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AGENDA ITEM INFORMATION SUMMARY
GENERAL INFORMATION:
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Author Fz" /1 :rmVl<\; Ext.
Ward t;:" Project Area 5 &
Budget Authority, AJ I If
Committee
CommissionlCouncil
Filing Dates
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Meeting Dates ;2 - 2, 2 -<70
Funding Requirements AI d1t 1.
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Date
Date
RDA MANAGEMENT REVIEW:
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AdmilillraliYe Deputy
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M8nag<<lSupervilOl'
CITY DEPARTMENTAL REVIEW:
Date
Depl By
Depl By
CLEARANCES:
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City Atlllmey
City Administrall:lr
RDA Committee recommendation
INFORMATIONAL DATA FORWARDED TO CITY DEPARTMENTs/COUNCIL OFFICES:
Sent to
Mayor's Office
Council Ward
Council Ward
Council Ward
Council Ward
Department
Department
By
Date
COMMENTS/CONCERNS: Include pertinent comments and concerns of offices and persons clearing the
aummary, such as controversial Issues, time constraints and funding complications. Indicate dates when
action must be taken.
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RDA -174
REV. 6-29-89
Redevelopment Agency · City of San Bernardino
300 North "0" Street, Founh Floor . Sm Bernardino, California 92418
(714) 384-5081 FAX (714) 888-9413
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FEBRUARY 28, 1990
SHANDIN HILLS GOLF CLUB/SEVENTH AMENDMENT
Synopsis of Previous Commission/Council/Committee Action:
08/07/89 Approve the transfer of stock ownership of Shandin Hills Golf Club,
Inc. to Jim Colbert Golf, Inc.
08/07/89 Approve the execution of an Acknowledgment and Agreement regarding a
Reciprocal Easement Agreement recorded February 4, 1986, between the
City, Shandin Hills and Block Brothers; and
08/07/89 Approve the execution of a Sixth Amendment to the Shandin Hills Golf
Club Lease between the Agency and Shandin Hills Golf Club, Inc.
02/22/90 The Committee recommended the item be forwarded to the Commission.
Recommended Motion:
(COMMUNITY DEVELOPMENT COMMISSION)
Move to approve the execution of a Seventh Amendment to the Shandin Hills
Golf Club Lease between the Agency and Shandin Hills Golf Club, Inc.
Respectfully Submitted,
Director
Supporting data attached: Yes
Ward: 5 and 6
FUNDING REQUIREMENTS: NONE
Project: SC
Commission Notes:
Agenda of: March 5, 1990
Item No.
Redevelopment Agency
S T A F F R E P 0 R T
This is to recommend that the Commission approve the execution of a Seventh
Amendment to the Shandin Hills Golf Club Lease.
BACKGROUND
On August 7, 1989, the Community Development Commission approved the transfer
of stock ownership and management of Shandin Hills Golf Club, Inc., to
Mr. Jim Colbert Golf, Inc. The Lease Agreement provides in Section 8 that the
tenant shall provide a security deposit. The deposit may be in the form of a
Certificate of Deposit or, at tenant's option, an irrevocable letter of
credit. The amount of the security deposit applicable to any year shall be
equal to the prior year's rental or $200,000, whichever is greater.
The purpose of the security deposit is to secure rental payments and provide
funds for operation should the tenant default. Now that the ownership is with
a widely recognized operator, they are requesting that they be relieved of
this requirement which reduces their line of credit. Mr. Colbert has
indicated that relief of this requirement would allow him to make additional
investments in the Shandin Hills Golf Course and facility. Since taking over
management of Shandin Hills, they have has invested in new golf carts, turf
equipment and other golf course improvements.
PROPOSED AMENDMENT
The changes to the current lease are marked and can be found on Pages 2 and 3
of Section 8 of the attached document. The effect of the change is to make
the deposit discretionary by the Agency so that it may be waived now but
reinstituted at a future date if appropriate.
RECOMMENDA nON
The attached document has been approved as to form and legal content by Agency
Counsel and it is recommended that the proposed Seventh Amendment be approved.
