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Home My WebLink AboutSanta Anita Golf Course - 25 Year Lease and Management Agreement tiloe #41100 SANTA ANITA COUNTY GOLF COURSE IN ARCADIA TWENTY-FIVE YEAR AGREEMENT FOR LEASE AND MANAGEMENT SANTA ANITA GOLF COURSE IN ARCADIA 25-Year Lease & Management Agreement ,_ .., : r___,(p _,. L / r 6;;At.; • 'r COUNTY OF LO(' ANGELES -'�..0. 4-A !-z� DEPARTMENT OF PARKS- AND RECREATION / :.1 •,� � 433 South Vermont Avenue Los Angeles, California 90020 (213) 738-2961 Ralph S. Cryder. . . .Director COUNTY OF LOS ANGELES December 18, 1985 BOARD OF SUPERVISORS CITY OF ARCADIA Pete Schabarum J4H 101986 First District CITY MANAGER Kenneth Hahn Honorable Board of Supervisors IC Second District 383 Hall of Administration Edmund Edelman 500 West Temple Street JAN 1 0 1986 Third District Los Angeles, CA 90012 COUNCIL Deane Dana Dear Supervisors: Fourth District APPROVAL OF A TWENTY-FIVE YEAR AGREEMENT MikeAntonovich FOR THE LEASE AND MANAGEMENT OF Fifth District SANTA ANITA COUNTY GOLF COURSE IN ARCADIA (First Supervisorial District) (4 - Vote Matter) PARK AND RECREATION On July 30, 1985 your Board approved a Resolution and COMMISSION Notice of Intention inviting proposals for the lease, James Bishop management and construction of expanded clubhouse facilities ArruroChayra at Santa Anita County Golf Course. This facility is located at 405 South Santa Anita Drive, Arcadia and is owned and Gloria Heer operated by the County. On September 30, 1985 proposals George Ray were due and at that time eight (8) proposals were received Douglas Washington by this Department. The proposers were American Golf Corporation; Philip Bolde; Sam Falzone; Global Golf, Inc. ; Hyung Man Pak; Santa Anita Associates; Ray Swedo; and FISH AND GAME Bruce Wyatt. COMMISSION The proposals were evaluated and the proposers were J.Bradford Crow interviewed by a committee consisting of members of the Charles G.Johnston Departments of Auditor-Controller, Facilities Management and Parks and Recreation. The evaluation criteria used by the Richard Knerr committee included financial and managerial capabilities; the • George Kobayashi nature of the construction program; -the service program to David Lippey be implemented and the amount of rent to be paid the County. Based upon the results of the evaluation of each proposal, negotiations were entered into and an agreement reached with the partnership of Santa Anita Associates, (Bill Donovan, Michael Donovan, Ron Lane and Scott ,, ,;� Henderson) . PARKS ARE FOR PEOPLE *OW *tail • Honorable Board of Supervisors Page Two December 18, 1985 Mr. Bill Donovan, as the principal shareholder and Director of Donovan, Inc. , has successfully managed Willowick Golf Course under a lease agreement with the City of Garden Grove. Beginning in 1975, Mr. Donovan has overseen all pertinent golf course operations at this facility. This includes the course maintenance, driving range, starters service, and a restaurant with cocktail and banquet facilities. Prior to this golf course operation, Mr. Donovan was involved in real estate development. Mr. Bill Donovan's son, Michael Donovan has worked with the senior Donovan at Willowick Golf Course and currently is employed as a Sales Manager at the Beverly Hilton Hotel. Mr. Ron Lane is a residential and commercial builder with over 25 years experience in Southern California. As the owner and president of LanRon companies, Mr. Lane has been engaged in the development of thousands of residential dwellings. Mr. Scott Henderson is the sole owner of Pacific Golf Enterprises whose principal purpose is the acquisition and operation • of private and public golf course facilities. This Department is convinced that the partnership of Santa Anita Associates has developed a management team that possess the financial, • business and golf operations expertise and capabilities required to deliver the services set forth in the attached lease agreement. Accordingly, a twenty-five (25) year lease agreement has been negotiated with Santa Anita Associates. The Lessee shall assume total responsibility for the golf course upon commencement of the term of the contract. The County will provide the golf course premises; consisting of an eighteen hole regulation golf course and the existing clubhouse and maintenance buildings. The Lessee will provide all of the necessary maintenance equipment to properly maintain the golf course and assume the responsibility for golf course utility costs. In this regard, the Lessee will . be required to establish separate ,alectrical service currently serving both the course and the adjacent Arcadia County Park maintenance building and install a separate electrical meter as necessary. Additionally, the Lessee at its own expense will be required to complete an expansion and renovation program at the clubhouse facility. The expansion will include a new banquet room and cocktail lounge. In compliance with the development program specified in ' the agreement, the Lessee shall undertake an estimated $750,000 worth of improvements. The construction shall be completed before the end of the second year of the term and will nearly double the size of the clubhouse. Further, the development shall include the addition of a 65-75 space parking lot to accommodate the expanded facility and its patrons. N1rv' Honorable Board of Supervisors Page Four December 18, 1985 Eleven temporary employees hired in anticipation of the contract will be released. This will enable the Department to transfer permanent employees to equal level positions within the Department and to place permanent employees who are being reduced to lower level positions within the Department. The temporary employees will be referred to both the Lessee and to CAO/Human Resources for other available temporary County positions. The Department has prepared in compliance with the California Environmental Quality Act, the attached Negative Declaration on this project and, is herewith attached for your Board's approval. Therefore it is RECOMMENDED that your Board: 1 . Approve the attached Negative Declaration for this project, said document having been incorporated into the Lease agreement as Exhibit H. Further, certify that your Board has reviewed and considered the environmental information contained in the Initial Study for the proposed project, and determined that the project will not have a significant effect on the environment. 2. Approve and Instruct the Chairman to sign the attached agreement between the County and Santa Anita Associates, for the lease, management, and construction of facilities at Santa Anita County Golf Course. 3. Instruct the Auditor-Controller to establish an interest-bearing trust fund for Santa Anita County Golf Course. The monies contributed thereto shall consist of ten percent (10$) of all greens fees, tournament fees and/or fees for all other uses of the golf course and its facilities to be held and used for improvements specifically for this golf course, at the discretion of the Director of Parks and Recreation. It is requested that a certified copy of your Board's action in this matter and a fully executed copy of the golf course lease agreement be mailed to Santa Anita Associates, c/o Mr. Scott Henderson, 3631-J South Bear Street, Santa Ana, California 92704. Also one fully executed copy shall be retained by the Executive Officer-Clerk of the Board, and conformed copies forwarded to the Auditor-Controller, ,Assessor, County Counsel and to this Department for further processing. Respectfully yours, Pa to4. RIphS. Crder Director SD :tls Attachment cc: Executive Officer (35)