HomeMy WebLinkAbout2026-98 - American Golf Corporation - Amendment to the National City Golf Course Lease and Operating Agreement RESOLUTION NO. 2026-98
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 INCREASE GREEN FEES EFFECTIVE AUGUST 5, 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, following American Golf's exercise of all seven (7)extensions at its discretion,
extending the Agreement to August 31, 2025, City and American Golf agreed to short-term
extensions on August 19, 2025 and December 2, 2025 to allow additional time to negotiate
potential modifications to the Agreement, and to ensure continuation of golf course operations by
American Golf in the interim; and
WHEREAS, to ensure continuation of operations and maintenance of the golf course
under updated terms that better reflect current standards and practices, on April 21, 2026 the City
Council approved an amendment to the Agreement with American Golf that extended the
Agreement by five (5) years to February 28, 2031; increased the minimum annual rent to
$100,000; increased revenue sharing to 10% for all categories; established a Capital Reserve
Fund; and made 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; and
WHEREAS, the most recent amendment to the Agreement did not include changes to the
fees or prices charged by American Golf, which were last modified on May 5, 2021; and
WHEREAS, per the Agreement, fees charged to patrons will be comparable to competing
Southern California public golf courses, and changes in fees require City approval; and
WHEREAS, American Golf has submitted a request to increase fees to become effective
August 5, 2026 to address significant operational and maintenance cost increases accumulated
over the past five (5) years; and
WHEREAS, American Golf estimates that the increased fees will result in a revenue
increase of approximately $170,000 annually to the City; and
WHEREAS, given that it has been over five (5) years since fees or prices were modified,
City staff recommends approval of an amendment to the Agreement increase fees to more
accurately reflect changing times and current industry conditions.
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 increase green fees effective August 5, 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 4th day of August, 2026.
-Mt5Frison, Mayor
ATTEST:
ilcOL
Shelley Chapel, C, City Clerk
APPROVE AS TO FORM:
Heidi Skinner, City Attorney
Passed and adopted by the City Council of the City of National City, California, on
August 4, 2026 by the following roll-call vote, to-wit:
Ayes: Bush, Rodriguez, Yamane, Molina, Morrison
Nays: None.
Absent: None.
Recused: None.
AUTHENTICATED BY: Ron Morrison
Mayor of the City of National City, California
Shelley Chapel
City Clerk of the City of National City, California
00 tNi`r BY:
Shelley Chapel, Mg , S‘,-)1/11A1Q5