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HomeMy WebLinkAboutResolution No. 2023-33�j KENAI CITY OF KENAI RESOLUTION NO. 2023-33 Sponsored by: Administration A RESOLUTION APPROVING AN AMENDMENT TO THE LEASE AND CONCESSION AGREEMENT FOR THE KENAI MUNICIPAL GOLF COURSE AND RECREATION AREA BETWEEN THE CITY OF KENAI AND GRIFFIN GOLF, LLC. WHEREAS, the Kenai Municipal Golf Course is an important asset to the City of Kenai providing recreational opportunities for residents and visitors; and, WHEREAS, the Kenai Municipal Golf Course was constructed on City -owned lands partially restricted by Section 6(f)(3) of the Land & Water Conservation Fund (LWCF), which requires the property to be maintained in perpetuity for public outdoor recreation; and, WHEREAS, on June 7, 1985 the City entered into a 20-year Lease and Concession Agreement with Richard Morgan for the construction and operation of a public golf facility with a 10-year option to extend; and, WHEREAS, on May 28, 1987, the City entered into a second Lease and Concession Agreement for an expansion of the Golf Course with Richard Morgan with similar terms to the first Lease and Concession Agreement; and, WHEREAS, since the initiation of the Lease and Concession Agreements there have been various amendments and assignments, and the Lease and Concession Agreements are currently held by Griffin Golf, LLC, and are set to expire on January 1, 2026 with an option to renew for an additional term of 10 years and an additional option to renew for an additional term of 20 years beginning July 1, 2036; and, WHEREAS, on August 18, 2018, the City granted an amendment to extend the lease term and a reduce the annual lease amount in order for Griffin Golf, LLC to complete an investment of $120,000 in permanent land and building improvements on the premises, which has been completed; and, WHEREAS, Griffin Golf, LLC has successfully managed and improved the golf course for the City of Kenai maintaining an 18-hole course with reasonable green fees; and, WHEREAS, the Leases provide for areas not being utilized for golf to be available to the public without charge for jogging and other uses not inconsistent with the primary use as a golf course; and, WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such an amendment with Griffin Golf, LLC on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council approves the Fourteenth Amendment to the Lease and Concession Agreement for the Kenai Municipal Golf Course and Recreation Area and in the Thirteenth Amendment to the Lease and Concession Agreement for the Kenai Municipal Golf Course and Recreation Area No. II. New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2023-33 Page 2 of 2 Section 2. That pursuant to Article III of the Lease, the Kenai City Council has determined that the green fees shall not exceed Twenty -Five Dollars ($25.00) per person for nine holes of golf on weekdays, and Twenty -Seven Dollars ($27.00) per person for nine holes of golf on weekends. For 18 holes of golf, the green fees shall not exceed Thirty -Five Dollars ($35.00) per person on the weekdays and Thirty - Seven Dollars ($37.00) per person for weekends. Section 3. That the Kenai City Manager is authorized to enter into such Amendments with Griffin Golf, LLC. Section 4. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3RD DAY OF MAY, 2023. A<" Brian Gabriel Sr., Mayor ATTEST: Michelle . Sa MC, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] 'KFNAI City of Kenai 1 210 Pidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Linda Mitchell, Planning Director DATE: April 27, 2023 SUBJECT: Resolution No. 2023-33 - Approving an Amendment to the Lease and Concession Agreement for the Kenai Municipal Golf Course and Recreation Area between the City of Kenai and Griffin Golf, LLC. The City received a request from the lessee of the Kenai Municipal Golf Course, Mark Griffin, proposing an increase in the green fees. He indicates the proposed green fees are comparable rates to other 18 hole courses in Alaska. Article III of the referenced leases state that green fees shall be set at the sole option of the Kenai City Council upon petition by the lessee. The Lessee has been amended over the years, and the most recent amendments (13t' amendment for Parcel A and 12t' amendment for Parcel B) were recorded on September 6, 2018 for incentivizing improvements and additional investments on the golf course. The lease expires on January 1, 2026 with an option to renew for an additional term of 10 years and an additional option to renew for an additional term of 20 years beginning July 1, 2036. Mr. Griffin provided a list of website links to green fees for other Southcentral Alaska courses that show the Kenai Municipal Golf Course will be competitive in the current market. The Council last approved a rate increased in April 2013. The green fees would change as follows: Approved Maximum Rates Proposed - Maximum Rates 2003 2006 2007 2010 2013 2023 WEEKDAYS: 9 holes $10.00 $12.00 $14.00 $15.00 $18.00 $25.00 18 holes $18.00 $20.00 $24.00 $27.00 $28.00 $27.00 WEEKENDS: 9 holes $12.00 $14.00 $16.00 $17.00 $19.00 $35.00 18 holes $22.00 1 $24.00 $26.00 $30.00 $30.00 $37.00 Griffin Golf, LLC is current in payments to the City and Kenai Peninsula