Loading...
MOU with Lakeview Meridian for Capital Improvement Approval ProcedureMEMORANDUM OF UNDERSTANDING REGARDING CAPITAL IMPROVEMENT APPROVAL PROCEDURE FOR RENT CREDIT ELIGIBILITY BETWEEN LAKEVIEW MERIDIAN INVESTORS LLC AND THE CITY OF MERIDIAN THIS MEMORANDUM OF UNDERSTANDING (MOU) is made and entered into this day of January, 2015 by and between Lakeview Meridian Investors LLC (Lakeview) and The City of Meridian, Idaho (City), to establish a mutual understanding regarding certain details related to the approval of Capital Improvements at Lakeview Golf Course that may qualify for credit against the annual rent. WHEREAS, On May 17, 2005, City and Lakeview entered into a Lease Agreement for the operation of the Lakeview Golf Course; and, WHEREAS, the 2005 Lease agreement included a required Capital Improvement Program that was linked to a specific list of annual projects; and, WHEREAS, On September 17, 2013, City and Lakeview executed an Addendum to the Lease Agreement that, among other things, changed the golf course Capital Improvement requirements to eliminate the specific list, but instead for consideration of rent credit eligibility require a minimum of $6,000 in improvements per year for the seven year period of October 1, 2012 through September 30, 2019; and, WHEREAS, The September 17, 2013 Addendum also instituted a procedure for receiving credit for the annual rent due for the seven year period ending on September 30, 2019 in exchange for completing the minimum required capital improvements; and, WHEREAS, neither the 2005 Lease or the 2013 Addendum contain a precise definition of "Capital Improvement" which has resulted in some misunderstanding about what projects may or may not qualify for the annual rent credit; and, WHEREAS, the parties desire to establish a process for Lakeview to receive pre - approval from City for upcoming capital improvement projects, along with an MEMORANDUM OF UNDERSTANDING - 1 of 5 improved administrative procedure for verifying the amounts spent on capital improvements and receiving credit against annual rent due. NOW, THEREFORE, the parties hereby agree as follows: A. NATURE OF CAPITAL IMPROVEMENTS TO BE CONSIDERED FOR APPROVAL: 1. If Lakeview is seeking construct a capital improvement project ("Project") and be eligible to receive credit against annual rent, the Project details and the amount of rent credit must be approved in advance by the City Council. 2. The City Council shall have discretion to consider a wide variety of Projects as proposed by Lakeview. 3. In approving a proposed Project for rent credit, the City Council shall consider whether the Project includes the following attributes: a) The Project enhances the usefulness and value of golf course facilities by curing an existing deficiency, improving an amenity, or providing additional enhancement or capacity to serve the public. b) The Project is intended to be a permanent improvement that has a useful life of more than one year. C) Ownership of the Project components will be vested in the City upon completion, either by being integrated into the City's real property and improvements, or by way of a certificate of title, certificate of ownership, or bill of sale. d) The Project is not intended to fulfill an operational obligation already existing in the Lease Agreement unless waived by the City Council at the request of Lakeview. 4. Nothing in this MOU shall be construed to limit the ability of Lakeview to construct additional capital improvements as allowed under the Lease Agreement for which Lakeview does not wish to receive rent credit. B. CAPITAL IMPROVEMENT PRE -APPROVAL PROCESS: MEMORANDUM OF UNDERSTANDING - 2 of 5 1. Prior to undertaking a Project for which Lakeview desires to qualify for credit against annual rent due, Lakeview shall fill out a Project Proposal Form (see sample form, Exhibit A, which may be updated from time to time in a manner not inconsistent with the provisions of this MOU) and provide the form along with any supporting documentation to Director of Parks and Recreation. Details of the Project shall include but are not limited to: a. Specifics of the proposed Project, focusing on how the Project will provide a long-term enhancement to the Golf Course facilities. b. Timing of the Project. c. Estimated cost of the Project. 2. The Director of Parks and Recreation shall place the Project Proposal on the next available agenda of the Golf Course Focus Group for discussion and recommendation to City Council. 