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<br />will accomplish this. He described the terms of the lease agreement, which is for
<br />a thirty-year period, on expiration of which the facilities revert to the City.
<br />The Host International, Inc., bid consists of minimum base rental, plus a per-
<br />centage of taxable sales. Once the facilities are occupied, the minimum rental
<br />will be $10,000 per year for the first through tenth years, with progression of
<br />_ increase in the rental, so that in the second decade, rent would be $12,500,
<br />and the third, $15,000 annually, with similar acceleration of the percentage of
<br />gross sales, beginning with 1% of gross sales amounting to between $500,000
<br />and $1,000,000, and 2% over the 1 million; minimum percentage the second decade
<br />would be 12% of gross sales over $500,000 and 2-f'% over $1,000,000; and in the
<br />third decade, scaled to 2% and 3%. By way of comparison, he advised that the
<br />Charly Brown restaurant in Burlingame had produced taxable sales in the first
<br />three months of operation just short of 3/4 million dollars .
<br />City Manager continued that the award to Host International, Inc., will still
<br />require approval of the State, which has a copy of the bid documents and no
<br />problem is anticipated. Under new legislation, a permit will be required from
<br />BCDC, since the site will require sinking concrete pilings, and a hearing
<br />has been scheduled this month. A permit is also required from the Corps of
<br />Engineers, which is hoped can be obtained through correspondence.
<br />Councilman Arnett, as Chairman of the Marina Committee, expressed the pleasure
<br />of that Committee that the goal is nearing realization. Councilman Petersen
<br />noted particularly fact that Councilman Rosselli had put a great deal of effort
<br />into promoting this type of operation in the Marina, and felt this should be
<br />recognized.
<br />Dennis Woodman, 111 Wellesley Crescent, Redwood City, representing
<br />the Sequoia Yacht Club, stated there was no objection by that group
<br />to the restaurant, but rather to the site. He produced snapshots
<br />of the area, taken at low tide, for Council to view. He objected
<br />to the location because it would project almost thirty feet into
<br />the channel thus narrowing the channel further. Because many
<br />sailboats are not powered, he expressed concern that the structure
<br />over the water would produce a "blanket" of air, interfering
<br />with the wind current; that there would result either dead air
<br />or turbulent air, affecting the smaller craft in particular, which
<br />in turn, would interfere with navigatiorybf the larger boats.
<br />He expressed concern also about use of the road to the launch ramp,
<br />but was assured this would not be affected. He advised if City does
<br />proceed, he will ask for a public hearing before the U. S. Coast
<br />Guard, BCDC, etc., which must pass on all permits.
<br />Mayor Bury responded to certain of the comments, noting that the Marina came into
<br />existence to serve other recreational uses as well as boating. Also that the
<br />Yacht Club had once proposed building its own facilities on this particular site,
<br />and that these were the same individuals and equipped with the same understanding
<br />of the sailing fraternity.
<br />Councilman Rosselli indicated that, having been a member of the Marina
<br />Committee, he was surprised to hear these complaints, since in the preparation
<br />and negotiations, the Yacht Club had been assured every facet of the situation
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