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Home My WebLink AboutF-2h - Proposed Balboa Pier Concession0- ITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER MAR 81982 March 8, 1982 By the (;ay CUUNGIL WY OF "W&MT RLACMAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: PROPOSED BALBOA PIER CONCESSION Background COUNCIL AGENDA ITEM NO,F-2 h On May 9, 1977 the City Council awarded a contract for the operation of a food, bait and tackle concession on the Newport Pier. The concession has been open since July, 1977 and the agreement is in effect until December 31, 1987. In terms of revenue, the City receives approximately $14,000 annually from the concession operation. The concession building on the Balboa Pier has been closed since January, 1977. The City attempted unsuccessfully on two separate occasions to bid out the concession operation under the same terms and conditions as those established for the Newport Pier facility. There have been numerous inquiries over the yearswith regard to the possibility of operating the concession but up until now there have been no serious proposals advanced for consideration. Balboa Pier Concession Proposal In a cover letter and attachments dated February 18, 1982, Mr. Douglas Cavanaugh and Mr. Ralph Kosmides of Newport Beach present a proposal to operate the Balboa Pier concession (Attachment 1). Basically the proposal calls for the restoration of the existing facility and its operation as a food, bait and tackle concession serving both fishermen and pier foot traffic. On Pages through 3 of the proposal, the concessionaires' contributions are discussed. It is proposed that the concessionaire provide extensive interior renovation including plumbing, electrical wiring and the installation of all necessary kitchen equipment and associated fixtures. It is estimated that accomplishment of these tasks will cost the concessionaire approximately $52,000. On Pages and 4 of the proposal the suggested City contribution is discussed. It is being proposed that the City contribute a total of $25,000 to assist the concessionaire in placing the facility into operation. As will be addressed in the concession agreement itself, payment of funds out of this amount would be subject to the submittal of bills and work progress reports by the concessionaire to the City. TO: MAYOR AND CITY COUNCIL - Page Two On Page 5 of the agreement, a compensation and payback analysis is presented. It is proposed that as a consideration for the privilege of operating the concession, the concessionaire will pay the City a base rent of $1,000 per month for the months of June, July, August and September plus 5.5% of the monthly gross receipts for each and every month of the terms, including those listed above. A ten-year agreement is being proposed. Based upon these figures, it is estimated that the City would fully recover its $25,000 investment in approximately 2-1/2 years. It is being proposed that the concession will be open for business at least from 10:00 a.m. until 6:00 p.m. from June 15 to September 30 of each year with the option of remaining open from 7:00 a.m. until 10:00 p.m. during these months. During the remainder of the year, the concession would remain open depending upon demand. The proposed menu and a list of additional items to be offered by the concessionaire are included on Page 5 of the proposal. Finally, on Pages 5 and 6 of the proposal, the concessionaire discusses several "contingencies." There are summarized below: 1. "Concessionaire must be allowed to utilize the existing electrical service" - The concessionaire has examined the existing service in coordination with the Building Department. It is reported that for the limited usage proposed by the con- cessionaire the existing service should be adequate. 2. "City and gas company approval of gas line installation." Due to the prohibitive cost of upgrading the electrical capacity, the concessionaire is proposing that gas be used for cooking purposes. The proposal has been reviewed by the City and the gas company and there are reportedly no objections. 3. "For the project to be feasible, we must obtain the same public restroom exemption as was granted to the Newport pier concession." The exemption referred to was granted by the Health Department and required that only one restroom be provided. According to the concessionaire, the County has agreed to this arrangement. 