TITLE
Recommendation to authorize City Manager to execute all documents necessary for the Seventh Amendment to Lease No. 17448 between the City of Long Beach and American Golf Corporation, a California corporation, for the continued operation of the City’s golf courses and associated activities. (Districts 3,4,5)
DISCUSSION
Heartwell Junior Golf Building
Located on the eastern edge of Heartwell Park adjacent to the Heartwell Park Golf Course Driving Range, American Golf Corporation (AGC) leased City property (Leased Premises) under Lease No. 17448 (Golf Lease) consisting of a 3,100 square foot (SF) office building, more commonly known as the Heartwell Junior Golf building (Golf Building), and an additional 28,760 SF surplus parcel of land (Surplus Parcel) for the operation of the City’s golf courses. In a citywide effort to bring the headquarters of the Special Olympics of Southern California (SOSC) to the City, AGC agreed to vacate the Leased Premises for SOSC’s occupancy in 2007 and relocated its staff into leased modular facilities placed in Heartwell Park. In need of additional office space in order to consolidate all of its operations, in February 2013, SOSC terminated its lease and relocated to larger offices elsewhere in the City. Since SOSC’s departure, maintenance of the Leased Premises has fallen to the Department of Parks, Recreation and Marine (PRM).
AGC has approached the City with a desire to return the Golf Building back to AGC for use by its staff in lieu of the leased modular facilities. AGC and City staff have discussed market rate terms for the lease of the Golf Building, which would include a rent credit for PRM’s non-exclusive use of a 950 SF classroom within the Golf Building for programming space for PRM classes. Further, in order to relieve PRM from annual maintenance costs for the Surplus Parcel, AGC has agreed to maintain the Surplus Parcel on behalf of PRM in exchange for an additional rent credit.
Skylinks Golf Course Bonds
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