R-1586 - 09/13/2016 - GOLF - Resolutions Supporting Documents ITEM 9.A.
BOARD OF TRUSTEES MEETING
VILLAGE OF SAMUEL E. DEAN BOARD ROOM
OAK BR K BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
September 13, 2016
SUBJECT: Butler National Golf Club -Use of Range Operations Agreement
FROM: Riccardo F. Ginex,Village Manager
Sean Creed, Golf Club Manager
Stewart Diamond, Village Attorney
BUDGET SOURCE/BUDGET IMPACT: Program 816 - $70,000.00
RECOMMENDED MOTION: The Village Board Approves Resolution 2016-
Golf-Greens-R-1586, A Resolution Authorizing The Execution of A Third
Amendment To The Fourth Modification To The Butler National Range Operations
Agreement
Backeround/History:
The current 2016 agreement is for the use of Field 2 as a practice range for Butler
National Golf Club. The rental fee is broken down into two parts. Tee space usage for
$24,520 per year and field usage (including the target greens) for$40,000 per year. The
purpose of the two parts was to single out the field and its related rental fee just in case
polo operations were to be moved from field 1 to field 2.
Staff is recommending a five (5) year rental agreement for 2017 through 2022. After
reviewing all the documents and speaking with the attorney for the Club, it was the
Village Attorney's recommendation to revise the past agreements, with a new one
acceptable to all parties.
F—�
BOT AGENDA Page 1
Under the new rental agreement, Butler National shall pay the Village the following sums
for the following periods:
Period Payment
1/1/17— 12/31/17 $70,000
1/8/18— 12/31/18 $70,000
1/1/19— 12/31/19 $75,000
1/1/20— 12/31/20 $75,000
1/1/21 - 12/31/21 $80,000
The current agreement also states that Butler National pays all costs and expenses of
maintaining field 2. Staff is also recommending the continuation of exclusive usage of
Field 2 for Independence Day activities where the Village will allow usage of the Field 1
northwest tee for Butler usage.
Recommendation:
The Village Board approves the Third Amendment to the Fourth Modification for the
Butler National Range Operations.
BOT AGENDA Page 2
RESOLUTION 2016-GOLF-GREENS-R-1586
A RESOLUTION AUTHORIZING THE EXECUTION
OF A THIRD AMENDMENT TO THE FOURTH MODIFICATION
TO THE BUTLER NATIONAL RANGE OPERATIONS AGREEMENT
WHEREAS, the Village of Oak Brook and Butler National Golf Club have entered into a long
series of agreements relating to an area of land owned by Oak Brook which is utilized as a golf driving
range with practice tee areas and is also known as Polo Area 2; and
WHEREAS, the parties wish to enter into a Third Amendment to the Fourth Modification of
documents associated with that Area; and
WHEREAS, the Third Amendment establishes a new term between the parties of five years
commencing January 1, 2017, which period is subject to specific cancellation by the Village; and
WHEREAS, the Third Amendment provides for the fees to be paid by Butler National to the
Village and certain other matters.
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: The "Whereas" clauses set out above shall be and are made a part of this
Resolution.
Section 2: The Village President is authorized to execute and the Village Manager to attest
a Third Amendment to the Fourth Modification of Use of Golf Practice Areas between the Village and
Butler National Golf Club in substantially the form attached to and made a part of this Resolution as
Exhibit A.
Section 3: Effective Date. This Resolution shall be in full force and effect immediately
upon its passage and approval in the manner provided by law.