4. "To insure success, the facility must open by June 1, 1982. In order to accomplish this, the concession must be awarded by March 15, 1982." In addition to the City's approval, the con- cessionaire must obtain Health Department and Coastal Commission approvals as required. It appears, however, that with Council approval of the agreement this evening, the concessionaire would be in a position to potentially meet the June 1, 1982 opening date. TO: MAYOR AND CITY COUNCIL - Page Three Included along with the Council packets this evening is a blueprint showing the proposed design and layout of the concession building. Attachment 2 is a set of financial statements submitted by the applicants. These statements include character and credit references as well as an outline of personal financial assets and liabilities. As noted in an attachment to Mr. Cavanaugh's statement, the funds for his portion of the project (approxi- mately 70%) will come from the sale of a piece of property which is currently in escrow and is due to close on March 15, 1982. This sale is expected to yield.a net of $150,000. If for some reason the property did not sell, Mr. Cavavaugh indicates that a second trust deed will be placed on the 1802 North Bush property. On checking back with Mr. Cavanaugh on March 2, it is reported that the property in escrow is expected to sell as planned. With respect to the statement submitted by Mr. Kosmides, it is reported that his percentage of the funding for the project (approximately 30%) will be supplied through the sale of his interest (1/2) in the condominium project listed in the financial statement, to his parents. Staff contacted Mr. Kosmides' mother on March 2, 1982 and confirmed this arrangement. As discussed earlier, expenditures of City funds would be contingent upon submittal to and approval by the City of billings and work progress reports. Staff contacted several of the character and credit references listed by each applicant. Both Mr. Cavanaugh and Mr. Kosmides are considered good credit risks and generally conscientious individuals. Proposed Concession Agreement Attachment 3 is a copy of the proposed concession agreement. The document was drafted pursuant to the terms contained in the concession proposal submitted by the applicants. Many of the significant provisions have been discussed previously in this staff report. Some which have not are discussed below. On Page 2 it is provided that the concessionaire may block the southerly 80 feet of the pier during the construction phase of the project up to a maximum period of 75 days. The purpose of this provision is to prevent vandalism at the project site and to permit an unobstructed construction area. The City Attorney has stated that this type of temporary blockage is legal and appropriate. TO: MAYOR AND CITY COUNCIL - Page Four On Page 8 it is provided pursuant to the request of the concessionaire that the City will provide a total of two parking permits to the concessionaire for use of the Balboa Pier parking lot by himself or his employees. On Page 9 ongoing maintenance and repair functions are established. The City is accorded responsibility for ongoing maintenance and repair as necessary of exterior electrical service lines and exterior water supply piping along the pier as well as the exterior gas lines. The concessionaire would be responsible for all other required maintenance and repair functions. On Page 10 it is provided that pier cleaning with respect to the southerly 80 feet of the pier are to be the responsibility of the concessionaire. Insurance requirements are specified on Pagesll and 12 of the con- cession agreement. The subject agreement has been reviewed and approved by the City Attorney, Public Works Director and Building Director. Budget Committee and Tidelands Affairs Committee Review The Budget Committee reviewed and approved the applicants' concession proposal on February 22, 1982. The Tidelands Affairs Committee approved the matter on February 25, 1982. Both committees are recommending approval to the City Council. Conclusion and Recommendation In conclusion, it is felt that the proposed concession agreement represents an excellent opportunity to have the subject facility restored and placed into operation to serve the public. Given this finding and the recommendation of the Budget and Tidelands Affairs Committee, it is felt that the subject agreement should be approved. It is recommended that the Council adopt Resolution No. authorizing the Mayor and City Clerk to execute the subject agree- ment. Additionally, it is recommended that the Council approve Budget Amendment No. appropriating $25,000 as the City's contri- bution toward the project. The City Attorney has determined that it is not necessary to place the awarding of the concession out to bid. ROBERT L. WYNN City Manager RLW:GJB:jmb Attachments e ' Douglas S. Cavanaugh 114 Garnet St, Balboa Island, Calif. 