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HomeMy WebLinkAbout6B(5) 50U TH e Department of Community Investment 1865 Memorandum December 22, 2014 TO: Redevelopment Commission FROM: Brock Zeeb/ David Relos, Economic Resources PLw SUBJECT: First Amendment to Blackthorn Golf Course Operations Management Agreement The Blackthorn Golf Course is currently being operated under a Management Agreement that expires December 31St. This Agreement was originally with Kitson & Partners, and was assigned to Billy Casper Golf in September 2013. To continue management of the Course while negotiations of its sale are ongoing, this First Amendment extends the expiration date of the Agreement to June 30, 2015 or the sale of the Course, whichever occurs first. Monthly payments to Billy Casper remain the same under the Amendment during this extension period. Staff requests approval of the First Amendment to Blackthorn Golf Course Operations Management Agreement. 227 W.JEFFERSON BLVD. SOUTH BEND, IN 46601 P: 574-235-9371 FAX: 574-235-9021 SOUTHBENDIN.GOV FIRST AMENDMENT TO BLACKTHORN GOLF COURSE OPERATIONS MANAGEMENT AGREEMENT THIS FIRST AMENDMENT TO GOLF COURSE OPERATIONS MANAGEMENT AGREEMENT (this "Amendment") is made effective as of December 22, 2014 by and among South Bend Redevelopment Commission, governing body of the City of South Bend Redevelopment Department ("Owner") and Billy Casper Golf, LLC, a Virginia limited liability company ("BCG"and/or "Manager"). WHEREAS, Kitson & Partners ("Kitson") entered into that certain Blackthorn Golf Course Operations Management Agreement, dated as of January 1, 2010, with the South Bend Redevelopment Commission, governing body of the City of South Bend Department of Redevelopment for the operation and management of Blackthorn Golf Course ("Agreement"); and WHEREAS, pursuant to the terms of the Agreement, Kitson assigned the Agreement to BCG with the prior written consent of Owner, dated as of September 2013; and WHEREAS, Owner proposes to sell the Blackthorn Golf Course, and Manager acknowledges that Owner proposes to sell the Blackthorn Golf Course. WHEREAS, Owner and BCG have agreed to extend the term of the Agreement and to amend same in accordance with and pursuant to the terms of this Amendment. NOW, THEREFORE, for good and valuable consideration, including the covenants herein contained, the receipt and sufficiency of which are hereby respectively acknowledged by each party,the parties hereto agree that the Agreement hereby is amended as follows: 1. Effective as of December 31,2014, Section 15.1 shall be amended as follows: 15.1 Term. The Term of this Agreement shall expire on the last day of the month in which the Owner sells the Blackthorn Golf Course, provided, however, that the Term of this Agreement shall expire on June 30, 2015, in the event no sale of the Blackthorn Golf Course occurs on or before that date. The period from January 1, 2015, to the date of termination, as such date will be determined in accordance with the foregoing sentence, will be deemed the "Extension Period." Manager will be compensated for the Extension Period on a monthly basis in accordance with the payment terms under this Agreement. Owner will promptly notify Manager of the consummation of the sale of the Blackthorn Golf Course. 2. Effective as of the date of this Amendment, Manager's address for purposes of notices pursuant to Section 25.7 of the Agreement shall be deleted and replaced with the following: Manager: Billy Casper Golf, LLC 8300 Boone Boulevard, Suite 350 Vienna, Virginia 22182 Attn: Joseph Livingood Telephone: 703.761.1444 Facsimile: 703.893.8504 Email: ilivingood(a),billycaspergolfcom 3. All capitalized terms used herein shall have the same meaning as ascribed to them in the Agreement, unless otherwise defined herein. The Agreement, as amended hereby, shall continue in full force and effect, subject to the terms and provisions thereof. In the event of any conflict between the terms of the Agreement and the terms of this Amendment,the terms of this Amendment shall control. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. WHEREOF, the parties have caused this instrument to be executed by their duly authorized representatives. Owner: South Bend Redevelopment Commission WITNESS: By: Name: Name: Title: Manager: Billy Casper oIf, LLC, a Virginia limited liability c p Name: By: V Cam=' 1 Name: Peter M. Hill Title: Chairman and CEO 2