01-23-2017 BPU RPT 07 - Laserfiche WebLink

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W A T E R E N E R C Y I WI& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: JANUARY 23, 2017 ITEM NO: 7 SUBJECT: LONG-TERM LEASE AND INDUSTRIAL DEVELOPMENT OF WATERMAN GOLF COURSE LOCATED AT 1494 S. WATERMAN AVENUE, SAN BERNARDINO, CALIFORNIA; GROUND LEASE AGREEMENT WITH GSW#4 DEVELOPMENT LLC OF ONTARIO CALIFORNIA, FOR A TERM OF 55 YEARS; WELL RELOCATION AGREEMENT WITH HILLWOOD ENTERPRISES, L.P. OF DALLAS TEXAS; TERMINATION OF LEASE WITH J.G. GOLFING ENERPRISES, INC.; PURCHASE AND SALE AGREEMENT WITH HILLWOOD ENTERPRISES, L.P. - 55 YEAR LEASE FOR $1,113,500 IN ANNUAL LEASE REVENUE ISSUES: Recommend that City Council approve the fifty-five year term Ground Lease Agreement with GSW#4 Development, LLC. of Ontario, California, and the Well Relocation Agreement with Hillwood Enterprises, L.P., of Ontario, California; approve in concept the draft Termination Agreement with J. G. Golfing Enterprises, Inc. and the draft Purchase and Sale Agreement with Hillwood Enterprises L.P. for use of the Waterman Golf Course Properties in the City of San Bernardino. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the 55 -year term Ground Lease with GSW#4 Development, LLC, for the use of the Waterman Golf Course parcels for an annual rental revenue of approximately $1,113,500, escalating over the term of the agreement, offset in the first 15 years by certain rental credits; 2. Approve the Well Relocation Agreement with Hillwood Enterprises, L.P. for the relocation of certain city owned water production and conveyance facilities; 3. Approve in concept the draft Termination Agreement to terminate the current ground lease agreement with J.G. Golfing Enterprises, Inc. and assign the agreement to Hillwood Enterprises, L.P.; 4. Approve the Purchase and Sale Agreement with Hillwood Enterprises, L.P. to transfer a 1.722 acre parcel within the Waterman Golf Course to the City of Riverside Public Utilities for the sum of $1.00; 5. Authorize the City Manager, or his designee, to execute Ground Lease with GSW#4 Development, LLC, the Well Relocation Agreement with Hillwood Enterprises, L.P. and the Purchase and Sale Agreement with Hillwood Enterprises, L.P., including making minor and non -substantive changes, and execute any documents necessary to administer these agreements.