California State Lands Commission October 19 2012 C

California State Lands Commission October 19, 2012 C 100

Coast Guard Document Registration

Staff Concerns 1) History of failed floating restaurants at the site (How is this different? ) 2) Financial viability of the proposed operation 3) Uncertain ownership/financial interest in the vessel 4) Pending & unresolved trespass action

Staff Recommendation • Deny application for new lease • Move forward with the previously authorized trespass & ejectment action

Lease Conditions • Frank M. Coxe, LLC (Applicant) and Maxim Commercial Capital LLC (Owner of the Vessel) will be Co-Lessees • Maxim Commercial Capital LLC, Frank M. Coxe, LLC, and Lloyd Bothwell personally, insure, indemnify and hold the State harmless from any claims arising from a challenge to their ownership of the vessel.

Lease Conditions • Minimum of $500, 000 surety bond or other security • Lessees shall pre-pay three years of annual minimum rent within 30 days of Commission authorization of the Lease. • Residential use of the Lease Premises is strictly prohibited. • Lessees agree that upon expiration or termination of the Lease, the Lease Premises must be cleared of all restaurant-related improvements, including the vessel, at Lessees’ sole cost and expense.

Surety Options Instrument Co-Lessee Financial Ability to Move Vessel Yes Legal Ability to Dispose of Vessel (Title) Yes Maxim Guaranty Limited Time Bothwell/Higbie Guaranty Maybe Yes Letter No No Party Maxim/Bothwell/ Higbie Tug/Salvage Operator Comments With bond and legal owner as co-lessees, State has financial ability to move vessel and easier legal ability to dispose of vessel. Only good for as long as Maxim holds title to the vessel. If restaurant fails, then financial ability doubtful. Willingness to dispose of vessel? Removal costs likely greater than value of FF&E and scrap value. What if Operator renegs on agreement or goes out of business.

Mutual Release, Cancellation of Lease and Surrender of Premises

Bill of Sale

Chronology of the Site • 1971 • 1972 State Lands enters into an Agreement 4562. 1 among Anza Pacific, Trans. America Title Insurance approving the Anza/Terry’s Operating Company lease while title to the property is resolved. Business License issued for the Showboat: floating restaurant (Terry’s Operating Company, Lloyd Bothwell) Business License issued for the Showboat: (Melody Corporation) Assignment from Melody Corporation to All Brands

Chronology of the Site • 1974 • 1976 Sublease from All Brands to SCI Corporation and Oregon Corp. SCI apparently affiliated with SMC Restaurants and may operate as The Baywinds Restaurant Business License issued for the Gang Plank Landing: (SML Restaurants) Assignment of all State leases from Anza Pacific Corporation to Anza Shareholders’ Liquidating Trust. Building permit was issued to the Anza Shareholders’ Liquidating Trust for the Lucky Lady Restaurant

Chronology of the Site • 1978 Robert • 1978 • 1980 • 1981 Business License issued for Diamond Jims: (Jimmy Katsares) State Lands authorizes a new lease to Sherman Business License issued for Diamond Showboat: (Anthony Katsares) Business License issued for Showboat “ 7”: (J Figueras Fiden Ventures, Inc. ) State Lands authorizes a sublease to Lloyd Bothwell (September) State Lands rescinds prior sublease authorization (November)

Chronology of the Site • 1982 • 1983 • 1984 • 1987 • 1990 Business License issued to Valentino’s Restaurant: (Frank Zemogh) Business License issued to Pattaya Princess: (Alongkorn Tangvararat & Jimmy Tang) Additional sublease added to existing SLC lease Business License issued to A-1 Word Processing Services; office use – no SLC authorization Vessel sinks Insurance documents on file indicate Hong Kong Seafood Restaurant as operator, no sublease authorized by the Commission

Chronology of Site • 2000 • 2002 • 2006 • 2009 • 2011 Business License issued for KKR Enterprises; unknown use – no SLC authorization Business License issued for Warehouse Restaurant - (unknown if site was ever occupied) SLC issued new lease to the Dago Mary’s Corporation for the operation of The Sherman Restaurant operations ceased at the site Received two applications for use of site – one applicant has withdrawn their application