HomeMy WebLinkAboutTayman Park Golf Group 2012-07-01; Addendum 4 2018-10-17 cou No. 1(41-,- 11 Z_m
ADDENDUM NO. 4 TO UKIAH MUNICIPAL GOLF COURSE LEASE AGREEMENT
This Agreement("Addendum No. 4") entered in Ukiah, California on O(A. 11 , 2018
("Effective Date"), amends the Municipal Golf Course Lease Agreement("Lease"), dated July 1,
2012,between the City of Ukiah("Lessor" or"City"), a general law municipal corporation, and
Tayman Park Golf Course Group, Inc. ("Lessee" or"TPGG"), a corporation in good standing
under the laws of the State of California. Addendum No. 3, dated March 13, 2018 and this
Addendum No. 4, the original terms of the Lease remain in full force and effect between the
Parties in accordance with its terms. Lessor and Lessee may be referred to herein as "Parties"
and individually as "Party."
RECITALS:
1. Addendum No. 3 added to and amended the Lease without referencing specific sections of the
Lease. For example, Section 3 of the Lease provided an Initial Term of 10 years, commencing on
July 1, 2012, and included two options to extend the Initial Term by 5 years each. Section 7 of
Addendum No. 3 extends the term of the Lease for 10 years from the Purple Pipe Date, as
defined in Section 1 of Addendum No. 3, if that date occurs within the Initial Term of the Lease
(e.g.,prior to March 31, 2023) with the two 5-year options to extend the term available at the
expiration of the Extended Term.
2. Because the section numbers in Addendum No. 3 do not specifically reference the section
numbers in the Lease which were amended by Addendum No. 3, this Addendum No. 4, amends
sections in Addendum No. 3.
3. The sections in Addendum No. 3 amended by this Addendum No. 4 continue to amend the
Lease which remains in full force and effect, except as expressly amended by Addendum No. 3,
as amended by this Addendum No. 4.
4. All definitions used in this addendum are defined in Section 1 of Addendum No.3.
AGREEMENT:
WHEREFORE, in reliance upon the above-recitals and the terms and conditions stated below,
and for good and valuable consideration,the receipt and adequacy of which is hereby
acknowledged,the Parties agree to amend Addendum No. 3 as follows.
Section 10. TPGG Required Improvements to Cart Paths and Club House.
A. 1. During the period February 15 —September 15, 2018, TPGG commenced design and
construction and completed club house food& beverage facilities and related club house
improvements, using plans and at costs pre-approved and accepted by City. In such design and
construction TPGG was required to spend up to five-hundred and twenty thousand($520,000)
dollars.
1
B. Within two weeks following the Purple Pipe Date, or sooner if agreed to by TPGG and the
City Manager, TPGG shall commence design and construction of the complete rehabilitation of
the golf course cart paths ("Project Commencement Date") according to plans and at costs pre-
approved and acceptable to City at City's sole discretion. The cart path rehabilitation shall be
completed within four(4) months of the Project Commencement Date, or sooner if possible.
TPGG commits to complete the project using up to two-hundred thousand dollars ($200,000) of
its funds, or the actual amount required to complete the project to City's satisfaction, if the
project can be completed for less than$200,000.
C. Upon City's approval of the completed club house improvement project, TPGG shall be given
a credit of fifty(50%)percent of the actual amount spent to complete the project, based on an
accounting approved by City; provided that the credit shall not exceed two hundred sixty
thousand dollars ($260,000), if the actual amount spent exceeds five-hundred and twenty
thousand dollars ($520,000). Commencing in FY2018, the amount of the credit shall be reported
to TPGG by the City Finance Director and shall be applied towards the CIP requirement in
Section 4.2 of the Lease at$40,000 per year or prorated part thereof. After all of the credits
described in Subsections C and D have been used to satisfy Lessee's obligation to make CIP
contributions as provided herein, the required CIP contribution going forward will be calculated
as adjusted for inflation from July 1, 2018 in the manner described in Section 4.2 of the Lease.
D. Upon City's approval of the completed cart path improvement project, TPGG shall be given a
an additional credit to the credit provided in Section 10.C, above, of sixty(60%)percent of the
actual amount spent on the cart path project; provided that the credit shall not exceed one
hundred twenty thousand dollars ($120,000), if the total cost of the project, based on an
accounting approved by the City, exceeds two-hundred thousand ($200,000) dollars. Such credit
amount shall be reported to TPGG by the City Finance Director and shall be applied towards the
CIP requirement of Section 4.2 of the Lease at$40,000 per year or prorated part thereof after the
credit calculated in Section l OC has been applied. At the exhaustion of all credits described in
Subsections D and C, the required CIP contribution going forward will be calculated as adjusted
for inflation from July 1, 2018 in the manner described in Section 4.2 of the Lease.
WHEREFORE, the Parties have entered this Agreement on the Effective Date.
City of Ukiah:
By:
<,�_<S:�
S —ng iac o, City Manager
Attest:
bAvv� "Ll,
Kristine Lawler, City Clerk
Approved as to form:
2
Davi . Rapport, Ci Attorney
TAYMAN PARK GOLF GROUP, INC.,
Lessee
Its:
3