92662 February 18, 1982 City Council of Newport Beach 3300 Newport Blvd, P.O. Box 1768 Newport Beach, CA 92663-3884 Dear Madam Mayor and Council Members: Attached is our proposal requesting the concession :or the Balboa pier, Included with this proposal is a list of work that we would finance as well as a list of items that would be covered by the City's contribution, A set of preliminary plans is also included for your revue. would be happy to meet with any of you at the pier to further explain our proposal. Please contact me if you have any questions, H BALBOA PIER CONCESSION PROPOSAL THE BALBOA DINER CONCEPT We hope to bring this unique example of "steamship modern" architecture with its classic curved corners and elegant flowing lines back to its original glory. An integral part of the renovation would be to install a food service facility, to be named "The Balboa Diner", which would serve the traditional hamburger stand menu. The Balboa Diner would pro- vide seating for approximately fifty patrons and would also provide take- out service for those visiting the pier area and adjacent Balboa beaches. For the fishermen using the pier we will reserve one of the take-out win- dows for the sale of frozen bait and an assortment of fishing tackle. Continuity of design will be maintained throughout the structure. Re- search in architectural design manuals and studying photographs of build- ings of this era have aided in formulating plans that will facilitate an authentic renovation. Two small additions are proposed, one on both sides of the structure, that will serve as a stairwell to the upper deck and as additional kitchen storage area which will be required by the Orange County Health Department. These additions have been incorporated into the struc- ture to enhance the aesthetics of the design. The interior will utilize a central horseshoe counter, a perimeter counter facing the ocean, chrome pedestal stools, Marlite wall covering, stainless steel decorative trim, along with all the details inherent in the classic american diner of that era. In addition to the interior seating, a stair- way will lead visitors to the second floor deck where they will find addi- tional outdoor seating. To put the finishing touch on the authentic decor all employees will wear uniforms typical of the forties period. Please re- fer to the attached photographs that portray the effect we are trying to recreate. CONTRIBUTIONS BY CONCESSIONAIRE In addition to the previously mentioned concept, we would upgrade the struc- ture and interior of the concession building to conform to current building and related codes. The design, construction, and maintenance of the interior would be the responsibility of the concessionaire. We also agree to keep the southerly eighty feet of the pier free from rubbish and debris along with regularly scheduled cleaning of the concrete walkways. The lunch stand, bait and tackle concession will be open for business every day, at least from 10:00 a.m, to 6:00 p.m., from June 15 to September 30, all dates inclusive, during each year. We will use our best efforts to open on weekends during winter months, depending upon the weather and if there is significant continual demand. Under this proposal the concessionaire agrees to provide and install the following: PLUMBING -bathroom sink -handwashing sink -janitorial mop sink -kitchen utensil sink -water saver toilet -40 gallon gas water heater -interior plumbing for above -condensate lines for refrigeration equipment -gas piping for appliances from pressure regulator forward ELECTRICAL -240v to 110v transformer -interior duplex outlets -"Balboa Diner" neon sign -interior lighting fixtures and wiring -fan assembly for vent hood -electrial service to all appliances -air curtain over delivery door -bathroom fan -radio/music system KITCHEN EQUIPMENT -metal vent hood -fire extinguishing system for hood -stainless steel shelving -OCHD approved flooring -reach-in refrigerators (2) -reach-in freezers (2) -3v" gas griddle -deep fat fryer -commercial gas range -soft serve ice cream machine -soft drink machine -ice maker -refrigerated sandwich table -microwave -food warmers -blenders -hot dog steamer - coffee machine 2. MISCELLANEOUS EQUIPMENT AND FIXTURES -horseshoe counter -perimeter counter -tile flooring in eating area -Marlite wall covering -wood framed screen doors -chrome pedestal stools -display cases -interior doors -exterior stools for front counter -furniture for upstairs deck -cash registers -fire extinguishers -cigarette machine (circa 1942) -miscellaneous decorative trim pieces. In addition to the above items we will provide any additional equipment necessary to operate and maintain this food service facility. Considering the amount of work it would take to bring the building up to current code requirements, the extent and detail of the renovation we pro- pose, and the installation of all the necessary equipment, we estimate our dollar contribution would be approximately $52,000.00. CONTRIBUTIONS BY THE CITY OF NEWPORT BEACH The City's contribution of $25,000.00 would be utilized for the following services and improvements: 1. Extension of gas main to meter location at the base of the pier. The distance is approximately 400 feet. 2. Installation of medium pressure (5 psi) gas line between the meter at the base of the pier and the pressure regulator at the pier building. 