HomeMy WebLinkAboutResolution - 2015-R0237 - License Agreement - Golf Hub - Operating A Glf Driving Range - 07/23/2015Resolution No. 2015-RO237
Item No. 7.6
July 23, 2015
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the City Manager is hereby authorized and directed to negotiate for
and on behalf of the City of Lubbock, a License Agreement between the City of Lubbock and
Golf Hub of Lubbock, for the purpose of constructing, maintaining, and operating a golf driving
range and practice facility with concessions located in McAlister Park, according to the general
terns as specified in Attachment A.
SECTION 2. THAT the finalized License Agreement shall be subject to subsequent City
Council approval.
SECTION 3. THAT because McAlister Park has received state funding and land for
park development and operation, upon receiving the approval of the City Council, the License
Agreement shall not be valid until subsequent approval is granted by the Texas Parks and
Wildlife Department.
Passed by the City Council on this-9th23rd day of July 2015.
ATTEST:
Pt—�-�4 � — A
Rebe ca Garza, City Secretary
APPROVED AS TO. gCOnNT T:
yV `
Scott Snider, City Manager
APPROVED AS TO FORM:
p
Laura raft, Assistant City Attorney
Resolution - Golf Hub of Lubbock Negotiations 7.9.15
July 9, 2015
Resolution No. 2015-RO237
GROUND LEASE PROPOSAL
Landlord: City of Lubbock
Tenant: To Be Determined Golf Entity
Property: Approximately 18 acres located at McAlister Park
See attached aerial photograph
Use of Property: Golf Academy/driving range with restaurant and bar
Rent: Upon opening for business - $100,000 (paid monthly) with 1% annual increase
thereafter.
Term: 20 years
Options: 25 (S) year options
Type of Lease: Absolute net
All expense associated with the property (with the exception of the ring road
maintenance) shall be paid by Tenant.
Special Provisions: Tenant's property with be east of the Hummer track. Also, Tenant will construct
a screening barrier using fences and landscaping on Tenants west property line.
Date: 6/29/2015
To: Lubbock City Council
Subject: Golf Project at McAlister Park
We have met with council members, assistant city attorneys and Scott Snider to identify the various
concerns with our project. Below are the itemized concerns as well as our plan of action to address
each concern:
1. THE SALE OF ALCOHOLIC BEVERAGES INA CITY PARK ADJACENT TO BALL FIELDS.
We have agreed to move our project further east and provide a screening fence with
landscaping. We have received a letter from Western Little League expressing their
support of our project.
2. THE VALUE OF THE LAND.
We have received an appraisal in the amount of $495,000. Our annual rent of $100,000
will provide the city with an annual return of over 20%. The rent will be reinvested back
into McAlister Park. Additionally, we have agreed to increase the rent to $100,000
starting in year one. This gives the city an additional $100,000 in rent over the first two
years.
3. THE SALE OF MEMBERSHIPS.
We agree not to sell memberships which would allow preferential treatment over any
individual desiring to use the facility. Customers will be served on a first come first
served basis. The only reservations taken will be for lessons and corporate/group
events.
4. LEGAL ISSUES OPERATING INA CITY PARK.
We will agree to give the city the right to approve the operator of the facility, approve
the owner or buyer of the facility, audit our annual budget, take possession of the
facility if abandoned, require the facility to be properly maintained, approve our fees
and schedule as are typical for private entities operating in a city park.
Hopefully this adequately addresses your issues and we are available to participate in any discussions
you desire.
iu�
WHWRnu WHOifiieo
PIMMEN UNNHI o
ENHHH"", "ffsB-1BR m
II
Q04