REPORT TO THE CITY COUNCIL June 4, 2015 FROM: BRUCE RUDD, City Manager BY: WILMA QUAN-SCHECTER, Deputy City Manager SUBJECT ..Title Actions pertaining to the Lease Agreement between the City of Fresno and Greyhound Lines, Inc., to lease space in the Santa Fe Depot located at 2660 Tulare Street (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 Greyhound to lease space in the Santa Fe Depot and authorize the City Manager to execute the agreement subject to City Attorney approval ..Body RECOMMENDATION Staff recommends that the City Council: 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 Greyhound to lease space in the Santa Fe Depot and authorize the City Manager to execute the agreement subject to City Attorney approval EXECUTIVE SUMMARY The City owns the Santa Fe Depot which currently has a vacancy in the northernmost portion of the building. Greyhound desires to relocate to this site due to High Speed Rail (HSR) impacts to their existing site. The Santa Fe Depot has 1,750 square feet of leasable space wherein Greyhound will pay $2,612.50 per month for the space. This price includes an initial lease rate of $0.85 per square foot and 15 parking stalls. The building will be leased "as is" making the tenant responsible for the tenant improvements. BACKGROUND Greyhound proposes to relocate their bus terminal to the Santa Fe Depot in downtown Fresno for an initial lease term of 10 years. Greyhound proposes to operate from three bus slips at this location with a long term-goal of finding a permanent site closer in proximity to the HSR Station. The Santa Fe Depot currently has a vacancy in the northernmost portion of the building; adding Greyhound will enhance this site as a multi-modal transportation facility with services also provided by Amtrak and FAX. The lease terms will include the following: * Lease is for 1,750 square feet northernmost portion of the Santa Fe Depot. Tenant will pay $2,612.50 per month for the space. This price includes an initial lease rate of $0.85 per square foot and 15 parking stalls. * 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. * The initial lease term shall be for 10 years from the effective date. The initial term may be extended by mutual agreement of the parties for no more than two additional five year periods. * Tenant will agree to City's standard indemnification and carry applicable insurance. 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 This lease does not negatively impact the General Fund. Greyhound will pay the City $2,612.50 per month for the space. This price includes an initial lease rate of $0.85 per square foot and 15 parking stalls per month to lease space in the Santa Fe Depot. Attachment: Lease Agreement