Ocoee Commission denies Forest Lake Golf Club leaseholder assignment

After initial discussions were held at the Ocoee City Commission meeting Tuesday, Aug. 6, regarding an agreed-upon sale for the right to be the assigned operator and leaseholder of Forest Lake Golf Club — not the sale of the city-owned land the course sits on — between the current owners, Forest Lake Golf Club LLLP and proposed assignees JA Hospitality LLC, the commission voted unanimously at the Tuesday, Aug. 20, meeting to deny the assignment of the proposed leaseholders.

The commission made the decision based on financial records not being submitted to the city for the execution of a proper valuation of the golf club. 

“I’m going to make a motion to deny the request to assign the ground lease amendment from Forest Lake LLLP to JA hospitality, dated June 26, 2024, without prejudice,” City Commissioner Scott Kennedy said. “Due to multiple reasons, including — but not limited to — Forest Lakes’ failure to provide complete financial and other information requested on multiple occasions by the city in order to make a determination.”

The ground lease between the city and Forest Lake Golf Club gives the city the right of first refusal to any sale or transfer of the right to be the leaseholder — meaning Ocoee has the right to match the $7.5 million purchase agreement for that right to lease the land from the city between Forest Lake and JA Hospitality and operate the golf club. 

The lease also gives the city the right to deny any new assignee on the basis of its financial health and adequate background in golf course development and/or management.

According to Logan Opsahl, the attorney representing Forest Lake Golf Club, the lease requires a right-of-first-refusal process before evaluating if an assignee meets the city’s requirements to operate a golf club adequately. Opsahl and his clients came to commission to deal with the right of first refusal — not the approval of the assignee. 

“This ground lease that we’ve been operating under successfully for 33 years provides a 60-day period for a right of first refusal under the same terms and provisions of the agreement being proposed to JA Hospitality, the proposed assignee,” Opsahl said. “That’s what the lease says; it’s very clear. So, we’re not asking that you provide an approval of the assignment (of the lease) to JA Hospitality. That’s not what’s being asked … that comes later.”

Beyond the order of operations of these two rights granted to the city as the entity leasing the land to the golf club, there was also disagreement about the consequence of the city not acting, one way or another, on its right of first refusal by the deadline.

City Attorney Richard Geller said the recommendation — and what the commission ultimately voted to do — of denying the assignment of JA Hospitality stops the clock on the city’s right of first refusal. 

In response to this statement from Geller, Opsahl said the decision “would waive the city’s right of first refusal.”

Kennedy disagreed.

“No, it ends it for this turnaround, which resets the clock (and) lets you all start over,” he said.

Opsahl contested that interpretation:“I disagree with that analysis. Could the city attorney provide on the record its basis for that denial?”

IN OTHER NEWS

• Two proclamations were read at the Ocoee City Commission meeting. Commissioner Rosemary Wilsen read a proclamation declaring Friday, Sept. 20, 2024, as West Orange Healthy Selfie Day in the city of Ocoee, in partnership with Healthy West Orange. The second proclamation was read by Commissioner Richard Firstner, the former Ocoee fire chief, declaring Sept. 11, 2024, as a day of prayer, remembrance and rededication to patriotism in Ocoee.
• TNXL Academy, a youth baseball club that was established more than a decade ago and moved to Ocoee about five years ago, was recognized for winning its third 2024 NAA national championship in five years. TNXL coach Brian Martinez and five of his players were present at the meeting for the honor. 
• An emergency item was added and approved to the agenda during the staff report section of the meeting. The emergency item, which was approved unanimously, was the purchase of water meters, MXU’s and backflows that exceed the original $200,000 purchase order made to Core & Main in November. The new total cost of the increased amount of materials is $286,000.