Council advances redlined golf-course ground lease, debating term, rent and assignment rules

The Sebring City Council spent the majority of its May 19 meeting reviewing a redline ground-lease proposal that would tie operation of the municipal golf course to a proposed hotel under the Blackman group submission to the city’s RFP process. Bob, the city attorney, led a page-by-page walkthrough of the draft that the city characterized as a more city‑favored version of the document the Blackmans had provided.

Key points and council positions: The city draft shortens the term the Blackmans requested (from 99 years down to 50 years) and keeps the nominal $1-per-year rent proposed by the lessee in the document presented to council. Bob explained that the lease purpose language ties the course and hotel so the golf facility remains an amenity to the hotel rather than being separable and redeveloped as housing or another use. On assignment, the draft allows assignment to an entity that owns 51% of the hotel without separate landlord consent; council discussed whether that carve-out was appropriate and whether subleases should be restricted to the restaurant or pro‑shop rather than allowing a full-course sublease.

Council members raised multiple concerns: temporary vs permanent easements across the “boot” (Max Long area) and whether a permanent easement would hamper future city uses; how the general improvement plan and alteration approvals should be handled (several members favored simplifying alteration language and requiring landlord consent for significant changes); disclosure of current chemical inventories was discussed and limited to current inventory rather than records of everything ever used; and whether the tenant should be able to encumber a leasehold interest and what protections the city would have if a lender sought to force‑place an operator following a default.

Member benefits and memberships were a recurring concern: the draft requires the tenant to honor specific pricing and benefit commitments set out in the 2004 members agreement, which raised questions about which current SGA members would retain grandfathered rates and what protections non‑grandfathered members would have.

Timing and next steps: Council discussed a timeline that would invite comments back from the Blackmans by June 1, aim for a final agreed version on the June 2 agenda and a firm yes-or-no by June 15. Multiple council members suggested staff-to‑staff conversations with Blackman representatives to clarify points before the June deadlines. After extensive discussion and public comment from members and stakeholders, the council voted to authorize the city attorney to modify the lease as discussed and return final language for council consideration.

Quotes from the debate: "We need to make a decision one way or the other," councilor Jeff Carlson said during public comment, urging prompt negotiation. Bob explained the encumbrance standard: "They have the right to encumber their leasehold interest," and staff clarified that conservation easements would be difficult to impose while a long-term ground lease is in effect.

Why it matters: The lease would shape the long-term management and public access to a major city parcel and affect hotel development tied to the golf-course amenity. Terms on assignment, subleasing and encumbrance directly affect the city’s control over future land uses and potential revenue streams. The debate touched on trade-offs between encouraging private investment and retaining municipal control and community protections.

Council action: The council approved a motion authorizing the city attorney to modify the lease as discussed and continued the process toward a mid‑June decision. No final lease was executed at the meeting.