3. Installation of 1000 gallon steel holding tank beneath the pier. Job shall include all engineering, labor, equipment, material, and the disposal of the old tank. 4. Installation of ABS waste piping beneath pier which delivers waste from fixtures to holding tank. 5. Erection of temporary fence with access gate preventing public traffic from southerly eighty feet of the pier during the course of renovation. 6. Removal of existing plywood used to barricade building. 7. Removal of existing exterior doors and jambs. 8. Removal of existing windows and frames. 3. 9. Remove rusted fan assembly from roof and dispose of, 10. Remove existing roofing and plywood decking. 11. Remove wood siding and trim which is beyond repair. 12. Remove existing "wings" on both sides of building to prepare for additions. 13. Removal of exterior paint via sand or water blasting leaving smooth surface ready for patching or priming. 14. Install new doors and jambs with all hardware as specified in plans. 15. Install new windows and frames including take-out windows. 16. Construct window additions (see plan) 17. Construct new "wing" additions as detailed in plans. This will include construction of stairway to deck area, 18. Replace damaged siding and wood trim. 19. Install new front counter by take-out windows per plan. 20. Install new plywood decking on second floor with Dex-O-Tex (non-skid) type covering. 21. Install new "hot mop" roof on un -decked area, 22. Install 2 -inch diameter handrail around perimeter of deck to increase parapet height to 42 inches. 23. Install exterior lighting per plan. 24. Prime all wood and metal for paint, 25. Paint building and trim with two (2) coats of premium grade gloss enamel house paint, 26. Building permits and Coastal permits or application fees. All work performed on the building and pier by concessionaire and contractors shall be done in accordance with plans and specifications approved by the Public Works Department, and pursuant to a building permit issued by City. Only first-class materials shall be used and all work must be performed and completed in a good and workmanlike manner. 4. COMPENSATION TO CITY For the term of the agreement Concessionaire will pay to the City a monthly payment of $1,000.00 per month for the months of June, July, August, and September plus five and one-half percent (5,5%) of the monthly gross receipts for each and every month of the term, including the months listed above. PAYBACK ANALYSIS Based on estimates of gross sales in the first year of $70,000.00, second year of $90.000.00, and third year of $110,000.00, the City would fully recover their $25,000.00 in approximately two and one-half years. For the sake of comparison, the Newport pier concessionaire had gross sales of approximately $175,000.00 last year. If our gross figures would somehow reach these proportions the City's payback period would be less. PROPOSED MENU hamburgers hot dogs sandwiches french fries onion rings ADDITIONAL ITEMS frozen bait assorted tackle suntan lotion cigarettes candy CONTINGENCIES chili soup malts/shakes soft drinks fruit juices ice cream packaged snacks cakes & pies coffee tea This proposal is contingent upon several items. 1. Concessionaire must be allowed to utilize existing electrical -service. 2. City and Gas Company approval of gas line installation. 3. For this project to be feasable we must obtain the same public restroom exemption as was granted to the Newport pier concessionaire, 4. To ensure success, the facility must open by June 1, 1982. In order to accomplish this the concession must be awarded by March 15, 1982, 5. 5. Installation of waste holding tank must be approved by City and the Orange County Health Department. The proposed facility will benefit the city of Newport Beach in several ways. The renovation will transform this run-down building back into an attractive landmark, greatly enhancing the overall image of the Balboa pier area. It will provide needed food service for local citizens, tourists, and fishermen using the pier and beach areas. Fishermen will also enjoy the convenience of having a source for bait and supplies. To conclude, The Balboa Diner would beautify the surrounding area, en- courage business for local merchants, and stimulate public usage of the Balboa pier. Thank you for your time in reviewing this proposal. Respectfully submitted, 44'14�9L( Doug as S. Cavah 114 Garnet St. na Balboa Island, CA 92662 Day (714) 835-3252 Eve (714) 673-4293 Ral L. Kosmides 1906 Court St. Newport Beach, CA 92663 Day (714) 835-3252 Eve (714) 675-2891 Stamford #2 (195 1) "I think that we've gone about as far as we can go in the White Towers. I really don't feel that with the size of our units that we can add. We just can't. We're tight. We're tight as we are and I just don't... . 