'outdoor skating rink.- Note:.�.•The outdoor'' skating .. . =rink can be used for' ice-skatingwith°'a••temporary•roof"? structure: 'The usage of the skating.; area for 'this' 'purpose will'be tried on a limited basis and if demand, • keeps up will -become a permanent feature of the park. the 'off 'season as well -as the regulareason,: senior.: "citizens,' 62 years old . or older, will ,be._ given a : 50% discount off the regular admission price - • r.' While the main components of the park will be in full use during the spring and summer months and will be frequented by greater amounts of children and young adults than any others, the ' undersigned, as well as the other promoters working with us, are committed to providing a year-round entertainment facility' offering something for people of all ages. The above winter time facilities and amenities are only the beginning and certainly, could be expanded if the park attracts the kind ,and volume of,.. usage that we contemplate. PJS/ls Dopson.ltr cc: Robert Sinclair David Thomas Reid Sinclair Joe Hornblower Mannti Cummins Sincerely, Patrick J Sanjen' PATRICK J. SANJENIS JAMES S VREELAND SANJENIS & VREELAND ATTORNEYS AND COUNSELORS AT LAW 711 NORTH CARANCANUA 1110 AMERICAN RANK PLAZA CORPUS CHRISTI. TEXAS 78475 May 15, 1987 Mr. Terry Dopson, Director Parks and Recreation Department City of Corpus Christi 302 S. Shoreline 0.- P. 0. Box 9277,' Corpus Christi, Texas 78469-9277 • Re: Water Theme Park Proposal Corpus Christi' Beach/Winter Texan Addendum No. (2) Dear Mr. Dopson: .In respOnse to our telephone on May 14th 'and in AREA CODE 512 887-8777 '' HAND DELIVERED.-- keeping with certain discussions that I haveVhad.with'my,partners please be advised that in addition to the list of amenities and - activities that we added to our original proposal in my May 4th letter to . you •that we have : decided to expand upon- our planned -parking to include additional space for an R.V.' parking and recreation area. At the current time our plans call -fora maximum of fifty (50) R.V. slots which would come complete with all of the _ amenities normally provided to R.V. park tenants. .If this feature is well received then additonal spaces will be provided. • We believe that by expanding our parking facilities to include the necessary space for. an R.V. park that we will encourage' winter-texans to use our park's winter facilities while• at the same time providing additional revenue from the rental of the R.V. slots. If you'have any questions with regards to. this: -latest, • amendment -of our Water Theme Park Proposal, please do not -hesitate to contact me.. Splash Point CRITICAL PATH TO OPENING DAY TASK TO PERFORM TIME FRAME 1. Letter of Intent from City 31 May 1987 2. Completed Lease from City 31 July 1987 Exhibit. "c," 3. Surveys, Soil Tests, Arch. and Engineering Services Aug. thru Sept. 4. Order Slides 31 Sept. 1987 5. Building Permits 31 Sept. 1987 6. Site Work & Underground Utilities Oct. thru Nov. 7. Pool Construction Nov. thru Feb. 8. Foundations of Buildings and Slides Nov. thru Dec. 9. Construction of Slides Dec. thru Feb. 10. Construction of Buildings Dec. thru Feb. 11. Ordering of Equipment Dec. thru Feb. 12. Paving, Walks, and Play Areas Jan. thru Feb. 13. Landscaping and Fencing Feb. thru March 14. Preparation for Start -Up 1 March thru 15 March 15. Opening Day 15 March 1988 SINSAN,INC. PROJECTED STATEMENT OF INCOI•IE FOR THE YEARS INDICATED (COI•MPILATION) WHITTINGTON AND CUNMIIJS A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS CORPUS CHRISTI, TEXAS I ISCUS SIGN DRAFT SINSAN,INC. TABLE OF CONTENTS ACCOUNTANTS' REPORT PAGE PROJECTED STATEMENTS OF INCOME (LOSS) 4 SUMMARY OF SIGNIFICANT PROJECTION ASSUMPTIONS AND ACCOUNTING POLICIES 5 DISCUSSION D1AF The Hoard of Directors Sinsan, Inc. Corpus Christi. Texas To the Hoard of Directors: We have compiled the accompanying projected income statements of Sinsan, Inc. for the years ended December .1. 