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From:mooney shawn To:Stefan Chatwin; City Council; City Council; Priscilla Schaus; Foster City Public Comment; Foster City Mariners Point; Foster City Mariners Point; Benjamin Stock-City Attorney Cc:Rob Lasky; Aaron Siu; Austin Walsh; Priscilla Schaus; Sandy Loi Subject:Lease Extension VB Golf & FC/EMID 10th Addendum to Master Lease public comments Date:Monday, May 18, 2026 2:29:30 PM Attachments:new lease VB Golf & FC May 2026.pdf Importance:High City Manager, there is a material mistake in the attached draft lease 10 th addendum regarding Exhibit D-1. Page 9, mistakenly state lessee shall have exclusive use of parking area "B" on the Caltrans property. Please correct the material mistake, should read lessee shall have exclusive use of parking area "A". Parking Lot "B" is the Caltrans property that has a recorded deed restriction for use as a public street and public parking. Further, I object to the existing location of the sliding entrance security gate fence. The proper location should be located where public parking Lot "B" becomes private property via exclusive lease parking at the entrance to lot "A". Also, please consider changing the language in the First Right to Negotiate. This section should be clearing to allow open competitive bidding and the city's ability to silicate competitive users. This section should read First Right of Refusal to match or beat an open and completive bidding process. Page 1 of 9 TENTH AMENDMENT TO THE LEASE AGREEMENT DATED JUNE 10, 1996, BETWEEN CITY OF FOSTER CITY/ESTERO MUNICIPAL IMPROVEMENT DISTRICT AS LANDLORD AND VB GOLF LLC AS TENANT The Lease Agreement, which was made and entered on the 10 th day of June, 1996 (“Lease”) by and between the City of Foster City, a municipal corporation and the Estero Municipal Improvement District (hereinafter collectively “Lessor”), a political subdivision of the State of California, and VB Golf LLC, a Delaware corporation (hereinafter the “Lessee”), is hereby amended as follows (the Lease, as amended hereby, is referred to as the “Amended Lease”). Lessor and Lessee may be referred to individually as “Lessor” (also “City” or “District”) or “Lessee” (also “V.B. Golf”) or collectively as “Parties”. RECITALS This Amended Lease is entered into with reference to the following facts and circumstances: A.Lessee continues to provide quality golf services in the City of Foster City; and B.Lessee and Lessor desire to extend the Lease for an additional period of five (5) years (from 1/1/27 to 12/31/32; and C.Lessee and Lessor desire to increase amount dedicated to the capital improvement fund to be increased by one percentage point; and D. Lessee and Lessor also desire to make other amendments to the Lease to update and revise Exhibits A, B and D to better identify the parking lots on the Premises and to specify a certain number of parking spaces that shall remain available to the public during certain hours of the day, among other revisions. AGREEMENT 1.Recitals. The Parties agree are true and correct and hereby incorporated as terms of the Amended Lease. 2. Amendments. The Parties agree that the following Sections of the Lease are amended as identified below. A.SECTION ONE: PREMISES AND TERM OF LEASE is amended by amending Section 1.2 to read in its entirety as follows: “1.2Amended Lease Term: Subject to Section Two and to the termination provisions of Section Eleven below, and the rights of Lessee as set forth in subparagraphs (a) and (b) hereof, this Amended Lease shall be for a term thirty-six years (the “Amended Lease Term”) from July 1, 1996 (hereinafter, the “Commencement Date”) and shall continue to and terminate at 11:59 p.m. local time on December 31, 2032 (hereinafter, the “Expiration Date”). 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 289 Page 2 of 9 Notwithstanding the foregoing, Lessee and Lessor shall be bound by all terms, covenants and conditions of this Amended Lease from the date that this Amended Lease is first entered into, as written hereinabove. (a)Rights with Respect to Future Operation of the Premises as a Golf Course by Lessor. Provided no material obligations of Lessee under this Amended Lease are then in default nor has Lessee failed to timely cure any matter under this Amended Lease which if uncured would result in a material default hereunder, then at any time between twelve (12) and nine (9) months prior to December 31, 2032, Lessee may request Lessor to indicate whether Lessor intends to continue golf course operations. Lessor commits to provide an answer within 30 days. Within 30 days of receipt of the answer, Lessee shall indicate whether it intends to exercise its right of first negotiation in the event that Lessor indicates an intention to continue golf operations. (b)Right of First Negotiation. Lessor in response to Lessee’s inquiry shall indicate whether the golf course is to be