REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: DESIREE NARANJO, Property Specialist II
General Services Department
SUBJECT
Title
Actions pertaining to the City of Fresno’s Downtown Parking Garage 9 storefront lease with Fresno Arts Council (District 3):
1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines
2. Approve the First Amendment to the Lease Agreement between the City of Fresno and Fresno Arts Council to incorporate the adjacent 2,155 square feet of commercial space at 1249 Van Ness Avenue into the existing Lease Agreement and extend the term through December 31, 2028
Body
RECOMMENDATION
Staff recommends the Council adopt a finding of categorical exemption pursuant to Section 15301/Class 1 (existing facilities) and approve the first amendment to the lease agreement between the City of Fresno and Fresno Arts Council to incorporate the adjacent 2,155 square feet of commercial space at 1249 Van Ness Avenue into the existing Lease Agreement and extend the term through December 31, 2028.
EXECUTIVE SUMMARY
The City of Fresno owns Downtown Parking Garage 9 located at Van Ness and Merced. This property has seven storefront retail and office spaces that vary in square footage from 918 square feet to 9,930 square feet. Fresno Arts Council currently leases office space at 1245 Van Ness Avenue (Unit E). The FY2025 adopted budget included $200,000 for tenant improvements of the vacant 1249 Van Ness Avenue (Unit F) commercial space for use by the Arts Council. General Services is nearly complete with the tenant improvements and therefore is ready to amend the lease to incorporate the additional square footage into the existing Lease Agreement. The tenant improvements included HVAC repairs, removal of existing furnishings, installation of new fixtures, carpet, baseboards, lighting, paint, and ADA upgrades to the restrooms in the current space. Matching the existing terms, the Fresno Arts Council will lease the additional square footage for $1 per year.
BACKGROUND
The City of Fresno owns downtown Parking Garage 9 located at Van Ness and Merced, that consists of seven storefront retail and office spaces with long-term tenants and one vacancy.
The FY2025 adopted budget included $200,000 for the tenant improvement of the vacant 1249 Van Ness Avenue (Unit F) commercial space for the expansion of the Fresno Arts Council. General Services is nearly complete with the tenant improvements and therefore is ready to amend the lease to incorporate the additional square footage into the existing Lease Agreement. The tenant improvements included HVAC repairs, removal of existing furnishings, installation of new fixtures, carpet, baseboards, lighting, paint, and ADA upgrades to the restrooms in the current space.
The additional square footage will be leased to the Fresno Arts Council for $1 per year consistent with the terms of the existing Lease Agreement for Unit E. In addition, the term for the amended Lease Agreement will be extended through December 31, 2028, for both commercial spaces.
The First Amendment to the Lease Agreement has been reviewed by the City Attorney’s Office and has been approved as to form.
ENVIRONMENTAL FINDING
This amendment is exempt under Section 15301 (Class 1/Existing Facilities) of the CEQA Guidelines because it involves the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.
The proposed amendment is to expand the Fresno Arts Council’s lease space to include both office spaces at 1245 & 1249 Van Ness, totaling 4,310 square feet within the City of Fresno’s Parking Garage Structure Number 9. No physical development is proposed with this application and project complies with all conditions listed above. There is no substantial evidence in the record that any of the exceptions to these Categorical Exemptions, set forth in CEQA Guidelines section 15300.2, apply to this project and no adverse environmental impacts will occur as a result of the proposed project. Accordingly, the Categorical Exemption, as noted above, has been determined to be appropriate.
LOCAL PREFERENCE
Local preference is not implemented as this is an amendment to an existing lease agreement to expand the leased space.
FISCAL IMPACT
The FY2025 adopted budget included $200,000 for tenant improvements for the purpose of improving the vacant space for the Fresno Arts Council. Revenue from this lease will be deposited into the General Fund.
Attachments:
First Amendment
Lease Agreement