Title
Adoption of Resolution Amending the Concession Agreement with Dialemi, Inc. (known as Jim’s on the Course), to Provide an Extension for Completion of the Event Center at the Corica Park Golf Complex. (Recreation 5301)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
Jim’s on the Course (Concessionaire) has provided food and beverage service at the Corica Park golf complex since 2006. The Concession Agreement (Agreement) requires construction of an event center to provide for golf tournament banquets and other rental events by the community. The Concessionaire has not completed the event center construction within the timeframe required by the Agreement and this second amendment to the Agreement provides an extension for completion to December 31, 2019, as the initial schedule was not feasible for design, permitting and construction.
BACKGROUND
In January 2006, the City of Alameda (City) entered into a Concession Agreement with Tom Geanekos to be the sole provider of food and beverage services at the Corica Park golf complex. The restaurant is known as “Jim’s on the Course.” After taking over the operations, Mr. Geanekos improved the overall quality of the restaurant resulting in the increased number of patrons visiting the facility from both the golf community as well as residents from the surrounding neighborhoods.
On March 1, 2016, the City entered into a new Concession Agreement with Jim’s on the Course (Dialemi, Inc.) to provide food and beverage service at the Corica Park golf complex. That agreement included improvements to the existing restaurant facility and the addition of an enclosed patio for golf banquets and events.
On December 19, 2017, the City Council approved the first amendment to the agreement, which changed all references from construction of an enclosed patio to the event center construction. This was advocated by Greenway Golf and was conceptually approved by the Golf Commission, Recreation Commission, and Planning Board.
The first amendment required completion of the event center by June 30, 2018. Staff provided an administrative timeline extension to December 30, 2018, in recognition that the initial six month schedule was not a feasible time period for design, permitting and construction.
On December 17, 2018, Concessionaire received the building permit for construction of the event center. The mechanical and electrical permits were deferred and are currently in plan check for final review. The Concessionaire is ready to begin construction of the event center once these permits are issued.
DISCUSSION
The Concessionaire has completed the majority of the required infrastructure projects inside the restaurant, including major upgrades to the front kitchen, banquet kitchen, refrigeration, and storage areas. This included replacing large kitchen equipment such as ranges, refrigerators and freezers, griddles, char-broiler and other units as well as replacing countertops, wall linings, flooring, exhaust and grease systems. These are all significant improvements that are not visible to the public, but essential to providing large volume food service, such as banquet catering for the event center. Jim’s on the Course now has the capacity to simultaneously serve over 600 people at an event center banquet and an event on the patio while continuing service in the restaurant.
Other completed restaurant improvements include the snack bar, which can now handle a larger volume of golfers at a faster pace with more menu options; remodeled dining room and restrooms; expanded outdoor patio seating with pavers installed by Greenway and fire pits, low-level lighting, and furnishings installed by the Concessionaire; plus improvements to the bar area, which now has more seating and 24 beers on tap, including from local Alameda breweries.
The Concession Agreement Second Amendment retains all terms of the original Agreement and First Amendment. This Second Amendment will extend the deadline for completion of the event center to December 31, 2019, pending any other delays that are outside of Concessionaire’s control. (Completion is defined by issuance of the Certificate of Building Occupancy.) The only two anticipated issues that would not be in Concessionaire’s control are: 1) the installation of water, sewer and fire utilities, which are being designed by the City and will be installed by Greenway Golf, and 2) if a water meter is required by East Bay Municipal Utility District. This is not anticipated, but is possible and is being explored by City staff and project engineers.
The Concessionaire has expended 81% of the total event center project costs to date, in large part because the event center structure itself is already purchased. Sufficient funds are confirmed available to complete the project. Once the mechanical and electrical permits are issued and the Second Amendment approved, the Concessionaire is ready to start construction. It is expected to be completed in five months, i.e. by September 2019. This deadline extension provides a few months additional time to help ensure successful completion. Construction includes grading and base rock, pouring the foundation, erecting the structure, constructing restrooms and the storage area, installing the HVAC system and fire sprinklers, flooring and final furnishings.
This Second Amendment also requires construction of an enclosed patio, adjacent to the restaurant. In the First Amendment the enclosed patio was referenced as an option and is now a requirement per the request of the Golf Commission. The enclosed patio must be completed within two years after the event center certificate of building occupancy is issued. This will provide restaurant seating with golf course views that is protected from the wind and weather. During construction of the enclosed patio, the Concessionaire will also replace all of the restaurant windows.
The Golf Commission heard this item on January 29, 2019, and a majority expressed support.
FINANCIAL IMPACT
The rental income to the City is based on a percent of gross revenues and averages $85,000 annually. The City will continue to receive rental income from Jim’s on the Course until the certificate of building occupancy is issued for the event center. Once that is complete, per the Agreement, the rental income is waived for two years. This revenue change will be reflected in the Fiscal Year 2019-21 Biennial Budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action has no effect on the Municipal Code.
ENVIRONMENTAL REVIEW
Approval of this amendment is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301, as it involves a minor alteration of an existing facility involving negligible expansion of use.
RECOMMENDATION
Adopt a resolution amending the Concession Agreement with Dialemi, Inc. (known as Jim’s on the Course), for the provision of food and beverage service at the Corica Park golf complex to provide an extension for completion of the event center.
Respectfully submitted,
Amy Wooldridge, Interim Assistant City Manager / Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Second Amendment
2. Original Agreement and First Amendment