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Topgolf Update - Temporarily On Hold

Post Date:06/02/2020 11:00 AM

Topgolf rendering of buildingUpdate: Last week (week of May 29, 2020) Topgolf resubmitted construction plans to the City of El Segundo Planning & Building Safety staff.  The applicable City departments have been reviewing the plans and are close to having the permits ready to be issued. Topgolf continues to re-open venues across the nation and the El Segundo location remains Topgolf’s number one new development project.  The El Segundo Topgolf construction project will remain on temporary hold until there is more clarity about COVID-19 and the economy’s future.  Senior Topgolf and City staff speak on a regular basis to monitor and discuss the situation.  The current The Lakes at El Segundo operator will manage general golf and the driving range on a month-to-month basis until a final decision is made by Topgolf. The City will continue to share updates regularly.

The Lakes at El Segundo/Topgolf Fact Sheet

Overview:

The publicly-owned “The Lakes at El Segundo” golf course and recreation facility is comprised of 26.54 acres, and is located at 400 S. Pacific Coast Highway in El Segundo. The new Topgolf driving range and modifications to the existing golf course will include:

  • Construction of state-of-the-art golf and recreation facility
  • Three-level driving range with 102 hitting bays (an increase of 45 hitting bays)
  • All hitting bays equipped with market-leading “Toptracer” ball tracking technology as seen on national golf broadcasts
  • 9-hole executive golf course with:
    • Lighting for golfing at night
    • Expanded short game practice area (putting and chip shot)
    • Landscaping upgrades
  • Two new restaurants (one at Topgolf facility, and one at the new club house)
  • New pro shop
  • New clubhouse and patio
  • Community event and meeting space at the Topgolf facility

The driving range will be leased to CenterCal and subleased to Topgolf. Topgolf will be responsible for operations of the golf course, and has the option to hire a separate management company to manage the golf course. The existing open space will be preserved and further protected over the next 50 years under these agreements.

Financial Impact:

Total net revenues to the City are estimated to be in excess of $100,000,000 over the term of the lease, with recurring annual General Fund revenue in excess of $1,700,000, as follows:

  • $1,300,000 ground lease payment for driving range (with 10% adjustment every five years)
  • Minimum of $200,000 revenue from beverage sales at driving range and golf course (3% of gross beverage sales)
  • $200,000 community benefit contribution
  • Over $50,000 in additional sales tax, property tax, utility user tax and business license revenues is estimated
  • $20,000 ground lease payment for golf course (with 10% adjustment every five years)
  • End recurring General Fund subsidies to the Golf Course Fund, which have averaged $275,000 per year, according to adopted annual budgets.

Topgolf will contribute a minimum of $200,000 per year in golf course and driving range property improvements.

Topgolf will invest at least $40,000,000 to construct new golf and recreation facility, and improve the nine-hole golf course

Community Benefits:

  • The golf course will remain open to the public and will continue to operate as it currently does.
  • 500 new permanent jobs (the majority of which will be full-time positions with benefits)
  • Retention of open space – project ensures preservation of 16-acre open space golf course (with
    improvements)
  • 10% discount for El Segundo Recreation and Parks “Rec ID” cardholders and military - seven days a week from 9:00 a.m. – 9 p.m.
  • Public access to traditional driving range use (comparable pricing to typical public driving range)
    Monday-Friday - 6:00 a.m. – noon
    Saturday-Sunday - 6:00 a.m. – 9:00 a.m.
  • School-sponsored programs for youth will be offered at no cost

Timeframe:

Last week (week of May 29, 2020) Topgolf resubmitted construction plans to the City of El Segundo Planning & Building Safety staff.  The applicable City departments have been reviewing the plans and are close to having the permits ready to be issued. Topgolf continues to re-open venues across the nation and the El Segundo location remains Topgolf’s number one new development project.  The El Segundo Topgolf construction project will remain on temporary hold until there is more clarity about COVID-19 and the economy’s future.  Senior Topgolf and City staff speak on a regular basis to monitor and discuss the situation.  The current The Lakes at El Segundo operator will manage general golf and the driving range on a month-to-month basis until a final decision is made by Topgolf. The City will continue to share updates regularly. 

For further information:

City Council Meetings – Agendas and Minutes (October 15, 2019 and November 5, 2019)
October 15, 2019 
November 5, 2019  

City Council Meetings & Discussion
October 15, 2019  
November 5, 2019

Questions? Please contact:
Barbara Voss, Deputy City Manager
City of El Segundo
310-524-2389
bvoss@elsegundo.org

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