162 13 Towerettes (1939, 1942, 1946, 1947) "Things really changed after World War ll." 1939 1942 139 1946 1947 FULL NAME Douglas Scott Cavanaugh BUSINESS ADDRESS _ 1440 Eo Pomona St, Santa Ana, CA 92705 PRINCIPAL PLACE OF BUSINESS IN CALIFORNIA Same as above. Hi -Lite Development Co. BUSINESS TELEPHONE NO. (714) 835-3252 RESIDENCE ADDRESS 114 Garnet St. Balboa Island,, CA 92662 RESIDENCE TELEPHONE NO. (714) 673-4293 HOME OWNER? Yes. DATE OF BIRTH 3-15-56 PLACE OF BIRTH Inglewood, CA MARITAL STATUS Single HAVE YOU EVER BEEN ARRESTED? YES NO X IF YES, STATE WHERE, WHEN, REASON, AND DISPOSITION OF MATTER DO YOU CONSENT TO BEING FINGERPRINTED? YES X NO I agree that all information supplied may be checked and that such information and any additional information obtained in the course of evaluation of this proposal may be disclosed to the City Council and others concerned as necessay to reach a decision. Dated: March 1 , 1982 SIGNATURE CHARACTER REFERENCES 1. DanL. Stroud- Senior partner in law offices of Tremaine. Shenk Stroud & Robbins. (213) 627-2131 643 South Olive St. Ninth Floor Los Angeles, CA 90014 2. William A Moses II - Owner/Publisher of the "Tustin News" (714) 544-4110 P.O. Box 486, Tustin, CA 92680 3. Ross Cortese- Owner/Developer of Leisure World and Rossmoor Corp (714) 837-2020 P.O. Box 5000, La�,una Hills CA 92653 4. Cl armee F- Pal mar IV - Owner of Tri nl e T Prndur+ts (213) 821-0771 53(1[1 Alla Rd- Los Angeles- CA 90[166 5. Michael P MilliganReal Estate Broker, (714) 752-5888 1151 Dove St. Newport Beach, CA 92660 CREDIT REFERENCES 1. American Express Company - Card # 3728 066628 91001 or 3731 107973 91006 770 N. Eckhoff St. Orange, CA 92666 2. Ernest Eckhoff - holder of it,_T.D_. (714) 978-3892 3. California First Bank - Main St. Santa Ana branch 4. I. Magnin- Card # 236 53 473 64 S. Union 76 - Card # 2 9520 6601 °rl LIST IN ORDER, STARTING WITH THE MOST RECENT, THE FOLLOWING INFORM- ATION ON BUSINESSES IN WHICH YOU WERE EMPLOYED OR HAD AN INTEREST DURING THE PAST FIFTEEN (15) YEARS: NAME OF BUSINESS "The Summer House" Resort Complex. DATES 6/80 through present ADRESS OF BUSINESS Old South Bluff Rd. Siasconset Nantucket Island MA TYPE OF BUSINESS Restaurant, Inn, Cottage rental, pool & Cabana club. INTEREST OR POSITION Owner/Manager NUMBER OF EMPLOYEES 12 NUMBER SUPERVISED BY YOU 12 BUSINESS BANK Pacific National Bank (Main St. Nantucket Island) ANNUAL GROSS $275_000 IF A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY 160 IF NOT STILL AFFILIATED, REASON FOR LEAVING ----------------------------------------------- NAME OF BUSINESS Cavanaugh Development Corp. DATES 6/79 tl-Lro„gh present ADDRESS OF BUSINESS 1440 Eo Pomona St. Santa Ana CA 92705 _ TYPE OF BUSINESS Real Estate Development INTEREST OR POSITION Viee- PrPS; !1P'n't" NUMBER OF EMPLOYEES 5 NUMBER SUPERVISED BY YOU 2 BUSINESS BANK E1 Dorado Bank 17th Street Tustin ANNUAL GROSS Approx. $300,000 IF -A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY IF NOT STILL AFFILIATED, REASON FOR LEAVING LIST IN ORDER, STARTING WITH THE MOST RECENT, THE FOLLOWING INFORM- ATION ON BUSINESSES IN WHICH YOU WERE EMPLOYED OR HAD AN INTEREST DURING THE PAST FIFTEEN (15) YEARS: NAME OF BUSINESS Hi -Lite Development Co DATES 6/75 through present ADRESS OF BUSINESS 1440 Eo Pomona St, Santa Ana, CA 92705 TYPE OF BUSINESS Construction INTEREST OR POSITION Project Manager NUMBER OF EMPLOYEES g NUMBER SUPERVISED BY YOU all subeontrators BUSINESS BANK Califni2nia CaliforniaFirst Bank Main St_ Santa Ana ANNUAL GROSS IF A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY IF NOT STILL AFFILIATED, REASON FOR LEAVING NAME OF BUSINESS Wispering Palms Snack Stand DATES Summers d Uri�ng High School ADDRESS OF BUSINESS Rancho Santa Fe, CA TYPE OF BUSINESS Hamburszer Stand INTEREST OR POSITION Cook NUMBER OF EMPLOYEES 2 NUMBER SUPERVISED BY YOU 1 BUSINESS BANK ANNUAL GROSS IF A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY IF NOT STILL AFFILIATED, REASON FOR LEAVING What assets in this statement are in joint tenancy? None Have you filed homestead? No Name of other Party Are you a guarantor on anyone's debt? N o If no, give details Are any encusdiered assets or debts secured except as indicated? No If so, please itemize by debt and security Do you have any other business connections? Yes If so,givedetails Vice -President of Cavanaugh Development Corp. Are there any suits or judgments against you? No Have you gone through bankruptcy or compromised a debt? No Have you made a will? No Number of dependents D SCHEDULE A—REAL ESTATE Any pending? No Location and type of Improvement Title in Name of Estimated