REPORT TO THE CITY COUNCIL
January 14, 2015
BY: R.RENENA SMITH, Assistant City Manager
SUBJECT
Title
1. ADOPT the Addendum to the Finding of Conformity prepared for Environmental Assessment No. R-15-005/C-15-025 for Rezone Application No. R-15-005 and Conditional Use Permit Application No. C-15-025, pursuant to CEQA Guidelines Section 15162 and 15164;
2. Authorize the City Manager or designee to execute a Ground Lease and Option to Purchase 3.34+/- acres located at the southwest corner of N. Brawley and W. Herndon Avenues, APN 507-030-12ST (Council District 2)
Body
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager or designee to execute a Ground Lease and Option to Purchase 3.34+/- acres (Property) located at the southwest corner of N. Brawley and W. Herndon Avenues (APN 507-030-12ST).
EXECUTIVE SUMMARY
Garreks, Inc., a California Corporation ("Tenant"), is interested in purchasing the 3.34+/- acre parcel which is a portion of APN 507-030-12ST owned by the City of Fresno ("Landlord") located on the southwest corner of N. Brawley and W. Herndon Avenues ("Property") to operate a gas station/convenience store with the sale of beer and wine and a car wash ("Project"). The property is currently pledged as security for a bond owned by Landlord, which is to be repaid during the term of the Lease, in part from the rent. The initial term of the lease shall run through December 31, 2017, commencing on the effective date. Upon approval of all permits and entitlements necessary to complete the project, and provided that the Landlord has otherwise fully performed hereunder, the Tenant shall pay as full consideration under this lease $455,373. The property was last appraised on October 19, 2012 at a value of $455,373. Concurrent with the execution of this lease, Tenant shall pay a refundable deposit of $5,000, which will be credited toward the rent. At the end of the term, if Tenant is in compliance wit...
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