HomeMy WebLinkAboutREDedwardsc3San Luis Obispo City Counci l
City Council
City Hal l
990 Palm Street
San Luis Obispo, CA 93401
RECEIVE D
OCT 18 201 0
SLO CITY CLERK
RED FIL E
MEETING AGEND A
DATE/o//' /AITEM #&3
October 18, 201 0
RE : Consent Agenda Item C3 : Amendment and Restatement of Concessionaire Agreement wit h
Achievement House, Inc .
Dear City Council ,
Initially, my comments are in no way to be a criticism of the good works of Achievement House
Inc . or City staff's attempt to make the Laguna Lake Golf Course viable as an enterprise . However, the
fact is that the entire operation is at a "competitive disadvantage "that is insurmountable .
The Amendment and Restatement of Concessionaire Agreement with Achievement House, Inc .
for the Laguna Lake Golf Course concessions raises a number of questions especially in an era of financial
challenges .
1.$1,250 per month rental for the LLGC clubhouse space appears to be well below market rents .
2.The agreement itself waives any rent payment until capital costs advanced by the tenant ar e
recovered . It will take about 4 years worth of rent during the 7 year agreement before the Cit y
realizes any revenue .
3.During the RFP process soliciting prospective tenants ; the absence of any private secto r
respondents should have indicated the uphill battle in making a restaurant successful at thi s
location.
4.It is unlikely spending more money on capital improvement projects at the LLGC will have
any beneficial effect on revenue enhancement . Engaging others to spend money accordingl y
is also a misallocation of resources .
5.In a time where regulation courses such as Monarch Dunes, Dairy Creek and Avila Beach are
struggling to survive there is no chance for LLGC to be competitive now or in the foreseeabl e
future.
I respectfully urge the City Council to undertake a more broad discussion regarding th e
overall viability of the LLGC and whether the continued subsidy of the enterprise is in the bes t
interest of the City as a whole .
Sincerely,
SPY ~Ir~-~~Y
2t-DD DI R
C~'FIN DI R
LIRE CHIEF
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POLICE CH F
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Jeff Edwards
P .O . Box 607 0
Los Osos, CA 9341 2
805 .235 .0873
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