Board approves long-term lease extension for El Prado Golf Course after split vote

San Bernardino County supervisors voted 4–1 on April 29 to amend and extend the revenue sublease with El Prado Development LLC for El Prado Golf Courses at Prado Regional Park in Chino, approving a 22-year lease proposal that staff says is supported by an independent broker opinion of value and includes required repairs, ongoing capital investments and a share of taxable sales.

The lease terms the board approved call for a 22-year term beginning September 2025 and ending Aug. 31, 2047, a base rent of $11,000 per month with 4% annual increases, and a package of required capital and repair work staff estimates will cost about $4.1 million within the first 24 months. Beginning in month 37 the operator must invest at least $100,000 annually (growing 5% per year) in course and facility upkeep; beginning in month 61 the operator will also pay 3% of taxable sales in addition to base rent, county staff said.

Why it matters: County staff and outside advisers told the board the longer lease term is intended to give an operator time to amortize the large repairs the property needs and to avoid recurring cycles of deferred maintenance that occur with short-term leases. Supporters argued the current operator has shown recent improvements and community engagement; critics urged an open competitive process.

What the board said and voted: Real Estate Services Director Terry Thompson told supervisors the county commissioned Avison Young to produce a broker opinion of value (BOV) and presented BOV-based, market lease terms to the current operator. Thompson said El Prado Development LLC accepted a nonbinding letter of intent reflecting the BOV recommendations, and that the U.S. Army Corps of Engineers (the property is partly subject to a Corps lease) approved the lease terms Friday, April 25. After public comment, the board approved staff recommendation 1 (amend and extend the revenue sublease) with Supervisor Paul Cook casting the lone no vote; the motion passed and the board directed staff to proceed with the agreed terms.

Public comments and community partners: Dozens of speakers addressed the board during the item. Supporters included Danny Ortiz, president of the El Prado Men’s Club, who said the new ownership has “made a visible commitment to improving the course conditions” and has engaged the club. Business groups that spoke in favor included Julia Cabrera for the Chino Valley Chamber of Commerce, Edward Ornelas of the Inland Empire Regional Chamber of Commerce, and Peggy Hazlett of the Greater Ontario Business Council; each said the operator has expanded partnerships and hosted events that benefited the region. Frank Lizarraga, a managing principal of El Prado Development LLC, told the board the operator has set aside funds to repair the parking lot and to complete the course upgrades and stressed that new private assets the operator purchased (liquor license, carts, equipment) factor into revenue projections.

Opposition and transparency concerns: Opponents urged a competitive RFP process rather than direct negotiation. Public commenter David Koiman asked the board to “choose integrity, choose transparency” and asked that the county put the lease out to bid. Several residents and speakers said a market process is the best way to determine value; others warned about potential conflicts of interest. Board members referenced county policy and the reasons the board previously authorized direct negotiation.

Legal and policy context: The board previously directed staff, on Feb. 11, to use an alternative competitive-solicitation procedure under County Policy 12-05 and to negotiate directly under Government Code §25536(a) (a provision that allows limited noncompetitive negotiations in specified circumstances), provided the negotiated terms would be reported back to the board. Thompson told the supervisors the accepted LOI follows the broker opinion of value and that any tenant improvements beyond the required repairs would need county, Corps and city approvals and would be at the operator’s sole cost.

Next steps and conditions: Staff said some capital work must occur quickly; Thompson and the operator indicated repairs to the parking lot are necessary to maintain insurance coverage. The board’s action authorizes staff to complete the negotiated lease extension and to coordinate remaining approvals with the Army Corps of Engineers and the city of Chino.

Votes and outcome: The board approved the lease extension (outcome: approved) with a recorded dissent from Supervisor Paul Cook; other supervisors voted in favor. The board’s action instructs staff to finalize lease documents and return with any required implementing documents for execution.

Speaker list (attributions used in this article): - Terry Thompson — Director, Real Estate Services, San Bernardino County (government) - Frank Lizarraga — Managing Principal, El Prado Development LLC (business/operator) - Richard Lizarraga — Employee, El Prado (citizen/employee) - Danny Ortiz — President, El Prado Men’s Club (citizen/community group) - Julia Cabrera — Representative, Chino Valley Chamber of Commerce (business) - Edward Ornelas — President, Inland Empire Regional Chamber of Commerce (business) - Peggy Hazlett — President & CEO, Greater Ontario Business Council (business) - David Koiman — Public speaker (citizen) - Supervisor Paul Cook — San Bernardino County Board of Supervisors (government) - Supervisor Hagman — San Bernardino County Board of Supervisors (government) - Vice Chair Joe Baca — San Bernardino County Board of Supervisors (government) - Supervisor Armendariz — San Bernardino County Board of Supervisors (government) - Chair Rau — Chair, San Bernardino County Board of Supervisors (government)

Authorities cited in meeting record referenced by this article: - County Policy 12-05 (alternative competitive-solicitation procedure) — referenced in meeting packet and staff report - Government Code §25536(a) — cited by staff as the authority used to negotiate directly - U.S. Army Corps of Engineers lease/approval — referenced as necessary for County execution of changes

Clarifying details (from staff and speakers): - Lease term: 22 years (Sept. 2025–Aug. 31, 2047). - Base rent: $11,000 per month with 4% annual increases. - Estimated required repair and maintenance upgrades (first 24 months): $4,100,000 (RESD/Avison Young estimate). - Required ongoing capital investment: $100,000 per year beginning month 37, increasing 5% annually. - Additional percentage rent: 3% of taxable sales beginning month 61 (taxable sales include green fees, cart rental, food/beverage, range revenue, membership dues, events). - Operator commitments: El Prado Development LLC said it has set aside about $600,000 for parking-lot repairs and roughly $4,000,000 for broader upgrades; these are operator representations made during public comment.

Community relevance and impacts: The decision affects golfers, nearby businesses that use the facility for events, county park users at Prado Regional Park, and county finances tied to lease revenue and maintenance of a public recreation asset. Implementation depends on Corps of Engineers approvals and on the operator completing required improvements.

Searchable tags: ["El Prado Golf Course","Prado Regional Park","lease extension","County parks","real estate","San Bernardino County","Avison Young","Army Corps of Engineers"]

Provenance: - topicintro: {"block_id":"3376.2349","local_start":0,"local_end":230,"evidence_excerpt":"Good morning, board members. Noel Castillo, director of the Department of Public Works. Next slide, please. The public hearing today is to consider the formation of a community facilities district number 2025-1 ..."} - topfinish: {"block_id":"5957.83","local_start":0,"local_end":120,"evidence_excerpt":"Thank you very much. That is the last request to speak that I have on this agenda item. So we'll bring it back for questions and comments. Terry, did we have to print in our agenda item today? ... With that recommendation number 1 is approved with supervisor Cook voting nay."}