HomeMy WebLinkAboutReso 1986-12594 RESOLUTION NO. 12594
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AMENDMENT NUMBER 1 OF
THE LEASE BETWEEN THE CITY OF CHULA VISTA AND
AMERICAN GOLF CORPORATION FOR OPERATION OF A
PUBLIC GOLF COURSE AND DRIVING RANGE AND
AUTHORIZING THE MAYOR TO EXECUTE SAID
AMENDMENT ON BEHALF OF THE CITY
The City Council of the City of Chula Vista does hereby
resolve as follows:
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula Vista does hereby approve Amendment Number 1 of
the Lease between the City of Chula Vista and American Golf
Corporation for operation of a public golf course and driving
range, dated the 1Dth day of Suer , 1986, a copy of which
is attached hereto and incorporated herein by reference as if set
forth in full.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula Vista be, and he is hereby authorized and directed to
execute said Amendment Number 1 for and on behalf of the City of
Chula Vista.
BE IT FURTHER RESOLVED that said amendment shall be in
effect from and after July 1, 1986.
Presented by Approved as to form by
-~~~i t y~-~ ~ r~e s ~R .~G-~i 1,~A ss is~ta'n~
City Manager City Attorney
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ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this loth day of July
19 ~6 , by the following vote, to--wit:
AYES: Councilmembers COX, MaCANDL£SS, CAMPBELL, MOORE
NAYES: Councilmembers NONE
ABSTAIN: Counci lmembers NONE
ABSENT: Counci 1 members MALCOLM
/~Fa (~,~ ci,y of C.,,,a.:. vi.,o
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 12594 ,and that the same has not been omendedor repealed
DATED
City Clerk
CI1Y OF
CHULA VISTA
CC-660
6/27/86
AMENDMENT NUMBER 1 OF THE LEASE BETWEEN THE CITY
OF CHULA VISTA AND AMERICAN GOLF CORPORATION FOR
THE OPERATION OF A PUBLIC GOLF COURSE AND DRIVING RANGE
THIS FIRST AMENDMENT of the Lease dated October 15,
1984, (hereinafter referred to as "Lease"), made and entered into
this 1st day of July; , 1986, by and between THE CITY OF
CHULA VISTA, a municipal corporation (hereinafter referred to as
"City"), and AMERICAN GOLF CORPORATION (hereinafter referred to
as "Lessee");
W I T N E S S E T H :
WHEREAS, the City and Lessee have heretofore entered
into a lease dated October 15, 1984, in and by which the City,
among other provisions granted to Lessee certain premises for the
operation of a public golf course and a driving range, and
WHEREAS, the City Council considered a proposal from
Lessee, during its meeting of November 26, 1985, to extend the
term of the Lease in consideration of Lessee making certain
parking lot improvements, in addition to those required in the
October 15, 1984 Lease, and paying a higher percentage of its
rent for the operation of the restaurant and bar facility, as
specified in the "Lease Agreement with American Golf Corporation,
a California Corporation and the City of Chula Vista for the
Maintenance and Operation of the Restaurant and Bar Premises at
the Chula Vista Municipal Golf Course dated July 1, 1986, and
WHEREAS, said consideration for this Amendment also
includes Lessee's promise to operate the Restaurant and Bar
Premises, and
WHEREAS, Section 31 of the Lease dated October 15, 1984,
provides for amendment of said Lease by written agreement.
NOW, THEREFORE, in consideration of the covenants and
conditions set forth in the Lease dated October 15, 1984, and the
Lease for the restaurant dated July 1 , 1986, the
parties hereto agree to amend said Lease of October 15, 1984,
except insofar and only insofar as said terms, conditions and
provisions are modified, changed or amended by the further
provisions of this agreement.
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1. Section 2 of the Lease is amended to read as follows:
Sec. 2. Demised Premises. City leases to Lessee and
Lessee takes and leases from City, for the term and upon the
conditions provided in this Lease, the premises, comprising 129
acres, located north of Bonita Road ("Bonita"), as shown on
attached Exhibit A. The demised premises include the golf
professional's shop, the cart storage area, the maintenance barn,
and all fixtures and accessories attached to or belonging to the
demised premises and improvements and any personal property
customarily situated in or utilized in the operation of the
demised premises. The demised premises also includes a parking
lot, the undivided use of which is shared with the restaurant
premises that is the subject of a separate lease.
City agrees to hold Lessee harmless and defend Lessee against any
and all claims that may arise out of City's continued permission
to allow the general public to use the jogging/equestrian trail.
The demised premises excludes those areas shown on Exhibit A and
designated "jogging/equestrian trail" and "restaurant."
2. Section 3 of the Lease is amended to read as follows:
Sec. 3. Term of Lease.
