Draper speaks on Pine Harbor negotiations

Published 12:00 pm Thursday, April 24, 2014

The following statement was released on April 18 by City Manager Patrick Draper on behalf of the City of Pell City:

Due to conflicting reports in the press and certain erroneous information on social media sites, I feel compelled to set the record straight concerning the City’s involvement with the lease negotiations for Pine Harbor Golf & Racquet Club. In this spirit, please consider the following:

Earlier today, I executed a lease agreement regarding the Pine Harbor Golf & Racquet Club that was approved by the City Council at last night’s special called meeting. The lease provided that the City would lease the Club for a period of 10 years at a rental rate that was agreeable by both the City and the property owner. I delivered two executed copies of the lease agreement to the property owner’s representatives in compliance with the deadline set by both parties. Unfortunately, the property owner has rejected the lease as delivered by the City and has stated that they are no longer willing to discuss this matter.

The lease I delivered on behalf of the City had a very reasonable requirement that the City be allowed to cure or correct any failure to make a timely rent payment or to timely pay any obligation under the lease before the property owner could declare the lease in default. That provision is extremely important because the remedy for default under the lease is harsh: if the City goes into default, the property owner would have been entitled to remove the City form possession of the golf course and re-lease the property, or immediately cancel the lease and seek damages from the City.

The City understands the importance of handling its obligations, and we strive every day at City Hall to make sure the City’s affairs are handled correctly. We cannot, however guarantee that mistakes will not happen over the next 10 years. No organization should be held to that unreasonable standard. It would be unfair to the citizens of this City to invest hundreds of thousands of dollars of public funds to improve and operate the Pine Harbor Golf & Racquet Club under a lease that provided the landlord the legal right to remove us from the property if only on rent payment was lost in the mail or if a simple clerical error was made.

Both parties have worked tirelessly—and in good faith—for almost 5 months to get to this point. I wish the property owner had accepted the lease we executed and delivered, but I understand and respect their business decision. The Lemaks are good people, and I wish them nothing but the best in the future.