HomeMy WebLinkAboutStaff Report 15 04/15/1996APR 15 1996 15
AGENDA ITEM:
KEY WORD: COTTONWOOD GOLF LEASE
DEPARTMENT:
Parks and Recreation
REQUESTED COUNCIL ACTION:
Introduce ordinance amending existing lease agreement with Cottonwood Golf Club, Inc.
(Pursuant to this lease, the RESA lease will be amended within 180 days.)
RECOMMENDATION:
The Recreation, Music and parks Commission and staff recormnend approval of the proposed
amendment to the Cottonwood Golf Club, Inc., lease.
BACKGROUND:
January 7, 1991 - The City Council entered into a lease agreement with Empire Golf, Inc.
in order to build a golf course adjacent to Prince Park and the Petaluma Airport.
April 18; 1994 - The City Council approved a lease with Redwood Empire Sports
Association for a 28 acre portion of the East Washington park site for construction of a
six field, lighted softball complex.
August 15; 1994 - The City Council approved a resolution whereby Empire Golf,
Incorporated assigned the golf course lease to Cottonwood Golf Club, Inc.
September 19, 1994 - The City Council amended the existing lease agreement with
Cottonwood Golf Club, Incorporated extending the start of construction until October 30,
1996.
The City of Petaluma purchased the East Washington Street 100 acre park site in 1986
with the intent of using the property for recreation uses.
City staff started discussions with a representative of Redwood Empire Sports Association
(RESA) in 1989 regarding a softball complex on the north 28 acres of the site. The proposed
softball complex would include six lighted softball fields, an 8,000 square foot clubhouse with
restaurants and arcade, tot lots, sand and grass volleyball and batting cages.
The City Council leased a 28 acre portion of the East Washington Street park site to RESA in
April, 1994. The complex site straddles Lynch Creek and butts up against the new Kingsmill
subdivision. While no progress has been made on the part of RESA regarding environmental
work, master planning, etc., City staff and the Recreation, Music and Parks Commission have
received numerous complaints from Kingsmill residents regarding the proposed project.
The proposed softball complex would have four lighted softball fields within 200' -300'
of Kingsmill residents. Following the required California Environmental Quality Act
(CEQA) process, staff seriously doubts that a lighted softball complex of the magnitude
proposed would be able to mitigate issues such as light glare and noise.
Conversely, the golf course project has moved steadily forward. All environmental work
has been completed and a conditional use permit issued. Prior to construction the
economic recession hit California, resulting in a lack of financing for the project. The
original developer, Empire Golf, Inc. assigned the lease to Cottonwood Golf Club, Inc. in
1994. Cottonwood Golf has been aggressively moving forward in preparation of starting
construction of the golf course.
Realizing the commitment of the City of Petaluma to provide an alternative to McNear
Park for lighted softball, and the probability of RESA not being able to mitigate
environmental concerns involving their project, City staff approached the representatives
for RESA and Cottonwood Golf to create a solution which would serve the interests of all
three entities.
Staff proposed that the Golf Course be expanded north of Lynch Creek into the area
currently under lease to RESA. In turn, RESA would relocate to an area south of East
Washington Street along the eastern boundary of the proposed golf course. The RESA
complex would sit on a portion of a 33 acre parcel which will be deeded to the City of
Petaluma by Cottonwood Golf Club, Inc., upon opening of the golf course.
With the proposed relocation of the two projects a number of benefits immediately
become apparent:
A) Park property adjacent to the Kingsmill subdivision would be utilized for
golf course purposes (3 fairways) instead of six lighted softball fields.
There would be no light glare, noise, etc. to impact Kingsmill residents.
B) Impacts to Lynch Creek would be minimal. The softball complex would
have required a bridge crossing and construction of a parking lot resulting
in numerous expensive mitigation measures.
The use of the area by the golf course has minimal impact on Lynch
Creek.
C) By relocating the RESA project away from subdivisions, the ability of the
project to succeed is vastly improved. Also, mitigation, environmental
and construction costs are decreased substantially.
D) All adult softball league play can be relocated from McNear Park to the
RESA softball complex.
Since the RESA project had not started any environmental review for its original site, this
work will need to be completed by Cottonwood, Golf Club, Inc. Additionally, the RESA
project will need to start the review process for the proposed new location. In order to
allow both projects adequate time for plan development and construction, staff
recommends extending both leases two (2) years.
The Cottonwood Golf Club, Inc. has also requested an amendment to their lease
regarding fees and charges for non - residents. Under the current lease, golf course green
fees are determined by computing the average cost of green fees at five existing golf
courses: Peacock Gap, Windsor Golf Course, Mountain Shadows North Golf Course,
Indian Valley Golf Course and Oakmont West Golf Courses. Non - residents are charged
at 100% of the computed average of the five listed courses.
Residents of Petaluma would receive a 20% discount off the computed average of the
above listed 5 courses. Juniors and senior residents of Petaluma would receive a
minimum of a 30% discount off the computed average. A City resident is defined as
someone living within the City limits of the City of Petaluma.
The golf course developer has requested an amendment to the fee structure whereby
green fees for non - residents of the City of Petaluma shall be determined solely by lessee
(Cottonwood Golf Club, Inc.). There is no proposed change for the residents of
Petaluma.
The proposed amendment will allow the developer more flexibility in establishing rates
and generating play on the course and improve the financial feasibility of the project.
ALTERNATIVES:
a) Not approve the proposed amendment
b) Direct staff to negotiate further amendment to the two existing leases.
CONSEQUENCES OF NOT ACTING:
The Golf Course project proceeds as designed and approved; the softball complex in all
reality cannot proceed due to environmental issues.
ACTION FOLLOWING AUTHORIZATION:
Terms of the leases and amendments will be carried out.
JC /ss / #64:cot1ease