KEY FEATURES OF PROPOSED LEASE FOR MONTROSE GOLF LINKS

The following summarises the key terms of the proposed lease arrangement between Angus Council and Montrose Golf Links Limited (with The Ancient Links Golf Company Ltd as sub-tenant). This summary reflects the main provisions currently agreed in principle and is intended to provide a clear overview for the public.

1. Lease Parties

• Landlord: Angus Council
• Head Tenant: Montrose Golf Links Limited
• Sub-Tenant: The Ancient Links Golf Company Ltd or a subsidiary thereof

2. Property Covered by the Lease

• The lease covers the whole of Montrose Golf Links, including:
• The 1562 Course and Broomfield Course
• Practice areas and pitch-and-putt facilities
• Retail and office space
• Maintenance buildings, car parks and associated infrastructure

3. Length of Lease

• The proposed lease term is 99 years.
• Angus Council retains the right to terminate the lease in the event of a serious breach that is not resolved within a reasonable period.

4. Rent and Financial Arrangements

• A rent of £30,000 per year will be payable to Angus Council (Montrose Common Good).
• Rent will be subject to review in accordance with an agreed rent review process.

5. Use of the Site

• The site must continue to operate as a high-quality golf facility.
• The 1562 Course will be maintained as a championship-standard course.
• The Broomfield Course will be maintained to at least its current standard, with a minimum of 9 playable holes.
• Any change of use will require prior approval from Angus Council.

6. Maintenance, Investment and Standards

• The tenant will be responsible for maintaining the courses, buildings and facilities to at least their current standard, with a commitment to ongoing improvement.
• The Tenant initially will invest £3 million in the Property in the first 5 years.
• Independent course condition reports will be required at least every five years to improve the course, facilities and operations, subject to landlord approvals being granted.
• Angus Council can require additional reports if standards decline.

7. Responsibility for Running Costs

• The tenant will be responsible for:
• Business rates and water rates
• Utilities and operational costs
• All statutory testing and safety compliance (e.g. electrical, fire safety, water systems)

8. Repairs, Alterations and Control

• The tenant will be responsible for repairs and upkeep.
• Material changes or alterations require approval from Angus Council, but all other changes shall be as determined by the Tenant.
• The lease cannot be transferred or sub-let without Council consent such to not be unreasonably withheld or delayed).

9. Coastal Erosion and Climate Risk

• The agreement recognises the long-term risks from coastal erosion and climate change.
• Where significant and exceptional costs arise due to coastal erosion, there may be provision for temporary rent relief.
• If coastal impacts make the site no longer viable to operate, provisions allow for:
• Temporary suspension of obligations; or
• Potential termination of the lease, subject to agreed safeguards.

10. Public Access and Community Benefit

• The lease will include arrangements to:
• Maintain local access to golf for residents

Support a sustainable and accessible pricing structure

KEY FEATURES OF PROPOSED GOLF ACCESS RIGHTS AGREEMENT (GARA)

The Golf Access Rights Agreement (“GARA”) sets out how access to Montrose Golf Links will be managed to ensure a fair balance between local access, visitor use and sustainable operation.

1. Purpose of the Agreement

The GARA ensures that:

• The golf courses remain open and accessible to the public
• Angus residents retain priority access and affordable pricing
• The operator can run the facility on a financially sustainable basis

2. Golf Courses Covered

The agreement applies to:

• The 1562 Championship Course
• The Broomfield Course

3. Public Access and Availability

• The courses must be kept open for general play.
• Temporary closures are permitted only for:
  1. Maintenance or repairs
  2. Tournaments or major events
  3. Exceptional or unforeseen circumstances
• Any closures must be managed so that no group of users is unfairly disadvantaged.

4. Priority for Angus Residents

• Angus residents are entitled to:
  1. Purchase season tickets each year
  2. Pay lower prices than non-residents
• Existing season ticket holders are protected during the transition arrangements.