operated directly by the City employing a manager, through the use of a concessionaire, or under a lease. If Lessee so requests in writing, Lessor agrees to provide Lessee an advance copy of any terms on which it proposes to solicit a management agreement, concession agreement or lease agreement. Lessee will have 60 days to accept those terms which, if not so accepted, will be then offered to the public. If, as a result of such a public offering, Lessor receives and accepts an offer equal to 95% or better of the terms declined by Lessee, then Lessee shall have no further rights or entitlement with respect to the lease, operation or concession of this property. Lessor may not offer the management, concession or lease of this Property on any terms less than 95% of those terms declined by Lessee without first showing Lessee the revised terms and giving Lessee an additional period of 30 days in which to accept or reject those terms, after which the process will continue.” B.SECTION SEVEN: IMPROVEMENTS is amended by amending Section 7.4 to read in its entirety as follows: “7.4 Capital Improvement Fund (CIRF): (a) Effective July 1, 2027, six percent (6%) of all revenue generated and received from annual golf operations (driving range, golf course green fees, and short game practice center) shall be placed in a Capital Improvement Reserve Fund (CIRF) to fund additional capital improvement projects through the Amended Lease term and any extension or renewal thereof. (b) Expenditures for capital improvements funded out of this CIRF shall be approved in writing by the City prior to construction, which approval shall not be unreasonably withheld, and any funds remaining in the CIRF at the expiration of the Amended Lease term or any extension or renewal thereof shall inure to the benefit of the City.” 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 290 Page 3 of 9 C. EXHIBITS. Exhibits A, B and D of the Lease shall be replaced in their entirety with the documents attached hereto and hereinafter incorporated by reference as Exhibit A-1, B-1, and D-1. 3. Other Provisions Remaining in Full Force and Effect. Except as amended above, all of the terms and conditions of the Lease, dated June 10, 1996, as amended, shall remain in full force and effect. [Signatures on Next Page] 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 291 Page 4 of 9 IN WITNESS WHEREOF, the parties have executed this Ninth Amendment to the Lease effective as of the 18 th day of May, 2026. LESSOR:LESSEE: _______________________________________________________ ART KIESEL, Mayor CHRIS ALIAGA, CEO VB GOLF LLC LESSOR: ____________________________ ART KIESEL, Board President ATTEST ____________________________ Priscilla Schaus, City Clerk APPROVED AS TO FORM: ____________________________ Benjamin L. Stock, City Attorney 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 292 Page 5 of 9 EXHIBIT A-1 Premises 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 293 Page 6 of 9 EXHIBIT B-1 DETAILED DESCRIPTION OF THE FACILITIES VB Golf will operate a golf learning center and short nine hole course to feature the following: Practice Tees: Grass and artificial tees, a portion of which will be covered for practice in inclement weather. Deep grass tee line to account for heavy use. Lighted for night play. Lighs shielded to limit glare. Private teaching stalls with electrical for video lessons/review. Teaching aides to be located in shells. As part of a video viewing and instructional area. Target greens, a few over water, for an island green effect. Raised target greens surrounded by sound traps, for effective targeting practice. Grass landing area. Ground lighting to highlight target greens during evening practice. Windscreens behind tees to limit adverse weather conditions. Sand Trap for Bunker practice. Ample height netting to contain balls. Poles to support nets Golf Course: Nine hole par-3 course to include holes of varying distances. Water features. Lighted for night play. Lighs shielded to limit glare. Raised, shaped tees for multiple tee positions, catering to heavy play. Raised, shaped greens for multiple pin placements, catering to heavy play. Sand traps and undulations throughout the golf course. Mounding throughout the fairways. Grass fairways. Safety features strategically located near some tees and greens. Great for beginners and playing lessons with professionals. Effective for experienced players to practice their iron game. Putting Course: 18 challenging golf putting holes on ½-2 ½ acres. Multiple pin placements and ability to play the course in reverse for variety. Wooden plaques at each tee outlining the hole and its par. Course to be shielded from foul weather by a type of wind barrier. Great source of entertainment for beginning and experienced golfers. Family recreation. Landscaping and water features. Lighted for night play. Lights shielded to limit glare. 