R-1486 - 08/11/2015 - SPORTS CORE - Resolutions Supporting Documents 33
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ITEM 6.E.6)
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AGENDAITEM
Regular Board of Trustees Meeting
of
August 11, 2015
SUBJECT: Butler National Golf Club - Fourth Modification of Use of Golf Practice Area
Easements
FROM: Trey VanDyke - Sports Core Director
BUDGET SOURCE/BUDGET IMPACT: Program 816 - $40,000.00
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RECOMMENDED MOTION: That the Village Board authorize a second amendment to
the Fourth Modification of Use of Golf Practice Area Easements with Butler National Golf
Club.
Background/History:
On November 25, 2014 the Village Board approved an amendment to the Fourth Modification of
Use of Golf Practice Area Easements (Fourth Modification) with Butler National Golf Club.
At the July 30, 2015 meeting of the Polo Committee,staff was informed that efforts to move
polo operations to Field #2 in 2016 have been suspended. The current effort will be to move polo
i
operations in 2017.
With this information, staff recommends extending the agreement with Butler National Golf
Club for targets greens for an additional one year. The effect of this extension would be to collect
an additional $5,000.00 in rent for 2015 and to collect $35,000.00 in target green rent in 2016.
Therefore, staff is recommending that a second amendment to the Fourth Modification to include
the following changes:
1) The term of this amended agreement is from October 2,2015 to October 1, 2016.
2) The additional fee paid for target greens is $40,000.00.
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National Second Amendment to Fourth Modification Memo.docx n
Last printed 8/5/2015 4:11 PM (�f J-
These changes will allow all parties concerned to evaluate the moving of polo from Field#1 to
Field#2 in 2017.
Recommendation:
That the Village Board authorize a second amendment to the Fourth Modification of Use of
Golf Practice Area Easements with Butler National Golf.
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National Second Amendment to Fourth Modification Memo.docx
Last printed 8/5/2015 4:11 PM
RESOLUTION 2015-GOLF-GREENS-LEASE-R-1486
A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION
OF A SECOND AMENDMENT TO THE FOURTH MODIFICATION
TO THE BUTLER NATIONAL TARGET GREENS LEASE
WHEREAS, on November 1, 1976, the Village entered into a lease agreement ("Lease") with
Chicago Title and Trust Company, not individually, but as Trustee under a Trust Agreement dated May 2,
1974, and known as Trust No. 64294 ("Trust'j, for the Butler Company to lease from the Village property
to use as a golf practice area; and
WHEREAS, Butler National Golf Club now owns the entire beneficial interest of the Trust; and
WHEREAS, the Lease has been amended from time to time pursuant to modification agreements
by and between the Village and Butler National Golf Club; and
WHEREAS, Butler National Golf Club's lease of the Butler National Target Greens from the
Village is currently governed by the Fourth Modification of Use of Golf Practice Area Easements ("Fourth
Modification'; and
WHEREAS, the term of the Fourth Modification will end on October 1, 2015 unless the term of the
Fourth Modification is extended by the parties; and
WHEREAS, the Village and Butler National Golf Club desire to extend the term of the Fourth
Modification pursuant to the Second Amendment to the Fourth Modification of Use of Golf Practice Area
Easements attached hereto, and incorporated herein, as Exhibit ("Second Amendment'% and
WHEREAS, the President and Board of Trustees have determined that approving the Second
Amendment is in the best interests of the Village;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Approval of the Second Amendment. The President and Board of Trustees
hereby approve the Second Amendment by and between the Village and Butler National Golf Club, in
substantially the same the form as attached as Exhibit A.
Section 3: Authorization and Execution of the Second Amendment. The Village President
and Village Clerk shall be, and hereby are, authorized to execute the Second Amendment in substantially
the same form as attached hereto as Exhibit A after receipt of the final Second Amendment fully executed
by Butler National Golf Club.
Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and
approval in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
Resolution 2015-GOLF-GREENS-LEASE-R-1486
Approving and Authorizing the Execution
of a Second Amendment to the Fourth Modification
Page 2 of 3
APPROVED THIS 11th day of August, 2015
Gopal G. Lalmalani
Village President
PASSED THIS 11th day of August, 2015
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
Resolution 2015-GOLF-GREENS-LEASE-R-1486
Approving and Authorizing the Execution
of a Second Amendment to the Fourth Modification
Page 3 of 3
EXHIBIT A
SECOND AMENDMENT
SECOND AMENDMENT TO THE FOURTH MODIFICATION OF USE OF GOLF
PRACTICE AREA EASEMENTS
THIS SECOND AMENDMENT TO THE FOURTH MODIFICATION OF USE OF
GOLF PRACTICE AREA EASEMENTS ("Second Amendment") is made as of this
day of ' 2015 by and between BUTLER NATIONAL GOLF CLUB, an Illinois
not-for-profit corporation ("Club"), and the VILLAGE OF OAK BROOK, ILLINOIS, an
Illinois municipal corporation ("Village").
