REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 23, 2023
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
BEAHTA R. DAVIS, Director, Regional Parks Department
SUBJECT
Title
Amendment to Revenue Sub-Lease Agreement with El Prado Development, LLC for the Golf Course Facility at Prado Regional Park in Chino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 1 to Revenue Sub-Lease Agreement No. 21-183 with El Prado Development, LLC, for the Golf Course Facility is an exempt project under the California Environmental Quality Act Section15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 1 to Revenue Sub-Lease Agreement No. 21-183 with El Prado Development, LLC, to reflect a change in business ownership and an assignment of the revenue Sub-Lease from El Prado Golf Course, a California Limited Partnership, to El Prado Development, LLC, for the Golf Course Facility at Prado Regional Park, located at 8555 Pine Avenue in Chino, with no changes to the other terms and conditions of Revenue Sub-Lease Agreement No. 21-183.
3. Direct the Clerk of the Board of Supervisors to file and post the Notice of Exemption for the project as required under the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
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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 this amendment to reflect a change of business ownership and the tenant’s assignment of the sub-lease.
BACKGROUND INFORMATION
The recommended action will amend Revenue Sublease Agreement No. 21-183 (Sub-Lease) to reflect a change in business ownership, and the assignment of the Sub-Lease from El Prado Golf Course, a California Limited Partnership, to El Prado Development, LLC, for a 36-hole golf course facility (Course) situated on approximately 314.21 acres of improved land located at 6555 Pine Avenue in Chino (Property). The land underlying the Course is owned by the United States Army Corp of Engineers (Army), which historically is leased to the County (Master Lease).
On March 9, 2021 (Item No. 35), the San Bernardino County (County) Board of Supervisors (Board) approved the Sub-Lease between El Prado Golf Course, a California Limited Partnership, and the County for a term of five years for the 36-hole golf course facility situated on the Property for the Regional Parks Department (Parks). The term of the Sub-Lease is month-to-month with a potential term from September 1, 2020, due to a holdover, through August 31, 2025, subject to the Army’s approval of the Master Lease’s extension.
The Real Estate Services Department (RESD) received notification on February 22, 2023, of El Prado Development, LLC’s acquisition of the Course from El Prado Golf Course, a California Limited Partnership. Parks requested RESD amend and assign the Sub-Lease for Board approval to reflect the successor tenant on the Sub-Lease. Amendment No. 1 to the Sub-Lease reflects El Prado Development, LLC as the successor tenant with standard lease agreement language. All other provisions and terms of the Sub-Lease remain the same.
The project to approve Amendment No. 1 to the Sub-Lease was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section Section15301 - Existing Facilities (Class 1) because there is no possibility that amending the Sub-Lease of the subject property will have a significant effect on the environment.
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Summary of Sub-Lease Terms |
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Lessee: |
El Prado Development, LLC (Frank Lizarraga, Managing Member) |
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Location: |
6555 Pine Avenue, Chino, CA 91708 |
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Size: |
36-hole golf course facility situated on approximately 314.21 acres of improved land |
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Term: |
Month-to Month, over duration of five years, for the period of September 1, 2020 through August 31, 2025 |
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Contingency: |
Any desire to extend the term of the Sub-Lease will be contingent upon approval from the United States Army Corp of Engineers |
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Options: |
None |
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Improvements: |
Lessee shall not make any improvements or alterations to the Property without County’s prior written consent |
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Custodial: |
Provided by Lessee |
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Maintenance: |
Provided by Lessee |
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Utilities: |
County has no obligation to furnish the Property with any electricity, gas, water, trash, or any other utilities. Lessee shall obtain the County’s prior written approval if the Lessee desires to connect, maintain, repair, upgrade, remove or replace existing utility equipment. |
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Insurance: |
The Certificate of Liability Insurance, as required by the Sublease, is on file with RESD |
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Holdover: |
Month-to-month basis for a maximum of six months upon the same provisions of the Sub-Lease, minimum monthly fee shall increase 150%, immediately in effect prior to the initiation of holdover |
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Right to Terminate: |
Either party may terminate the Sub-Lease for any reason on 180 days’ notice. County may give written notice to correct a condition or cure a default. If condition or default continues 30 days after receipt of written notice, County may elect its option to terminate the Sub-Lease. |
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Parking: |
Sufficient for Lessee needs, included in original Sublease tenant improvements |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, and Suzanne Bryant, Deputy County Counsel, 387-5455) on April 20, 2023; Regional Parks (Beahta Davis, Director, 387-2886) on April 21, 2023; Finance (Elias Duenas, Administrative Analyst, and Garrett Baker, Administrative Analyst, 387-5423) on April 27, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on May 3, 2023.
(YG: 665-0268)