Amador County – The Ione City Council on Tuesday agreed to look at delaying a rent increase for Castle Oaks Golf Course due to economic issues.

The council voted 4-1 to review the lease with Castle Oaks parent company Portlock International to see if the city can still audit the golf course. The owners asked that they pay rent for fiscal year 2009-2010 without an increase that was set to begin that year.

Castle Oaks Golf Pro Dominic Atlan said rent was to raise from 2 percent of annual revenue to 3 percent last year, the 16th year of a lease agreement. He asked that the company pay 2 percent for the 2009-2010 year due to economic stress.

The golf course net revenue was just over $2 million last fiscal year, meaning if it was allowed to pay 2 percent, the company would owe $44,000 in rent. The extra 1 percent would make them owe another $22,000.

The council voted to have staff re-evaluate the city’s ability to audit the company. Atlan said he would love to sit with the city, go over the lease and make it clear whether the city can audit the company. ¶ He said the origin of the city’s power to audit came from the need to see that Portlock could “afford to pay for the tertiary plant,” and the city had run an audit twice in 15 years.

Councilman Jim Ulm said the city should be able to justify reducing the fee with an audit.

Atlan said the company would be more than willing to allow an audit, “but there is a cost for us to bring all of our accountants and books here” from Utah. He said the city could pay for that.

City Manager Kim Kerr said staff would come back soon with information on whether an audit could be done, and set a 60-day time limit if an audit were done.

Atlan said the company has “not passed any of our costs to customers.” The council agreed to accept the check for $40,000 from Castle Oaks, while waiting to see if an audit could be undertaken.

Councilman Lee Ard dissented, saying it held Castle Oaks up to standards that other companies in the city did not have to meet. He said the city recently gave $35,000 to companies in the façade program, without the same criteria.

Ulm said he thought it set a bad precedent to allow a delay in rent increase.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.