3. After receiving a Project recommendation from Golf Course Focus Group, Lakeview shall submit the Project Proposal Form and any supporting documentation to the City Clerk to be placed on the next available City Council agenda for presentation of the Project by Lakeview. 4. After receiving a Project proposal by Lakeview, City Council shall deliberate regarding the amount of credit against annual rent to be allowed if the Project is constructed as proposed. a) The maximum allowable rent credit per year shall be $6,000.00 b) If the total Project cost exceeds $6,000.00: i. At such meeting, City Council shall determine the total amount of the remaining Project cost that will be allowed as credit against rent in the successive years if the Project is completed as approved. ii. City Council shall specify the amount(s) for each successive year that the rent credit will be allowed at the time of the original approval of the Project. MEMORANDUM OF UNDERSTANDING - 3 of 5 iii. If the City Council and Lakeview do not agree on the amount of credit to be allowed for future years' rent, there shall be no obligation for Lakeview to initiate such Project or any future project. However, the City Council and Lakeview may agree to modify such Project to reach a mutually satisfactory agreement on the amount of future years' rent credit. C. ADMINISTRATIVE PROCEDURE FOR PROJECT COMPLETION VERIFICATION AND RENT CREDIT: 1. To receive credit against annual rent due for constructing an approved Project, Lakeview shall comply with the procedure set forth in the 2013 Addendum titled "Payment of Rent" which requires that documentation be submitted to the City at least one month prior to the beginning of the fiscal year in which the rent credit is to be applied. 2. If Lakeview constructs the Project as proposed, proof of payment shall be presented to the City on the Project Verification and Rent Credit Approval form (see sample form, Exhibit B, which may be updated from time to time in a manner not inconsistent with the provisions of this MOU). a) Proof of Payment may include, but is not limited to contractor invoices, cancelled checks, and the like. b) The Project Verification and Rent Credit Approval form and any supporting documentation shall be presented to the Director of Parks and Recreation. C) The Director of Parks and Recreation shall direct Parks Department Staff to conduct a site visit to verify that the portions of the Project listed on the proof of payment have been constructed as represented. d) If the documentation is deemed satisfactory by the Director of Parks and Recreation, the Project Verification and Rent Credit Approval Form shall be forwarded to the City Finance Department so that the appropriate credit against annual rent can be applied. If the Director of Parks and Recreation has questions about the documentation submitted, he shall first work directly with Lakeview to resolve any dispute. ii. If the Director of Parks and Recreation is unable to resolve a documentation dispute with Lakeview, the matter shall then be placed on the agenda of the next regularly scheduled MEMORANDUM OF UNDERSTANDING - 4 of 5 meeting of the City Council for discussion and appropriate action. D. TERM OF MOU; EXTENSIONS: This MOU shall be in effect until September 30, 2019 to coincide with the seven year rent credit program set forth in the 2013 Addendum. The rent credit program and this MOU may be extended by mutual written agreement. E. MISCELLANEOUS TERMS: 1. This MOU shall be construed and interpreted in accordance with the laws of the State of Idaho. The parties agree that the courts of Idaho shall have exclusive jurisdiction and agree that Ada County is the proper venue. 2. The failure or neglect of a party to enforce any remedy available by reason of the failure of the other party to observe or perform a term or condition set forth in this MOU shall not constitute a waiver of such term or condition. A waiver by a party (i) shall not affect any term or condition other than the one specified in such waiver, and (ii) shall waive a specified term or condition only for the time and in a manner specifically stated in the waiver. 3. This MOU shall be binding upon and inure to the benefit of the City and Lakeview, but the terms and conditions contained herein shall not be transferrable to successors and/or assigns of City or Lakeview. IN WITNESS WHEREOF, the parties do execute this Memorandum of Understanding the day and year first above written. LAKEVIEW MERIDIAN INVESTORS LLC By Its: CITY OF MERIDIAN, IDAHO By: Tammy de)Neefd, Mayor MEMORANDUM OF UNDERSTANDING - 5 of 5 n City of 1 Axxio.nEin L. Holman, City Clerk E.. IDIAN*IDAHO- Submit to City Clerk's Office Lakeview Golf Course Capital Improvement Project Proposal Submittal Form Proposal submitted by: Date: -- ATTACH NARRATIVE DESCRIBING THE FOLLOWING PROJECT INFORMATION: 1. HOW DOES THE PROJECT ENHANCE OR IMPROVE THE CITY'S CAPITAL ASSET? 