1988. 1989 and 1990. in accordance with standards established by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of a projection information that is the representation of management and does not include evaluation support of the For the assumptions underlying the projections. We have not examined the projection and, accordingly. do not express an opinion or any other form of assurance on the accompanying statements or assumptions. Furthermore, there will usually he differences between the projected and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update this report for events and circumstances occurring after the date of this report. We are not independent with respect to Sinsan, Inc. WHITTINGTON AND CUMMINS, P.C. June T:0, 1987 DISCUSSION DRAT Revenues: Admission Gift Shops Concessions Locker Rental Recreational Vehicle ParF:Jnq Auto Parking SINSAN,INC. PROJECTED INCOME_ STATEMENT FOR THE YEARS INDICATED 1988 41,582,960 207.975 415.950 18,718 62,400 54, 202 1989 1990 $1,693,767 222,533 445,067 20.028 66,768 57,996 41.812.331 238.110 476.222 21.430 71,4422 62.056 Total Revenues $2,342,205 $2,506,159 $2.681.591 Cost of Sales: Gifts and Arcade Concessions Locker Rental $103,988 207,975 9.359 9111,267 _22.5:4 10,014 9119, 055 2178.111- 1.0,715 38.111- 1. 0,715 Total Cost of Sales 9321,322 9343,815 4367,881 Gross Profit 92,020,883 92,162,344 92.313,710 Expenses: Site Leases 970,266 975,185 980,448 Advertising 50,000 53,500 57.245 Accounting and Legal 8,500 9,095 9.732 Licenses 300 321 ' 343 Office Supplies 7.500 8,025 8,587 Insurance 100,000 107, 000 114, 490 Repairs and Maintenance 17,500 18,725 20,036 Utilities 35.500 37,985 40,644 Chemical and Supplies 17,500 18,725 20,03.6 Miscellaneous 20,000 21,400 22,898 Management Fee 20,000 20,000 20,000 Depreciation 166,750 166,750 166,750 Amortization 41,500 41,500 41,500 In'teres't 0 0 0 Payroll 332,996 356,3.06 3.81,247 Recreational Vehicle Parking 15.600 16,692 17,860 Auto Parking 13,551 14,499 15,514 Total Expenses 9917,463 9965,708 91,017,330 Income from Operations 91,103,420 91,196,636 91,296,=80 See Summary of Significant Projection Assumptions and Accounting Policies 4 DISCUSSION DRAFT Summary of Significant Projection Assumptions and Accounting Policies 1. NATURE OF PROJECTIONS These financial projections are management's estimate of the results of operations for the projection periods presented, assuming the projected attendance levels and revenue per person levels were attained. Accordingly, the financial projections reflect management's judgement of the conditions and its course of action if these level=_ are attained based on circumstances as of April 14, 1987, the date of these projections. The assumptions disclosed herein are those that management believes are significant to the projections. However, even if the assumptions were attained. some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur subsequent to the date of these projections, causing the actual results to differ from projected results, and these differences may be material. the pro.7ections are for the purpose of obtaining a lease from the city of Corpus Christi to build a crater theme park on North Beach. and for the purpose of obtaining capital from investors. Management plans to obtain capital by selling a maximum of 15 units, with each unit representing 4.00 7. of total equity. The price per unit is $125.000. 