Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute Amendment No.1 to the Management Agreement with American Golf Corporation (AGC) for the Monarch Bay Golf Course
Staffreport
COUNCIL PRIORITY
? Improve Infrastructure
? Support Quality of Life
SUMMARY
On June 1, 2020, the San Leandro City Council adopted Resolution No. 20-175 authorizing the City Manager to execute a Management Agreement with American Golf Corporation (AGC) that runs through November 14, 2024. Amendment No. 1 extends the agreement for an additional 5-year term. The extension includes the specific contributions and conditions outlined in the agreement. It will enable AGC to continue managing Monarch Bay Golf Course while the City conducts further analysis and planning for future capital improvements and potential alternative operating models. The continuation of this agreement is considered beneficial to the City, ensuring a consistent level of service and financial returns.
RECOMMENDATION
Staff recommends the approval of Amendment No. 1 to the Management Agreement with American Golf Corporation (AGC) to extend the term for an additional five-year term.
BACKGROUND
The Monarch Bay Golf Course has been managed by AGC under various agreements since 1997. The Shoreline Development purchase and sale agreement in early 2020 included a portion of the land where the 9-hole Marina Golf Course is located. The sale of the land reopened the lease agreement between the City and AGC. As a result, both parties agreed to terminate the lease agreement and enter into a management agreement with an initial term ending November 14, 2024. Per the new agreement, AGC is paid a base management fee of $150,000 annually and an incentive management fee of 20% of all net revenues over $750,000.
The management agreement provides the City with greater control over operations and capital improvements by ensuring that all revenues are deposited directly into the City's Golf Enterprise Fund, an...
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