5. Tee Time Allocation

Access to the courses is structured through a defined allocation of tee times for:

• Season Ticket Holders (STH)
• Visitors

Proposed Weekly Tee Time Structure

1562 Course

Broomfield Course

Key Points:

• Tee times are divided into morning, lunchtime, afternoon and evening tranches.
• Both courses provide a mix of member and visitor access throughout the day.
• The system is designed to:
  1. Maintain priority access for season ticket holders
  2. Support visitor access and tourism

6. Booking Rules

7. Pricing and Affordability

Angus Resident Season Ticket (1562 and Broomfield Course)

Angus Guest Prices (per round)

Why is Angus Council consulting on these proposals?

Montrose Golf Links is a Common Good asset. Under Section 104 of the Community Empowerment (Scotland) Act 2015, Angus Council must carry out a statutory public consultation before any decision can be made on the proposed long-term lease arrangements.

What is being proposed?

The proposal is for Angus Council to grant a long-term (99 years) lease of Montrose Golf Links to Montrose Golf Links Limited (MGLL), with The Ancient Links Golf Company Ltd (ALGC) as sub-tenant taking responsibility for the day-to-day operation and management of the courses.

Why are changes being proposed?

The proposals aim to secure the long-term future of Montrose Golf Links through significant investment, while protecting public access to golf, supporting local golfers and helping ensure the long-term sustainability of the facility.

Will Montrose Golf Links remain public?

Yes. The golf courses would continue to operate as public golf facilities and arrangements are proposed to protect access for local residents and visitors.

Will local people still be able to play golf at Montrose Links?

Yes. The proposed Golf Access Rights Agreement includes provisions to maintain access for Angus residents, including season tickets, discounted pricing and priority access to tee times.

What will happen to existing season ticket holders?

The proposed arrangements include protections for existing season ticket holders during the transition period.

Will golf become more expensive for Angus residents?

The proposed agreement provides for Angus residents to continue paying less than non-residents and includes controls over future pricing arrangements. Any changes outside the agreed pricing mechanisms would require Council approval.

What investment is being proposed?

The draft lease arrangements include a commitment for at least £3 million of investment in Montrose Golf Links during the first five years.

What courses and facilities are included within the proposals?

The proposals cover the 1562 Course, the Broomfield Course, practice areas, pitch and putt facilities, buildings, car parks and associated infrastructure at Montrose Golf Links.

Will the tenant pay rent?

Yes. Under the proposed lease arrangements, the tenant would pay an annual rent of £30,000 to Angus Council for the benefit of the Montrose Common Good Fund. The rent would be subject to periodic review in accordance with the lease terms.

The proposed arrangement would result in the Montrose Common Good Fund receiving rental income and would replace the current arrangement under which Angus Council makes an annual payment to the Common Good Fund.

Who is The Ancient Links Golf Company Ltd?

The Ancient Links Golf Company Ltd (ALGC) represent the proposed investors and was established to protect and enhance historic Scottish links golf courses and has already entered into similar arrangements with other golf clubs in Scotland.

Will Angus Council retain any oversight?

Yes. The proposed arrangements provide for ongoing Council oversight, including approval rights over certain matters such as significant changes to pricing, access arrangements and any change of use.

Are there any early termination provisions?

Yes. Although the proposed lease term is 99 years, the draft lease includes provisions that would allow the arrangement to end earlier in certain circumstances. For example, Angus Council would have the right to terminate the lease in the event of a serious breach of the lease conditions that is not remedied within a reasonable period.

What about coastal erosion and climate change?

The proposed lease recognises the risks associated with coastal erosion and climate change and includes provisions to allow the golf courses to adapt to future environmental challenges where required.

Has a final decision already been made?

No final decision has been taken. The purpose of this consultation is to gather views on the proposals before a further report is presented to elected members of Angus Council for consideration.

What happens after the consultation closes?

All responses will be reviewed and reported to Angus Council. Elected members will then consider the consultation findings before deciding whether to proceed with the proposed arrangements.

Are any legal approvals required?

Yes. Because Montrose Golf Links is an inalienable Common Good asset, the proposed long-term lease is subject to approval from the Sheriff Court, which is required for the disposal of an inalienable Common Good asset through a long-term lease.