Value Amount Owing To Whom Payable 1802 N. Bush, Santa Ana, CA single family residence 1/2 D.S. Cavanaugh (1/2)C_.E. Depner s(130,000 1/2=$65,000 ; 2 '595 1/2=$13,295 Ernest Eckhoff 'iasconset, Nantucket Island,MA 'he Summer House Resort Complex 1/2 D.S. Cavanaugh (1/2)M.E. Sands (525,000) 1/2=262,500 (220,000) 1/2=110,000 David E. Ewing ,restaurant, 5 cottages, pool & cabana club) SCHEDULE B—STOCKS AND BONDS Number of Shares Amount of Bonds Description Current Market on listed Estimated Value on Unlisted If additional space is needed for Schedule A and/or Schedule B, list on separate shoot and attach. INSURANCE Life Insurance = ''5 )nn00 Name of Company Aid Association for Lutherans Beneficiary Pa ren t s Automobile Insurance: Public Liability — yes ■ no ❑ Property Damage —yes ■ no ❑ Comprehensive personal Liability -yes ■ no ❑ STA7EMENT OF BANK OFFICER: Insofar as our records reveal, this Financial Statement is accurate and true. The foregoing statement is (a copy of) the original signed by the maker, in the credit files of this bank. Assistant Cashier Manager The undersigned certifies that the above statement ( or in lieu thereof, the attached statement, as the case may be) and supporting schedules, both printed and written, give a full, true, and correct statement ofth inancial ndi tion of the undersigned as of the date indicated. / Dade signed C7 PERSONAL FINANCIAL STATEMENT (DO NOT USE FOR BUSINESS) Aa of March 1 -1982 Received at Nem, Douglas S. Cavanaugh Employedby Hi -Lite Development Co- Years _. 5 Address 114 Garnet St. Position Age 25 f Spouse Balboa Island, Calif. 92662 If Employed Less Than 1 Year, Previous Employer Branch The undersigned, for the purpose of procuring and establishing credit from time to time with you and to induce you to permit the undersigned to be- come indebted to you on notes, endorsements, guarantees, overdrafts or otherwise, furnishes the following (or in lieu thereof the attached) which is the moat recent statement prepared by or for the undersigned as being a full, true and correct statement of the financial condition of the undersigned on the date Indicated, and agrees to notify you immediately of the extent and character of any material change In said financial condition, and also agrees that If the undersigned, or any endorser or guarantor of any of the obligations of the undersigned, at any time fails in business or becomes insolvent, or com- mits an act of bankruptcy, or dies, or if a writ of attachment, garnishment, execution or other legal process be issued against property of the undersigned or if any assessment for taxes against the undersigned, other than taxes on real property, is made by the federal or state government or any department thereof, or if any of the representations made below prove to be untrue, or if the undersigned fails to notify you of any material change as above agreed, or if such change occurs, or if the business, or any interest therein, of the undersigned is sold, then and in such case, all of the obligations of the under- signed to you or held by you shall Immediately be due and payable, without demand or notice. This statement shall be construed by you to be a continuing statement of the condition of the undersigned, and a new and original statement of all assets and liabilities upon each and every transaction in and by which the undersigned. hereafter becomes indebted to you, until the undersigned advises in writing to the contrary. ASSETS DOLLARS cents LIABILITIES DOLLARS cents Cash in H of Notes payable B of E1 Dorado BankB`1."%1jh St, Tustin (Branch) Cash in t #407-435 5,000 00 Notes payable (Other) (Other - give name) Accounts Receivable -Good Accounts payable Stocks and Bonds (Schedule B) Taxes payable Notes Receivable -Good Contracts payable (To whom) Cash Surrender Value Life Insurance Autos 1962 Mercedes 190 SL Roadster (Year -Woks) (Year --Make) 2 20,000 000 00 Contracts payable (To whom) Real Estate indebtedness (Schedule) 00 12 2 00 Real Estate (Schedule A) 327,500 00 Other Liabilities (describe) 00 00 Other Assets (describe) 1. 1961 French Panhard PL -1 I 2. 3 2. 1969 Volkswagen Camper 9,500 00 3. 4: TOTAL LIABILITIES 12 2 00 4. 1 237 20511 00 s. NET WORTH TOTAL ASSETS 360,500 00 TOTAL 360 500 00 ANNUAL INCOME a n d ANNUAL EXPENDITURES (Excluding Ordinary living expenses) Salary 21 0001 00 Real Estate payment (s) 1802 N. Bush (1/-21 I 08 1 00 3 000 00 Salary (wife or husband) Rent 2, 400 12,000 14,0001 00 00 00 Ii.Nantucket Income Taxes Insurance Premiums a 1 1 inclusive) Property Taxes 1802 N. Bush (1/2) Other (describe -include instalment payments other than real estate) Securities Income Rentals 1 802 N. Bush (1/2) Other (describe) 1 Nantucket Cottage Income (1/2) net 2. Restaurant Income (1/2) 6,900 00 5 232 00 539 00 3, Property Tax (1/2) 2,200 00 ;,,Nantucket Loan Payment 1/2 4. 