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HomeMy WebLinkAboutPR 11691: GOLF COURSE CLUBHOUSE Memorandum City of Port Arthur, Texas To: From: Date: Subject: Mayor and City C~ncil Steve Fitzgibbon ,s,~City Manager February 27, 2002 Proposed Resolution 11691 In order to complete the Pleasure Island Golf Course, the project requires an additional $300,000. The Jefferson County Parks Board has funded the bulk of the project. In order to expedite the completion, we have worked with the Pleasure Island Commission to provide a solution to the funding shortfall. If the Council approves PR 11691, the City will loan the Commission $300,000 to complete the clubhouse. The Commission will repay the loan at $2,500 per month plus a $2 surcharge that will be collected on every round of golf. We anticipate that the loan will be paid in full in less than five years. If they play approximately 20,000 rounds per year, they will pay off the $300,000 in four years and three months. If they have more rounds, they can pay the $300,000 off sooner. If they have less rounds, it will take longer to pay off the loan. Funding for this Resolution will be provided through PO 5247 which amends the Capital Projects Budget. The council needs to approve PO 5247 to amend the budget prior to considering this resolution. P. R. NO. 11691 RESOLUTION NO. A RESOLUTION AUTHORIZING A $300,000 LOAN TO THE PLEASURE ISLAND COMMISSION TO FUND THE GOLF COURSE CLUBHOUSE. ACCOUNT NUMBER 301-1601-591.89-00, CIP 205 WHEREAS, the Jefferson County Parks Board is nearing completion of the Golf Course ProJect on Pleasure Island; and WHEREAS, the project requires an additional $300,000 in funding to complete the Clubhouse; and WHEREAS, the Pleasure Island Commission has entered into a contract with an operator for the Course, and will receive payment from the operator for the use of the Course; and WHEREAS, the ancillary benefits herein will promote the development of Pleasure Island; and WHEREAS, the loan will be repaid from the proceeds of the income of the course received from the operator and a $2 per round surcharge on the green fees paid at the Course. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. The facts and opinions in the preamble are ~-ue and correct. Section 2. That the City Council of the City of Port Arthur, Texas hereby approves a loan to the Pleasure Island Commission in the amount of $300,000 to be repaid at 0% interest with payments of $2,500 per month plus an additional $2 per round surcharge to be collected at the Course. The $2,500 per month will be paid on the first day of each month and the round fee surcharge will also be paid on a monthly basis. Section 3. That an authorized representative of the Pleasure Island Commission will sign this Resolution agreeing to these terms. Section 4. That a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED, AND APPROVED, this __ day of March, 2002, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: ATTEST: Mayor Jan Stroder, Acting City Secretary APPROVED AS TO FORM: Mark Sokolow, City Attorney APPROVED FOR ADMINISTRATION: Steve Fitzgibbons, City Manager APPROVED TO AVAILABILITY OF FUNDS: Rebecca Underhill, Finance Director AGREED TO: Pleasure Island Commission