SUBJECT/RECOMMENDATION:
Title
Approve a Third Amendment to Lease Agreement between Clearwater Golf Club, LLC, and the City of Clearwater to extend the lease agreement by ten years, from May 1, 2041 through April 30, 2051; increase the amount of rent from 3% to 4% during these additional years; set a schedule to complete additional improvements to the bridges on the course by the Club, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On April 26, 2011, the Council approved a 20-year Agreement between Clearwater Golf Club, LLC. (Club) and the City for the operation of the property known as the Clearwater Country Club, including an annual lease payment of 3% of gross revenue, and improvements to the course totaling approximately $1.1 million dollars.
A first amendment, entered on November 20, 2012, modified certain insurance requirements.
A second amendment, entered into on January 24, 2022, extended the lease by ten years and included an additional investment by the club of approximately $1.2 million to complete capital improvements to the course.
Staff has found the Club’s performance to be excellent including adhering to all terms and provisions of the current Agreement including the improvements to the course of approximately $2 million. Some of the capital investments included renovation of the irrigation systems, bunkers, greens, drainage, parking lot, on course restrooms, clubhouse dining and public areas, mechanical systems in the buildings, a new maintenance building and the purchase of new modernized maintenance equipment.
Nine bridges are installed on the course to get players, golf carts and maintenance vehicles across Stevenson Creek, which dissects the course from north to south. Most of the bridges are over 60 years of age and in need of replacement. Damage has been caused throughout the years by flooding from the creek and the most recent hurricanes have caused the closure of 3 bridges on the course.
All the bridges need to be repaired or replaced within the next five years. Per the current agreement the Club is already committed to repairing or replacing the two pedestrian bridges (#4 and #8). In order to repair and replace the cart path bridges (#1, #2, #3, #7, & #9) and the maintenance bridge #6 the Club is willing to invest between $500,000 to $1,000,000 to make these improvements and in turn ask for an additional ten (10) years to be added to the lease. In the last 10 years of the lease from May 1, 2041, through April 30, 2051, the rent will increase from 3% to 4% of gross revenue.
Staff recommends amending the current agreement as proposed.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
Approval of the proposed agreement amendment supports several Strategic Plan Objectives, including:
• 1.1: Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance.
• 1.3: Adopt responsive levels of service for public facilities and amenities, and identify resources required to sustain that level of service.
• 2.1: Strengthen public-private initiatives that attract, develop, and retain diversified business sectors.
• 2.3: Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
