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2017/05/09 City Council Resolution 2017-054RESOLUTION NO. 2017-054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING THE FIRST AMENDMENT TO THE FOXTAIL GOLF COURSE LEASE WHEREAS, the City owns two 18 -hole golf courses and leases the courses to Rohnert Park Golf via the Foxtail Golf Course Lease dated July 1, 2012; and WHEREAS, the City now desires to amend the lease to advance funds for the renovation of a portion of the bunkers at the Foxtail Golf Course ("First Amendment"); and WHEREAS, the City is party to an Amended and Restated Development Agreement by and Among the City and University District LLC and Vast Oak Properties L.P. for the development of the University District Specific Plan (Development Agreement); and WHEREAS, the Development Agreement provides funds for a Maintenance Annuity and requires the City to invest all amounts received to create an income stream for the City's General Fund to pay for the increased cost of municipal services; and WHEREAS, the advance of funds for the bunker renovation is an investment paying five percent interest per year for ten years and creates an income stream for the City's General Fund. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that the First Amendment to the Foxtail Golf Course Lease is hereby approved. BE IT FURTHER RESOLVED Fiscal Year 2016-17 appropriations in Fund 151 are increased by $177,000 to fund the bunker renovation advance in accordance with the First Amendment attached hereto as Exhibit A and incorporated herein. BE IT FURTHER RESOLVED that the City Manager is hereby directed to execute the First Amendment in substantially similar form to Exhibit A, subject to minor revisions by the City Attorney or City Manager, and any other documents pertaining to this transaction for and on behalf of the City of Rohnert Park. DULY AND REGULARLY ADOPTED this 9th day of May, 2017. CITY OF RORNERT AiRK Jike Mack nzie, Mayor ATTEST: Caitlin Saldanha, Deputy City Clerk Attachment: Exhibit A AHANOTU: BELFORTE: �CALLINAN: STAFFORD: �Yt MACKENZIE: /� "/ l AYES: (S ) NOES: ( 0 ) ABSENT:( �) ABSTAIN: ( 0) �� Exhibit A to Resolution FIRST AMENDMENT TO FOXTAIL GOLF COURSE LEASE This First Amendment to Foxtail Golf Course Lease ("First Amendment") dated as of , 2017 ("Effective Date"), is entered into by and between the CITY OF ROHNERT PARK, a municipal corporation ("City" or "Landlord") and ROHNERT PARK GOLF, L.P., a California limited partnership ("Tenant"). BACKGROUND A. Tenant and City are parties to that certain Foxtail Golf Course Lease (the "Original Lease") dated July 1, 2012, pursuant to which Tenant leases from the City the Foxtail Golf Course, located in Rohnert Park, California. B. Tenant and the City now desire to amend the Original Lease as set forth in this First Amendment. C. Capitalized terms used but not defined in this First Amendment shall have the respective meanings provided in the Original Lease. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Tenant and the City agree as follows: The Original Lease shall be amended to add the following as Section 3.7: "3.7 Bunker Loan. The City shall loan the sum of one hundred and seventy-seven thousand dollars ($177,000) in immediately available funds ("Bunker Loan") to the Capital Improvement Fund for the purpose of making capital improvements to the Site, as provided in Section 3.7.1 below. The City shall deposit the Bunker Loan into the Capital Improvement Fund on or before ten days after execution of this First Amendment. 3.7.1. Rwiker Improvements. City and Tenant agree that the Bunker Loan shall be used for the purpose of renovating the bunkers on the North Golf Course on the Site. 3.7.2 Repayment of Bunker Loan. The principal and interest amount of the Bunker Loan shall be amortized in equal monthly installments of $1,877.36 over the period that ends on the date that is one hundred and twenty (120) months following the City's deposit of the Bunker Loan to the Capital Improvement Fund ("Maturity Date"). The Bunker Loan shall earn interest at the rate of five percent (5%) per annum on the amount of unpaid principal. Commencing in the 20th day of the first calendar month following the City's deposit of the Bunker Loan and continuing each calendar month thereafter until the Maturity Date, monthly payment of principal and interest to the City shall be made from the Capital Improvement Fund." 2. Exhibit D of the Lease, Golf Course Maintenance Specifications, Section 2.17.2 is deleted and restated in its entirety as follows: "Sand depth shall be randomly checked monthly for depth of sand and shall be maintained no less than four inches (4") deep at sole expense of the Tenant. Tenant shall submit written report to City of any bunkers with less than four (4") inches of sand. Additional sand beyond the minimum four (4") depth may be added, at City expense, at City sole discretion." 3, Original Lease In F«ll Force and Effect. Except as modified herein, the provisions, conditions, and terms of the Original Lease shall remain unchanged and in full force and effect. In the case of any inconsistency between the provisions of the Original Lease and this First Amendment, the provisions of this First Amendment shall govern and control. IN WITNESS WHEREOF, the parties have executed this First Amendment as of the Effective Date. TENANT: Rohnert Park Golf, L.P., a California limited partnership By: Rohnert Park Golf Investors, Inc., a California corporation, General Partner Printed Name Title CITY: City of Rohnert Park, a municipal corporation Mayor Jake Mackenzie Pursuant to Resolution No. ATTEST: Approved as to Form: City Attorney, Michelle Marchetta Kenyon 2 Foxtail Bunker Advance Principal: $177,000 Interest Rate: 5% Term: 120 months Payments: $1,877.36 monthly Foxtail First Amendment Bunker Advance Amortization Schedule Payment Payment Payment # Month Year 1 July 2 August 3 September 4 October 5 November 6 December 7 January 8 February 9 March 10 April 11 May 12 June 13 July 14 August 15 September 16 October 17 November 18 December 19 January 20 February 21 March 22 April 23 May 24 June 25 July 26 August 27 September 28 October 29 November 30 December 31 January 32 February 33 March 34 April 35 May 36 June 37 July 38 August 39 September 40 October 41 November 42 December 43 January 44 February 45 March 46 April 47 May 48 June 49 July 50 August 51 September 52 October 53 November 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 202 202 2021 2021 2021 2021 2021 2021 2021 Fund 151 1 Fund 001 Principal Amount $1,139.86 $1,144.61 $1,149.38 $1,154.17 $1,158.98 $1,163.81 $1,168.65 $1,173.52 $1,178.41 $1,183.32 $1,188.25 $1,193.21 $1,198.18 $1,203.17 $1,208.18 $1,213.22 $1,218.27 $1,223.35 $1,228.45 $1,233.56 $1,238.70 $1,243.86 $1,249.05 $1,254.25 $1,259.48 $1,264.73 $1,270.00 $1,275.29 $1,280.60 $1,285.94 $1,291.29 $1,296.68 $1,302.08 $1,307.50 $1,312.95 $1,318.42 $1,323.92 $1,329.43 $1,334.97 $1,340.53 $1,346.12 $1,351.73 $1,357.36 $1,363.02 $1,368.69 $1,374.40 $1,380.12 $1,385.87 $1,391.65 $1,397.45 $1,403.27 $1,409.12 $1,414.99 Dedicated Interest Amount IWO-3M3411 $737.50 $732.75 $727.98 $723.19 $718.38 $713.55 $708.71 $703.84 $698.95 $694.04 $689.11 $684.15 $679.18 $674.19 $669.18 $664.14 $659.09 $654.01 $648.91 $643.80 $638.66 $633.49 $628.31 $623.11 $617.88 $612.63 $607.36 $602.07 $596.76 $591.42 $586.06 $580.68 $575.28 $569.86 $564.41 $558.94 $553.44 $547.93 $542.39 $536.83 $531.24 $525.63 $520.00 $514.34 $508.66 $502.96 $497.24 $491.48 $485.71 $479.91 $474.09 $468.24 $462.37 Total $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 $1,877.36 Loan Balance $175,860.14 $174,715.53 $173,566.15 $172,411.99 $171,253.01 $170,089.20 $168,920.55 $167,747.03 $166,568.61 $165,385.29 $164,197.03 $163,003.83 $161,805.65 $160,602.48 $159,394.30 $158,181.08 $156,962.81 $155,739.46 $154,511.02 $153,277.45 $152,038.75 $150,794.89 $149,545.84 $148,291.59 $147,032.11 $145,767.38 $144,497.39 $143,222.10 $141,941.50 $140,655.56 $139,364.27 $138,067.59 $136,765.51 $135,458.01 $134,145.06 $132,826.64 $131,502.72 $130,173.29 $128,838.32 $127,497.79 $126,151.67 $124,799.94 $123,442.58 $122,079.56 $120,710.87 $119,336.47 $117,956.35 $116,570.47 $115,178.82 $113,781.38 $112,378.11 $110,968.99 $109,554.00 M:\00 -Agendas - City Council\05-09-2017\7C4 3 First Amendment Lo13n Amortization Schedule,xlsx 5/4/2017 Foxtail Bunker Advance Foxtail First Amendment Bunker Advance Amortization Schedule Payment Payment Payment # Month Year Fund 151 Principal Amount Fund 001 Dedicated Interest Amount w1. 