pages: RecreationandParkCommission/2011-10-13.pdf, 7
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RecreationandParkCommission | 2011-10-13 | 7 | The basic deal for the KemperSports Management operation of the Corica Golf Complex is: - Kemper puts up $1 million of their own money up front. - Kemper puts up another $2.5 million over the next 5 years to do golf course improvements. The City matches that amount. - Kemper needs to complete renovation and construction within 5 years. In the first 5 years Kemper will pay the City a flat $50,000 rental rate because the course will be under renovation and will not be generating as much revenue. - Once the construction is done, or by the 5th year, there is a sliding scale rate of rent on a percentage basis (percentage of revenue). - It is a 30 year agreement. - Every year 4% of the operation revenue will be put aside automatically for capital improvement projects that are agreed upon and approved by the operator (Kemper) and the City. - The City will get the initial improvements with the $7 million ($3.5 million Kemper, $3.5 City) plus an ongoing maintenance fund through the duration and length of the contract. - The fee structure; City Council will retain control over resident, youth, and senior fees. All other fees Kemper may request adjustment of up to 4% a year or CPI. The agreement would provide money up front, provides a guaranteed rent to the City, and provides an ongoing source of capital for improvements to the course. Director Lillard stated that the second item (Harbor Bay Island Associates (HBIA) Land Swap) was negotiated by the Planning Department and the City Manager's Office. Those points are: - Calls for an exchange for 12.2 acres (Mif Albright Course) for 12.2 acres on North Loop Road. - City would receive $7.2 million in cash payment, an addition $2.5 million that City would require HBIA to do in traffic mitigation and improvements, HBIA would do environmental impact studies, traffic studies, and every other study needed. There is a graduated scale of payments: Signing of lease - cash payment of $200,000, they will have six months to arrange their financing. If they do not get it done in 6 months, HBIA will make an additional cash payment that will buy them another 3 months. If at any time in the process, should HBIA walk away, the City will keep the payments made by HBIA. The City would use $1.5 million of the payment to develop the North Loop Road property into some configuration of fields. The original drawings show two soccer fields and a baseball field. Based on what is determined on the Park Master Plan, it will probably show that the configuration may be a little different. The City is very short on full-sized baseball fields and multi-use full-size turf fields where soccer, football, and rugby can be played. Chair Restagno clarified that $3.5 million will go to golf. Director stated yes. Chair Restagno stated that $1.5 million will go to build the fields, which leaves $2.25 million. Director Lillard stated which is undesignated at this time. It would be up to Council/City Manager's Office whether it goes to reserves or more fields; that determination has not been made yet. Recreation & Park Commission Mtg. 7 Minutes - Thursday, October 13, 2011 | RecreationandParkCommission/2011-10-13.pdf |