Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 1/22/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8A1
ACTION:  Approve an amended and restated Lease and Management Agreement (C2023-118) with 
Tempe Golf, LLC (“CourseCo”).
FISCAL IMPACT:  The City will initially use General Obligation bonds to fund the projects with an 
estimated cost of $12.7 million.  CourseCo will make the debt payments on their portion of the bonds.  
Construction contracts will be on future agendas for City Council approval of actual contract amounts.
RECOMMENDATION:  Approve the amended and restated Agreement.
 
BACKGROUND INFORMATION:  In May 2023, the City entered into a 20-year initial lease 
agreement with CourseCo to operate and maintain the Ken McDonald Golf Course; CourseCo has been 
operating the golf course since July 1, 2023. As part of the lease agreement, CourseCo and the City are 
jointly funding (up to $8M) a Capital Improvement Project (“CIP”) to build a new clubhouse, replacing 
the existing 50-year-old facility.  The agreement also includes replacement of the more than 30-year-old 
golf course irrigation system.
Cost estimates for both CIP projects are higher than originally anticipated largely due to increased labor 
and material costs. The City and CourseCo reevaluated project budgets and cost-sharing arrangements 
in order to ensure that the projects can continue.  The amended lease includes the following terms:
Clubhouse

The City will pay for parking lot expansion and additional spaces located near the clubhouse.

CourseCo will pay for relocation of the 18th green, which is necessary to expand the parking area 
and add the patio seating and lawn areas.

The City and CourseCo will each contribute $4 Million to the clubhouse project with CourseCo 
repaying its portion to the City over 20 years.
Irrigation

The City will pay for the irrigation project with CourseCo repaying any amounts over $3 Million 
through increased revenue sharing (See Revenue Sharing)
Revenue Sharing

Revenue sharing above the defined annual threshold increases from the current 10% to 17.5%, with 
the additional 7.5% being used to repay the City

A second threshold is defined as $900,000 over the annual threshold.  CourseCo will pay the City 
5% and contribute 5% to the Capital Improvement Fund on all golf revenues above the second 
threshold.
Renewal Options

Four 5-year renewal options, an increase of two options over the current agreement.
ATTACHMENTS:    Amended and Restated Lease and Management Agreement with Tempe Golf, 
LLC

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STAFF CONTACT(S):  Alex Jovanovic, Deputy Community Services Director – Parks Services, (480) 
350-5811
Department Director:  Craig Hayton, Community Services Director  
Legal review by:  Clarence Matherson, Jr., Deputy City Attorney
Prepared by:  Julie Hietter, Administrative Manager