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
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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