HomeMy WebLinkAboutItem 19 Update and Request Direction on Review of the City's Wastewater Permit and Associated Lease with ZHA Incorporated (Owner's Rep Services RFP#23-005)
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: August 6, 2024
Item #: 19
Contact Name: Department Director:
Contact Number: City Manager: Robert Frank
Subject: Update and Request Direction on Review of the City's Wastewater Permit and
Associated Lease with ZHA Incorporated (Owner's Rep Services RFP#23-005).
Background Summary:
The City Commission has long been clear about its goal to maintain a high quality 18-hole golf course,
restaurant, and other typical appurtenances for the enjoyment of its residents. On March 3, 2020, the City
Commission held a workshop to discuss the Forest Lake Golf Course, which is operated by a leaseholder
(Forest Lake Golf Club, LLLP) on property owned by the City and which is included in the wastewater permit
for the entire City. During that time, the operator (lessee) expressed interest in selling back the lease, and the
City procured a professional business evaluation. The City's professional estimate in 2020 was significantly
different from that of the Operator, and the City has since received several inquiries from parties interested in
the lease; however, there were still items that needed evaluation in order to properly verify assignability and
provide any interested party with accurate relevant information. In November 2023, the City Commission
authorized ZHA Incorporated to conduct a study and review the status of the current lease and the wastewater
permit, and provide recommendations for future consideration of proposals and guidelines for their evaluation.
ZHA wishes to update the City Commission (see attachments) and request authorization necessary to
complete the evaluation.
Issue:
Should the Honorable Mayor and City Commissioners authorize the City Manager, City Attorney, and
Consultants to complete all actions necessary for the evaluation of the lease, permit, and all other analysis
and correspondence for the above-referenced property?
Recommendations:
Staff recommends the Honorable Mayor and City Commissioners authorize the City Manager, City Attorney,
and Consultants to complete all actions necessary for the evaluation of the lease, permit, and all other
analysis and correspondence for the above-referenced property.
Attachments:
1. UPDATE - Analysis of Wastewater Treatment Plant Ground Lease and Permit Stipulations
2. Lease Wastewater Permit Info Request #1 0724 Update
Financial Impacts:
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
Type of Item: Regular
From:Robert Utsey
To:Shadrix, Craig
Cc:ardaman@fishbacklaw.com
Subject:UPDATE - Analysis of Wastewater Treatment Plant Ground Lease and Permit Stipulations
Date:Tuesday, July 30, 2024 4:50:54 PM
Attachments:image004.png
Lease Wastewater Permit Info request #1 0724 update (002) (002).pdf
Importance:High
Mr. Shadrix:
This is a status report on what we have been able to accomplish under ZHA’s engagement by
the City of Ocoee on November 7, 2023, and a request for the City's assistance. The scope of
ZHA’s engagement for the study and analysis of the Ground Lease with Forest Lake Golf
Club and related wastewater permit is listed below:
Review the ground lease and all documents modifying the lease. (completed)
Review the permit and all documents modifying the permit. (completed)
Review the maintenance records related to permit compliance. (incomplete)
Review operations procedure manuals. (incomplete)
Analyze the above and prepare a draft report addressing potential operational
efficiencies. (partially drafted)
Meet with City leadership to review the draft report observations and recommendations.
(partially completed)
Prepare a final report. (incomplete)
To date, we have reviewed the lease and wastewater permit and made multiple site visits to the
golf course, including an in-person meeting with tenant’s representatives, Ken Ezell and
George Clifton, on December 18, 2023, and a site tour visit with Mr. Ezell some weeks
thereafter. Further, we have played and observed the condition of the course, clubhouse,
equipment, and other assets and aspects of the operation. On separate occasions since our
engagement, specifically during said meetings with the tenant, we have requested the tenant to
provide various documents, materials, reports, and other information pertinent to our
engagement. Unfortunately, to date, the tenant has failed to comply with our requests and
only partially delivered some of the requested documents and information. Accordingly, we
hereby implore the City of Ocoee to compel the tenant to promptly deliver such information in
order to provide us with the ability to fully complete our analysis. Thank you in advance for
your cooperation. Attached to this email is a list of the due diligence items we originally
requested from the tenant on December 13, 2023, along with the status of each item,
highlighting a number of missing documents and information.
Best regards,
Robert Utsey
Robert Utsey
Principal
(407) 466-6746 cell
(407) 902-2561 office direct
Robert.Utsey@zhaintl.com
2290 Lucien Way, Suite 300
Maitland, FL 32751
https://link.edgepilot.com/s/0dbebf90/JXOC0uwl6EeUZoylU68sWg?u=http://www.zhaintl.com/
PLANNING • GENERAL CONSULTING • OWNER'S REPRESENTATIVE SERVICES
WWW.ZHAINTL.COM Corporate Office 2290 Lucien Way, Suite 300, Maitland, Florida USA 32801 T:407.422.7487 FL# AA C001111
Updated July 2024
December 13, 2023
Study of Lease and Wastewater Permit associated with
Forest Lake Golf Course
Phase I Due diligence information request from Ocoee Golf LLC
The following information is requested to prepare for the evaluation of the lease agreement:
1. Organizational Chart – entire operation Not provided (NP)
2. Employees, Positions, Descriptions of duties, salaries by position Not provided
a. Golf maintenance
b. Golf operations
c. Food & Beverage Revenue 2023 $646,782
d. Administration
3. Golf
a. Number of rounds Provided for 2023 only
b. Member rounds and green fees “ “ “
c. Guest rounds and average greens fees Not broken out
d. Number of annual revenue generating events $1,923 for 2023
e. Average revenue for each event N/A
f. Membership types, number, prices if different levels Fees provided 2023
g. Carts Only provided revenue 2023
i. Type/brand NP
ii. Age of fleet NP
iii. Owned y/n NP
iv. Leased / expiration of lease NP
4. Administration
a. Software
i. POS system Tee Snap
ii. Accounting system Peachtree
iii. Payroll system Peachtree/internal
b. Financial statements for last 36 months Not Provided
i. By department with detail
c. Budget Not provided
d. Annual maintenance schedule Not provided
e. Annual maintenance records Not provided
f. Operations procedures manual Not provided