1 200 00 3. S. TOTAL INCOME49 32 6 g 00 000 00 TOTAL EXPENDITURES LESS -TOTAL EXPENDITURES 32679 00 NET CASH INCOME 16,321 00 (exclusive of ordinary living expenses) FINANCIAL STATEMENT — Individual — WOLCOTTS Form 2000 NOTE: The Nantucket property which is listed on my financial statement is currently in escrow and will close on March 15, 1982. This will be my major source of funds for the project. If for some unforseen reason the property does not sell i will place a second trust deed on the 1802 N. Bush property. FULL NAME Ralph Leroy Kosmides BUSINESS ADDRESS 15041 Golden West Circle. Westminster, CA 92683 PRINCIPAL PLACE OF BUSINESS IN CALIFORNIA Precision Preparation Inc. BUSINESS TELEPHONE NO. (714) 894-7341 RESIDENCE ADDRESS 1906 Court St.- Newport Beach, CA 92663 RESIDENCE TELEPHONE NO. (714) 675-2891 HOME OWNER? Yes DATE OF BIRTH 1-9-56 PLACE OF BIRTH Los Angeles, CA MARITAL STATUS Single HAVE YOU EVER BEEN ARRESTED? YES NO X IF YES, STATE WHERE, WHEN, REASON, AND DISPOSITION OF MATTER DO YOU CONSENT TO BEING FINGERPRINTED? YES X NO I agree that all information supplied may be checked and that such information and any additional information obtained in the course of evaluation of this proposal may be disclosed to the City Council and others concerned as necessay to reach a decision. Dated: March 1 , 1982 SIGNATURE 9,4k. CHARACTER REFERENCES 1. William A. Moses II - Owner/Publisher of the "Tustin News" (714) 544-4110 P-0- Box 486, Tustin, CA 62680 2. Calvin Wells III - Owner of Precision Preparation (714) 894-7341 —15041 GoIrlen West rircle, Westminster,_ CA 92683 3. Barney Klinger - Owner of Applied Equipment Corp. (213) 992-1111 5900 Conoaa St. Woodland Hills, CA 91367 4. Mary Wells - Owner of North Hills Realty. (714) 731-5900 5. Clarence E. Palmer IV - Owner of Triple L Products. (213) CREDIT REFERENCES Checking - 220-006296 Savings - 284-508 1. Security Pacific National Bank, Magnolia & Bolsa, Westminster CA 2. Visa Card # 4070 0002 2000 6297 3. Master Card Card # 4070 0002 2000 6293 4. California Federal S&L Loan # 320 28050535 S. Snap -on Tools- Don Robertshaw (714) 635-4550 PERSONAL FINANCIAL STATEMENT (DO NOT USE FOR BUSINESS) A. of Ma rch 1 19 82 Received at Branch Name Ralph L. Kosm i des Employed P rec i s i on Preparation Years 2-1 /2 �'a�ce leam 1906 Court St. Manager Age Name of Address Position q 26 Spouse Newport Beach, CA 92663 If Employed Less Than 1 Year, Previous Fmployer The undersigned, for the purpose of procuring and establishing credit from time to time with you and to induce you to permit the undersigned to be- come indebted to you on notes, endorsements, guarantees, overdrafts or otherwise, furnishes the following (or in lieu thereof the attached) which is the most recent statement prepared by or for the undersigned as being a full, true and correct statement of the financial condition of the undersigned on the date indicated, and agrees to notify you immediately of the extent and character of any material change in said financial condition, and also agrees that if the undersigned, or any endorser or guarantor of any of the obligations of the undersigned, at any time fails in business or becomes insolvent, or com- mits an act of bankruptcy, or dies, or if a writ of attachment, garnishment, execution or other legal process be issued against property of the undersigned or if any assessment for taxes against the undersigned, other than taxes on real property, is made by the federal or state government or any department thereof, or if any of the representations made below prove to be untrue, or if the undersigned fails to notify you of any material change as above agreed, or if such change occurs, or if the business, or any interest therein, of the undersigned is sold, then and in such case, all of the obligations of the under- signed to you or held by you shall immediately be due and payable, without demand or notice. This statement shall be construed by you to be a continuing statement of the condition of the undersigned, and a new and original statement of all assets and liabilities upon each and every transaction in and by which the undersigned. hereafter becomes Indebted to you, until the undersigned advises in writing to the contrary. ASSETS DOLLARS cents LIABILITIES DOLLARS cents Cash in B of Secy r i ty Pac i f i c (Bra eh) Ck#220-0006296 Savo#284508 Cash in Bol sa & Magnol i a-Westmi nster 6 Notes payable B of (Branch) Notes payable (Other) 1 Accounts payable Taxes payable Contracts payable (To whom) Contracts payable (To whom) Real Estate indebtedness (Schedule A)_ Other Liabilities (describe) 1. 2. 000 00 (Other - give name) Accounts Receivable -Good 4,5001 Stocks and Bonds (Schedule B) Notes Receivable -Good Cash Surrender Value Life Insurance Autos 00 29 500100 (Year -Make) (Year —Make) Real Estate (Schedule A) 62,500 Other Assets (describe) 1. 