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. for the Calico Odessa Railroad Concession at Calico Ghost Town Regional Park
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Revenue Lease Agreement No. 17-249 for the assignment from Close the Lid Entertainment, LLC, to AR Elite Ranch, Inc. for the operation of the Calico Odessa Railroad 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)
Body
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. 2 (Amendment) to Revenue Lease Agreement No. 17-249 (Lease) 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 for the Calico & Odessa Railroad concession (Railroad) at Calico Ghost Town Regional Park (Park).
On May 2, 2017 (Item No. 58), the Board of Supervisors (Board) approved the Lease with Close the Lid Entertainment, LLC to provide the operation of the Railroad at the Park from May 13, 2017, through May 12, 2022, in which the County would receive lease fees in a minimum of $1,000 per month or 10% of gross income, whichever is greater.
On May 10, 2022 (Item No. 48), the Board approved Amendment No. 1 to the Lease with Close the Lid Entertainment LLC for the continued operation of the Railroad at the Park. Amendment No. 1 exercised the option to extend the term by five years, for the total term of May 13, 2017 through May 11, 2027 and established that the County receives lease fees in the amount of $1,200 per month or 8% of gross income, whichever is greater, with increasing percentage rates included over the course of the five-year term.
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 Railroad 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 10, 2024; Finance (Elias Duenas, Administrative Analyst, 387-4052) on December 19, 2024: and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on December 20, 2024.