HomeMy WebLinkAbout2026-41 - American Golf Corporation - Approval of an Amendment to the Lease and Operating Agreement for the Operation of the Las Palmas Municipal Golf Course RESOLUTION NO. 2026 -41
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 FIVE YEARS, AMONG
OTHER UPDATES TO THE AGREEMENT TERMS.
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, including 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, on December 2, 2025, the parties again discussed extending the Agreement
and extended the Agreement by an additional one hundred twenty (120) days to February 28,
2026 to allow additional time to negotiate potential modifications to the Agreement, and to ensure
continuation of golf course operations in the interim, as approved by the City Council on
December 2, 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 ensure continuation of operations and maintenance of the golf course
under updated terms that better reflect current standards and practices, City staff recommends
approval of an Amendment to the Agreement with American Golf that extends the Agreement by
five (5) years to February 28, 2031; increases the minimum annual rent to $100,000; increases
revenue sharing to 10% for all categories; establishes a Capital Reserve Fund; and makes other
administrative changes, including an indemnity provision, monthly coordination meetings, an
annual review of fees charged, continuation offerings of youth golf lessons, and annual capital
reporting.
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 five years to
February 28, 2031, among other updated terms.
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 21st day of A 2026.
n Morrison, Mayor
ATTEST:
/0-7:Shelley apel, MMC, City Clerk
/44/1
APPROVED AS TO FORM:
Skinner, Interim City Attorney
Passed and adopted by the City Council of the City of National City, California, on April
21, 2026 by the following roll-call vote, to-wit:
Ayes: Bush, Rodriguez, Yamane, Molina, 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: lerY(/*
���' C,A4/////`Epp Shelley Chapel, MMC, City Clerk