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 294 Page 7 of 9 Clubhouse: PROSHOP Retail area in which to display many lines of Pro Line and make up apparel and equipment. Competitive and affordable product. Retail goods to cater to men and women. Attractive displays and fixtures. Sales counter area in which to sell retail goods, practice balls, lessons, and rounds of golf. Clear display of all pricing behind the counter. Circulation area for customer traffic. Personalized service. Storage room for inventory. Restaurant: Quality restaurant Good food at economical prices. Family atmosphere. Open dining area. Views of the Bay and San Francisco Door openings leading to patio for outdoor restaurant seating. (Patio protected from wind via its location). Patio seating to include tables. Food service window for patio. Kitchen for food preparation. Separate service area for alcohol. Men’s and women’s bathrooms conforming to all ADA requirements. Additional Clubhouse Amenities: Area to display golf awards. ADA Access to restaurant and pro shop. Pitched roofs. Awnings at restaurants. Heating, ventilation and air conditioning throughout building. High ceilings with parabolic lighting. Practice Putting and Chipping Greens: Putting green with a putting clock Chipping green at opposite end of putting green or as a separate green. Collar area for approach shot chips. Well maintained green for effective practice. Lighted for night practice. 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 295 Page 8 of 9 Parking and Roads: Parking lots A and B with quality grade paving. Parking lots A and B with stripes for at least 130 cars, including handicap stalls, which shall remain open for parking during business hours of the Facilities. Parking lot B shall have at least six (6) parking spaces available for public use during business hours of the Facilities. Curbs with gutters throughout the length of Caltrans access easement. Median improvement at entrance with landscaping. Lighted for security. Security gate at entrance, which shall remain open during business hours of the Facilities. Access to the pedestrian pedway to levee trail from Parking lot B, which shall remain open at all times. Aesthetically pleasing entrance to site. Additional Site Amenities: Low height chain link fence surrounding site for safety. Maintenance/equipment building with exterior to conform to clubhouse. Water conservation irrigation. Electrically efficient lighting with little glare escaping the confines of the site. Other amenities VB Golf Inc., believes will enhance the enjoyment of the facilities. 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 296 Page 9 of 9 EXHIBIT D-1 Improvements Which Are Not Property of Lessee 1. Storm Drainage System, including all site piping, drainage structures, and connections to existing systems but excluding golf course drainage. 2. Water System, including all site piping, valves, fittings, fire hydrants, and connections to the existing system. 3. Sanitary Sewer System, including all site piping, structures, cleanouts, and connections to the existing system. 4. Parking Lots A and B (approximately 80,000 square feet) located north of the southern lease boundary line and along the Mariners Island Boulevard access parcel and East Third Avenue right of way, including all AC base, paving, curb, gutter, sidewalk, signing, lighting and adjacent landscaping and irrigation. Notwithstanding that the foregoing Improvements are not property of Lessee, they are part of the Premises and, except for Parking Lot B, shall be for the exclusive use of Lessee pursuant to the terms of the Lease. 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 297 From:mooney shawn To:Foster City Public Comment; Priscilla Schaus; City Council; City Council; Stefan Chatwin; Benjamin Stock-City Attorney; Foster City Mariners Point Cc:Rob Lasky; Aaron Siu; Austin Walsh; Priscilla Schaus; Sandy Loi Subject:#2 Public Comment VB Golf & FC/EMID lease Addendum 10th to Master Lease Date:Monday, May 18, 2026 3:46:01 PM Attachments:draft lease extention 10th Addendum VB Golf & FC May 18 2026.pdf Importance:High #2 Public Comment VB Golf & FC/EMID lease Addendum 10th to Master Lease City Council, please postpone signing the 10th Addendum, until the Bike Pedestrian Master Plan is published. There were several public issues on and near the VB Golf Lease area including the Caltrans owned land hereafter Parking lot "B" involving public safety, cross walks, sidewalks and pedestrian traffic circulation at Mariners Point and Baywinds Park. Until the Bike/Pedestrian report is published, the VB Golf lease should not be executed until the report identifies new public safety improvements needed that my impact the lease area. The City should wait until road improvements on Lakeside Drive to Bay Winds Park are known. The public rights are best served in waiting for the Bike Pedestrian Master Plan needed