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The original item was published from 5/20/2016 3:27:05 PM to 8/1/2016 12:05:04 AM.

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Posted on: May 20, 2016

[ARCHIVED] Salmon Run Agreements Approved

The Brookings City Council has approved a three-year agreement with the Early Management Team (EMT) Inc. for management of the Salmon Run Golf Course.
EMT has been operating Salmon Run under a temporary agreement since April 1. That agreement was set to expire May 30.

The new agreement includes an option to renew for two successive three-year periods. The agreement details the relationship between the City and EMT. For example, all employees will be hired and supervised by EMT, while the City will oversee the operation of the potable water system utilizing certified City water treatment operators.

Under the terms of the agreement, EMT will manage golf operations and perform all general maintenance of the City-owned facility and the equipment located there. EMT will not receive a fee from the City, but would retain 100 per cent of the first $50,000 of any net annual revenue, and 80 per cent of any net revenue in excess of $50,000.

The City will perform major maintenance activities, such as repairs to the access road and cart roads, roadside drainage ditches and major building repair.

The City will soon be contracting for major repairs to the clubhouse…estimated to cost over $59,000…as well as road repairs and replacement of the event tent.

The agreement authorizes EMT to subcontract for the operation of a restaurant in the clubhouse and Harriet Opal, owner of Oceanside Diner…now known as the Jack Creek Café…plans to continue operating the restaurant there for breakfast, lunch and special events.

The City Council authorized the purchase of 48 new golf carts for use at Salmon Run at a cost of $225,000 under a five-year financing agreement with Umpqua Bank. The EMT agreement provides that EMT will pay the City a monthly fee equal to the monthly loan payment.

In another golf course related action, the City Council approved a Settlement Agreement and Release of Claims with Wild Rivers golf Management (WRGM), LLC. The City terminated a lease agreement with WRGM for the operation of Salmon Run effective March 31.

Under the terms of the settlement agreement, WRGM releases its ownership interest in assets valued at $140,836 to satisfy claims made by the City for unpaid property taxes, deferred maintenance, rent due for the remaining three years of the lease and other costs associated with winding up the WRGM business. Assets relinquished included the clubhouse building, lawn mowers, equity in 17 leased golf carts and other equipment and furnishings.

The equipment transferred from WRGM to the City will be maintained by EMT and, under the terms of the EMT management agreement, EMT will purchase and own any replacement maintenance equipment at their expense.

The City expects to spend about $12,000 to repair the entrance road and another $25,000 to repair cart roads. The City has already replaced a $6,000 water pump and has rehabilitated the treatment system providing potable water to the clubhouse.

See the full text of the Press Release
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