Ordinance 3209CITY OF ALAMEDA ORDINANCE NO. 3209
New Series
APPROVING A FIRST AMENDMENT TO LEASE WITH GREENWAY
GOLF ASSOCIATES, INC., A CALIFORNIA CORPORATION, FOR
CHUCK CORICA GOLF COMPLEX
WHEREAS, the City is owner of the real property commonly known as the Chuck
Corica Gold Complex ("Golf Complex") located at 1 Clubhouse Memorial Road, Alameda,
California 94502; and
WHEREAS, after an extensive RFP process, the City entered into a 20-year lease
agreement with Greenway Golf Associates, Inc. ("Greenway") to operate and maintain
the Golf Complex, which lease was dated as of August 1, 2012 (the "Lease"); and
WHEREAS, as required by the Lease, Greeway has successfully renovated the
Mif Albright 9-Hole Par 3 Course and Driving Range and has nearly completed
construction of the South Course, for which it invested $5.5 million and the City invested
$1. Million; and
WHEREAS, after having operated and maintained the Golf Complex for over five
years, Greenway has concluded that certain drainage and other infrastructure problems
at the North Course will not be appropriately mitigated by the improvements required by
the existing Lease; and
WHEREAS, Greenway has proposed a lease amendment in order to properly
address the North Course infrastructure needs, as well as improvements to the
clubhouse, golf shop and outdoor patio space; and
WHEREAS, to facilitate said improvements, the City desires to amend the Lease
to extend the term from twenty (20) years to forty (40) years with one ten-year option to
extend and expand Greenway's renovation obligations to include course drainage and
contouring, improvement of golf course waterways, repair and rebuild of greens, tree,
fairways, roughs and sand bunkers, expand the outdoor patio, remodel the clubhouse
and install a dedicated fire sprinkler system and main water supply line, in partial
consideration for which certain additional rent concessions will be granted to help offset
the additional capital improvement costs to be incurred by Greenway; and
WHEREAS, the capital value invested by Greenway from the original Lease
together with that to be invested under the lease amendment totals $16,500,000 and the
City's contribution totals $3,350,000, including a $1,000,000 payment toward the South
Course construction, reduced rent and repair and restriping of the parking lot which the
City will complete within 24 months of the effective date of the lease amendment; and
WHEREAS, the North Course improvements are subject to a Project Labor
Agreement between Greenway and Operating Engineers and Laborers Union #304
Alameda and all Greenway construction employees will participate in one of these unions
for the duration of the North Course project; and
WHEREAS, pursuant to City Charter Article XXII Section 12, the City Council,
without requiring a public vote, may lease public park property which is defined to include
the Golf Complex
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda
that by four affirmative votes that:
Section 1. The City Manager of the City of Alameda or his designee is hereby
authorized to negotiate, execute, for and on behalf of the City of Alameda, a lease
amendment with Greenway Golf Associates, Inc., a California corporation, for the
operation and maintenance of the Golf Complex for a forty year term, subject to such
technical or clarifying revisions as are reasonably determined necessary by the City
Manager and approved by the City Attorney, and the City Clerk is hereby authorized and
directed to attest to the same.
Section 2. If any section, subsection, sentence, clause or phrase of this ordinance
if, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this ordinance. The City Council
of the City of Alameda hereby declares that it would have passed this ordinance, and
each section, subsections, clause, or phrase hereof, irrespective of the fact that any one
or more sections, subsections, sentences, clauses and phrases are declared to be invalid
and unconstitutional.
Section 3. This ordinance shall be in full force and effect from and after the
expiration of thirty (30) days froni the date of its final passage.
Attest:
Lara Weisiger, C lerk
Presidingk10‘ffic r of City Council
I, the undersigned, hereby certify that the foregoing Ordinance was duly and
regularly adopted and passed by the Council of the City of Alameda in a regular
meeting assembled on the 20th day of March, 2018, by the following vote to wit:
AYES: Councilmembers Ezzy Ashcraft, Matarrese, Oddie,
Vella and Mayor Spencer — 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 21st day of March, 2018.
Lara Weisiger, ity Clerk
City of Alameda
APPROVED AS TO FORM:
Ja-CZ ern, City Attorney
City ofLA ameda