City of Fresno - File #: ID 23-1813

• File #: ID 23-1813
• Version: 1
• Type: Action Item
• Status: Passed
• File created: 12/7/2023
• In control: City Council
• On agenda: 12/14/2023
• Final action: 12/14/2023
• Title: Actions pertaining to a lease agreement between the City of Fresno and 747 R Street, LLC, a California limited liability company, for the lease of office space located at 747 R Street (Council District 3): 1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines 2. Approve a seven-year lease agreement between the City of Fresno and 747 R Street, LLC, a California limited liability company, with three optional one-year extensions in the amount of $800,301.60 annually, with annual increases of 3%, plus the proportionate CAM (Common Area Maintenance) charges at $364,581.84 annually
• Sponsors: General Services Department, Capital Projects Department

Date	Ver.	Action By	Action	Result
12/14/2023	1	City Council	ADOPTED	Pass

REPORT TO THE CITY COUNCIL


FROM: BRIAN BARR, Director
General Services Department

RANDALL W. MORRISON, PE, Director
Capital Projects Department

BY: JORDAN CONARD, Property Specialist I
General Services Department

SUBJECT
Title
Actions pertaining to a lease agreement between the City of Fresno and 747 R Street, LLC, a California limited liability company, for the lease of office space located at 747 R Street (Council District 3):
1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines
2. Approve a seven-year lease agreement between the City of Fresno and 747 R Street, LLC, a California limited liability company, with three optional one-year extensions in the amount of $800,301.60 annually, with annual increases of 3%, plus the proportionate CAM (Common Area Maintenance) charges at $364,581.84 annually
Body
RECOMMENDATION
Staff recommends Council (1) adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the CEQA Guidelines and (2) approve a seven-year lease agreement between the City of Fresno and 747 R Street, LLC, a California limited liability company with three optional one-year extensions. The lease agreement is for office space at 747 R Street, in Downtown Fresno. The lease amount is $800,301.60 annually, the rate will increase by 3%, plus the proportionate CAM (Common Area Maintenance) charges at $364,581.84 annually.

EXECUTIVE SUMMARY

The newly formed Capital Projects Department anticipates housing 140 staff positions tasked with overseeing major infrastructure projects for the City; some of which funded by more than $373 million in recent grant awards headed for the City of Fresno. The Capital Projects Department is rapidly expanding its workforce to fill the newly approved positions, but the current office spaces at City ...