SUBJECT/RECOMMENDATION:
Title
Approve Third Amendment to Lease Agreement between Clearwater Golf Associates, Inc. and City of Clearwater to provide assistance of $58,100.00 to partially offset the cost of installing reclaimed water at the Landings Golf Course and authorize the appropriate officials to execute same.
Body
SUMMARY:
On December 19, 2001, the Council approved a 20-year Agreement between Clearwater Golf Associates, Inc. (Club) 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.
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 extend rent relief for seven years to complete a number of additional improvements needed at the Club.
On July 20, 2017, the Council approved a Second Amendment to the lease to extend rent relief for the remaining 12 years of the lease and set a schedule to complete $400,000.00 of additional improvements to the course by the Club.
Over the past twenty years, the Club has invested over one million dollars in upgrades and improvements to the golf course including renovations to the club house/pro shop, driving range, storage and cart facilities, parking lot, irrigation system, greens, and tee boxes.
Included in the Second Amendment was a requirement that the Club connect to reclaimed water when available. Reclaimed water is now available, and the Club is currently in the process of connecting from well water to reclaimed water. The cost of this project is $116,200.00. The Club is requesting partial relief from these obligations by requesting that the City pay for 50% of the cost to convert to reclaimed water. Staff is recommending that the City participate in the cost of this project by contributing 50% or $58,100.00.
In the future, the City may be required to dispose of all reclaimed water on upland properties rather than disposing excess water into Tampa Bay. This improvement will help in meeting this requirement regardless of how the property is used.
APPROPRIATION CODE AND AMOUNT:
Funding is available in the Parks and Recreation operating code 0101867-530300 Contract Team.
USE OF RESERVE FUNDS:
N/A