HomeMy WebLinkAbout2001 Resolution No. 070•
RESOLUTION NO .~
SERIES OF 2001
A RESOLUTION APl'ROVING AN ADDENDUM TO THE GOLF COURSE RESTAURANT
CONCESSIONAIRE AGltEEMENT BETWEEN THE CITY OF ENGLEWOOD AND REIF
GOLF ENTERPRISES , INC .
WHEREAS, REIF Golf Enterprises, Inc . was selected as the concessionaire to operate the
Englewood Golf Course Clubhouse restaurant in October, 2000; and
WHEREAS , the purpose of the Lea,e is to provide snack bar, grill and bar aervices to the
golfing public and a quality, full-service restaurant facility offering breakfast, lunch and
dinner for group meetings , service clubs and informal evening dining; and
WHEREAS, this Addendum amends Section 11 -Rent . in the Lease Agreement •igned in
October , 2000 to provide fo r a rent of 8% of the gross revenues or S30 ,000 per year,
whichever is greater :
NOW , THEREFORE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD , COLORADO, THAT :
~-The Addendum to the Ai;reement between the City of Englewood and REIF
Golf Enterprises , Inc. ior restaurant/concession services at the Englewood Golf Course,
amending Section 11-Rent, is hereby approved. A copy of said Addendum is attached
hereto as "Exhibit A" and incorporated herein by reference.
~.2-The Mayor and the City Clerk are hereby authorized to sign and attest the
A!P"'em,nt desc-ibed above for and on behalf of the City of Englewood, Colorado.
ADOPTED AND APPROVE!) this lat of October, 2001.
~till
Loumshia A. Ellis. '.:ity Clerk
I, Loucrishia A. Ellis , City Clerk for the t;ity of Englewood olor
above is a t.-ue copy of Resolution No . .Ll2, Series of 200 l
THIS .-\DOENDClvl TO THE AOREEME:-IT which wu made on October 2. 2000 , b1tw11n tht CI'l'I OF
ENGLEWOOD , a Colorado municipal corpor111on. hereinafter referred to 11 "Cicy ", and f<EIF OO!i.F.. •
hereinafter referred to 09 °Conce ss io na1te"; '
lu of October 3, 2001 the payment of rent shall be due as follows;
~RE:-.iT.
a) Con ce ssionaire shall pay rent to the City in accordance with the followi ng schedule,
i. Commencing on October 3. ™ !Q_QJ , the Concusionaire shall pay ~a.GOO per .,.,.11,...,
¼9,9(, ~ of the rross , gr S:30 QOO 00 pe" vegr whichever is greater. Gross shall includ'?
vending machines and all revtnue (except taxes) that are produced or co nducted on the
Lease d Premises .
The aforesaid ~·.-rent payments shall ,,. paid ea, h lllOnth . ~.,.!!);the S...
~ day of~ lile...fu.ll--m:m&' month ! or J ••• L 6!,_,) io .. 1-_. 3 .!t .. :1 ?D On th i-f die fi:a .
4aJ Hl:!ls a?': S:H't! • .::1_. et Sdrt.: _ _..
There shall be an annual re,.iew of rent pa ymencs due and made for the year to determine
any addit ional J.mou::: owed. The fina l pa::=S:nt , as dete:-:.:::ied by this review . shall be
due by October 15:ti annua lly .
On or before Oc~chA .. ~ REIF WlfwiU iurnis b to the Cit ·: an irre vocable letter of credit
in favor of and oavahle rn the r,r-for ten ~bo yaand dollars l" S-'$10 goo om to secure
the pa..-mi:nt of an•; out!;\o.ading acounu owe? undci,. this C.20r·act and not paid bv
October 15 ofe;ich ve3r .
. ~ penalty fee of SI0 .00 per d•y or part thereof ,hall be ch.irged for each day or part
thereof that the rent is past due . •<mil 12 :00 midnight on the 14th day pa st due . If the
rent payment is not rece1\·e d by m...dru ght on the 14th day past due, the Concessionaire
shall be in violation of the terms of chis Agreement. and subject to termination.
IN WITNESS WHEREOF . the parties hereto ba,·e hereunto set their hands and seo!s as of the day and
year first above written.
DATED : ________ _
CITY OF E:--iOLEWOOD . COLOP,\DO
"City"
By, _________ _
Thomas J . Burns, Mayor
ATTEST ,
Loucris!ua A. Ellis . City Clerk /
•
CQUNCfL COMMUNICATION
Date Agenda Item Subject
Restaurant Contract• Reif Golf
October 1, 2001 11 Ci
Initiated By Staff Source
Department of Parks and Recreation Jerrell Black, Director of Parks and Recreation
Bob S ada . Golf O erations Mana er
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
2000 Approval of Restaurant Contract-Reif Golf D.B.A-Boge y's Bar and Grill
1996 Approval of Restaurant Contract-JOQ's CJrporation
1988 App ro va l oi Res taurant Contract-Anderson/Mallov, In c. D.B.A.-Woody's Club
1986 Approval oi Restaurant Contract-,11\ur-J ames Corp~rat io n
198~ Appro val of Restaurant Contract-::101 Corpo ration
RECOMMENDED ACTION
Staff re commends City Council adopt a re so lution amending the existing contract between
the City oi Englewood and Reif Golf. The amendment wo uld change Rent irom 536,000 pe r
year or 10% oi the gross sales (w hir.he ver is greater), to 8% 0f the gross sales . or a
minimum oi 53 0,000 annually.
BACKGROUND , ANALYSIS, AND ALTERNATIVES IDENTIFIED
The Engle woo d Golf Course has prc vi ded a restaurant concession at the existing clubhouse
since 1982. Re if Golf, D.B .A . Bogey's Bar and Grill , took over the operation in ,)ctober
2000. The y pro vide d a new decor with pic tures and tlowers, reno vated the bar area and
made ;mpro ve ments to the kitch~n area, purchased a big screen TV, etc . to improve the
operations of the restaurant. Bogey's Bar and Grill has increased the restaurant business
significantl y. In the first eight mon •hs of this year, B,,ge y's has already surpassed the
previous concessionaire's annual gross sales . Staff r 'ieves that Bogey's Bar and Grill will
approach 5400,000 in gross sales as compared to 5~ ·,5 ,000 in years past.
FINANCIAL IMPACT
Thi s will be a decrease in revenue to th e Englewoo d Golf Course oi app roxicnate ly $4,000
annually. However, the guest services and menu se lect ion has grea tl y impro veci fro m
pre vious ope rators. Staff belie ves this is still a strong contract when compa re d to other g0lr
course rest aurant contracts.
LIST OF ATTACHMENTS
Pr oposed Resolution
Amended Contract