2. REVENUES Revenues for the years indicated are projected with the following assumptions: A. Average Revenue Sources: High Season: This time period includes attendance on weekends, holidays and spring break for the months of March through May. and daily attendance for the months of June through August. Admission Children Elderly Adult Gift Shops Concessions Locker Rental Low Season: Admission Children Adult Gift Shops Concessions Locker Rental $7. 50 4.25 8.50 1.00 2.00 0.09 $2.50 3.50 1.00 2.00 0.09 DISCUSSION DRAFT Number of Operational Days High Season Low Season Total Days 145 220 Included in the determination of operational clays is a provision for unoperational days due to weather related occurrances. A weather factor of 15% for high season and 330% for low season was used to determine unoperational days. C. Average Daily Attendance Average daily attendance for the high season is estimated at 1500 persons. Of this 1500, 15% are estimated to be children, 5% elderly, and 80% adults. Average daily attendance for the low season is estimated at 150 persons. Of this 150, 10% are estimated to be children, and 90% adults. D. Yearly Increase in Revenues (7.) 7.00 E. Recreational Vehicle Revenue Calculated as Follows: Number of Spaces 50 Price per Space $160 Occupancy Rate for 12 Months 65% F. Parking Lot Revenue Calculated as Follows: Number of Spaces 260 Less Employee Spaces .":10 Total Spaces 230 Charge per Space Occupancy Rate for 12 Months $1.00 85/. G. Managagement has elected to use an average of 1,500 customers per day and an occupancy rate of 65% and 85 7. for recreational vehicle parking_ and auto Parking, respectively, in determining projected revenues. In arriving at these attendance and occupancy rates, a range of customers and occupancy rates were considered. Theses ranges and their effects on projected income are presented for analysis. There is no assurance that actual revenues or results of operations will fall within the range indicated. 6 SIS C SSION DEAF SINSAN,INC. PROJECTED INCOME STATEMENT BASE YEAR II of Customers: High Season 2,000 1,500 1,000 500 Low Season 200 150 100 50 Revenues: Admission $2,110.614 $1.582,960 $1,055.307 $527,65= Gift Shops 277,300 207,975 138,650 69,325 Concessions 554,600 415,950 277,300 138,650 Locler Rental 24,957 18,718 12,479 6.239 Recreational Vehicle Parting 62.400 62,400 62,400 62.400 Auto Parking 54,202 54,202 54,202 54,202 Total Revenues Cost of Sales: Gilts and Arcade Concessions Luc{ er Rental Total Lost of Sales Gross Profit $3.084,073 $2,342,205 $1,600,338 $858,469 $158.650 277,300 12,479 $105,988 207,975 9,359 $69,325 138,650 6,240 $34,663 69,525 5,120 $428,429 $321,322 1.214,215 $107,108 $2,655,644 $2.020,885 $1,386,123 $751,361 Expenses: Site Leases $92,522 $70,266 $48.010 $25,754 Advertising 50,000 50,1100 50.000 50,000 Accounting and Legal 8,500 8,500 8,500 8,500 Licenses 500 300 300 300 Office Supplies 7,500 7,500 7,500 7,500 Insurance 100,000 100,000 100,000 100, 000 Repairs and Maintenance 17,500 17,500 17,500 17,500 Utilities 35,500 35,5110 35,500 35.500 Chemical and Supplies 17,500 17,500 17,500 17,500 Miscellaneous 20, 000 20, 000 "0.000 20,000 Management Fee 20, 000 20, 000 20, 000 2 0, 000 Depreciation 166,750 166,750 166,750 166,750 Amortization 41,500 41,500 41,500 41,500 Interest 0 0 0 0 Payroll 332,996 332,996 332,996 332,996 Recreational Vehicle Parking 15,600 15.600 15,600 '15.600 Auto Parking 13,551 13,551 13,551 15,551 - 'Total E::penses Income from Operations $939,719 $917,463 $895,207 9.872,951 $1,715,926 1.1,102,421 $490,917 ($121,590) SEE SUMMARY OF SIGNIFICANT PROJECTION ASSUMPTIONS AND ACCOUNTING POLICIES 7 DISCUSSION DRAY EXPENSES Certain e::penses for the years indicated are projected with the following assumptions: A. Projected e::penses for the years ending December 31. 