Downey amends contract with banquet operator

Photo courtesy Rio Hondo Golf Club.

DOWNEY – The city of Downey amended its contract with Z Golf Food & Beverage Services, LLC (“Wedgewood Weddings”) on Tuesday, for food and beverage service concessions at Rio Hondo Golf Club.

Downey initially entered into the 10-year agreement back in November of 2019. In January of 2020, Wedgewood Weddings began overseeing banquet services, restaurant operations, and golf food beverage services. Wedgewood began making rental payments the following month.

Since the onset of the coronavirus pandemic, however, the company has been forced to cancel more than 131 events at Rio Hondo, due to the county’s prohibition of indoor events and limited restaurant capacity.

Restaurant service has also been crippled due to the venue’s lack of outdoor space conducive to substantial food service options.

While regulations have started to ease, weddings and indoor events have yet to be given the green light by LA County Public Health.

Given the impact and anticipation of slow recovery, Wedgewood requested several amendments to its current agreement, including:

• A 2020 rent abatement,

• Adjustment of rent in 2021 to flat 9% of gross receipts over $1 million with no minimum rent due, and

• A return of the original terms of the agreement from 2022-2029.

Any fiscal impact to the city will be addressed by the recently passed Federal Covid Relief Bill.

The item was approved unanimously as part of the consent calendar with no discussion.