REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 14, 2025
FROM
BEAHTA R. DAVIS, Director, Regional Parks Department
SUBJECT
Title
Amendment to Revenue Lease Agreement for Assignment from Close the Lid Entertainment, LLC, to AR Elite Ranch, Inc. to Operate Concessions at Calico Ghost Town Regional Park
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RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4 to Revenue Lease Agreement No. 12-256 for the assignment from Close the Lid Entertainment, LLC, to AR Elite Ranch, Inc. for the Gold Panning, Maggie’s Mine, and Mystery Shack concessions at Calico Ghost Town Regional Park, located at 36600 Ghost Town Road in Yermo, with no changes to the term or lease fees (Four votes required).
(Presenter: Beahta R. Davis, Director, 387-2340)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). There is no cost associated with Amendment No. 4 (Amendment) to Revenue Lease Agreement No. 12-256 (Lease), which is to reflect a change of business ownership and the assignment of the Lease.
BACKGROUND INFORMATION
The Amendment will amend the Lease to reflect a change in business ownership and the assignment of the Lease from Close the Lid Entertainment, LLC to AR Elite Ranch, Inc. to continue operations of the Gold Panning, Maggie’s Mine, and Mystery Shack concessions (Concessions) at Calico Ghost Town Regional Park (Park). The term of the Lease lasts through May 31, 2027.
On May 8, 2012 (Item No. 37), the Board of Supervisors (Board) approved the Lease with Close the Lid Entertainment, LLC for the operation of the Concessions from June 1, 2012, through May 31, 2017. The Lease fee consisted of either a minimum monthly fee of $300 or 5% of gross income, whichever is greater for the first year of the initial term. For years two and three, the monthly fee was $300 or 6% of gross income, whichever is greater. For years four and five, the Lease fee consisted of $300 or 7% of gross income, whichever is greater. Close the Lid Entertainment, LLC would also contribute 3% per month for advertising purposes.
On April 5, 2016 (Item No. 56), the Board approved Amendment No. 1 to the Lease which transferred responsibility of group sales to Concessionaire and allowed the Concessionaire to offer a School House Ghost Tour to Park patrons. The Lease fee consisted of either a minimum monthly fee of $300 or 7% of gross income, whichever is greater, and a 3% advertising fee.
On May 23, 2017 (Item No. 110), the Board approved Amendment No. 2 to the Lease, which exercised the first option to extend the term by five years, from June 1, 2017, through May 31, 2022, made other non-substantive changes for the continued operation of the Concessions at the Park, and established that the County would receive lease fees in the amount of $1,000 per month or 7% of gross income, whichever is greater, with increased percentage rates included over the course of the five year term. Close the Lid Entertainment, LLC was also responsible for paying 3.5% of its monthly gross income as an advertising fee for promotion of the Park.
On May 10, 2022 (Item No. 46), the Board approved Amendment No. 3 to the Lease which made non-substantive changes for the continued operation of the Concessions, established Lease fees of either a minimum monthly fee of $1,200 or 8% of gross income, whichever is greater, with increasing percentage rates over the five year term, and exercised the second option to extend the term by five years, for a total term of June 1, 2012 through May 31, 2027.
This Amendment aligns with County and Chief Executive Officer goal to operate in a fiscally- responsible and business-like manner by allowing the continued operation of the concession resulting in Regional Parks Department (Department) revenue, with the aim of reducing the Department’s reliance on Discretionary General Funding.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on December 11, 2024; Finance (Elias Duenas, Administrative Analyst, 387-4052) on December 13, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on December 16, 2024.