HomeMy WebLinkAbout2025-178 - American Golf Corporation - Amendment to the Agreement for the Operation of the Las Palmas Municipal Golf CourseRESOLUTION NO. 2025 - 178
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
AUTHORIZING THE MAYOR 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 ONE HUNDRED
TWENTY DAYS TO FEBRUARY 28, 2026.
WHEREAS, on May 3, 1984, the City of National City ("City") and American Golf
Corporation ("American Golf") entered into a Lease and Operating Agreement for the Las Palmas
Municipal Golf Course (the "Agreement") for operation of the golf course located at 1439
Sweetwater Rd. for an initial term of five (5) years, with the option for seven (7) five-year
extensions at the discretion of American Golf, plus two (2) additional five-year option periods at
the discretion of City; and
WHEREAS, on July 2, 1985, City and American Golf amended the Agreement to modify
language related to the "Construction Period," from which time the lease term would commence,
and subsequently entered into a number of other amendments to the Agreement to address
contractual and operational updates, include fee updates; and
WHEREAS, American Golf has exercised all seven (7) extensions at its discretion,
extending the Agreement to August 31, 2025, and requested an offer of an additional five-year
extension from City; and
WHEREAS, the parties discussed further extending the Agreement through exercise of
the City's option but, instead, extended the Agreement for sixty (60) days to October 31, 2025 to
allow time to evaluate the requested extension and consider potential modifications to the
Agreement, as approved by the City Council on August 19, 2025; and
WHEREAS, under the Agreement, American Golf currently pays $72,000 annually for the
operation of the property and an additional 10% of sales from green fees, cart rentals, and driving
range, plus 6% of sales from pro shop, food and beverage sales; and
WHEREAS, to avoid any interruption in operation or maintenance of the golf course while
allowing additional time for negotiation of potential modifications to the Agreement, City staff
recommends approval of an Amendment to the Agreement with American Golf to extend the
Agreement by one hundred twenty (120) days to February 28, 2026.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: That the City Council hereby authorizes the Mayor to execute an
Amendment to the agreement with American Golf Corporation to extend the agreement by one
hundred twenty days to February 28, 2026.
Section 2: That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 2"d day of December, 2025.
R Morrison, Mayor
ATTEST:
ivl- Shelley iapel, MMC, City Clerk
APPROVED AS TO FORM:
arty J. z, City Attorn y
Passed and adopted by the City Council of the City of National City, California, on
December 2, 2025 by the following roll -call vote, to -wit:
Ayes: Molina, Rodriguez, Yamane, Bush, Morrison
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: Ron Morrison
Mayor of the City of National City, California
Shelley Chapel
City Clerk of the City of National City, California
BY:('V,
Shelley 01pel, MMC, City Clerk