Fremont City Council Meeting: 12/17/24 07:00 PM
3300 Capitol Avenue Div/Dept: Community Services
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5309) DOC ID: 5309 A
Updated: 12/12/2024 8:31 AM by Dina Lewis A Page 1
AMENDMENT OF FREMONT PARK GOLF COURSE LEASE - Approve an Amendment to Extend the Current Lease Agreement and Authorize City Manager or Her Designee to Execute Further Extensions Based Upon Agreed Facility Improvements.
Contact Persons:
Name: Michael Sa Kim Beranek
Title: Deputy Director of Community
Services
Community Services Director
Div/Dept: Community Services Community Services
Phone: 510-494-4372 510-494-4330
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to recommend approval of amendments to the Fremont Park Golf Center lease agreement with Brilrand Golf Corporation (Brilrand) to extend the lease for one year with a 9-year renewal option after the completion of beautification requests made by the City. The nine-year renewal period would include further upgrades by Brilrand within the term of the extension to ensure improvements to the facility and course.
BACKGROUND: Fremont Park Golf Center is a community resource and the guiding principles for the facility lease are to maintain its financial viability, encourage the golf operator to invest in the golf facilities by making strategic improvements, continue professional services to the public, and increase golf programs to the community, especially for youth and families.
Brilrand Golf Corporation (Brilrand) has operated the Fremont Park Golf Course and Practice Center since 2012 when it assumed the lease from VB Golf (due to financial hardship) who had operated the course since 2001. When Brilrand Golf assumed the lease, the golf center had been operating at a loss for the previous five years and required an infusion of cash to remain viable. The transfer of the lease to Brilrand Golf allowed the City to continue offering a quality executive 9-hole golf course while working with a tenant who agreed to provide much needed capital upgrades to the golf facility.
With the current lease agreement ending on December 31, 2024, negotiations have recently been completed with Brilrand for a lease extension. Staff is recommending an initial one-year term with a nine-year option to extend the relationship through December 31, 2034.
DISCUSSION/ANALYSIS: Brilrand has an open dialogue with the City and has created a sense of community with its customers. Staff at Brilrand work directly with the customers encouraging customer feedback and Briland has invested in hiring quality instructors.
Brilrand has been a valued tenant and partner of the City. Brilrand continues to improve operations and ultimately envisions a state-of-the-art golf facility that provides an improved golf experience and meets the high standards of local patrons. Unfortunately, Brilrand Golf has not made significant upgrades to the golf course, driving range and pro shop since the Council Staff Report (ID # 5309) Meeting of December 17, 2024 Updated: 12/12/2024 8:31 AM by Dina Lewis A Page 2
COVID pandemic. Staff recently conducted a site visit and identified some areas in need of improved maintenance and beautification.
Year One Completion of Beautification Requirements: For the City to agree to a nine-year renewal option following the one-year extension, Brilrand will need to meet Beautification Requirements outlined by the City to be completed by July 1, 2025. These requirements include, but are not limited to, pruning and removal of unkempt planter areas, cleaning the Pro Shop building, painting fences/signs, clearing pedestrian walkways, tree trimming etc. The City will work with Brilrand to develop a punch list of items that will need to be completed prior to the deadline.
If the agreed upon beautifications are completed by July 1, 2025, the City will execute the nine-year renewal for years 2-10 of the amendment, during which Brilrand has agreed to additional capital improvements, including but not limited to:
• Replacing the irrigation pump;
• Upgrading the driving range lights to LED;
• Replacing or redesign to improve the driving range synthetic turf target area; • Painting of the club house and restaurant;
• Installation of solar panels over the driving range for environmental sustainability; and
• Installation/replacement the concrete cart path throughout the entire course.
If the beautification requirements are not completed by the deadline, the nine-year renewal option will not be granted and other opportunities for the facility will be considered, or renewal terms will be renegotiated and brought back to City Council for approval.
FISCAL IMPACT: Brilrand currently pays $12,500 a month for rent to the City plus 15% of gross revenues, if higher than aggregate annual base rent. This rent will not increase during this agreement allowing Brilrand to invest any net profit back into the infrastructure and continued improvement of the Golf Course and supporting facilities. However, in years 2-10, if the agreed upon capital improvements are not completed by the mutually agreed upon dates, a monthly rent increase of 5% will be added on January 1st of each calendar year for years 2-10 of this agreement. There will be no fiscal impact in regard to capital improvement, as Brilrand will assume all financial liability for those improvement projects.
ENVIRONMENTAL REVIEW: Approval to continue the existing Park Golf Center lease is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/or 15378(b)(5) and as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment per CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance..
The improvements to be negotiated and agreed upon by the parties are exempt from the California Environmental Quality Act (CEQA), without limitation, pursuant to CEQA Guidelines Section 15301, Existing Facilities, and CEQA Guidelines Section 15311 as a minor accessory structure appurtenant to an existing institutional facility. The improvements will be completed within an existing area of an established park and do not expand the park’s boundaries and are typical upgrades to a park use.
Council Staff Report (ID # 5309) Meeting of December 17, 2024 Updated: 12/12/2024 8:31 AM by Dina Lewis A Page 3
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager, or designee, to negotiate and execute an amendment to the Golf Course Facility Lease providing for a one-year extension and the addition of nine more years through December 31, 2034, contingent on beautification requests being completed by Brilrand Golf Corporation by July 1, 2025.