Significant changes have happened at and near the Hillcrest Golf Course since 2018, which means the agreement between the organization and city hall needs to be amended to reflect those updates.
During its Feb. 28 regular meeting, city council unanimously approved an updated lease amending agreement between the City of Moose Jaw and Hillcrest Sports Centre Inc. and authorized the mayor and city clerk to sign the agreement on behalf of the municipality.
The updated agreement reflects three changes that have occurred during the past three years, a council report said:
- Upgrades were completed at the Hillcrest Golf Clubhouse building in 2020 for $513,507, so the depreciation value of the building must be reflected over the remaining life of the agreement, which expires in 2053
- City hall signed a new five-year lease and operating agreement with Golden Ticket Sports Inc. in June 2021 for the operation of the former Hillcrest Sports Centre venue, which lays out the new access requirements and property maintenance responsibilities for each party
- The municipality registered a new easement in November 2021, reflecting the city’s underground infrastructure below the golf course property
Amendments to the 2018 lease agreement are needed because the current document still references Gymtastiks as the current tenant of the building, even though that organization found a new home last year, explained parks director Derek Blais.
Meanwhile, city hall completed upgrades to the infrastructure below the golf course property along Main Street North in 2020-21. The golf club asked that clauses be added to its lease agreement about the city’s responsibilities for restoring the course to its previous condition when completing future infrastructure upgrades that affect the course.
“The city agreed to this, and after discussions with legal counsel, agreed to register an easement on the property, which would outline these responsibilities,” Blais continued.
Article 5.6 of that agreement has been updated to reflect the depreciation value of the clubhouse building during the contract’s remaining term. Furthermore, a section says the lease may be cancelled with a one-year notice “subject to a payback clause on the prorated value of the investment.”
The total value of the clubhouse expansion is $513,507, which city hall determined based on the reno costs and invoices that the golf club submitted to the parks and recreation department, said Blais. Those costs include engineered drawings and designs, utility connections, construction, and interior furnishings.
Meanwhile, article 4 of the agreement has been updated to reflect the new lease and operating agreement with Golden Ticket Sports Inc. for the Golden Ticket Sports Centre, he added. The update includes each party’s responsibilities related to building access, landscaping services, ground maintenance, snow removal services, and access to the Hillcrest Golf Club signage displays on Main Street North.
The next regular council meeting is Monday, March 14.
