Title
Receive Report and Discuss the Golf Fund Budget.
Body
To: Honorable Chair and Members of the Golf Commission
From: Amy Wooldridge, Recreation and Parks Director
Re: Receive Report and Discuss the Golf Fund Budget.
BACKGROUND
The Golf Fund budget is a subfund under the Recreation Fund and is where all city revenue and expense for Corica Pack is managed. Since it is under the Recreation Fund umbrella, it is considered a special revenue fund so that any fund balance (positive or negative) stays within that fund and is not transferred to the General Fund or other city funds.
This report is to provide the Golf Commission with a more detailed understanding of the revenues and expenditures of the Golf Fund.
DISCUSSION
The following information provides details on what is included within the Golf Fund revenue and expenditure budgets.
REVENUE DETAILS
Rental Income
1) Greenway Golf Lease. Per the lease amendment, Greenway Golf is paying $75,000 per year through Dec. 31, 2020. It then increases to $175,000 through Dec. 31, 2022. After that, the rent is based on 8% of Greenway Golf's gross income for most revenues and 3% for Par 3 fees and club repairs with a $300,000 minimum rent required each year.
2) Cell Tower Leases - The cell tower lease revenue to the city is $61,000 per year and increases each year per Bay Area Consumer Price Index (recently averaging 3-4%)
Concession Income
Jim's on the Course rent is based on 5% of its gross income, which was $88,000 in FY 2017/18. Once the Event Center is completed and the Certificate of Occupancy is issued, then the concession rent will be waived for two years, per the Concession Agreement.
Miscellaneous Income
Per their lease, Greenway Golf makes an annual payment totaling $28,000 to reimburse the City for the Harbor Bay Assessment District Fee ($14,000) and 5% of the Recreation and Parks Director salary and benefits ($14,000). The latter is for the Director's staff time coordinating with Greenway on...
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