Borough. Thank you for your consideration. Attachment Proposed Green Fees Request Page 2 of 2 The City of Kenai www.kenai.city From: Mark and Lara Griffin To: Christine Cunninaham Cc: Terry Eubank: Linda Mitchell Subject: Re: Kenai Golf Course Green fees Date: Friday, April 14, 2023 9:47:41 AM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. If possible, I'd like to have this on the 19th meeting in case there are any issues. Linda, let me know if you have any questions. I can be reached at 907-690-1398. Thanks Current Green Fees: 9 holes: Weekday (Except Holidays) $20 Weekends/Holidays: $22 18 holes: Weekday(Except Holidays) $30 Weekends/Holidays: $32 Seniors: Weekday(Except Holidays) 9 holes: $18 Weekend/holiday $20 18 holes: $28 Weekends/Holidays: $30 Juniors: $12/$20 and $14/$22 We propose changing rates for 2023 to the following: 9 holes: $25.00/$27.00 weekday/weekend/holiday 18 holes: $35.00/$37.00 Weekday/Weekend/holiday Seniors: 9 holes: Weekday: $23.00 Weekend/Holiday: $25.00 18 holes: Weekday: $33.00 Weekend/holiday: $35.00 Juniors: No change Rates at other 18 hole courses in Alaska: httl2s://w-,,,vw.mooser.iigolfcourse.com/daily-rates Rates at 9 hole courses in Alaska: htWs://www.fairbanksgolfcourse.com/ 9 sm. MICIVITZIffew -me FOURTEENTH AMENDMENT TO LEASE AND CONCESSION AGREEMENT KENAI MUNICIPAL GOLF COURSE AND RECREATION AREA THIS Amendment to Lease and Concession Agreement is made as of the day of , 2023, by and between the CITY OF KENAI (City), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and GRIFFIN GOLF, LLC (Lessee), whose address is PO Box 289, Kenai, Alaska 99611. WITNESSETH WHEREAS, on June 7, 1985, the City entered into a lease with Richard I. Morgan, for City -owned lands identified as Exhibit "A", a Preliminary Drawing for Field Survey to be replaced at a later date by a Field Survey, which lease was recorded at Book 265 Pages 720 - 731, on July 8, 1985, in the Kenai Recording District, Third Judicial District, State of Alaska (the Lease); and, WHEREAS, since June 7, 1985, the rights under the Lease have been assigned or transferred to various Lessees and the current Lessee is Griffin Golf, LLC; and, WHEREAS, the Lease has been amended over the years, which amendments are recorded in the Kenai Recording District and are summarized as follows: Amendment to Lease, recorded at Book 362 Pages 004-005, on March 16, 1990, redetermining the green fees; Amendment to Lease, recorded at Book 395 Pages 749-753, on February 21, 1992, incorporated Exhibit "A" and "B" to supersede the Exhibits recorded with the original lease on July 8, 1985; Amendment to Lease, recorded at Book 411 Pages 642-646, on January 19, 1993, redetermining the green fees; Amendment to Lease, recorded at Book 472 Pages 950-952, on October 23, 1995, redetermining the green fees; Amendment to Lease, recorded at Book 515 Pages 816-820, on October 7, 1997, amending the lease rate; Fourteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 1 of 4 Amendment to Lease, recorded at Book 522 Pages 726-729, on February 10, 1998, revising the legal description as follows: Parcel A The unsubdivided remainder of Government Lots 1 and 2, located within the N1/2 NI/2 Section 3, T5N, RI 1 W, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska containing 71.919 acres, according to Plat No. 97-105; Amendment of Golf Course Fees redetermining the green fees dated February 18, 2000 (Lessee and Lessor signed the Amendment; however, it is not recorded in the Kenai Recording District); Amendment to Lease, recorded at 2005-003854-0, on May 11, 2005, redetermining the green fees; incorporating language that is required by the State Division of Parks and Outdoor Recreation and the National Parks Service; granting the City the right to enter and occupy the premises for a ski trail or trails; and, extending the expiration dates for additional ten-year terms to December 31, 2015; Amendment to Lease, recorded at 2007-004091-0, on April 20, 2007, redetermining the green fees; Amendment to Lease, recorded at 2010-003222-0, on April 23, 2010, redetermining the green fees; Amendment to Lease, recorded at 2013-004082-0, on April 29, 2013, redetermining the green fees; Amendment to Lease, recorded at 2015-010220-0, on November 10, 2015, extending the term of the lease with a new lease rate and a 10-year renewal option; Amendment to Lease, recorded at 2018-007904-0, on September 6, 2018, incentivizing improvements and additional investments on the golf course; and, WHEREAS, under article III of the Lease, the Lessee has petitioned the City to raise the green fees. NOW THEREFORE, the parties agree as follows: 1. That pursuant to Article III of the Lease, the Kenai City Council has determined that the green fees shall not exceed Twenty -Five Dollars ($25.00) per person for nine Fourteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 2 of 4 holes of golf on weekdays, and Twenty -Seven Dollars ($27.00) per person for nine holes of golf on weekends. For 18 holes of golf, the green fees shall not exceed Thirty -Five Dollars ($35.00) per person on the weekdays and Thirty -Seven Dollars ($37.00) per person for weekends. 