2. WHAT IS THE EXPECTED USEFUL LIFE OF THE H PROVEMENT? 3. IS THE PROJECT AN IMPROVEMENT TO THE CITY'S REAL PROPERTY? 4. IF THE PROJECT IS NOT AN IMPROVEMENT TO THE CITY'S REAL PROPERTY, HOW WILL OWNERSHIP BE VESTED IN THE CITY? 5. LIST PROJECT CONSTRUCTION TEAM OR VENDOR 6. PROVIDE TASK AND COST BREAKDOWN 7. PROVIDE PROJECT TIMELINE. Date of Golf Course Focus Group Presentation: /Z- Recommendation ZRecommendation from GC Focus Group: ,�e- e14e 0�� 4 Lakeview Golf Course Capital Improvement Project Proposal Submittal Form Version 1.0 01/08/15 ATTACH NARRATIVE DESCRIBING THE FOLLOWING PROJECT INFORMATION: 1. HOW DOES THE PROJECT ENHANCE OR IMPROVE THE CITY'S CAPITAL ASSET? Rebuilding or modifying (depending on which Option is chosen (see Proposal Option A and Proposal Option B attached) the #9 Green is intended to improve the playability of the Green and provide better pin placement surfaces. Currently, locating a pin placement that can reasonably be played by the substantial majority of golfers is nearly impossible. The reason is that it is dome shaped as well as downward slanted and most golfers suffer a disappointing 2 or 3 putt outcome. Complaints about this Green are constant and consistent in seeking modification. Such improvement when implemented this year will be permanent. 2. WHAT IS THE EXPECTED USEFUL LIFE OF THE IMPROVEMENT? • Since the changes contemplated in both Option A and Option B are permanent, the useful life will match the useful life of the golf course. 3. IS THE PROJECT AN IMPROVEMENT TO THE CITY'S REAL PROPERTY? • Yes, it is a permanent improvement to the real property. 4. IF THE PROJECT IS NOT AN IMPROVEMENT TO THE CITY'S REAL PROPERTY, HOW WILL OWNERSHIP BE VESTED 1N THE CITY? • NIA 5. LIST PROTECT CONSTRUCTION TEAM OR VENDOR • See Proposal Option A and Proposal Option B (Attached) f). PROVIDE TASK AND COST BREAKDOWN • See Proposal Option A and Proposal Option B (Attached) 7. PROVIDE PROJECT TIMELINE. • See Proposal Option A and Proposal Option B (Attached) Proposal for Rebuilding #9 Green Lakeview Golf Course Option A — Complete Redesign and Reconstruction Description Lakeview Golf Club proposes to: • Excavate the existing #9 Green, • Salvage and redeploy turf and other materials where possible • Design a challenging but appropriate replacement in consult with professional designer • Implement new design and reconstruct #9 Green Construction Team • Project Superintendent: Rich Rush, Lakeview Grounds Superintendent • Contractor: Timberstone Construction Company • Contractor Superintendent: Craig Jackson • Professional Golf Course Architect: Dave Durzisky ASGCA • Project Team: Lakeview Grounds Crew, Timberstone Crew Project Task and Cost Breakdown • Complete Restoration:_Timberstone Construction (NTE) Estimate: $21,750.00 o Equipment o Profile o Topsoil o Sand • Replacement Sod: (NTE) Estimate: $11,200.00 o 6,000 square feet o Bent Grass Mix o Delivery to Lakeview • Installation of Irrigation System: Lakeview Grounds Crew (NTE) Estimate: $3,000.00 o Materials o Labor Project Timeline • Estimated Start: January 25, 2015 • Estimated Project Completion: 14 Days (Weather Permitting) • Estimated Opening Date: May 31, 2015 Total Cost: (NTE) $35,950.00 Proposal for Rebuilding #9 Green Lakeview Golf Course Option B — Renovation of Putting Surface Only Description Lakeview Golf Club proposes to: • Cut and temporarily store existing sod on entire Green • EvaIuate depth of sand base and irrigation system in place • Design pin placement areas most suitable for existing Green footprint and current location • Implement new design by adding new sand and other materials where necessary • Modify irrigation system if necessary • Replace sod on putting surface and if necessary add turf for optimal grow in condition around Green Construction Team • Project Superintendent: Rich Rush, Lakeview Grounds Superintendent • Contractor: Timberstone Construction Company • Contractor Superintendent: Craig Jackson • Project Team: Lakeview Grounds Crew, Timberstone Crew Project Task and Cost Breakdown • Complete Putting Surface Renovation: Timberstone Construction (NTE) Estimate: $6,000.00 o Equipment o Profile o Topsoil o Sand o Sod • Modify Irrigation System: Lakeview Grounds Crew (NTE) Estimate: $1,500.00 o Materials o Labor Project Timeline • Estimated Start: January 25, 2015 • Estimated Project Completion: 14 Days (Weather Permitting) • Estimated Opening Date: May 31, 2015 Total Cost: NTE $7,500.00