Explanation
Background: This ordinance will authorize the Director of Recreation and Parks to enter into the fifth year of a lease agreement with PNC Bank, National Association and Lake Erie Golf Cars, Inc. for the lease-purchase payments and maintenance of 385 golf riding carts; the expenditure of $295,680.00 from the Recreation and Parks Operating Fund for the 2025 lease agreement payments; and declare an emergency.
As approved prior by Ordinance #1150-2020, the Golf Division has entered into a lease agreement with PNC Bank, National Association and Lake Erie Golf Cars Inc.for the lease-purchase payments and maintenance of 385 golf riding carts with the lease agreement ending after the 2025 golf season.
The lease agreement includes three parties:
· The City of Columbus
· PNC is the source of financing
· Golf cart lease agreements and payments would be with PNC
· Yearly legislation would occur to fund payments
· Lake Erie Golf is the golf cart maintenance company
· Lake Erie Golf would provide all cart maintenance for the duration of all contracts
· Lake Erie Golf does not receive payment for their contracted services
· At the end of our lease agreement with PNC, Lake Erie Golf gains ownership of all 385 carts
Principal Parties:
PNC Bank, National Association
655 Business Center Drive
Horsham, PA 19044
Staysi Garcia Morillo, 267-960-4076
CC-001606 CC Exp: 02/08/2025
Emergency Justification: It is immediately necessary to authorize the Director to enter into a new lease agreement for the lease purchase payments of the golf riding carts as the payment is due April 1, 2025.
Benefits to the Public: Golf carts are necessary to the operation of the golf courses.
Area(s) Affected: All six municipal golf courses.
Fiscal Impact: $295,680.00 is required and is budgeted within the 2025 Recreation and Parks Operating budget to meet the financial obligations of this lease.
Title
To authorize...
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