Mike Pacheco, Director of Community Services
APPROVAL OF AGREEMENT WITH
AMERICAN GOLF CORPORATION FOR
OPERATION OF LAS PALMAS
MUNICIPAL GOLF COURSE
Item 10.1
Recommendation
Adopt a resolution to execute an amendment to
the agreement with American Golf Corporation for
the maintenance and operation of the National
City Golf Course to extend the agreement by
Five-Years.
• Agreement extended an additional five (5) years, through February 28, 2031. • Annual rent increase to $100,000 per year.
$28,000 increase
• Standardized 10% gross revenue share across all income categories. F&B + pro shop = Estimated $15,000 increase
Revenue has grown over 42% since FY2022, reaching $217,838 in FY2025 Key Terms - Financial
• New fund requiring 2% of monthly gross income for capital improvements. • Based on survey of golfers.
Key Terms – Capital Improvements
#1 Tee Bridge Replacement (Not included in total)
Tee Leveling & Renovation $95,000
Bunker Drainage Installation $61,000
Clubhouse Restrooms $50,000
Driving Range Refurbishment $40,000
Monument Sign Refurbishment $20,000
Parking Lot Resurface $10,500
TOTAL ESTIMATED COST $276,500
• The city has the right to make emergency repairs without AGC prior permission and AGC must pay the full cost.
• Added a comprehensive indemnity provision requiring AGC to defend, indemnify, and hold harmless the City, its officers, and employees against claims arising from AGC’s operations.
• Added monthly coordination meetings between City staff and AGC management to discuss operations, revenues, maintenance, and community programming. • Added an annual review meeting with the City to assess golf course fees to ensure compliance with the original lease intent and market conditions.
Key Terms
April 21, 2026
• Language added to existing section that this
provision only applied during the first 5 years, to
reflect the current practice.
• Golf lesson program specifically for the youth of
National City throughout the duration of the lease.
• The program is coordinated with the Community
Services Department.
• No Cost to the City.
Key Terms – Free
Golf Lessons
Recommendation
Adopt a resolution to execute an amendment to
the agreement with American Golf Corporation for
the maintenance and operation of the National
City Golf Course to extend the agreement by
Five-Years.