Committee advances ordinance to allow flexible pricing and extend Gleneagles lease amid community support

The San Francisco Board of Supervisors Budget and Finance Committee voted to advance an ordinance amending the park code to authorize flexible pricing at Gleneagles Golf Course in McLaren Park and to approve an amendment and extension of the lease with Gleneagles Golf Partners LP. Committee members took the motion without objection.

An unnamed Recreation and Park Department representative told the committee the course's lessee has invested more than $400,000 in the property, including roughly $150,000 for greens renovation, and that the lessee is responsible for day-to-day maintenance under the lease. The department described planned partnerships with First Tee of San Francisco and a pre-apprenticeship training program with Laborers' Local 261, saying those agreements would expand access and create workforce opportunities.

Key lease terms discussed included a base rent set at 7 percent of gross revenues, incentive tiers that increase the percentage as revenues exceed specified thresholds, a security deposit of $25,000, and a $250,000 line of credit held by the partners. The department also described rent-credit provisions that allow the lessee to deduct approved costs for deferred maintenance or emergency repairs from base rent, and a process under which repairs exceeding $150,000 would trigger joint review and, if unresolved, could lead to a 180-day termination notice.

Budget analyst Mr. Rose cautioned that, because of those rent-credit provisions, RPD does not anticipate receiving base rent in practice and estimated an average annual net loss to the golf fund of $106,820 (RPD would continue to rely on general fund support for golf fund shortfalls). Mr. Rose recommended amending the ordinance title to remove the words "9 years" and noted the matter is a policy decision for the Board of Supervisors.

Public comment at the hearing was strongly supportive of the lease extension and of programs tied to the course. Speakers who identified themselves included Brian Scott, who said the lessee has made considerable improvements and urged flexible pricing; Chris Gruwell of the Laborers Community Training Foundation and Travis Brown, a workforce development director, who emphasized apprenticeship and training opportunities; and Jackie Flynn of the A. Philip Randolph Institute, who described bringing about 15 young people to a community golf day. Multiple community organizations and neighborhood representatives also expressed support for integrating the golf course into broader park programming.

A supervisor moved to accept the budget analyst's recommendation (as amended) and advance the ordinance; another supervisor seconded the motion. The chair recorded the motion as taken without objection. The transcript records committee-level approval and the clerk indicated items acted upon at committee appear on the Board agenda on 10/21/2014.

The committee debate combined enthusiasm for community and workforce benefits with fiscal cautions about the golf fund subsidy; the transcript does not record a subsequent Board vote.