Title
Introduction of Ordinance Approving the Amended and Restated Lease Agreement Between the City of Alameda and Greenway Golf Associates, Inc. for the Chuck Corica Golf Complex. [Requires four affirmative votes] (Recreation 10051400)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
Since January 1, 2013, Greenway Golf Associates, Inc. (Greenway) has leased and operated the City of Alameda-owned, approximately 330-acre Chuck Corica Golf Complex (Corica Park) under a 40-year lease that runs through December 31, 2053, with one 10-year extension option. The lease has been amended three times, and since 2022 the City of Alameda (City) and Greenway have been in litigation over alleged breaches by both parties.
The City and Greenway have resolved those disputes through a Settlement Agreement and Release dated for reference as of June 2, 2026. The Settlement Agreement takes effect only if the parties amend and restate the existing lease consistent with its terms. Staff recommends that the City Council introduce an ordinance approving the Amended and Restated Lease (Restated Lease), which consolidates the original lease and its three amendments into a single document, removes obligations that have been completed or are no longer relevant, and implements the negotiated settlement terms. The term and rent schedule are unchanged.
BACKGROUND
The City owns the Chuck Corica Golf Complex, an approximately 330-acre facility on Bay Farm Island that includes the 18-hole North Course, the 18-hole South Course, the 9-hole Mif Albright par-three course, a driving and practice range, the clubhouse, and associated parking and facilities. The City operated the complex directly through the Golf Enterprise Fund until 2012, when it sought a private operator to address operating deficits and deferred capital needs.
Original Lease (2012). On August 1, 2012, the City entered a lease with Greenway to operate the complex for a 40-year initial term beginning January 1, 2013 and ending December 31, 2053, with one Tenant option to extend for 10 years. In exchange, Greenway agreed to renovate the South Course, North Course, Driving Range, and Mif Albright course, and to resolve longstanding drainage and irrigation problems. Rent was structured as a graduated minimum rent, rising to the greater of a fixed minimum or a percentage of gross revenue. The lease also required Capital Improvement Payments of 3% of gross revenue into a City-held reserve, capped at $250,000, and gave the City an early termination option if drainage and irrigation issues were not resolved.
Amendments (2018-2021). The lease has been amended three times:
• First Amendment (March 28, 2018) revised Greenway's course renovation obligations and committed the City to a one-time resurfacing of the parking lot. Greenway reports completing the work required under the original lease and First Amendment between 2012 and 2025.
• Second Amendment (June 16, 2021) added the approximately 0.5-acre Fire Tower property at Island Drive and Clubhouse Memorial Road to the leased premises, conditioned on Greenway completing beautification work at its own cost. That work was completed in or about October 2024.
• Third Amendment (September 10, 2021) implemented a three-party settlement among the City, Greenway, and Dialemi, Inc. (operator of Jim's on the Course) resolving a 2020 dispute over an event center Dialemi had agreed to build. It gave Greenway exclusive food and beverage rights throughout the complex, except within Jim's on the Course restaurant building and, during Jim's business hours, its patio.
Litigation and settlement. On May 31, 2022, the City sued Greenway in Alameda County Superior Court (Case No. 22CV011964) alleging multiple breaches of the lease. Greenway cross-complained on September 9, 2022, alleging, among other things, that the City failed to pay attorneys' fees from an ADA lawsuit (the Navarez lawsuit) and costs of parking lot paving. Further disputes followed over parking lot defects, resident greens fee increases, Greenway's general manager, tree maintenance, slough cleaning, construction schedules, a change in Greenway's majority ownership, audits, Golf Commission attendance, the annual plan, and other matters. During trial, the parties resolved these claims through a June 2, 2026 Settlement Agreement, which is conditioned on City Council approval of the Restated Lease. City Council approved the Settlement Agreement June 2, 2026.
DISCUSSION
The Restated Lease replaces the original lease and all three amendments with a single document. The term, premises, and rent schedule are unchanged. Construction obligations Greenway has completed are removed, and the settlement terms are added. Key terms are summarized below; the Restated Lease (Exhibit 2) controls.