improvements are know so they can be properly negotiated into the VB Golf lease terms and conditions. From: mooney shawn Sent: Monday, May 18, 2026 2:28 PM To: Stefan Chatwin; City Council; Foster City Council; Priscilla Schaus; publiccomment@fostercity.org; marinerspoint@fostercity.org; Benjamin Stock Subject: #1 Lease Extension B Golf & FC/EMID 10th Addendum to Master Lease public comments City Manager, there is a material mistake in the attached draft lease 10th addendum regarding Exhibit D-1. Page 9, mistakenly state lessee shall have exclusive use of parking area "B" on the Caltrans property. Please correct the material mistake, should read lessee shall have exclusive use of parking area "A". Parking Lot "B" is the Caltrans property that has a recorded deed restriction for use as a public street and public parking. Further, I object to the existing location of the sliding entrance security gate fence. The proper location should be located where public parking Lot "B" becomes private property via exclusive lease parking at the entrance to lot "A". Also, please consider changing the language in the First Right to Negotiate. This section should be clearing to allow open competitive bidding and the city's ability to silicate competitive users. This section should read First Right of Refusal to match or beat an open and completive bidding process. Page 1 of 9 TENTH AMENDMENT TO THE LEASE AGREEMENT DATED JUNE 10, 1996, BETWEEN CITY OF FOSTER CITY/ESTERO MUNICIPAL IMPROVEMENT DISTRICT AS LANDLORD AND VB GOLF LLC AS TENANT The Lease Agreement, which was made and entered on the 10 th day of June, 1996 (“Lease”) by and between the City of Foster City, a municipal corporation and the Estero Municipal Improvement District (hereinafter collectively “Lessor”), a political subdivision of the State of California, and VB Golf LLC, a Delaware corporation (hereinafter the “Lessee”), is hereby amended as follows (the Lease, as amended hereby, is referred to as the “Amended Lease”). Lessor and Lessee may be referred to individually as “Lessor” (also “City” or “District”) or “Lessee” (also “V.B. Golf”) or collectively as “Parties”. RECITALS This Amended Lease is entered into with reference to the following facts and circumstances: A.Lessee continues to provide quality golf services in the City of Foster City; and B.Lessee and Lessor desire to extend the Lease for an additional period of five (5) years (from 1/1/27 to 12/31/32; and C.Lessee and Lessor desire to increase amount dedicated to the capital improvement fund to be increased by one percentage point; and D. Lessee and Lessor also desire to make other amendments to the Lease to update and revise Exhibits A, B and D to better identify the parking lots on the Premises and to specify a certain number of parking spaces that shall remain available to the public during certain hours of the day, among other revisions. AGREEMENT 1.Recitals. The Parties agree are true and correct and hereby incorporated as terms of the Amended Lease. 2. Amendments. The Parties agree that the following Sections of the Lease are amended as identified below. A.SECTION ONE: PREMISES AND TERM OF LEASE is amended by amending Section 1.2 to read in its entirety as follows: “1.2Amended Lease Term: Subject to Section Two and to the termination provisions of Section Eleven below, and the rights of Lessee as set forth in subparagraphs (a) and (b) hereof, this Amended Lease shall be for a term thirty-six years (the “Amended Lease Term”) from July 1, 1996 (hereinafter, the “Commencement Date”) and shall continue to and terminate at 11:59 p.m. local time on December 31, 2032 (hereinafter, the “Expiration Date”). 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 289 Page 2 of 9 Notwithstanding the foregoing, Lessee and Lessor shall be bound by all terms, covenants and conditions of this Amended Lease from the date that this Amended Lease is first entered into, as written hereinabove. (a)Rights with Respect to Future Operation of the Premises as a Golf Course by Lessor. Provided no material obligations of Lessee under this Amended Lease are then in default nor has Lessee failed to timely cure any matter under this Amended Lease which if uncured would result in a material default hereunder, then at any time between twelve (12) and nine (9) months prior to December 31, 2032, Lessee may request Lessor to indicate whether Lessor intends to continue golf course operations. Lessor commits to provide an answer within 30 days. Within 30 days of receipt of the answer, Lessee shall indicate whether it intends to exercise its right of first negotiation in the event that Lessor indicates an intention to continue golf operations. (b)Right of First Negotiation. Lessor in response to Lessee’s inquiry shall indicate whether the golf course is to be operated directly by the City employing a manager, through the use of a concessionaire, or under a lease. If Lessee