The Ione City Council returned from a closed session on April 1 with a report from legal counsel about the Castle Oaks Golf Course lease. Legal counsel summarized the city’s position that if the lessee shuts down the golf course before the lease allows, that would constitute a breach and the city would be prepared to exercise its rights under the lease.
“It’s our position that the lessee is obligated to run the golf course. Shutting it down early would be a breach of the lease,” legal counsel said during the report out, and noted the city’s preference to avoid disruption in operations.
Legal counsel added that the council had expressed “full willingness to try to go into mediation or arbitration with this lessee to try to sort out any disagreements,” but that mediation or arbitration had not yet occurred.
The closed-session report was framed as consistent with positions shared in prior council meetings and was not accompanied by a council vote during the special meeting. The council paused and later adjourned the special meeting; the second closed-session item was to be held after the regular meeting.
Why this matters: The Castle Oaks lease affects local amenities and the city’s contractual rights; a shutdown could interrupt services and potentially trigger lease-enforcement actions.
Looking ahead: Legal counsel’s statement indicates the city may pursue lease remedies if the lessee stops operations, but the council also signaled interest in resolving disputes through mediation or arbitration before taking enforcement action.