RJT:EJ:sm:2693H
SEVENTH AMENDMENT TO SHANDIN HILLS GOLF CLUB LEASE
THIS SEVENTH AMENDMENT TO LEASE entered into this
day
of
, 1990, by and between the REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO, CALIFORNIA, a public body corporate
and politic ("Agency") and SHANDIN HILLS GOLF CLUB, INC., a
California Corporation ("Tenant"):
WITNESSETH:
WHEREAS, Agency and Tenant entered into that certain lease
entitled "Shandin Hills Golf Club Lease" effective as of January
1, 1985, and
WHEREAS, Agency and Tenant entered into a First Amendment to
said lease on August 19, 1985, to revise the definition of "lease
year" upon which rental payments are based, and
WHEREAS, Agency entered into a Second Amendment to said
lease effective January 1, 1986, to revise the payment schedule
for the payment of the $700,000 one-time fee, evidenced by a
promissory note, and
WHEREAS, Agency and Tenant entered into a Third Amendment to
said lease effective February 10, 1986, to reduce on an interim
basis the amount of liability insurance required, and
WHEREAS, Agency and Tenant entered into a Fourth Amendment
to said lease (denoted as a Revised Fourth Amendment) as of
February 16, 1987, to revise the payment schedule for the payment
of the amount owing of the one-time fee, evidenced by a
promissory note, and
DAB/ses/shandin.7am
February 20, 1990
1
WHEREAS, Agency and Tenant entered into a Fifth Amendment to
said lease on May 12, 1988, to further revise the payment
schedule for the payment of the amount owing of the one-time fee,
evidenced by a promissory note, and to provide that the Tenant
shall maintain a drainage easement, and
WHEREAS, Agency and Tenant entered into a Sixth Amendment to
said lease on August 7, 1989, to confirm the legal description,
and
WHEREAS, the parties desire to further amend said lease
regarding the requirement for a security deposit, to allow Tenant
greater flexibility in financing to the benefit of the golf
course property,
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1.
Section 8 of the Shandin Hills Golf Club Lease
is hereby amended to read as follows:
"Section 8. Security Deposits.
In the discretion oL-Aqency, and upon Thirty (30) days
written notice to Tenant, security deposits may be required in
the amount of $200,000 or an amount equal to the prior year's
base rental including percentage, whichever is greater.
The security deposit may be in the form of a Certificate of
Deposit in a financial institution approved by Agency, payable to
Tenant, accompanied by an irrevocable power of attorney
authorizing Agency to withdraw the funds represented thereby upon
filing a certificate that Tenant is in default under the terms of
the Lease and has not cured the default as provided for in
DAB/ses/shandin.7am
February 20, 1990
2
Section 20; alternatively, at Tenant's option, the security
deposit, if reQuireQ, may be in the form of an irrevocable Letterj~dJ.~,~
of Credit from a financial institution approved by Agency,
payable to Agency, with Agency authorized to withdraw the funds
represented thereby at any time upon filing a certificate that
Tenant is in default under the terms of the lease and has not
cured the default as provided for in Section 20.
"Agency may utilize such funds for the 'maintenance of the
Golf Course until such time as a new Operatdr has been obtained
therefor and has accepted responsibility for the maintenance of
the Golf Course. Once a new Operator has been selected and has
assumed operation of the Golf Course, Agency shall compute its
expenses incurred from maintenance of the Golf Course from and
after the time it first assumed responsibility for maintenance,
and shall compute its expense and losses from all other causes
arising during and after the default, including attorney fees,
court costs, advertising expenses, operation and maintenance
expenses, and any other similar expense encountered as a result
of the default of Tenant.
Agency shall remit to Tenant any
excess from the Security Deposit not expended, and any portion of
such expenses recovered from the new operator, up to the total
amount of the Security Deposit."
SECTION 2. In all other respects, the said lease effective
as of January 1, 1985, as previously amended, shall remain in
full force and effect.
/
/
/
DAB/ses/shandin.7am
February 20, 1990
3
IN WITNESS WHEREOF the parties hereto have executed this
SEVENTH AMENDMENT to lease on the day and date first above shown.
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
By:
Executive Director
APPROVED AS TO FORM AND
LEGAL CONTENT:
By'~)
/ Agenc ounsel
SHANDIN HILLS GOLF CLUB, INC.
By:
By:
DAB/ses/shandin.7am
February 20, 1990
4