REPORT TO THE CITY COUNCIL
February 8, 2018
FROM: WILMA QUAN-SCHECTER, City Manager
BY: LAURA GLORIA, Deputy City Manager
SUBJECT
Title
Actions pertaining to the Lease Agreement between the City of Fresno and Fresno Football Club, LLC., to lease space in the Historic Bee Building located at 1555 Van Ness (Council District 3)
1. Adopt a finding of a Categorical Exemption pursuant to Class 1 of the California Environmental Quality Act (CEQA) Guideline Section 15301 (Existing Facilities) for lease
2. Approve Lease Agreement between the City of Fresno and Fresno Football Club, LLC. to lease space in the Historic Bee Building located at 1555 Van Ness
Body
RECOMMENDATION
Staff recommends that the City Council adopt a finding of a Categorical Exemption pursuant to Class 1 of the California Environmental Quality Act (CEQA) Guideline Section 15301 (Existing Facilities) and approve a Lease Agreement between the City of Fresno and Fresno Football Club to lease space in the Historic Bee Building located at 1555 Van Ness, Fresno, CA.
EXECUTIVE SUMMARY
The City owns the Historic Bee Building which currently has one tenant and several vacant floors. Fresno Football Club, LLC., (FFC) desires to locate ticket and merchandise sales and administrative offices at this site in order to have operations in proximity to Chukchansi Stadium. The Historic Bee Building has available leasable space of which FFC will lease ±9,500 and pay a gross rent structure of $4,000 a month for a one year term with a six month option for extension. FFC also requests to contract for up to fifteen parking stalls at the set Master Fee Schedule price of $75.00 per stall per month for surface lot parking. The building will be leased “as is” making the tenant responsible for any tenant improvements.
BACKGROUND
FFC desires to locate ticket and merchandise sales and administrative office operations at the Historic Bee Building in order to have operations in proximity to the Chukchansi Stadium. The lease agreement includes a one year term and six month option for extension with the long term goal of purchasing the building in its entirety. The lease includes the first and fifth floor for a total of ±9,500 square feet wherein FFC will pay a gross rent structure of $4,000.00 per month for the space with FFC responsible for janitorial. Tenant accepts Premises “as is”, in its existing physical condition with all faults, without warranty by City or any duty obligation on the part of City to maintain the Premises.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Class 1 Categorical Exemptions as set forth in the CEQA Guidelines Section 15301 as this amendment is to lease an existing building and will involve negligible expansion of the existing use. Furthermore, none of the exceptions to the Categorical Exemptions set forth in CEQA Guidelines Section 15300.2 apply to this project.
LOCAL PREFERENCE
Local preference is not applicable because this is not a contract for goods, services, or public work of improvement.
FISCAL IMPACT
The lease does not negatively impact the General Fund. FFC will pay the City $4,000 per month for the space and $75.00 per stall to lease in the Building. The City will pay a brokerage commission equal to six percent of the aggregate rent paid over the term of the lease to Cushman & Wakefield from lease revenues.
Attachment:
Lease Agreement