CITY OF SALINAS
COUNCIL STAFF REPORT
DATE:
June 2, 2026
DEPARTMENT:
ADMINISTRATION
FROM:
NATHAN KIEU, DEPUTY DIRECTOR OF ECONOMIC DEVELOPMENT
TITLE:
AGREEMENT WITH FUTURE CITIZENS FOUNDATION DBA THE FIRST TEE OF MONTEREY COUNTY FOR OPERATION OF THE TWIN CREEKS MUNICIPAL GOLF COURSE RECOMMENDED MOTION:
A motion to approve a resolution authorizing the Mayor to sign a Sublease Agreement between the City of Salinas and Future Citizens Foundation, a California not-for-profit corporation doing business as The First Tee of Monterey County (TFTMC), for the continued operation of the Twin Creeks Municipal Golf Course as a youth golf learning center and fee-based public golf course, for a twenty-year term commencing July 1, 2026, with one ten-year option to extend.
EXECUTIVE SUMMARY:
The City of Salinas and TFTMC have negotiated a new long-term Sublease Agreement (“Agreement”) for the operation of the Twin Creeks Municipal Golf Course. The proposed Agreement replaces the prior sublease and all amendments, establishing a twenty-year term commencing July 1, 2026, expiring June 30, 2046, with one ten-year option to extend through June 30, 2056.
The Agreement maintains the current annual rent of $60,000, pro-rated through October 31, 2026, transitioning to a nominal rent of $1.00 per year beginning November 1, 2026. The nominal rent reflects the significant community benefit provided by TFTMC's youth programming, TFTMC's assumption of all operational and maintenance responsibilities for the Facility, and the City's final bond payment of $433,500 due November 1, 2026. The Finance Committee reviewed and approved this item on May 12, 2026.
BACKGROUND:
The Twin Creeks Municipal Golf Course was constructed in Fiscal Year 1998-1999 on property owned by the County of Monterey and leased to the City pursuant to a 99-year ground lease commencing June 1, 1997. The ground lease restricts use of the property to recreational purposes only. The City owns the golf course facility and all associated buildings and improvements on the site.
In 2004, the City entered into a Sublease Agreement with TFTMC, a not-for-profit corporation, to operate the Facility as a youth golf learning center and fee-based public golf course. TFTMC is an authorized licensee of the First Tee division of the World Golf Foundation and operates a nationally recognized youth character development program through golf instruction and related programming.
The original Sublease was subsequently amended on two occasions. In 2012, the annual rent was reduced from $287,500 to $125,000 in response to financial hardship experienced by TFTMC. In 2015, the parties renegotiated the agreement, further reducing annual rent to $60,000 and extending the lease term through June 30, 2025. In June 2025, the City Council authorized a one-year extension of the existing sublease through June 30, 2026, to allow additional time for the parties to negotiate a new long-term agreement.
The City does not wish to operate the golf course directly and has no other viable use for the Facility given the recreational use restriction imposed by the County ground lease. If TFTMC were to vacate the Facility, the City would be responsible for all maintenance and operating costs until an alternative recreational operator could be identified. Staff determined that entering into a new long-term agreement with TFTMC on favorable terms is in the best interest of the City, provided that appropriate accountability and performance standards are included.
Since beginning operations at Twin Creeks in 2004, TFTMC has served more than 160,000 youth, with over 13,000 participants being served annually, making it the largest youth development organization in Monterey County. An independent study verified that First Tee participants attend school more regularly and perform better academically than their peers in the Alisal Union School District. The program’s college scholarship pipeline has produced an 84% college graduation rate among participants, compared to a national average of 24 to 27 percent. Since 2016, TFTMC has invested $4.47 million in facility improvements and maintenance at Twin Creeks, absorbing all operational costs while paying $540,000 in lease payments over the same period. The City Attorney’s Office has reviewed and approved the Agreement as to form.
Key terms of the proposed Agreement are summarized below.
Key Terms of the Proposed Agreement:
Term: Twenty (20) year initial term commencing July 1, 2026, and expiring June 30, 2046, with one (1) option to extend for an additional ten (10) years through June 30, 2056, subject to TFTMC's satisfaction of performance and reporting benchmarks.
Rent: $60,000 per year, pro-rated through October 31, 2026. Commencing November 1, 2026, annual rent transitions to $1.00 per year. The nominal rent reflects the significant community benefit provided by TFTMC's youth programming, TFTMC's continued assumption of all operational and maintenance obligations for the Facility, and the City's final bond payment of $433,500 due November 1, 2026. The City retains the right to review the rent structure no more than once every three years.
Permitted Use: Operation of a youth golf learning center and youth character development program consistent with First Tee national program standards, operation of a learning center building for community events and activities, and operation of a fee-based public golf course open to the general public.
Maintenance and Operations: TFTMC assumes full responsibility for all routine and preventive maintenance, building systems, grounds, irrigation, ADA compliance, and hazardous materials management at the Facility, at its sole cost and expense. Detailed Maintenance Standards are set forth in Exhibit B to the Agreement. The City retains inspection rights and the right to perform deferred maintenance and charge costs to TFTMC.
Accountability and Reporting: TFTMC is required to submit an annual program report by September 30 of each year covering youth participants served, program hours delivered, Salinas residency data, golf course operations, financial summary, and capital improvement status. A minimum of 80% of youth program participants at the Salinas site must be residents of the City of Salinas. TFTMC must maintain a minimum of 6,000 unduplicated youth participants annually across all program sites.
CEQA CONSIDERATION:
This action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it involves administrative activities that will not result in a direct or indirect physical change in the environment.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
Yes. Government Code §84308 (the Levine Act) applies to this Agreement.
STRATEGIC PLAN INITIATIVE:
This action supports the City Council's Strategic Plan goals related to Infrastructure, specifically to continue to invest in recreational and public facilities to support the community, and the Youth and Seniors goal to improve, expand, and develop youth and senior facilities and programs.
DEPARTMENTAL COORDINATION:
The City Manager's office coordinated on the Agreement and this report with the City Attorney's office.
FISCAL AND SUSTAINABILITY IMPACT:
The proposed Agreement results in a reduction in annual lease revenue from $60,000 to $1.00 per year effective November 1, 2026. The pro-rated lease payment from July 1 through October 31, 2026, will be $5,000 per month, for a total of $20,000 during that period. The timing of this transition reflects the City’s payoff of its outstanding debt obligation on the Twin Creeks facility. The City’s final debt service payment of $425,000 in principal and $8,500 in interest totaling $433,500, is due November 1, 2026, at which point the City’s financial obligation on the facility is fully retired. The reduction in lease revenue is therefore substantially offset by the elimination of that ongoing debt obligation. In exchange for nominal rent, TFTMC assumes full responsibility for all facility operations, maintenance, utilities, and capital improvements. The proposed Agreement requires no new City budget appropriations and results in no net increase to the City’s operating expenditures.
Fund
General Ledger Number (Operating/CIP)
General Ledger Account Name
Remaining Budget Appropriation
Amount Requested
N/A
N/A
N/A
N/A
N/A
ATTACHMENTS:
Resolution
Sublease Agreement between the City of Salinas and Future Citizens Foundation dba The First Tee of Monterey County (with Exhibits A and B) Original 2004 Sublease Agreement
2012 Services Agreement
2015 Services Agreement
2025 Sublease Extension Agreement
June 17, 2025, City Council Staff Report
First Tee - Salinas Council Presentation Lease 04.20.26