A. The term of this Lease shall be for a period of
twenty-two (22) years commencing November 1, 1984. If Lessee
complies with its lease obligations and responsibilities,
including Subsection C, Lessee will have the option to extend the
term of this Lease, at the conclusion of the initial twenty-two
year term, for an additional five (5) years. At the conclusion
of the initial five (5) year extension, Lessee will have the
option to extend the lease for an additional five (5) years. The
total term of the lease and the two optional extensions shall not
exceed thirty-two (32) years. The right to exercise these
options is dependent upon Lessee's compliance with Subsection C,
not being in default on the date the option periods are to
commence. Lessee must give City written notice of its intention
to exercise such options not less than one hundred eighty (180)
days prior to the end of the Lease term then in effect.
B. Notwithstanding any language in Subsection A to the
contrary, the City and Lessee agree that the rental payments
specified in Section 4 will be renegotiated for each five (5)
year extension. City agrees to consider rental payments then in
effect at all other leased municipal courses in San Diego County,
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but agrees that in no event will the negotiated rental payments
be higher than the highest percentage rate existing in San Diego
County by any comparable municipal course.
C. Notwithstanding any language in this amendment
to the contrary, the provisions of this amended Section 3 shall
be null and void if Lessee terminates the Lease Agreement for the
maintenance and operation of the Restaurant and Bar Premises at
the golf course, which was entered into between the parties
on July 1 , 1986.
This amended Section 3 shall be null and void
if Lessee fails at any time to extend the restaurant lease
pursuant to its terms.
In the event this amended Section 3 is null and
void, the provision of the original Section 3 shall be in full
force and effect. Lessee will be obligated to continue the
operation of the golf course through the option period which
would have been in effect for the lease year if this amendment
had not been agreed to by the parties. Thereafter, Lessee may
exercise any remaining options as provided by the original
Section 3.
3. Section 4A of the Lease is amended to read as
follows:
Sec. 4. Rental.
A. For and in consideration of City executing this
Agreement and granting the rights herein enumerated, Lessee shall
during the term hereof pay to City a minimum annual guarantee as
follows:
A. Year 1 $ 68,400
B. Year 2 74,000
C. Years 3-7 100,000
D. Years 8-12 112,000
E. Years 13-20 124,000
F. Years 21-32 136,000
(Pursuant to Sec. 3C
of this Amendment)
4. Section 9 of the Lease is amended to read as follows:
Sec. 9 Capital Improvements/Master Plan.
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A. Lessee shall finance, construct and complete the
capital improvements specified in the attached Exhibit C within
the periods stated. Prior to the construction of any specific
capital improvement, Lessee will submit its plans for such
improvements to City for City's approval, said approval shall not
be unreasonably withheld. Failure to complete these capital
improvements shall constitute a breach of this agreement and may
result in termination of this Lease at the option of City. All
capital improvements shall be constructed at the sole cost and
expense of Lessee.
B. Lessee and City agree to equally divide the cost of
developing a comprehensive master plan for the three acre parcel
adjacent and to the west of the restaurant in order to insure
that future development on subject parcel will complement the
restaurant and golf course. Lessee's share shall not exceed
~7500. City, as owner of said parcel, shall not allow any use
which would adversely impact the operation of the restaurant, bar
or golf course.
C. Upon completion of the plan specified in Subsection
B, Lessee shall be responsible for and undertake modifications to
the parking as shown in concept in attached Exhibit E and
incorporated herein. The Exhibit may be altered by agreement of
the parties as a result of final engineered plans. Said
modification to the parking lot shall be completed within two (2)
years of the acceptance of the master plan for the westerly three
acres referred to in Subsection B above. Failure of Lessee to
complete the modification will be grounds for City to terminate
this Lease pursuant to Section 17.
D. Lessee shall be entitled to a rent credit of 50% or
$60,000, whichever is lesser, toward the cost of said parking lot
modifications. The rent credit in any one year shall not exceed
$20,000 or one-third of the 50% credit. Said rent credit shall
be spread over a three (3) year period.
5. City and Lessee hereby agree that, except solely as
hereinabove modified, changed and amended, the terms, conditions,
and provisions of said agreement dated October 15, 1984, shall
apply to, and shall govern, this amendment of said agreement, and
any and all further renewals or extensions thereof for any
subsequent periods which may be effected or made under and in
accordance with the provisions contained in said agreement
bearing dated of October 15, 1984.
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IN WITNESS WHEREOF, City has caused this Agreement to be
executed by the City and Lessee has executed the same, all as of
the day and year hereinabove written.
THE CITY OF CHULA VISTA AMERICAN GOLF CORPORATION
Mayor o~ ~e ~t Chula DaVid G. ~ric~
Vista Chairman of Board and
Chief Executive Officer
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