so requests in writing, Lessor agrees to provide Lessee an advance copy of any terms on which it proposes to solicit a management agreement, concession agreement or lease agreement. Lessee will have 60 days to accept those terms which, if not so accepted, will be then offered to the public. If, as a result of such a public offering, Lessor receives and accepts an offer equal to 95% or better of the terms declined by Lessee, then Lessee shall have no further rights or entitlement with respect to the lease, operation or concession of this property. Lessor may not offer the management, concession or lease of this Property on any terms less than 95% of those terms declined by Lessee without first showing Lessee the revised terms and giving Lessee an additional period of 30 days in which to accept or reject those terms, after which the process will continue.” B.SECTION SEVEN: IMPROVEMENTS is amended by amending Section 7.4 to read in its entirety as follows: “7.4 Capital Improvement Fund (CIRF): (a) Effective July 1, 2027, six percent (6%) of all revenue generated and received from annual golf operations (driving range, golf course green fees, and short game practice center) shall be placed in a Capital Improvement Reserve Fund (CIRF) to fund additional capital improvement projects through the Amended Lease term and any extension or renewal thereof. (b) Expenditures for capital improvements funded out of this CIRF shall be approved in writing by the City prior to construction, which approval shall not be unreasonably withheld, and any funds remaining in the CIRF at the expiration of the Amended Lease term or any extension or renewal thereof shall inure to the benefit of the City.” 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 290 Page 3 of 9 C. EXHIBITS. Exhibits A, B and D of the Lease shall be replaced in their entirety with the documents attached hereto and hereinafter incorporated by reference as Exhibit A-1, B-1, and D-1. 3. Other Provisions Remaining in Full Force and Effect. Except as amended above, all of the terms and conditions of the Lease, dated June 10, 1996, as amended, shall remain in full force and effect. [Signatures on Next Page] 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 291 Page 4 of 9 IN WITNESS WHEREOF, the parties have executed this Ninth Amendment to the Lease effective as of the 18 th day of May, 2026. LESSOR:LESSEE: _______________________________________________________ ART KIESEL, Mayor CHRIS ALIAGA, CEO VB GOLF LLC LESSOR: ____________________________ ART KIESEL, Board President ATTEST ____________________________ Priscilla Schaus, City Clerk APPROVED AS TO FORM: ____________________________ Benjamin L. Stock, City Attorney 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 292 Page 5 of 9 EXHIBIT A-1 Premises 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 293 Page 6 of 9 EXHIBIT B-1 DETAILED DESCRIPTION OF THE FACILITIES VB Golf will operate a golf learning center and short nine hole course to feature the following: Practice Tees: Grass and artificial tees, a portion of which will be covered for practice in inclement weather. Deep grass tee line to account for heavy use. Lighted for night play. Lighs shielded to limit glare. Private teaching stalls with electrical for video lessons/review. Teaching aides to be located in shells. As part of a video viewing and instructional area. Target greens, a few over water, for an island green effect. Raised target greens surrounded by sound traps, for effective targeting practice. Grass landing area. Ground lighting to highlight target greens during evening practice. Windscreens behind tees to limit adverse weather conditions. Sand Trap for Bunker practice. Ample height netting to contain balls. Poles to support nets Golf Course: Nine hole par-3 course to include holes of varying distances. Water features. Lighted for night play. Lighs shielded to limit glare. Raised, shaped tees for multiple tee positions, catering to heavy play. Raised, shaped greens for multiple pin placements, catering to heavy play. Sand traps and undulations throughout the golf course. Mounding throughout the fairways. Grass fairways. Safety features strategically located near some tees and greens. Great for beginners and playing lessons with professionals. Effective for experienced players to practice their iron game. Putting Course: 18 challenging golf putting holes on ½-2 ½ acres. Multiple pin placements and ability to play the course in reverse for variety. Wooden plaques at each tee outlining the hole and its par. Course to be shielded from foul weather by a type of wind barrier. Great source of entertainment for beginning and experienced golfers. Family recreation. Landscaping and water features. Lighted for night play. Lights shielded to limit glare. 9.1 Attachment 3 - Proposed Tenth Amendment to the Lease Agreement 294
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