TITLE
Recommendation to authorize City Manager to execute all documents necessary for the Eighth 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
In March 1999, the City Council authorized the execution of the Third Amendment to Lease No. 17448 between the City of Long Beach (City) and American Golf Corporation (AGC). The Third Amendment expanded the scope of AGC’s operation of the City’s golf courses to include the food, beverage and banquet operations (Food Facilities) at Skylinks Golf Course, Recreation Park 9-hole Golf Course and Recreation Park 18-hole Golf Couse (Rec Park 18). The Third Amendment modified the contracted premises to include the Food Facilities at these three golf courses, which included kitchens, snack bars, outdoor patios, storage areas and office space, where applicable. The monthly rent due to the City from the Food Facilities is eight percent of monthly gross receipts from food and non-alcoholic beverages; and twelve percent of monthly gross receipts from alcoholic beverages.
Unlike the other two locations, the Food Facilities at Rec Park 18 did not include office space necessary for coordinating special events and banquets. At the time that AGC assumed the Food Facilities at Rec Park 18, AGC was leasing office space in the same building for its Citywide golf operations. As such, Rec Park 18 special events and banquets were coordinated utilizing existing leased office space. In January 2014, the City Council authorized the lease of the Heartwell Junior Golf Building at Heartwell Park for AGC’s use to consolidate its staff for Citywide operations. Consequently, AGC has vacated its former office space at Rec Park 18 and has no private office space to meet with potential customers onsite for special events and banquets as they do at the other two locatio...
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