HomeMy WebLinkAboutIR 7845 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7845
To the Mayor and Members of the City Council June 21, 1994
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X Subject: ROCKWOOD GOLF COURSE
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BACKGROUND
In August 1990, the City approved a license agreement under which International Golf of
Texas, Inc. (IGT) assumed full responsibility for the operation and maintenance of Rockwood
Golf Course. The primary term of the agreement was for eight (8) years with two (2)
additional two (2) year options.
The contractor is required to pay to the City an escalating guaranteed minimum per year
totalling $2.457 million during the initial term. The initial contract required the contractor
to conduct capital improvements on a four(4)year schedule totaling$550,000 and, in addition,
the construction of an additional new 9 holes,a new clubhouse,and a new driving range were
included as part of a Special Capital Improvement Program. To date, IGT has spent
$309,853.26 for capital improvements to Rockwood Golf Course.
On November 2, 1993 the City approved an amendment (M&C C-14072) to the license
agreement in which all remaining Regular and Special Capital Improvements outlined in the
original contract(including the construction of the New 9 Holes,Clubhouse and Driving Range)
were deleted from the contract agreement.
The amended contract retained the original annual guaranteed minimum fees and required
the contractor to spend the remaining Regular Capital Improvement funds (balance left on the
original $550,000) in the amount of$240,146.74 for capital improvements. The amendment
specified that continuous cart trails on the Red and White nines during contract year four (4)
should be constructed, and that any remaining balance would be spent on improvements
during contract year six (6). The amendment also included a series of incentives to the
contractor which were targeted at increasing the chances for success by the contractor given
the firm's poor performance record during the first three (3)years of the contract. In addition,
the amended contract required IGT to make a $25,000 gift to the City on December 15, 1993
and again on December 15, 1994 to be expended on park improvements in Rockwood Park.
As specified in the amended contract, IGT is required to complete the additional cart trails by
July 31, 1994. Construction on the cart trails began on May 31, 1994 and are expected to be
completed on or before July 31, 1994. In the event, that the cart trails are not completed by
July 31, 1994 as set forth in the contract, the City will have the option to terminate the
existing contract or penalize IGT a late fee of$100 per day until the trails are completed. -In
the event that the contract with IGT is terminated, the Parks and Community Services
Department Golf Division would manage and operate the facility.
This matter is being brought to the City Council's attention for informational purposes. Should
you have any additional questions please contact me or Libby Watson,Assistant City Manager
at extension 6140.
Bob Terrell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS—