RESOLUTION NO. _______ (N.C.S.)
A RESOLUTION APPROVING THE SUBLEASE AGREEMENT BETWEEN THE CITY OF SALINAS AND FUTURE CITIZENS FOUNDATION DBA THE FIRST TEE OF MONTEREY COUNTY FOR THE OPERATION OF THE TWIN CREEKS MUNICIPAL GOLF COURSE WHEREAS, 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, which restricts use of the property to recreational purposes, and the City owns the golf course facility and all associated buildings and improvements on the site; and WHEREAS, in 2004, the City entered into a Sublease Agreement with Future Citizens Foundation, a California not-for-profit corporation doing business as The First Tee of Monterey County ("TFTMC"), to operate the Facility as a youth golf learning center and fee-based public golf course; and WHEREAS, the original Sublease was amended in 2012 to reduce annual rent from $287,500 to $125,000, and again in 2015 to further reduce annual rent to $60,000 and extend the term through June 30, 2025; and WHEREAS, 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; and WHEREAS, 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, and 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; and WHEREAS, the City and TFTMC have negotiated a new long-term Sublease Agreement (“Agreement”) establishing a twenty-year initial term commencing July 1, 2026, and expiring June 30, 2046, with one option to extend for an additional ten years through June 30, 2056, subject to TFTMC's satisfaction of performance and reporting benchmarks; and WHEREAS, the proposed 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, in recognition of the significant community benefit provided by TFTMC's youth programming, TFTMC's assumption of all operational and maintenance responsibilities for the Facility, and the payoff of the City's bond debt service of $433,500 per year associated with facility improvements on November 1, 2026; and WHEREAS, the proposed Agreement requires TFTMC to submit annual program reports, maintain a minimum of 80% Salinas residency among youth program participants at the Salinas site, and maintain a minimum of 6,000 unduplicated youth participants annually across all program sites; and WHEREAS, the City Attorney's Office has reviewed and approved the Agreement as to form; and WHEREAS, this action is not a project under the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Salinas that the above recitals are true and correct and are incorporated herein as findings of the City Council; and BE IT FURTHER RESOLVED that the City Council hereby approves the Sublease Agreement between the City of Salinas and Future Citizens Foundation dba The First Tee of Monterey County for the operation of the Twin Creeks Municipal Golf Course, for a twenty-year initial term commencing July 1, 2026, with one ten-year option to extend, substantially in the form presented to the City Council; and BE IT FURTHER RESOLVED that the City Manager, or designee, is authorized to execute the Sublease Agreement and all related documents on behalf of the City, subject to approval as to form by the City Attorney.
PASSED AND APPROVED this 2nd day of June, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
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Dennis Donohue, Mayor
ATTEST:
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Patricia M. Soratos, City Clerk