REPORT TO THE CITY COUNCIL March 18, 2021 FROM: TJ MILLER, Director Parks, After School, Recreation and Community Services Department SUBJECT ..Title Actions related to the leasing of City-owned land at Roeding Park (Council District 3): 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act Guidelines 2. Approve first amendment to lease agreement between the City and Storyland and Playland, Inc. for property at Roeding Park, located at 890 W. Belmont Ave, for the purpose of operating Playland and Storyland to provide educational opportunities and pleasure to the children and families in the Central Valley for a term of 31 years at $1.00 per year. ..Body RECOMMENDATION Staff recommends City Council: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act Guidelines 2. Approve the first amendment to the lease agreement with Storyland and Playland, Inc. for a term of 31 years at $1.00 per year for property located at Roeding Park 3. Authorize the PARCS Director to execute the agreement. EXECUTIVE SUMMARY The first amendment to the lease agreement with Storyland and Playland, Inc. is for a term of 31 years. The original lease agreement, dated 2014, had a term of 30 years. Roeding Park Playland and Fresno Storyland maintained separate 501 (C)(3) tax-exempt not-for-profit status until January 1, 2018, when Fresno Storyland was merged with Roeding Park Playland and the name of the Corporation was changed to Storyland and Playland, Inc. In addition to modifying the lease agreement to reflect the corporation's name change, the first amendment to the agreement also allows Storyland and Playland, Inc. to apply for the Statewide Park Development and Community Revitalization (Proposition 68) Grant application. Proposition 68 requires nonprofit applicants to demonstrate they will operate and maintain the property for public use during the 30-year grant performance period. The 2014 lease agreement is set to expire in 2044 and does not cover the full 30-year performance period. By entering into the first amendment to the lease agreement, the City is acknowledging the corporations name change and satisfying the State's requirements of nonprofits to apply for the Proposition 68 Grant. BACKGROUND Roeding Park Playland entered into an agreement with the City in November, 1954 and opened to the public in May, 1955 as an amusement playland, boat concession, and concession stands within Roeding Park. Roeding Park Playland entered into a lease agreement in August, 1974. Fresno Storyland entered into an agreement with the City in August, 1974 to operate a storybook land within Roeding Park. In July, 1994 the eighth modification to the Roeding Park Playland lease agreement added Storyland to the Playland lease and the Storyland lease was terminated and a new joint lease with Roeding Park Playland and Fresno Storyland was executed April 24, 2014 for a term of 30 years. Roeding Park Playland and Fresno Storyland maintained separate 501 (C)(3) tax-exempt not-for-profit status until January 1, 2018, when Fresno Storyland was merged with Roeding Park Playland and the name of the Corporation was changed to Storyland and Playland, Inc. In addition to modifying the lease agreement to reflect the corporation's name change, the first amendment to the agreement also allows Storyland and Playland, Inc. to apply for the Proposition 68 Grant application. Proposition 68 requires nonprofit applicants to demonstrate they will operate and maintain the property for public use during the 30-year grant performance period. The 2014 lease agreement is set to expire in 2044 and does not cover the full 30-year performance period. By entering into the first amendment to the lease agreement, the City is acknowledging the corporations name change and satisfying the State's requirements of nonprofits to apply for the Proposition 68 Grant. In recognition of the educational opportunities and the pleasure of children and families, the rent will be one dollar ($1.00) per year. The Storyland and Playland, Inc. will continue to have exclusive responsibility and control of programming, hiring of staff, arranging tours, establishing hours of operation, and establishing fees and will utilize the net profits to maintain or expand its operation. Storyland and Playland, Inc. will continue to pay all operating and capital costs, including insurance, supplies, equipment, labor, fixtures, and material necessary for the maintenance, operation and capital improvements of the facilities with the exception of the following items that will continue to be provided by the City: furnish shade trees or replace present trees; trim and fertilize trees present, furnished, or replaced in leased premises; remove dead, diseased or damaged trees or limbs of trees, as deemed necessary. As such, PARCS is recommending the approval of the first amendment to the lease agreement. City Attorney has reviewed the attached lease and approved to form. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental review of this project and has determined that it falls within the Categorical Exemption set forth in Section 15301/Class 1. Section 15301/ Class 1 exemption from CEQA requirements applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures and facilities involving no expansion of use existing or former use. The current lease is for an existing structure and does not involve expansion of use. Furthermore, Staff has determined that none of the Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project. LOCAL PREFERENCE Local Preference is not applicable to this item because this does not include an award of a construction or consultant contract. FISCAL IMPACT There is no additional impact to the General Fund as a result of approving the first amendment to the agreement. Attachment: First Amendment to Lease Agreement Original Lease Agreement Map