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Agenda Item
ASR
Control 26-000121 |
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MEETING
DATE: |
04/14/26 |
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legal entity taking action: |
Orange
County Flood Control District |
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board of supervisors district(s): |
2 |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Thomas
A. Miller (714) 834-6019 |
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Kevin
Onuma (714) 647-3948 |
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Subject: Adopt Resolution and Approve Lease
with City of Santa Ana for River View Golf
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement(s) and Resolution(s) |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: N/A |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: $200,000
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Prior Board Action: 10/30/2018 #7; 12/20/1994 #10,
5/24/1988 #40, 9/2/1969 |
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RECOMMENDED
ACTION(S):
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1. |
Find that the project is Categorically
Exempt from the CEQA, Class 1 (Existing Facilities) pursuant to CEQA
Guidelines, Section 15301. |
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2. |
Adopt a Resolution making certain
findings as required pursuant to the Orange County Flood Control Act and the
Surplus Land Act related to approval of the proposed River View Golf Course
Lease between the Orange County Flood Control District and the City of Santa
Ana. |
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3. |
Approve and authorize the Chief Real
Estate Officer or designee to execute the proposed River View Golf Course
Lease between the Orange County Flood Control District and the City of Santa
Ana, which includes a 25-year-term with five additional 5-year options for a
total-term up to 50-years, and to make minor modifications that do not alter
the liability or obligations of the Orange County Flood Control District, as
approved by County Counsel. |
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4. |
Authorize the Chief Real Estate Officer
or designee, on behalf of the Orange County Flood Control District, and to
perform all activities specified to be performed by the Chief Real Estate
Officer or Orange County Flood Control District within the terms of the
proposed Lease and to execute any documents necessary for implementation of
the Lease and to execute any amendments that make non-monetary and/or
monetary changes that do not increase Orange County Flood Control District
liability or costs by more than
$75,000 annually, as approved by County Counsel. |
SUMMARY:
Approval of the Resolution and
proposed Lease between the Orange County Flood Control District and the City of
Santa Ana for a 25-year-term with options to renew for five additional
5-year-terms for a total-term up to 50-years will allow for the City of Santa
Ana operate and maintain the existing River View golf course, and related
facilities, on Orange County Flood Control District-owned property, to provide
a quality, sustainable golf course for the long-term use and enjoyment by the
public.
BACKGROUND
INFORMATION:
River View Golf Course began operations in
1961 under a lease between what is now River View LLC and the City of Santa Ana
(“City”) to construct and operate a 9-hole golf course on City-owned land. In 1969, River View LLC entered into a
separate lease with Orange County Flood Control District (“District”) allowing
expansion of the facility into an 18-hole golf course (collectively, the “Joint
Leaseholds”).
The respective City and District leases
for the Joint Leaseholds will terminate on April 30, 2026. The current owner
and operator of River View LLC has indicated his intent to retire. To allow
continued operations as an 18-hole golf course the City has requested that the
District lease its property to the City.
The proposed lease between the District
and the City is for an initial 25-year term, with five, five-year optional
renewals (“Lease”) with an annual rent starting at $200,000 per year, with
annual CPI adjustments. Either party may terminate the Lease upon 180-days’
notice. The District leasehold includes approximately 70 acres of river bottom
that has been developed with several tee boxes, fairways and holes. The
majority of this property is required for maintenance and operation of Santa
Ana River and Santiago Creek flood control and water conservation facilities.
These facilities are an integral part of the system of flood control and water
conservation works. The proposed Lease will not impact District’s ability to
fulfill its primary function of protecting life and property in Orange County
from unnecessary exposure to flood hazard and in conserving and augmenting the
County’s water supply. The proposed Lease also limits the use of the leased
area to the continued operation of the existing golf course facility, which is
compatible with District related flood control use. The City, or their
operator, will perform all golf related operations and maintenance at their
sole cost, and the District will continue to perform flood control channel
related maintenance operations on the site.
The City’s parcel of property contains a
driving range, several golf holes and tees, a clubhouse restaurant and bar,
golf pro shop, free public putting greens, restrooms, and a paved parking lot
to serve the patrons and users. Together, the Joint Leaseholds operate as a
single recreation facility that provides aesthetic and recreational amenities
to the community and provide revenue for both the City and the District, while
still allowing for Flood Control operations to occur on the District Leasehold.
River View Golf Course is utilized
annually by over 100,000 people of all ages and backgrounds. The course, with a
par rating of 70 and a length of 6,190 yards, offers a challenging yet
enjoyable experience for players of all ages and skill levels. River View also offers a lighted driving
range, practice putting green, golf lessons, summer camps, classes, and a
restaurant and bar.
The District’s net revenue for the
proposed Lease, over the course of its initial 25-year-term, is estimated to be
$6,500,000.
In conjunction with the approval of the
Lease, CEO Real Estate also requests the adoption of the attached Resolution
making the required finding under the Orange County Flood Control Act, which is
required for the approval of the Lease.
Compliance
with CEQA:
The proposed action is Categorically Exempt (Class 1) from the provisions of
CEQA, pursuant to CEQA Guidelines, Section 15301, because it involves a lease
of an existing public facility, for the continued operation of the existing
golf course facility and event center operations, that is compatible with
District-Use.
General
Plan Conformity:
The proposed action is consistent with the respective General Plan of the City
of Santa Ana.
Orange
County Flood Control Act: The Orange County Flood Control Act Chapter 36,
Section 2 (b)(12) requires the Board make certain findings prior to entering
into the proposed Lease. The evidence relied upon to make these findings is
recited within the proposed Resolution attached.
Surplus
Land Act:
The Lease will result in an “agency’s use” for the District’s land and is
therefore not subject to the Surplus Land Act. Nevertheless, the District’s
land subject to the Lease is “exempt surplus land” pursuant to Government Code
section 54221(f)(1), subdivisions (D) and (N).
FINANCIAL
IMPACT:
Revenue for the proposed Lease has
not been included in the FY 2025-26 Budget but will be included in the
budgeting process for future years. Revenue from this Lease is $200,000 the
first year and adjusted by CPI not to exceed 3% each year thereafter as set
forth in the Lease. District’s Total Net Benefit Revenue for the initial
25-year-term of the Lease is anticipated to be $6,500,000. Upon approval and
execution of the proposed Lease, the rent and any other payments will be
credited to OC Flood Fund 400 and Real Estate Development Fund 135 in
accordance with the terms set forth in the Lease. This revenue will be split between Flood
Control District and the County, with 35 percent going to Flood Control
District Fund 400 and 65 percent to County Fund 135. There are no costs related to the proposed
Recommended Action. All improvements to the District owned portion of River
View Golf Course were previously constructed and will now be operated and
maintained by City at the City’s sole cost and expense. However, the District
will continue to perform Flood Control Channel related maintenance operations
on the site.
STAFFING
IMPACT:
N/A
REVIEWING
AGENCIES:
OC
Public Works
ATTACHMENT(S):
Attachment
A – Location Map
Attachment B – Resolution
Attachment C – Lease
Attachment D – Orange County Flood Control Act Chapter 36, Section 2 (b)(12)