19 30&3411 Total Payment Loan Balance 54 December 2021 $1,420.88 $456.47 $1,877.36 $108,133.11 55 January 2021 $1,426.80 $450.55 $1,877.36 $106,706.31 56 February 2022 $1,432.75 $444.61 $1,877.36 $105,273.56 57 March 2022 $1,438.72 $438.64 $1,877.36 $103,834.84 58 April 2022 $1,444.71 $432.65 $1,877.36 $102,390.13 59 May 2022 $1,450.73 $426.63 $1,877.36 $100,939.39 60 June 2022 $1,456.78 $420.58 $1,877.36 $99,482.61 61 July 2022 $1,462.85 $414.51 $1,877.36 $98,019.76 62 August 2022 $1,468.94 $408.42 $1,877.36 $96,550.82 63 September 2022 $1,475.06 $402.30 $1,877.36 $95,075.76 64 October 2022 $1,481.21 $396.15 $1,877.36 $93,594.54 65 November 2022 $1,487.38 $389.98 $1,877.36 $92,107.16 66 December 2022 $1,493.58 $383.78 $1,877.36 $90,613.58 67 January 2022 $1,499.80 $377.56 $1,877.36 $89,113.78 68 February 2023 $1,506.05 $371.31 $1,877.36 $87,607.73 69 March 2023 $1,512.33 $365.03 $1,877.36 $86,095.40 70 April 2023 $1,518.63 $358.73 $1,877.36 $84,576.77 71 May 2023 $1,524.96 $352.40 $1,877.36 $83,051.81 72 June 2023 $1,531.31 $346.05 $1,877.36 $81,520.50 73 July 2023 $1,537.69 $339.67 $1,877.36 $79,982.81 74 August 2023 $1,544.10 $333.26 $1,877.36 $78,438.72 75 September 2023 $1,550.53 $326.83 $1,877.36 $76,888.18 76 October 2023 $1,556.99 $320.37 $1,877.36 $75,331.19 77 November 2023 $1,563.48 $313.88 $1,877.36 $73,767.71 78 December 2023 $1,569.99 $307.37 $1,877.36 $72,197.72 79 January 2023 $1,576.54 $300.82 $1,877.36 $70,621.18 80 February 2024 $1,583.10 $294.25 $1,877.36 $69,038.08 81 March 2024 $1,589.70 $287.66 $1,877.36 $67,448.38 82 April 2024 $1,596.32 $281.03 $1,877.36 $65,852.05 83 May 2024 $1,602.98 $274.38 $1,877.36 $64,249.08 84 June 2024 $1,609.66 $267.70 $1,877.36 $62,639.42 85 July 2024 $1,616.36 $261.00 $1,877.36 $61,023.06 86 August 2024 $1,623.10 $254.26 $1,877.36 $59,399.96 87 September 2024 $1,629.86 $247.50 $1,877.36 $57,770.10 88 October 2024 $1,636.65 $240.71 $1,877.36 $56,133.45 89 November 2024 $1,643.47 $233.89 $1,877.36 $54,489.98 90 December 2024 $1,650.32 $227.04 $1,877.36 $52,839.66 91 January 2024 $1,657.19 $220.17 $1,877.36 $51,182.47 92 February 2025 $1,664.10 $213.26 $1,877.36 $49,518.37 93 March 2025 $1,671.03 $206.33 $1,877.36 $47,847.34 94 April 2025 $1,678.00 $199.36 $1,877.36 $46,169.34 95 May 2025 $1,684.99 $192.37 $1,877.36 $44,484.35 96 June 2025 $1,692.01 $185.35 $1,877.36 $42,792.34 97 July 2025 $1,699.06 $178.30 $1,877.36 $41,093.29 98 August 2025 $1,706.14 $171.22 $1,877.36 $39,387.15 99 September 2025 $1,713.25 $164.11 $1,877.36 $37,673.90 100 October 2025 $1,720.39 $156.97 $1,877.36 $35,953.52 101 November 2025 $1,727.55 $149.81 $1,877.36 $34,225.96 102 December 2025 $1,734.75 $142.61 $1,877.36 $32,491.21 103 January 2025 $1,741.98 $135.38 $1,877.36 $30,749.23 104 February 2026 $1,749.24 $128.12 $1,877.36 $28,999.99 105 March 2026 $1,756.53 $120.83 $1,877.36 $27,243.47 106 April 2026 $1,763.85 $113.51 $1,877.36 $25,479.62 M:\00_Agendas - City Council\05-09-2017\7C4 3 First Amendment Lan Amortization Schedule.xlsx 5/4/2017 Foxtail Bunker Advance Foxtail First Amendment Bunker Advance Amortization Schedule Payment Payment Payment # Month Year Fund 151 Principal Amount Fund 001 Dedicated Interest Amount w 1900.3063411 Total 'Payment Loan Balance 107 May 2026 $1,771.19 $106.17 $1,877.36 $23,708.43 108 June 2026 $1,778.57 $98.79 $1,877.36 $21,929.85 109 July 2026 $1,785.99 $91.37 $1,877.36 $20,143.87 110 August 2026 $1,793.43 $83.93 $1,877.36 $18,350.44 111 September 2026 $1,800.90 $76.46 $1,877.36 $16,549.54 112 October 2026 $1,808.40 $68.96 $1,877.36 $14,741.14 113 November 2026 $1,815.94 $61.42 $1,877.36 $12,925.20 114 December 2026 $1,823.50 $53.86 $1,877.36 $11,101.70 115 January 2026 $1,831.10 $46.26 $1,877.36 $9,270.59 116 February 2027 $1,838.73 $38.63 $1,877.36 $7,431.86 117 March 2027 $1,846.39 $30.97 $1,877.36 $5,585.47 118 April 2427 $1,854.09 $23.27 $1,877.36 $3,731.38 119 May 2027 $1,861.81 $15.55 $1,877.36 $1,869.57 120 June 2027 $1,869.57 $7.79 $1,877.36 ($0.00) Total $177,000.00 $48,283.15 $225,283.15 M:\00_Agendas - City Council\05-09-2017\7C4 3 First Amendment Ldbn Amortization Schedule.xlsx 5/4/2017