Title
Staff Report for a City of San Leandro City Council Resolution Authorizing the City Manager to Enter into a New Management Agreement Between the City of San Leandro and American Golf Corporation and to Authorize the City Manager to Terminate the Existing Lease Agreement between the City of San Leandro and American Golf Corporation
Staffreport
SUMMARY AND RECOMMENDATIONS
With the City's intention of selling a portion of the 9-hole golf course to Cal Coast as part of the proposed Shoreline development project, the recommended action terminates the existing Lease Agreement between the City and American Golf Corporation (AGC), which currently runs through November 14, 2024 (in addition to the option for two additional 5-year extensions, if mutually agreed upon). If authorized by the City Council, the existing agreement would be replaced with a new Management Agreement.
BACKGROUND
The Marina Golf Course was originally built in 1963, while the Tony Lema Course and Everett Rooney Driving Range opened in 1983. Prior to November 1997, these recreational amenities were operated and maintained by the City, and at the time, at a loss to the City. There was significant need for capital improvements to enhance the quality of play and to improve the golfing experience, but with no identified funding source. The City issued a Request for Proposals and seven firms responded. A subcommittee of three councilmembers and two golfers from the public reviewed the proposals and narrowed the field of interviewees down to three firms: AGC, Arnold Palmer Company, and Senior Tour Players.
The general terms of the 1997 Lease Agreement are:
* 20-year term (to commence after completion of Phase III work, which was November 15, 2004) + two 5-year extensions if mutually agreed to;
* AGC to spend $8.1M on renovations including the double-deck driving range and improvements to both courses (plans to include clubhouse renovations were deleted after unexpected additional costs associate...
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