Burlingame approves Topgolf plans

The proposal from Topgolf USA Burlingame calls for a recreation and sports complex in a three-story building at 71,000 square feet that would hopefully open in 2024, according to Topgolf staff. The 13-acre parcel is a driving range called the Burlingame Golf Center, next to the Burlingame Soccer Complex.

The proposal calls for 102 hitting bays that can accommodate as many as six players simultaneously. Other amenities include a restaurant, outdoor dining, an indoor banquet room for rent and parking. Maximum planned occupancy will be 1,300 people, including 125 employees. It’s estimated that nearly 500 people, including part-time employees, will work at the center. Topgolf is a chain entertainment company with centers across the nation specializing in golf-style chipping games amidst a sports bar setting. Games can involve players hitting microchip balls at a physical target or participating in a virtual environment. The popular company has 70 locations worldwide and merged with Callaway Golf Company in 2021. The closest Topgolf to the city is in San Jose. Operating hours will likely be from 9 a.m. to midnight during the week and until 2 a.m. on weekends.

The council authorized signing a lease agreement between the city and Topgolf at its Oct. 17 meeting and declared the property exempt surplus land as required under state law. The lease starts at 20 years, with Topgolf having the option of extending for four consecutive terms of five years, totaling 40 years. Rent will go to the city’s general fund and range from $1.5 million per year in the first five years to nearly $2 million in years 16 to 20. Annual rent will increase by 10% each extension term following year 20. Topgolf will also pay two community benefit fees of $250,000 each and a $350,000 commercial linkage fee. Ten years after the facility opens, Topgolf has the option to change the site’s use if there are potential market changes.

“I look forward to having it,” Ortiz said. “It’s not only the revenue that will come from the lease but the added attraction for our hotels that will help us with occupancy. It’s a very important project for the Bayfront and for the whole city.”

The facility was initially supposed to open in 2021, but lease negotiations have delayed its opening over the years. Burlingame selected Topgolf as the project developer in March 2017, with talks over a term sheet, land use entitlements and project review occurring for the last five years. Once the ground lease starts, Topgolf will have two years to start construction and five years to complete the project. Councilmember Emily Beach acknowledged the work Topgolf and the city had done to mitigate concerns and address needs for both sides, while Vice Mayor Michael Brownrigg urged Topgolf to open as soon as possible.

“I think we all held faith, but it’s been hard because this has taken a lot longer than we expected,” Brownrigg said.

curtis@smdailyjournal.com

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