REPORT TO THE CITY COUNCIL February 4, 2021 FROM: THOMAS C. ESQUEDA, City Manager Office of the City Manager SUBJECT ..Title Consideration of Third and Final Amendment to the Exclusive Negotiation Agreement by and between the City of Fresno and Tutelian & Company, Inc. ..Body RECOMMENDATION The City Manager recommends that the Council approve the Third Amendment to the Exclusive Negotiation Agreement by and between the City of Fresno and Tutelian & Company, Inc. EXECUTIVE SUMMARY The City Manager is bringing this Third 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 need for the Third Amendment is required because the Developer failed to complete the milestones required by City Council for the 2nd Amendment to the ENA. If approved by City Council, the Third Amendment to the ENA will extend the term of the negotiating agreement to June 6, 2021. The City Manager is presenting this item to the City Council for discussion and consideration at the request of the Developer. BACKGROUND On March 5, 2020, the City Council approved the First Amendment to the ENA, extending the term of the negotiating period by nine months, from March 8, 2020 to December 7, 2020. The City Council subsequently approved a Second Amendment consisting of a 60-day extension on November 19, 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. The Third Amendment to the ENA adds several new benchmarks that must accompany a signed DDA on or before June 6, 2021. The Developer has been advised that the time extension provided the Third Amendment is the last and final extension the City Manager will bring before the Council. Other notable new benchmarks to this amendment are: 1. 100-percent complete plans and specifications for Phase A of the Project, suitable for submittal for the City of Fresno for plan check and building permits. 2. Final construction cost estimate for Phase A of the Project. 3. Executed Letter of Intent (LOI) from CVS to participate in Phase A. The LOI shall include a stipulated start date for Phase A construction and confirmation of the final construction cost estimate. 4. Loan Commitment Letter from a financial institution to fully fund Phase A of the Project as presented in the final construction cost estimates. Letter shall include a stipulated start date for Phase A construction. 5. Letter from Developer acknowledging the City shall not provide capital funding to relocate or modify non-City utility services including, but not limited to, gas, electric, communications, fiber optic, and storm sewer. City and Developer shall negotiate reimbursing Developer for non-City utility service relocation costs through the City's enhanced infrastructure financing district, which will be incorporated into the DDA, and is subject Council approval. ENVIRONMENTAL FINDINGS This is not a project for the purposes of CEQA. LOCAL PREFERENCE Approval of this resolution is not subject to local preference. FISCAL IMPACT There is no fiscal impact to the City. Attachment: Third Amendment to ENA