Title
Staff Report for a Resolution Approving a 5-Year Project Plan for Golf Course Capital Improvements at Monarch Bay Golf Club and Authorizing an Appropriation of $133,000 from the Golf Course Capital Improvement Fund for Capital Improvements at Monarch Bay Golf Club (Tony Lema and Marina Golf Courses)
Staffreport
RECOMMENDATION
Staff recommends that the City Council approve a Resolution authorizing a new 5-year project plan for the Monarch Bay Golf Club and also approve a Resolution for an appropriation from the Golf Course Capital Improvement Project (CIP) Fund in an amount not to exceed $133,000 for planned capital improvements for FY 2015 at Monarch Bay Golf Club (Tony Lema and Marina Golf Courses).
BACKGROUND
American Golf Corporation (AGC) entered into a lease agreement with the City of San Leandro (City) for the renovation and operation of the San Leandro Golf Facility (Monarch Bay Golf Club) on November 15, 1997. AGC's 20-year lease agreement with the City included an $8.1 million renovation of the Tony Lema Golf Course, Marina Golf Course and the Everett Rooney Driving Range. AGC completed the renovation in 2001. AGC's lease agreement also states AGC shall maintain and operate Monarch Bay Golf Club and in return pay the City a percentage rent on all gross revenues derived from the golf facility.
Section 13.9, Establishment of Capital Improvement Fund, of AGC's lease with the City indicates that the City and AGC will establish a Capital Improvement Fund (CIP Fund). The purpose of the CIP Fund will be to refurbish and improve the Golf Facility. As long as the total unexpended CIP Fund is less than $500,000, the Parties will deposit into the CIP Fund annually, in arrears, an amount equal to four percent (4%) of gross green fee, cart fee and driving range fee revenues for such Lease Year. One-half of such amount will be deposited by AGC and one-half of such amount will be deposited by the City.
Separate from AGC's lease of the golf c...
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