00 2 00 00 2• 3.- 3. 4: 4• TOTAL LIABILITIES NET WORTH s 43.500 00 TOTAL ASSETS 73 000 00 TOTAL 73 000 00 ANNUAL INCOME a n d ANNUAL EXPENDITURES (Excluding Ordinary living expenses) Salary Salary (wife or husband) Securities Income Rentals Chatsworth Cond;. (1/2) 21 000 00 Real Estate payment (a) (1/2) Rent 3 300 00 3 600 6 000 00 00 1 00 00 Income Taxes Insurance Premiums Property Taxes Other (describe -include instalment payments other than real estate) 1. 11 000 00 Other (describe) 1, 7 / 50 00 2. 3. 4. 2. 5: 3. TOTAL INCOME 26 800 00 TOTAL EXPENDITURES 141650 1 00 LESS -TOTAL EXPENDITURES 14,650 1 00 NET CASH INCOME 12,150 00 (exclusive of ordinary living expenses) FINANCIAL STATEMENT — Individual — WOLCOTTS Form 2000 What assets in this statement are in joint tenancy? Chatsworth Condominium Have you filed homestead? No Are you a guarantor on anyone's debt? No If so, give details Are any encunl;ered assets or debts secured except as indicated? _ Do you have any other business connections? No Are there any suits or judgments against you? No Name of athe,PartyCosmo Kosmides (father) No If so, please itemize by debt and security If so, give details Have you gone through bankruptcy or compromised a debt? No Have you made a will? No Number of dependents 0 SCHEDULE A—REAL ESTATE Any pending? No Location and type of Improvement Title in Name of Estimated Value Amount Owing To Whom Payable 10447 Larwin Ave. Chatsworth,CA(1/2)R.L. Residential Condominium Kosmides 1/2 C K Kosmides 5025,000) 1/2=$62,500 :(59,000) 1/2= 29,500 California Federal SSI SCHEDULE B—STOCKS AND BONDS Number of Shares Amount of Bonds Description Current Market on Listed Estimated Value on Unlisted ar aaatuonat space is needed for Schedule A and/or Schedule B, list on separate sheet and attach. INSURANCE Life Insurance $__ Name of Company Beneficiary Automobile Insurance: Public Liability — yes ❑ no ❑ Property Damage —yes ❑ no ❑ Comprehensive personal Liability -Yes ❑ no ❑ STATI]dafT OF BANK OFFICEP. Insofar as our records reveal, this Financial Statement is accurate and The undersigned certifies that the above statement ( or in lieu thereof, the true. The foregoing statement is (a copy of) the original signed by the maker, attached statement, as the case may be) and supporting schedules, both printed in the credit tiles of this bank. I and written give a full true and cct tat f Assistant Cashier Manager ( one s em ent o the ffnancial conduQon of the undersigned as of the date indicated. Date signed Signature LIST IN ORDER, STARTING WITH THE MOST RECENT, THE FOLLOWING INFORM- ATION ON BUSINESSES IN WHICH YOU WERE EMPLOYED OR HAD AN INTEREST DURING THE PAST FIFTEEN (15) YEARS: NAME OF BUSINESS Precision Preparation Inc Dec I , 7` - Oct 1, 81 Owner DATESO,t 1 ;sem Present Employee ADRESS OF BUSINESS LOW Gol denwest Cir Westminster, Cc 0,260' TYPE OF BUSINESS _Automative and Race C,=:r Enrineerinr and Fpbricaticn INIEREST OR POSITION O-wr,erWec_ 1. 79 -Oct_ I_ '3I) Te&m Manaaer(Oct I to present) NUMBER OF EMPLOYEES to NUMBER SUPERVISED BY YOU or to '1) BUSINESS BANK Pacific City Bank ANNUAL GROSS $ 400.000 IF A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY IF NOT STILL AFFILIATED, REASON FOR LEAVING Sold 0% Interest in October __MI L Remai ned as Team Manager NAM OF BUSINESS _ App lied Eau ipment Co Inc DATES June 19-T3 tc Dec. 1!'7.1' ADDRESS OF BUSINESS 5900 Conoga Ave, Woodland Fills, Ca 91'z TYPE OF BUSINESS General Contractor for .Industrial Ovens, Piping, and Ice Mach, INTEREST OR POSITION Protect Enr;ineering NUMBER OF EMPLOYEES 60 NUMBER SUPERVISED BY YOU 4to t0 BUSINESS BANK Union Bank ANNUAL GROSS Unknown IF A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY IF NOT STILL AFFILIATED, REASON FOR LEAVING Tn Fnrm Prari LIST IN ORDER, STARTING WITH THE MOST RECENT, THE FOLLOWING INFORM- ATION ON BUSINESSES IN WHICH YOU WERE EMPLOYED OR HAD AN INTEREST DURING THE PAST FIFTEEN (15) YEARS: NAME OF BUSINESS Cosmo Kosmi des C nco DATES June 74 to June 78 ADRESS OF BUSINESS 5519 Terrace Dr. La Crescenta, Cao 91214 TYPE OF BUSINESS Subcontractor to Applied Equipment Co. _ Worked part time while attending collece as an INTEREST OR POSITION Electrician, Pipefitter, and Air Cond. & Refries Mech NUMBER OF EMPLOYEES 2 NUMBER SUPERVISED BY YOU I BUSINESS BANK Union Bank ANNUAL GROSS Unknown IF A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY IF NOT STILL AFFILIATED, REASON FOR LEAVING _After Graduation from cc11ece -----1;.�-i RI1i_Appred-fga�po C° ------------------------------------------ NAME OF BUSINESS DATES ADDRESS OF BUSINESS TYPE OF BUSINESS INTEREST OR POSITION NUMBER OF EMPLOYEES NUMBER SUPERVISED BY YOU BUSINESS BANK ANNUAL GROSS IF A SERVICE BUSINESS, THE MAXIMUM NUMBER SERVED IN A DAY IF NOT STILL AFFILIATED, REASON FOR LEAVING