The City of Poway has reached an agreement with Sportsplex USA, which has agreed to pay nearly $42,000 of the approximately $66,000 it was undercharged for six years under its land lease with the city.
Since 1994, Sportsplex USA has operated a public/private recreational sports facility on a 15-acre parcel it leases from the city in the Poway Business Park.
Under its lease, the company pays Poway a flat rate — $48,000 each year — plus a percentage of its annual gross revenues. The underbilling began in 2010, when the revenue payments were set to increase from 7 percent a year to 8 percent. The uptick didn’t kick in and the company continued paying the 7 percent and the city didn’t notice.
The error was finally caught in early 2016 after the city did a review of all its contracts in response to another, more costly billing error involving $800,000 of lost revenue for city water used by Pomerado Hospital.
The city and the Sportsplex officials have been in negotiations for more than a year and a lawsuit was never filed. At one time, mayor Steve Vaus publicly said Sportsplex needed to pay everything it owed the city, but City Manager Tina White this week said the statute of limitations would have restricted how much the city could have recovered to only three or four years of underbilled payments had the matter gone to court.
Vaus this week said all is copacetic.
“It’s good to have this issue behind us,” he said. “They’ve been a great partner in the past and I look forward to continuing a mutually beneficial relationship in the future.”
The Sportsplex USA lease generates roughly $100,000 in city revenue each…
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