S-1623 - 09/14/2021 - ORDINANCE - Ordinances Supporting Documents ITEM B.A.1
BOARD OF TRUSTEES MEETING
VILLAGE OF SAMUEL E. DEAN BOARD ROOM
OAK B R92. K BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
September 14, 2021
SUBJECT: Lease Agreement-Butler National Golf Club
FROM: James R. Kruger Jr., Interim Village Manager/Chief of Police
BUDGET SOURCE/BUDGET IMPACT: Program 816- $See Schedule
RECOMMENDED MOTION: Move the Board approve Ordinance 2021-GOLF-AG-S-
1623 an ordinance approving and authorizing a long-term lease agreement for the property
commonly referred to as Cecil Smith Field #2, Oak Brook, Illinois 60523 with Butler
National Golf Club.
Backj!round/History:
Pineoak Partners, LLC has been involved with discussions with Butler National Golf
Club to bring Polo back to the Butler Range, They have reached an agreement for a
Twelve (12) year period that would bring Ten (10) Sunday events each year from June
through September.
The attached summary shows how the Village would be made whole and not have to
lose any revenue for the range lease we presently have with Butler National. As this
involved the lease of Village property,this was published in the Daily Herald on
August 20 and 25, 2021.
Under the new rental agreement, Butler National shall pay the Village $80,000 less a
$20,000 credit from Pineoak Partners in 2022. The Butler portion of the lease will
then increase according to the CPI-U annually beginning in 2023. As long as Pineoak
occupies Field#2, Butler will receive the $20,000 credit and the annual increase will
be computed off of the original $60,000. Should the lease with Pineoak terminate or
not be executed,the lease will increase $20,000 the following year and escalate by the
CPI-U thereafter.
BOT AGENDA Page 1
Both organizations also agree to the following:
• Butler National and OBPC will perform and allocate the cost of maintaining the
Practice Property
• Butler National will defend and indemnify the Village out of any suite alleged
from the use of the Practice Property.
• Butler National will remove the target greens but have the right to install
temporary removable targets and posts removed for polo matches.
• Butler National agrees to the use agreement with Pineoak Partners for ten dates in
the season.
• Butler National agrees to terminate any agreement with Pineoak should the
agreement be terminated with the Village.
Recommendation:
The Village Board to consider and render a final decision and vote on the attached
ordinance.
BOT AGENDA Page 2