Ocoee approves $4.5 million settlement to reclaim Forest Lake Golf Course; selects interim operator

The Ocoee City Commission voted to approve a mediated settlement that will require the city to pay $4,500,000 to Forest Lake Golf Club and to take physical control of the golf course and its effluent disposal system on May 1, with an interim operator to run the facility while the city issues a request for proposals for a long-term operator.

City Attorney summarized the Seventh Amendment that implements the settlement and the payment schedule: $750,000 is due on or before May 1, 2025, and $3,750,000 is due on or before Nov. 3, 2025. "If the city commission approves the Seventh Amendment tonight, the city will have until May 1 to amend the city budget to provide for payment to Forest Lake of $4,500,000 to be paid as follows: $750,000 to be paid on or before 05/01/2025 and $3,750,000 to be paid on or before 11/03/2025," the attorney said.

The amendment also provides that the lease to Forest Lake will terminate on May 1 if the city completes the closing steps, and the city will take over operation through an interim operator on that date. The city must either amend its budget or provide a letter-of-intent or bond acceptable to Forest Lake by May 1 or the Seventh Amendment will lapse, the attorney said. The settlement further limits the city's ability to terminate the lease based on previously issued defaults for one year after the effective date; after that period the city could bring new termination notices based on materially different breaches. The agreement retains limited notice claims and representations by Forest Lake and preserves certain narrow recovery rights for the city up to $375,000 for misrepresentations.

Commission action and votes - Seventh Amendment to ground lease: Motion to approve made by Commissioner Furstner and seconded by Commissioner Wilson; vote recorded at the dais: Commissioner Kennedy voted no; Commissioner Wilson voted yes; Mayor Johnson voted yes; Commissioner Furstner voted yes; Commissioner Oliver voted no. Outcome: approved (3-2). - Interim operator selection and RFP: The commission solicited interim-operator proposals and received three offers. After discussion and questions the commission selected Down to Earth as the interim operator. Motion to select Down to Earth was made and seconded; the selection vote carried 3-2 (Mayor Johnson and Commissioner Wilson voted no; Commissioners Kennedy, Furstner and Alford voted yes). The interim operator will run the course from May 1 while staff issues an RFP for a permanent operator with a target start date around Nov. 3.

Why it matters: Forest Lake is a city-owned public asset under a long-term ground lease. The settlement closes a prolonged dispute, places operational control temporarily with the city, and commits multi-million-dollar public funds and a short timetable for budget action and transition. City attorneys and outside consultants advised that mediation was the financially prudent alternative to contested litigation.

Interim-operator proposals - Down to Earth: proposed a base $5,000 per month plus 30% of net revenue; city staff projected that, under reasonable projections, the firm's fee would total about $49,064 for the six-month interim and a net return to the city of $189,374 over the period. - Tamarac Golf Management: proposed $12,500 per month plus 50% of net profit; staff projection put Tamarac's fee at about $44,219 and net to the city at $194,219. - Hampton Golf: proposed $5,000 per month and placed 50% of the fee at risk tied to performance; the proposal would yield roughly $30,000 in fee and a projected net to the city of $208,438 under staff projections.

Commissioner concerns and city response Several commissioners urged caution about committing city funds without full operational and financial plans. Commissioner Oliver said the city was "putting the cart before the horse" by approving the settlement and a short-term operator without a complete long-term business plan, and asked for clearer expense and business-plan detail from operators. City staff and consultants said the interim period is intended to stabilize operations, allow the city to oversee the facility, gather financial and maintenance data, and then issue a transparent RFP for a permanent operator.

Next steps - City must amend the fiscal-year budget or provide an LOI or acceptable bond by May 1 to effect the $750,000 payment and move forward with the lease termination and interim-operator transition. Staff will procure a permanent-operator RFP over the next six months with the intent of starting the permanent operator around Nov. 3.

Ending: Commissioners said they preferred settlement and transition rather than prolonged litigation; the commission will receive status reports during the interim operator term and before any long-term contract is approved.