From
Gary Yakesch, Assistant Director of Parks Finance
Title
First Amendment to Restaurant Lease for a temporary rent reduction of 10% with Eddlemon Brothers at Prairie Lake Golf Course due to COVID-19 impacts
Presenter
Duane Strawn, Director of Parks, Arts and Recreation
Recommended Action
Approve
Analysis
On August 15, 2017, City Council awarded an initial five-year lease with Eddlemon Brothers to provide food and beverage services at Prairie Lakes Golf Course. Under this lease, the lessee is to provide 15% of gross food and non-alcoholic beverage revenues as lease/rent payments.
Due to the lingering effects of the pandemic specifically as it relates to capacity restrictions and tournament activity fall off, the lessees' ability to operate and generate income as anticipated under the lease has been restricted. The proposed amendment will grant a temporary rent reduction of 10% on gross food and non alcoholic beverage revenues beginning October 1, 2020 through September 30, 2021. Future consideration or an extension of the existing rent reduction will be proposed to City Council as needed while the pandemic effects continue.
Financial Consideration
Prairie Lakes Golf Course will receive five percent (5%) of gross food and non-alcoholic beverage revenues from Eddlemon Brothers for the period beginning October 1, 2020 and ending September 30, 2021; fifteen percent (15%) of gross food and non-alcoholic beverage revenues will resume on October 1, 2021 and continue through the term of the lease unless otherwise amended by City Council action.