|
Term |
Restated Lease |
Change from existing lease |
|
Term |
40 years, January 1, 2013 - December 31, 2053; one 10-year Tenant option (Sec. 3) |
No change |
|
Premises |
Approx. 330-acre complex, including the Fire Tower property; excludes Jim's on the Course building, Jim's patio during its business hours, and City-excluded areas (Sec. 1) |
Consolidates Second and Third Amendments; no change in area |
|
Fire Tower |
City may reclaim the Fire Tower property to build housing, after reimbursing Greenway's documented demolition, landscaping, renovation, and beautification costs (Sec. 1.2) |
Carried forward from Second Amendment |
|
Rent |
Currently the greater of $300,000 or percentage rent (8% of golf revenue up to $4 million, Consumer Price Index (CPI)-adjusted, and 12% above; 3% of par-3 and club-fitting revenue; 7.5% of food and beverage). From 2033: greater of $350,000 (CPI-adjusted) or percentage rent at 10%/12%, 3%, and 7.5% (Sec. 4 and Summary) |
No change |
|
Capital Improvement Payments |
Removed |
Eliminates 3% Capital Improvement Payments into the City-held reserve (capped at $250,000) |
|
Resident greens fees |
Discounted rates for residents, resident seniors, and youth continue. No increase in calendar year 2027; then no more than once a year, capped at the greater of 8% or Bay Area CPI. Resident rates at least 10% below top non-resident rates; senior rates at least 10% below resident rates; youth rates at least 10% below senior rates; South Course discounted rates lower than North Course (Sec. 2.2(b)) |
Replaces City approval of a rate schedule benchmarked to comparable courses with fixed criteria |
|
Tee time booking |
Residents, seniors, and youth have equal access to every booking window (0-90 days). No booking fee for 0-7 days; any advance booking fee for 8-90 days applies equally to all golfers (Sec. 2.2(b)) |
New; codifies current practice |
|
Food and beverage |
Exclusive rights outside Jim's areas, including a commercial kitchen and walk-up window at the storage building, outdoor service, and food trucks in the parking lot. Greenway receives a right of first refusal to operate Jim's if the Dialemi concession agreement ends (Sec. 2.1) |
Expands and clarifies Third Amendment rights |
|
Event center and screening |
Exclusive option to develop an event center outside Jim's sight lines; right to install a gate and screening behind Jim's and landscaping around the City sewage pump station (Secs. 2.7-2.8) |
Carried forward; pump station screening is new |
|
Tenant improvements |
Course modifications that materially reconfigure a course and cost over $1 million (CPI-adjusted) require City approval of plans under Exhibit D (Sec. 8.3) |
Replaces completed renovation obligations, Tenant Improvement Fund, and City termination option |
|
Maintenance and parking lot |
Greenway maintains the complex to Exhibit B Maintenance Standards and maintains the parking lot. City retains responsibility for ADA claims about its corrective parking lot work for four years after the effective date (Sec. 9) |
Removes completed City resurfacing obligation; adds time-limited City ADA responsibility |
|
City oversight |
City Manager or designee administers the lease. Greenway submits an annual plan by January 31 and meets monthly with the City's designee. City may enter public areas anytime the facility is open; non-public areas and meetings with Greenway's designee require 24 hours' written notice (Secs. 2.3-2.5) |
Adds notice requirements and complaint documentation |
|
Golf Commission |
Greenway representative attends bi-monthly Golf Commission meetings, in person or virtually, with no duty to prepare agendas or minutes. Obligation ends if a Councilmember or Golf Commissioner breaches the non-disparagement clause (Sec. 2.6(f)) |
Narrowed |
|
Audit |
City may audit gross revenue records for the prior three lease years; Greenway reimburses City audit costs if underreporting exceeds 1%. City may also request audited financial statements once a year, cost split 50/50 (Secs. 4.5-4.6) |
Audit limited to gross revenue; audited statements option is new |
|
Transfers |
Sale of a majority interest in Greenway requires City consent, not unreasonably withheld. Transfers to affiliates require notice only (Sec. 16) |
Affiliate transfer right is new |
|
Disputes |
Before a notice of default, parties must meet and confer for a minimum of 20 business days; unresolved disputes go to mediation and, for certain matters, binding arbitration. Unpaid rent and imminent public health or safety threats are excluded (Sec. 17) |
Expanded pre-default process |
|
Non-disparagement |
City (including City Council and Golf Commission acting officially) and Greenway agree not to disparage each other, defined as libel or slander (Sec. 19.16) |
New |
As of the date of publication of this staff report (October 22, 2026), the Restated Lease is still being negotiated and finalized with Greenway and its counsel. The Recreation and Parks Department and the City Attorney's Office have provided comments on the current draft, and a copy of that draft is attached to this staff report with the sections still under negotiation highlighted. The final draft will be consistent with the Settlement Agreement. The final draft will also be uploaded to this staff report as a supplemental document, along with a supplemental memo identifying the differences between the October 22, 2026 draft and the final draft.
ALTERNATIVES
• Introduce the ordinance with modifications. Material changes would require Greenway's agreement and could delay or undo the settlement.
• Do not introduce the ordinance. The Settlement Agreement would not take effect, the existing lease would remain in place, and trial would resume with considerable financial impacts for the City.
FINANCIAL IMPACT
The rent schedule is unchanged. In Lease Years 14 to 20 (2026-2032), Greenway pays the greater of $300,000 or percentage rent; beginning in Lease Year 21 (2033), the minimum rises to $350,000, adjusted annually for CPI. For fiscal year 2026 the annual rent received was $735,070.
The Restated Lease eliminates Capital Improvement Payments of 3% of gross revenue into the City-held Capital Improvement Reserve Fund, which was capped at $250,000 and restricted to jointly approved improvements at the complex. Other City costs include continued waiver of the stormwater utility fee, half the cost of any audited financial statements the City requests, and potential ADA claims related to the City's parking lot corrective work during the first four years. The financial terms of the Settlement Agreement were addressed in the City Council approved settlement on June 2, 2026.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Approval of a lease of City property of this duration requires an ordinance under the City Charter, pursuant to Section 3-10. The Restated Lease takes effect no sooner than the effective date of that ordinance. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
Approval of the Restated Lease is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301 (Existing Facilities), because it continues the existing use of the golf complex with no expansion of use. Any future Major Tenant Improvements, event center, or new food and beverage facilities will be subject to all applicable rules and regulations for approval.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Introduce an Ordinance approving the Amended and Restated Lease Agreement between the City of Alameda and Greenway Golf Associates, Inc. for the Chuck Corica Golf Complex, and authorize the City Manager to execute the Amended and Restated Lease. (Recreation 10051400)
Respectfully submitted,
Justin Long, Recreation and Parks Director
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits
1. Amended and Restated Lease Agreement
2. Settlement Agreement and Release (June 2, 2026)