SUBJECT/RECOMMENDATION:
Title
Approve a Second Amendment to Lease Agreement between Clearwater Golf Associates Inc. (Club), and the City of Clearwater (City) to extend rent relief for the remaining twelve years of the Agreement, set a schedule to complete irrigation replacements to the course by the Club and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On December 19, 2001, the Council approved a 20-year Agreement between Clearwater Golf Associates Inc. and the City for the operation of the property known as Clearwater Executive Golf Course, including an annual lease payment, and improvements to the course.
Staff has found the Club’s performance to be excellent including adhering to all provisions of the current Agreement which included investing over $1,000,000 of improvements to the course during the first five years.
On February 4, 2010, the Council approved a First Amendment to the Lease Agreement to increase the length of the Agreement by seven years from 20 years to 27 years; and extended rent relief for seven years to complete a number of additional improvements needed at the Club.
The City and Club have determined that additional capital improvements of approximately $400,000 are needed in order to replace the entire irrigation system on the course. The existing system was originally installed when the course first opened in 1971 and has been under constant repair ever since. It has now gotten to the point that the entire system needs to be updated and replaced in order to give the necessary coverage needed to maintain a first class facility.
Staff recommends amending the current Agreement to allow for rent relief for the remainder of the agreements twelve years in order for the Club to replace the existing irrigation system within the next five years and in return reduce the base rental payment from $48,000 per year to $12,000 per year.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A