pages: CityCouncil/2012-07-24.pdf, 3
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CityCouncil | 2012-07-24 | 3 | The Assistant City Manager stated the amount in the Fund would go below $1 million; the City has to pay [Greenway] $1 million; expenses have to be paid out of that $1 million, which cannot be put into an escrow account; the amount would be reimbursed. The City Manager stated the City has $1 million today, which could be put into an escrow account; however, course renovation will lower play; projections are conservative; staff thought the $1 million should be held back until the new Lessee puts up money; the City is would pay later instead of putting the money up now. Councilmember Johnson inquired why the City has a $110,000 loss; questioned whether the loss would be the tenant's loss. The Assistant City Manager responded the City is retaining certain charges, such as $130,000 debt service on the driving range; stated the debt was incurred in 2002 and refinanced in 2008; staff did not feel the operator should take on the cost because costs would be incurred to update the driving range; the City is also paying an urban runoff fee, which brings the amount to $210,000; Greenway is paying the City $100,000 for lease, inventory and equipment each year causing a negative balance of $110,000 for the City each year for the first four years. Councilmember Johnson inquired how the $110,000 affects the City, to which the Assistant City Manager responded the amount is coming out of the Golf Fund. Councilmember Johnson's inquired whether whatever is left over after the $110,000 is taken would be part of the $1 million. The Assistant City Manager responded in the affirmative; stated the City still has to come up with funds to reach $1 million. Councilmember Johnson stated the [$110,000 annually] should be part of the $1 million. The City Manager stated the Request for Proposals (RFP) represented that the City would contribute $1 million toward capital improvements of the Course. Councilmember Johnson stated the City should just give the operator $1 million; the City is going to give $1 million, plus maybe $110,000 every year. The City Manager stated the City would not give the $1 million until year three; the fund would have $330,000 less than $1 million because $110,000 is being spent annually. Councilmember Johnson stated that she is proposing that the City should give Greenway the balance left at said time; the City would be making up the $330,000 difference to still come up with $1 million. The City Manager clarified that the City would have to come up with the $330,000 Regular Meeting Alameda City Council 3 July 24, 2012 | CityCouncil/2012-07-24.pdf |