RECITALS
WHEREAS, pursuant to that certain Indenture of Lease made as of November 1, 1976,
by and between Chicago Title and Trust Company, not individually, but as Trustee under Trust
Agreement dated May 2, 1974, ("Trustee") and known as Trust No. 64294 (the "Trust"), and
Butler Company, an Illinois corporation ("Lease"), Trustee leased certain lands in Oak Brook,
Illinois, to the Club for use as a private golf course (the "Premises"), which lands are legally
described in Exhibit A to the Second Modification of Use of Golf Practice Area Easements
("Second Modification") and Butler Company granted certain easement rights over adjacent
property owned by Butler Company to the Trustee and the Club and their heirs, successors and
assigns; and
WHEREAS,the Club now owns the entire beneficial interest in the Trust; and
WHEREAS, pursuant to the Second Modification, the Village and the Club terminated
the First Modification and modified the Club's right to use certain easements that were granted
in the Lease; and
WHEREAS, the Village and the Club further modified said easements relative to the use
of the Golf Practice Area by the Club pursuant to that certain Third Modification of Use of Golf
Practice Area Easements dated May, 2009 ("Third Modification"); and
WHEREAS, on November 1, 2010, the Village and the Club enter into that certain
Fourth Modification of Use of Golf Practice Area Easements ("Fourth Modification"), which
extend certain of the rights and obligations of the Third Modification and further modified the
easements relative to the use of the Golf Practice Area by the Club; and
WHEREAS, on November , 2014, the Village and the Club entered into that certain
Amendment to the Fourth Modification of Use of Golf Practice Area Easements
("Amendment"), which extended the term of the Fourth Modification to October 1, 2015; and
WHEREAS, the parties now desire to further amend the Fourth Modification to extend
its term for an additional year pursuant to the terms of this Second Amendment;
NOW THEREFORE, for and in consideration of the recitals set forth above and other
good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, the Parties hereto agree as follows:
A. Amendment of Paragraph 7 of the Fourth Modification. The Club and the Village
acknowledge and agree that Paragraph 7 of the Fourth Modification shall be further
amended and be replaced with the following:
Club's Cost and Expenses. Prior to the year beginning January 1, 2011,
the Club shall pay all costs and expenses pursuant to the Third
Modification. In connection with the Club's use of the Practice Property,
the Club shall pay all costs and expenses of maintaining Parcel Four for
golf practice purposes, including, without limitation, seeding, mowing,
irrigating, fertilizing, draining and sodding. The Club shall also pay the
Village a sum of$22,674.00 for such use of the Golf Practice Area for the
twelve months beginning January 1, 2011. This use charge shall be
increased or decreased for each succeeding twelve-month period (but the
annual use charge shall never be less than $10,000.00 nor more than
$35,000.00) by a percentage equivalent to the percentage change
(hereinafter the "Percentage Change") in the index defined below for (A)
the month of February preceding the year for such use as compared with
(B) the index for the preceding February. The "Index" as used herein
shall mean the "Consumer Price Index for Urban Wage Earners and
Clerical Workers, All Items 1967=100 for the City of Chicago," then
being published, the successor or the most nearly comparable successor
index thereto. In addition to the above amount the Club shall pay the
Village the sum (the "Additional Payment") of $25,000 for the calendar
year 2011; $40,000.00 for each of the calendar years 2012, 2013 and
2014; $35,000 for period from January 1, 2015 to October 1, 2015; and
$40,000.00 for the period from October 2, 2015 to October 1, 2016. All
payments due hereunder for any calendar year shall be due and payable on
November 1 of each applicable calendar year.
B. Amendment of Parairaph 11.b of the Fourth Modification. The Club and the Village
acknowledge and agree that Paragraph l Lb of the Fourth Modification shall be replaced
with the following:
b. The term of this Fourth Modification shall commence on January
1, 2011, and continue until October 1, 2016. Prior to January 1,
2011, the Third Modification shall govern the matters set forth
therein, but such Third Modification shall terminate on December
31, 2010.
C. Effect of Amendment. The Parties acknowledge and agree that this Second Amendment
modifies and amends the Fourth Modification, and the terms and provisions hereof shall
supersede and control over any contrary or conflicting terms and provisions set forth in
the Fourth Modification. The Fourth Modification, as amended by this Second
Amendment, is hereby ratified and remains in full force and effect.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the Club and the Village have respectively executed this
Second Amendment to be effective as of the date first above written.
ATTEST: BUTLER NATIONAL GOLF CLUB
By: By:
Printed Name:
Title:
Date:
ATTEST: VILLAGE OF OAK BROOK
By: By:
Village Clerk Village President
Date:
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