APPROVED THIS 13th day of September, 2016
Gopal G. Lalmalani
Village President
PASSED THIS 13th day of September, 2016
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
Resolution 2016-GOLF-GREENS-LEASE-R-1586
Authorizing the Execution of a Third Amendment to the
Fourth Modification to the Butler National
Range Operations Agreement
Page 2 of 2
EXHIBIT A
THIRD AMENDMENT
4812-9028-2807,v. 1
2
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REVIEW OF CONTRACTS
Awa rdi Agency, T e of Contr t:
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t? artment: program/Ac unt Number:
Awarded Contract Prue: Budgeted Amou t:
7
[� Under $20,000 $500,001 - $1,000,000
$20,000 -$500,000 (....J over �1.,000,000
7
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Three (3) Originals signed by other party Date/initials
[] Original provided to staff member for other party Date/initials 1
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vMage of Oak Brook I Approved by Board of Trustees- oatelinifiais:
THIRD AMENDMENT TO THE FOURTH MODIFICATION
OF USE OF GOLF PRACTICE AREA EASEMENTS
THIS THIRD AMENDMENT TO THE FOURTH MODIFICATION OF USE OF GOLF
PRACTICE AREA EASEMENTS ("Third Amendment") is made this 13th day of September,
2016 by and between the 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, on the 13th day of October 2015, the Club and the Village entered into a
Second Amendment to the Fourth Modification of Use of Golf Practice Easements; and
WHEREAS, the conditions relating to the continuing effectiveness of certain prior
documents remain in effect; and
WHEREAS,the implementation of the Second Amendment has worked successfully; and
WHEREAS,the parties now desire to further amend the Fourth Modification to extend its
term for an additional five years pursuant to the terms of this Third 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:
Clubs, Costs and Expenses. Prior to the year beginning January 1, 2017,
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 4 for Golf
Practice Purposes, including without limitation seeding, mowing,
irrigating, fertilizing, draining and sodding. The Club shall pay the
Village the following sums for the following periods:
Period Payment
1/1/17— 12/31/17 $70,000
1/8/18— 12/31/18 $70,000
1/1/19— 12/31/19 $75,000
1/1/20— 12/31/20 $75,000
1/1/21 — 12/31/21 $80,000
US 121375841v2 099000-35504 9/6/2016 11:12 AM
Payments shall be made on or before April 1St of each year.No other
payments (or percentage increases) shall be due to the Village during the
term of this Third Amendment.
B. Amendment of Paragraph l Lb of the Fourth Modification. The Club and the
Village acknowledge and agree that paragraph l Lb of the Fourth Amendment
shall be replaced with the following:
b. The term of this Third Amendment to the Fourth Modification
shall commence on January 1, 2017 and continue until December
31, 2021. The Village may, however,terminate this Third
Amendment by providing written notice thereof to the Club at any
time after December 31, 2017 with such termination to be
effective on December 31St of the second calendar year following
the calendar year that any such written notice is so provided to the
Club, which must be made by the Corporate Authorities of the
Village. For example, if the Village gives written notice to the
Club of such termination on December 15, 2018, such termination
shall be effective as of December 31, 2020.
C. Additional Hold Harmless. In addition to any other obligation of the Club to hold
the Village, its officers, agents and employees harmless, to defend and indemnify,
the Club agrees to hold the Village, its officers, agents and employees harmless
and to defend and indemnify the Village with respect to any claim, demand or suit
made or filed against the Village, its officers, agents and employees arising out of
any unlawful limitation on the use of the Practice Property which the Club may
impose.
D. Effect of Amendment. The parties acknowledge and agree that this Third
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 or any amendment
thereof. The Fourth Modification as amended by this Third Amendment is hereby
ratified and remains in full force and effect. For avoidance of doubt, the parties
agree that the provisions of Paragraph l Lc shall continue to be effective
notwithstanding the amendments to the Fourth Modification.
IN WITNESS WHEREOF, the Club and the Village have respectively executed this
Third Amendment to be effective as of the date first above written.
ATTEST: BUTLER NATIONAL GOLF CLUB
By: By:
Printed Name:
US 121375841v2 099000-35504 9/6/2016 11:12 AM
Title:
Date:
ATTEST: VILLAGE OF OAK BROOK
By: By:
Village Manager Village President
Date:
4840-7015-6087,v. 1
US 121375841v2 099000-35504 9/6/2016 11:12 AM
a13' REVIEW OF CONTRACTS
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village of Oak Brook I Approved by Board of Trustees- Date/Initials: _