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RESOLUTION NO.
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL
IMPROVEMENT DISTRICT APPROVING A TENTH AMENDMENT TO THE LEASE AGREEMENT BETWEEN V.B. GOLF LLC AND THE CITY OF FOSTER CITY/ESTERO
MUNICIPAL IMPROVEMENT DISTRICT AND AUTHORIZING THE BOARD
PRESIDENT TO EXECUTE THE TENTH AMENDMENT AND FINDING THE
AMENDMENT TO THE LEASE NOT A PROJECT AND IF A PROJECT, IS EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3)
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the Estero Municipal Improvement District entered into a lease agreement on June 10, 1996 with V.B. Golf LLC for the construction and operation of a 9-hole golf course and associated facility at 2401 East Third Avenue, Foster City, California (“Lease”); and
WHEREAS, since 1996, the Lease has been amended a total of nine times with the First through Fifth Amendments and the Seventh Amendments made relatively minor changes to the Lease provisions to allow various subleases for retail and restaurant operations and allow live entertainment and music in the restaurant and bar; and WHEREAS, in 2006, the Board of the Estero Municipal Improvement District approved a Sixth Amendment to the Lease extending the term of the Lease to December 31, 2021, establishing the minimum rent for a term of the lease at $350,000, requiring that V.B. Golf LLC offer its lowest published rates to residents and provide additional community benefits, and requiring V.B. Golf LLC to establish a Capital improvement Reserve Fund for capital improvements; and
WHEREAS, in 2008, the Board of the Estero Municipal Improvement District approved a further extension of the lease for an additional two years until December 31, 2023, with the Estero Municipal Improvement District having an option to extend the lease for a third year, in its discretion, until December 31, 2024 and authorized use of the CIRF funds to assist in construction of driving range improvements; and WHEREAS, in 2023, the Board of the Estero Municipal Improvement District approved a Ninth Amendment to the lease for an additional three years to expire on December 31, 2026, with an option to extend the lease to December 31, 2027; and WHEREAS, the Estero Municipal Improvement District and V.B. Golf LLC desire to enter into another amendment to the Lease to, among other things, extend the Amended Lease term to December 31, 2032; and
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WHEREAS, this Tenth Amendment is not subject to the California Surplus Lands Act guidelines for disposition of surplus lands because, among other things, the Lease was entered into prior to 2019.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL IMPROVEMENT DISTRICT as follows:
1. That approval of the Tenth Amendment is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
2. The Board hereby approve the Tenth Amendment to the Lease between V.B. Golf LLC and the City of Foster City/Estero Municipal Improvement District and authorizes the Board President to execute the Tenth Amendment in the form attached hereto, with minor revisions that may be approved by the Attorney for the Estero Municipal Improvement District, and to execute any other necessary documents to effectuate the terms of the Tenth Amendment.
PASSED AND ADOPTED as a Resolution of the Board of Directors of the Estero Municipal Improvement District at the special meeting held on the 18th day of May, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ART KIESEL, PRESIDENT
ATTEST:
PRISCILLA SCHAUS, DISTRICT SECRETARY