REPORT TO THE CITY COUNCIL
November 19, 2020
FROM: MAYOR LEE BRAND
BY: TIM A. ORMAN, Chief of Staff to the Mayor
Mayor’s Office
SUBJECT
Title
APPROVE - Second Amendment to the Exclusive Negotiation Agreement by and between the City of Fresno and Tutelian & Company, Inc.
Body
RECOMMENDATION
The Mayor recommends the City Council approve the Second Amendment to the Exclusive Negotiation Agreement (ENA) by and between the City of Fresno (City) and Tutelian & Company, Inc.
(Developer) for the development of north Fulton Street. The Second Amendment to the ENA extends the term of the negotiating agreement by 90 days to March 6, 2021.
EXECUTIVE SUMMARY
On March 5, 2020, the City Council approved the First Amendment to the ENA, extending the term of the negotiating period by 9 months, from March 8, 2020 to December 7, 2020. The ENA grants the Developer exclusive rights to negotiate terms for a subsequent Disposition and Development Agreement (DDA) for the development of proposed Project.
On March 4, 2020, Governor Gavin Newsom declared a state of emergency as a result of COVID-19 and on March 18, 2020, City Manager Wilma Quan issued an emergency order calling for all residents of Fresno to shelter-in-place. The resulting disruptions in private and public business matters caused by the COVID-19 pandemic is the main impetus for extending this agreement for an additional 90 days. Were it not for the pandemic, it is likely the City and Developer would have reached agreement on a DDA to be presented to Council.
BACKGROUND
As stated in the February 27 and March 5, 2020 staff reports for the previous extension ENA, the Developer has invested a significant sum of his own funds in furthering this project and has made significant progress with this project and has engaged the City in meaningful discussions of the terms of a DDA. The Mayor believes that extending the ENA for an additional 90 days will allow the City and Developer to finalize their negotiations and he further believes that the request for an additional 90 days is more than reasonable given the unprecedented disruptions caused by the COVID-19 pandemic over the past 90 days.
ENVIRONMENTAL FINDINGS
This is not a project for the purposes of CEQA.
LOCAL PREFERNCE
Approval of this resolution is not subject to local preference.
FISCAL IMPACT
There is no fiscal impact to the City.
Attachments:
Second Amendment to ENA
Exhibit A - Map