2. Except as expressly modified or stated herein, all other terms and conditions of the Lease (as amended) remain in full force and effect. CITY OF KENAI By: Terry Eubank Its: City Manager GRIFFIN GOLF, LLC By: _ Name: Its: Approved as to form: Scott Bloom City Attorney Fourteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 3 of 4 State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this day of , 2023, by Terry Eubank, City Manager for the City of Kenai. Notary Public of Alaska My Commission Expires: State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this by (Name), GRIFFIN GOLF, LLC. RETURN TO: CITY OF KENAI 210 Fidalgo Avenue Kenai, AK 99611-7794 day of , 2023, (Title) for Notary Public of Alaska My Commission Expires: Fourteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 4 of 4 THIRTEENTH AMENDMENT TO LEASE AND CONCESSION AGREEMENT KENAI MUNICIPAL GOLF COURSE AND RECREATION AREA NO. II THIS Amendment to Lease and Concession Agreement is made as of the day of _ , 2023, by and between the CITY OF KENAI (City), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and GRIFFIN GOLF, LLC (Lessee), whose address is PO Box 289, Kenai, Alaska 99611. WITNESSETH WHEREAS, on May 28, 1987, the City entered into a lease with Richard I. Morgan, for City -owned lands identified as Exhibit "A", a Preliminary Drawing for Field Survey to be replaced at a later date by a Field Survey, which lease was recorded at Book 311 Pages 134 - 143, on May 28, 1987, in the Kenai Recording District, Third Judicial District, State of Alaska (the Lease); and, WHEREAS, since May 28, 1987, the rights under the Lease have been assigned or transferred to various Lessees and the current Lessee is Griffin Golf, LLC; and, WHEREAS, the Lease has been amended over the years, which amendments are recorded in the Kenai Recording District and are summarized as follows: Amendment to Lease, recorded at Book 362 Pages 002-003, on March 16, 1990, redetermining the green fees; Amendment to Lease, recorded at Book 395 Pages 754-756, on February 21, 1992, incorporated Exhibit "A" to supersede the Exhibit recorded with the original lease on May 28, 1987; Amendment to Lease, recorded at Book 411 Pages 639-641, on January 19, 1993, redetermining the green fees; Amendment to Lease, recorded at Book 515 Pages 816-820, on October 7, 1997, amending the lease rate; Amendment to Lease, recorded at Book 522 Pages 726-729, on February 10, 1998, revising the legal description as follows: Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 1 of 4 Parcel B The unsubdivided remainder of Government Lots 3 and 4, located within the N1/2 N1/2 Section 3, T5N, R11W, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska containing 47.788 acres, according to Plat No. 97-105; Amendment of Golf Course Fees redetermining the green fees dated February 18, 2000 (Lessee and Lessor signed the Amendment; however, it is not recorded in the Kenai Recording District); Amendment to Lease, recorded at 2005-003854-0, on May 11, 2005, redetermining the green fees; incorporating language that is required by the State Division of Parks and Outdoor Recreation and the National Parks Service; granting the City the right to enter and occupy the premises for a ski trail or trails; and, extending the expiration dates for additional ten-year terms to December 31, 2015; Amendment to Lease, recorded at 2007-004091-0, on April 20, 2007, redetermining the green fees; Amendment to Lease, recorded at 2010-003222-0, on April 23, 2010, redetermining the green fees; Amendment to Lease, recorded at 2013-004082-0, on April 29, 2013, redetermining the green fees; Amendment to Lease, recorded at 2015-010220-0, on November 10, 2015, extending the term of the lease with a new lease rate and a 10-year renewal option; Amendment to Lease, recorded at 2018-007904-0, on September 6, 2018, incentivizing improvements and additional investments on the golf course; and, WHEREAS, under article III of the Lease, the Lessee has petitioned the City to raise the green fees. NOW THEREFORE, the parties agree as follows: 1. That pursuant to Article III of the Lease, the Kenai City Council has determined that the green fees shall not exceed Twenty -Five Dollars ($25.00) per person for nine holes of golf on weekdays, and Twenty -Seven Dollars ($27.00) per person for nine holes of golf on weekends. For 18 holes of golf, the green fees shall not exceed Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 2 of 4 Thirty -Five Dollars ($35.00) per person on the weekdays and Thirty -Seven Dollars ($37.00) per person for weekends. 2. Except as expressly modified or stated herein, all other terms and conditions of the Lease (as amended) remain in full force and effect. CITY OF KENAI By: Terry Eubank Its: City Manager GRIFFIN GOLF, LLC By: Name: Its: Approved as to form: Scott Bloom City Attorney Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 3 of 4 State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this day of , 2023, by Terry Eubank, City Manager for the City of Kenai. Notary Public of Alaska My Commission Expires: State of Alaska ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this day of by (Name), GRIFFIN GOLF, LLC. Notary Public of Alaska My Commission Expires: RETURN TO: CITY OF KENAI 210 Fidalgo Avenue Kenai, AK 99611-7794 , 2023, (Title) for Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 4 of 4