PACIFIC BATTLESHIP

CENTER Permit 899

Carol Wianecki

REAL ESTATE DIVISION

SUMMARY of PERMIT TERMS

PERMIT PREMISES

TERM

10 years, 2 five-year renewable options. Must achieve minimum annual attendance of 100,000 paid visitors for option periods to be considered.

RELOCATION OPTION

Should minimum annual paid attendance of 100,000 not be reached in any year, Port reserves right to relocate vessel to another berth.

COMPENSATION

Period Annual

Minimum

Percentage

Gross

Receipts

Estimated

Annual

Compensation

Years 1-2 $50,000 2%

$108,000

Years 3-5 $100,000 4%

$216,000

Years 6-20

Compensation, both minimum annual and

percentage , to be reset, at least every 5

years, based on market conditions and CPI

ESCROW ACCOUNTS

Towing Fund: 0.25% of monthly gross receipts paid to escrow account, in addition to compensation to Port.

Operation and Maintenance Fund:

0.75% of monthly gross receipts paid to escrow account, in addition to compensation to Port.

USS IOWA

PACIFIC BATTLESHIP IMPROVEMENTS

• New gangways for access, must be in place before ship open to any guests

• Ticket booths

• Restrooms

• Utilities

• Fencing

• Extensive upgrades – interior and exterior

EXISTING PORT IMPROVEMENTS

• Wharf facilities and paved operational area already in place for exclusive use by Pacific Battleship Center, with a current depreciated book value of approximately $6.3 million.

• Parking Lot Redesign – currently in progress, provide for shared use of paid public lot, estimated cost of $1.7 million.

CRUISE OPERATIONS

CRUISE IMPACTS • Relocation of third ship call to Outer Harbor,

Berths 46-47

• Customs site approval

• Use of temporary tents for passenger queuing and screening

• Initial site set up costs: TBD

• Operations cost per vessel: $200k - $300k

• 3 triple-ship days already scheduled for 2013 and 2014

USS IOWA