1989 and 1990 were increased by 7% of prior years revenues. B. Site Leases are projected as 37. of projected revenues. C. projected cost of sales is calculated as 50% of the indicated revenue category. D. projected depreciation a::pense is determined using straight line depreciation over a ten year period using the followinq construction costs: Slides Pools. Equipment, decks Buildings Recreational Vehicle Lot Parking Lot Fi;:tures Signage Outdoor Equipment Landscaping Insurance Engineering & Architect Fees Fencing Miscellaneous $460,000 250,000 410,000 200,000 75, 000 50,000 25,000 t 37,500 35,000 30,000 25,000 ) 20,000 50,000" Total Construction Costs $1,667.500 E. Projected amortization a;:pense is determined using straight line amortization over a 5 year period, using the following organizational costs: Legal Accounting Other Advertising &< Promotion Commissions $9,000 20,000 16,000 50,000 I 1122,500 Total Organization Costs $207,500 8 DISCUSSION DRAFT • F. A total of 28 seasonal and 4 full time employees were used to project total payroll costs of $37.2.996. 9 DISCUSSION DRAFT STATE OF TEXAS, ss: County of ..Nueces. PUBLISHER'S AFFIDAVIT AD # 56373 CITY OF C.C. Before me, the undersigned, a Notary Public, this day personally came IRIS YAP who being first duly sworn, n. according to law, says that he is the of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of NOTICE OF PASSAGE OF ORDINANCE ON SECOND READING AUTHORIZING THE EXECUTION of which the annexed is a true copy, was published in ACCOUNTING CLERK on the._7..9 th day of consecutive day one s_ 73.60 JULY CALLER TIMES PUBLISHING COMPANY 19.._ 87 and once each Times. duthereafter for Subscribed and sworn to before me this 2-.la1 IRIS YAP of one JULY _ 19.. 7 Public, Nueces County, sari EUGENIA S. CORTEZ 6.30.89 NOTICE OF PASSAGE OF ORDINANCE ON SECOND READING AUTHORIZING THE EXECU- TION WITH SINSANE AGREEMENT INC , 'PATRICK SANJENIS, PRESIDENT, AND ROBERT C. SINCLAIR. VICE PRESIDENT, SECRETARY AND TREASUR- ER FOR THE DEVELOPMENT OF A RECREATIONAL FACILI- TY ON CORPUS CHRISTI f' v.;'-‘2/,/,/0 :? BEACH FOR RECREATIONAL} -1.1 PURPOSES AS A WATER.;l`. THEME AND RV PARK. THE) pp TERM OF. THIS LEASE IS FOR 8QT 1 �,/7 A PERIQD OF 20 YEARS, ,I COMMENCING ON DATE AC- TUAL CONSTRUCTION OF - IMPROVEMENTS BEGINS, OR OCTOBER ' 1987. WHICH- EVER 1S EARLIER, -AND 1? ^ r r ENDING IN 20 YEARS. LES- '�' SEE WILL PAY CITY A RECEPTSADERIVED HE RE BY NS .ANT OR ANY OF TENANTS CONCESSIONAIRES, ASSIGN- EES, A RATE OF 3 ESSEES OR SULPERCENTAT FOR THE FIRST SEVEN YEARS OF THE LEASE PAYABLE AFTER THE OFTHEWATERTHEME/RV PARK; 4 PERCENT FOR THE, EIGHTH THROUGH TWELFTH YEARS; 5 PERCENT FORTH THIRTEENTH THROUGH FIF- -TEENTH YEARS AND 7 PERCENT FOR THE LAST FIVE YEARS. RENTAL SHALL NOT BE LESS THAN' $25',000:00 PER YEAR. Was passed and approved on second reading by the City Council of the Cay of Corpus Christ', Texas on the 14th 44, of July, 1987 and the full text of said ordinance is available to the public m the Office of the City Secretary. _ Third reading of the ordi- nance granting this lease will be considered by the Ci�y, STATE OF TEXAS, County of Nueces. PUBLISHER'S AFFIDAVIT In: AD # 26538 City Of C.C. Before me, the undersigned. a Notary Public, this day personally came • IRIS YAP , who being first duly sworn, according to law, says that he is the ACCOUNTING CLERK of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas. in said County and State, and that the publication of NOTICE OF PASSAGE OF ORDINANCE ON FIRST READING AUTHORIZING 11.! of which the annexed is a true copy. was published in CALLELIMES..J'A&I.S.HING...C.OMPANX_—.. on the. 1.2 day of JULY 19.._.Q.7and once eaeh .DAX. _thereafter for Si1Eh _. consecutive DAY - ONE Times. 