REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
AARON A. AGUIRRE, Director
Parks, After School, Recreation and Community Services Department
BY: DESIREE NARANJO, Property Specialist II
General Services Department
SUBJECT
Title
Actions pertaining to the lease of City-owned land at Mosqueda Community Center (District 5):
1. Adopt a finding of Categorical Exemption per staff determination pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines
2. Approve a Ground Lease Agreement between the City of Fresno’s Parks, After School, Recreation and Community Services (PARCS) Department and Reading and Beyond in the amount starting at $40,845 annually for the lease of approximately 4,420 square feet of land at Mosqueda Community Center for an initial term of three years with two options to extend for one-year periods
3. Authorize the PARCS Director or their designee to execute the Agreement and subsequent extensions on the City’s behalf
Body
RECOMMENDATION
Staff recommends the Council approve actions pertaining to the lease of City-owned land at Mosqueda Community Center:
1. Adopt a finding of Categorical Exemption per staff determination pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines
2. Approve a Ground Lease Agreement between the City of Fresno’s Parks, After School, Recreation and Community Services (PARCS) Department and Reading and Beyond in the amount starting at $40,845 annually for the lease of approximately 4,420 square feet of land at Mosqueda Community Center for an initial term of three years with two options to extend for one-year periods
3. Authorize the PARCS Director or their designee to execute the Agreement and subsequent extensions on the City’s behalf
EXECUTIVE SUMMARY
Reading and Beyond is a non-profit corporation and since 2011 has provided educational services at Mosqueda Community Center to the southwest Fresno community. The most recent Services Agreement with Reading and Beyond was established in 2022, and expired on June 30, 2025. The General Services and PARCS Department have determined it is a benefit to the public to retain Reading and Beyond at Mosqueda Community Center and are requesting approval to enter into a Ground Lease Agreement which allows them to resume operations at the center. In addition, the lease will also provide a rental structure that recovers the City’s costs maintaining aspects of their operations without subsidizing the operations of Reading and Beyond.
BACKGROUND
Reading and Beyond is a non-profit corporation and since 2011 has provided educational services at Mosqueda Community Center to the southwest Fresno community. The most recent Service Agreement with Reading and Beyond expired on June 30, 2025, with no option to extend. PARCS intended to fully occupy Mosqueda Community Center by expanding their programming offered in at the center, leaving no available space for another organization. Reading and Beyond shared that not continuing their services at Mosqueda Community Center will have an impact on multiple families that rely on these services who are unable to commute to their other site located at Alluvial and Chestnut. At the request of PARC’s, Reading and Beyond was able to condense all their programming within the portable classrooms they own on site. As a result, Reading and Beyond no longer needs any rooms within the community center.
Reading and Beyond offers a multigenerational program for children and parents with the mission to build education, economic assets, social capital, health and wellbeing, and to create economic security that passes from one generation to the next. Through this lease agreement, they will continue to provide preschool services at the Mosqueda Community Center benefiting the southeast Fresno community. An Annual Report highlighting their work is included as an attachment to this report.
The PARCS Department has evaluated the public benefit of entering into a Ground Lease Agreement with Reading and Beyond to preserve the relied upon services that are provided to the public and the immediate community. The lease will be for an initial period of two (2) years and 364 days with two (2) options to extend for one-year periods.
The rental rate will be based on the entire square footage of the portables and shared playground. The rate will start at $0.77/sf in the first year, increasing to $0.80/sf in year two, $0.84/sf in year three, $0.88/sf in year four, and $0.92/sf in year five. The total rent paid annually is as follows: $40,843.76 in year one, $42,435.07 in year two, $44,556.83 in year three, $46,678.58 in year four, $48,800.33 in year five. The total rent paid for the agreement will be $223,314.57.
These rates have been deemed fair through a cost recovery method. The total expenses to have Reading and Beyond operate at Mosqueda Community Center were identified and determined through a per square foot cost that does not subsidize their operations.
The City Attorney’s Office has reviewed and approved the lease agreement as to form.
ENVIRONMENTAL FINDING
Under Section 15301/Class 1, a proposed project is exempt from CEQA requirements when the project consists of 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 existing or former use. The key consideration is whether the project involves negligible or no expansion of use.
The project is exempt from CEQA because the City is proposing a Lease Agreement for land that was previously under a Service Agreement to Reading and Beyond for similar purposes. The project does not involve new construction, ground disturbance, or increased capacity beyond existing facilities and previously approved operations. Moreover, the two portable classrooms, gated playground, and two storage containers owned by Reading and Beyond are already existing facilities on the property. Accordingly, the project will not have a significant impact on the environment as the Lease Agreement requires Reading and Beyond to continue operations in the existing facilities.
None of the exceptions to Categorical Exemptions outlined in the CEQA Guidelines, Section 15300.2 apply to the project.
LOCAL PREFERENCE
Local preference is not applicable. The City is not issuing a request for quote for this lease agreement.
FISCAL IMPACT
Approval of the Ground Lease Agreement will not have an impact on the General Fund. The projected revenue will be approximately $223,314.57 for the full term. All revenue will be deposited into the PARCS Community Partners Fund and will contribute to the operation and maintenance of the designated spaces at the Mosqueda Community Center.
Attachments:
Ground Lease Agreement
Reading and Beyond Annual Report
Levine Act Disclosure Statement