REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 11, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
BEAHTA DAVIS, Director, Regional Parks Department
SUBJECT
Title
Non-Competitive Negotiation of a Sublease Agreement of Prado Regional Park Real Property Pursuant to County Policy
End
RECOMMENDATION(S)
Recommendation
1. Adopt Resolution that:
a. Finds and determines in accordance with County Policy No. 12-05, Leasing County Regional Park Real Property, Section 3, Exceptions to Policy, Paragraph D, Board Approval of Alternate Procedure, that the non-competitive negotiation of a sublease agreement with the existing tenant for the use of approximately 314.21 acres of County-leased Prado Regional Park in Chino as a 36-hole golf course containing a County-owned clubhouse, entrance gate, warehouse/storage building, chain link perimeter fencing and a paved area for automobile parking for a term expected to exceed five years and rental revenue expected to exceed $5,000 per month is in the best interests of the County, as a resulting sublease agreement would serve the public with uninterrupted outdoor park and recreation use.
b. Approves and authorizes the Director of the Real Estate Services Department to negotiate on a non-competitive basis the sublease agreement terms with the existing tenant for the property described in Recommendation No. 1.a. with rental revenue expected to exceed $5,000 per month and for a term expected to exceed five years, as an alternate procedure in accordance with County Policy No. 12-05, Leasing County Regional Park Real Property, Section 3, Exceptions to Policy, Paragraph D, Board Approval of Alternate Procedure.
2. Authorize the Director of the Real Estate Services Department to proceed with a competitive procurement of a sublease agreement for the property described in Recommendation No. 1.a., pursuant to County Policy No. 12-05, if the negotiation with the existing tenant is not completed with either an amendment to Agreement No. 21-183 or a new sublease agreement approved by the Board of Supervisors by April 29, 2025.
(Presenter: Terry Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally Responsible and Business-Like Manner.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Revenue received, following a Board of Supervisors (Board) approved sublease agreement, will be deposited into the Regional Park Department’s (Regional Parks) Fund (6520001000).
BACKGROUND INFORMATION
Approval of this item will authorize the Director of the Real Estate Services Department (RESD) to negotiate on a non-competitive basis the sublease agreement terms with the existing tenant for the use of approximately 314.21 acres of County-leased Prado Regional Park in Chino as a 36-hole golf course containing a County-owned clubhouse, entrance gate, warehouse/storage building, chain link perimeter fencing and a paved area for automobile parking (Property) for a term expected to exceed five years and rental revenue expected to exceed $5,000 per month.
County Policy No. 12-05, Leasing County Regional Park Real Property, Section 3, Exceptions to Policy, Paragraph D, Board Approval of Alternate Procedure (Policy), states that in cases where a Solicitation of Proposals (SOP) for Regional Park leases would be required (i.e. competitive procurement), the Board may approve the use of an alternative procedure whenever the Board determines that compliance with the SOP requirements would unreasonably interfere with the financial or programmatic needs of the County, or when the use of an alternative procedure would otherwise be in the best interests of the County.
In addition, if a resulting sublease agreement should occur, Government Code section 25536(a) authorizes the Board, by a four-fifths vote, to enter into leases, involving leasing or subleasing all or any part of county-owned, leased, or managed property devoted to or held for ultimate use for airport, vehicle parking, fairground, beach, park, amusement, recreation, or employee cafeteria purposes, or industrial or commercial development incidental thereto.
The County, through Regional Parks, leases Prado Regional Park from the United States Army Corps of Engineers (USACE). The current lease with the USACE, Lease Agreement 23-627, was approved by the Board on July 11, 2023 (Item No. 37) and is in effect from May 1, 2023 through April 30, 2048.
The County also has the existing Revenue Sub-Lease Agreement No. 21-183 with El Prado Development, LLC (Tenant) to sublease the Property. This Revenue Sub-Lease Agreement No. was originally approved by the Board on March 9, 2021 (Item No. 35), was amended by the parties on May 23, 2023 (Item No. 72), and has a remaining term through August 31, 2025.
The non-competitive negotiation of the sublease agreement terms for the continued operation and use of the Property by the existing Tenant is in the best interests of the County, as a resulting sublease agreement would serve the public with uninterrupted outdoor park and recreation use.
PROCUREMENT
By the Board’s adoption of the resolution and pursuant to the Policy, RESD will negotiate on a non-competitive basis the sublease agreement of the Property with the existing Tenant with sublease revenue expected to exceed $5,000 per month and a term expected to exceed five years. Any resulting sublease agreement shall be subject to future Board consideration and approval by four-fifths vote pursuant to Government Code section 25536(a). If the negotiation with the existing tenant is not completed with either an amendment to Agreement No. 21-183 or a new sublease agreement approved by the Board of Supervisors by April 29, 2025, then this item authorizes the Director of the Real Estate Services Department to proceed with a competitive procurement of a sublease agreement for the Property.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Scott Runyan, Principal Assistant County Counsel, 387-5455) on February 7, 2025; Regional Parks (Beahta R. Davis, Director, 387-2886) on February 3, 2025; Risk Management (Gregory Ustaszewski, Staff Analyst II, 386-9008) on January 31, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on February 3, 2025; Finance (Eduardo Mora, Administrative Analyst, 387-4376) on February 4, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on February 4, 2025.
(LB; 453-5227)