75_90 VM. IRIS YAP Subscribed and sworn to before me this 14th..._..dpy,of.._ JI1L,Y 19 g� NotPublic, Nueces County, Texas EUGENIA S. CORTEZ 6.30.89 NOTICE OF PASSAGE OF ORDINANCE ON FIRST READING AUTHORIZING THE EXECU- TION OF • A LEASE AGREEMENT WITH SINSAN, t INC„ PATRICK SANJENIS, MV3gNetgaVil SECRETARY AND TREASUR- ER FOR THE DEVELOPMENT. OF A RECREATIONAL FACILI-, TY ON CORPUS CHRISTI BEACH FOR RECREATIONAL PURPOSES AS A WATER THEME AND RV PARK. THE TERM OF THIS LEASE IS FOR A PERIOD OF 20 YEARS, COMMENCING ON DATE AC- TUAL CONSTRUCTION Of IMPROVEMENT BEGINS, OR OCTOBEPA 1, 1987, WHICH- EVER IS".!" EARLIER, AND ENDING IN 20 YEARS. LES- SEE WILL PAY CITY A PERCENTAGE OF THE GROSS RECEIPTS DERIVED BY TEN- ANT OR ANY OF TENANTS CONCESSIONAIRES, ASSIGN- EES, OR SUBLESSEES AT A RATE OF 3 PERCENT FOR THE FIRST SEVEN YEARS OF THE LEASE PAYABLE AFTER THE DATE OF THE OPENING OF THE WATER THEME/RV PARK; 4 PERCENT FOR THE EIGHTH THROUGH TWELFTH YEARS; 5 PERCENT FOR THE THIRTEENTH THROUGH FIF- TEENTH YEARS AND 7 PERCENT FOR THE LAST FIVE YEARS. RENTAL`SHALL NOT BE LESS THAN S25.000.00, PER YEAR.. •-^T Wae,paised end approved on fist reading by the Cm/ entincii Of the City of Corpus PUBLISHER'S AFFIDAVIT STATE OF TEXAS, }ss: AD #60 66 4 of Nueces.- 11 CITY OF C.C. County ......... Beiore me, the undersigned, a Notary Public, this day Personally came ................ first duly sworn, according to law, says that he is the IR I5 YAP ... .............. who being The Corpus Christi Times, .._ ...,,,,,_._--_.._••••••.......CLERK Corpus Christi Caller andpublication s, ......._.... of the • ACCOUNTING •••.................•••-•••• in said County and State, and that the Corpus Christi, Texas, A LEASE Dailyof CE QF Newspapers published OF at Core 10 AUTHORIZING THE EXECUTION OF 'NOTICE OF PASSAGE OF•,ORDINANCE d�_•199•_„_................................_..........................._..._...._,.... ..............__.. CALLER...�.1:M.FaS.. P.USI+�SH.INfi...F~Qkl2lafiX.__...--. was Published in one -- consecutive ,. __._ of which the annexed is a true copy. ...... thereafter for ................ 16th of— ,,,_AUGUST ............... '0131- �d once each. ... 14.U—..— on the._---•- day ..................._. ................... consecutive........!" -.1.0..:.Y. _........... one. ..........Times. \� c.._. ........._.........._...._.._._._._---- I nr.c............ IRIS YAP 19....87..._ 67.85......._.._....... .........911GUST............ __ �__._„__.. f.... Subscribed and sworn to before me this..l � ��-•••-•-•'•da ` / r Notary P lie, Nueces County, EUGENIA S. CORTEZ 6.30.89 es NOTICE OF PASSAGE OF ORDAUTHORIZING INANCETHE 19910THE OF A LEASE AGREEMENT WITH SINSAN, INC., PARTICK SANJENIS, PRESIDENT, ANO ROBERT C. SINCLAIR, VICE PRESIDENT, SECRETARY AND TREASUR- ER FOR THE DEVELOPMENT OF A RECREATIONAL FACILI- TY ON CORPUS CHRISTI BEACH PURPOSESR ASC A RECREATIONAL THEME AND RV PARK. THE TERM OF THIS LEASE IS FOR A PERIOD OF 20 YEARS, COMMENCING ON DATE AC- TUAL' CONSTRUCTION OF IMPROVEMENTS BEGINS, OR OCTOBER 1, 1987, WHICH- EVER IS EARLIER, AND ENDING. IN 20 YEARS. LES- SEE WILL PAY CITY A PERCENTAGE OF THE GROSS RECEIPTS DERIVED BY TEN- ANT OR ANY OF TENANT'S CONCESSIONAIRES, ASSIGN- EES„ 0R SUBLESSEES AT A RATE OF 3 PERCENT FOR THE FIRST SEVEN YEARS OF THE LEASE PAYABLE AFTER THE DATE OF THE OPENING OF THE WATER THEME/RV PARK; 4 PERCENT FOR THE /YEAREIGHTH THROUGH TWELFTH 5 PERCENT FOR THE THIRTEENTH THROUGH FIF- TEENTH YEARS AND 7 PERCENT FOR THE LAST FIVE YEARS RENTAL SHALL NOT BE LESS THAN $25,000 PER YEAR. Was passed and approved on third reading by the City S; ouncil of the City of Corpus hristi, Texas on the 11th day f August, 1987, said leaseot to become effective until he expiration of sixty days ollowing the date of Its fine) `adoption by the City Council, and the full text of said ordi- nance is available to the -...i.i, in 'ha Office of the City