Aprobar la Segunda Enmienda al Contrato de Arrendamiento con la Corporación del Zoológico Chaffee de Fresno para aumentar el límite actual de la construcción, mantenimiento y operación de una instalación de estacionamiento de superficie adyacente a la entrada propuesta del nuevo zoológico dentro del Parque Roeding, aumentar el pago del arrendamiento de $1 a $247,752 por año, y extender el término del arrendamiento por 5 años para vencer el 1 de enero de 2066 (Distrito del Consejo 3)

REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of Mayor & City Manager BY: NICHOLAS D. MASCIA, PE, TE, PTOE, Assistant City Manager Office of Mayor & City Manager AARON A. AGUIRRE, Director Parks, After School, Recreation, and Community Services Department BRIAN BARR, Director General Services Department JENNIFER K. CLARK, AICP, Director Planning and Development Department SUBJECT ..Title Approve Second Amendment to the Lease Agreement with Fresno’s Chaffee Zoo Corporation to increase the current boundary for the construction, maintenance and operation of a surface parking facility adjacent to the proposed new zoo entrance within Roeding Park, increase the lease payment from $1 to $247,752 per year, and extend the lease term by 5 years to expire on January 1, 2066 (Council District 3) ..Body RECOMMENDATION Staff recommends that Council approves the Second Amendment to the Lease Agreement between the City of Fresno ("City") and Fresno's Chaffee Zoo Corporation ("Zoo"), a privately created California public benefit corporation, for the sole purpose to allow the Zoo to construct, maintain and operate a new surface parking facility in conjunction with the relocation of the zoo entrance, increase the lease payment from $1 to $247,752 per year, and extend the lease term by 5 years to expire on January 1, 2066. This second amendment is the culmination of the Exclusive Negotiating Agreement previously executed by City Council in 2024 that identified and negotiated proposed elements, operational responsibilities, and financial contributions associated with the expanded lease area, and authorize the City Manager, or designee, to execute all documents related to this item. EXECUTIVE SUMMARY This Second Amendment to the Lease Agreement between the City of Fresno ("City") and Fresno's Chaffee Zoo Corporation ("Zoo"), proposes to expand the Zoo’s leased premises for a new surface parking facility. This includes extending the lease term by 5 additional years (60 years total), adding 9.67 acres to the existing 40.95 acres leased (new total Expanded Lease Boundary of 50.62 acres), increasing the lease payment from $1 to $247,752 per year, and establish the framework for construction, maintenance and operation of a surface parking facility at the Zoo’s new entrance in Roeding Park. The Second Amendment includes a provision requiring the Zoo to issue a Notice to Proceed (NTP) to their contractor for the proposed surface parking facility within two years of the effective date of the Second Amendment. Upon issuance of the NTP, the first lease payment is due, and must be paid annually thereafter. If the Zoo fails to issue the NTP within two years of approval of the Second Amendment, the City may terminate all rights granted in the Second Amendment by issuing a written notice. BACKGROUND Fresno’s Chaffee Zoo Corporation (Zoo), a privately created California public benefit corporation, entered into the current lease agreement with the City of Fresno (City) on January 1, 2006. The Zoo’s history at Roeding park dates back to as early as 1907, although official recognition as a zoo by The American Association of Zoological Parks and Aquariums (AAZPA - now AZA) occurred in 1929. Over the years the Zoo has gone through various changes in its governance, and within its exhibits, and in 2004, Measure Z was approved as a Fresno County sales tax to financially support zoo improvements. In July 2007, the Zoo released a Facility Master Plan to serve as a “roadmap” for future Zoo development. The roadmap identified growth within and outside the existing lease boundary. In late 2024, Council authorized an Exclusive Negotiating Agreement (ENA) that opened negotiations between the City and the Zoo regarding the desire to jointly undertake improvements to the parking facilities in Roeding Park in the general vicinity of the current employee and overflow parking lots, and maintenance yard to the north of the existing Fresno Chaffee Zoo boundary (Project Area). The improvements initially included the construction of up to two multi-story parking structures along with related landscaping and parkland improvements, collectively referred to as the “Parking Facilities Project”. The multi-story structures evolved to surface parking lot during the ENA process. The project is anticipated to provide a substantial public benefit by improving public infrastructure to the Zoo and Roeding Park. The ENA required two amendments to provide additional time to develop and agree upon the proposed second amendment. The following is a summary of the negotiated terms of the Second Amendment: The original term of the Lease was for 30 years and was extended for 25 years with the passing of Measure Z. The Second Amendment will add 5 more years (Total of a 60 year lease since inception) in order to allow the improvements proposed to have a useful life. The existing Zoo lease boundary will grow from 40.95 acres to 50.62 acres (aka Expanded Lease Boundary). A net increase of 9.67 acres as depicted in the attached exhibit A-2 of the Second Amendment. The Zoo will be responsible for all costs of improvements proposed within the Expanded Lease Boundary. Proposed improvements will be not to exceed 558 stall surface parking lot with a solar canopy array, and a new drive access to the proposed new Zoo entrance. The Zoo will increase the yearly lease payment from $1.00 to a maximum of $247,752. This increase is the calculated lost parking revenue that the City anticipates with the addition of this project based upon a per space revenue of $444.00 with an assumed maximum of 558 stalls. The lease payment may be adjusted if fewer than 558 stalls are constructed, but shall not be less than $222,000.00 per year. The minimum and maximum are only applicable to establish the yearly lease. The annual lease payment will be adjusted upon City Council approval of any amendment to the Master Fee Schedule (MFS). Lease increases will be proportionate to the corresponding increase of the parking fee within the MFS. Further the Zoo will receive net parking revenue for the parking within the Expanded Lease Boundary. The parking fee collection and enforcement will be performed by the City and the cost of services to perform will be deducted prior to the City issuing the parking revenue. Irrigation and tree (removal, relocation, and planting) requirements are included in the amendment to ensure established trees are preserved and the number of new trees planted provides canopy coverage equal to those that are removed. Further tree removal within or immediately adjacent to the Expanded Lease Boundary shall comply with the Roeding Park Master Plan, the Historic Preservation Design Guidelines for Fresno Roeding Park, the Mitigation Monitoring and Reporting Program for EIR SCH No. 2008031002 and the Fresno Municipal Code Section 15-2308. Solar photovoltaic panels over the proposed parking are intended to be installed by the Zoo and intended to offset the Zoo’s electrical costs. The Zoo will be responsible for the installation, operation, and maintenance cost. California Environmental Quality Act (CEQA) responsibilities will be performed by the Zoo. Maintenance and operation costs for the Expanded Lease Boundary will be the sole responsibility of the Zoo. The lease payment schedule set forth in the Second Amendment will begin upon issuance of a NTP from the Zoo to officially commence construction which must be within two years of the effective date of the Second Amendment. Should the Zoo not issue an NTP within two years, the City may issue written notice to the Zoo to terminate all rights granted by this Second Amendment. The City will be responsible for setting the citywide parking fee through the Master Fee Schedule. Further the City will administer the parking enforcement and citation for the proposed parking within the Expanded Lease Boundary. On September 21, 2026 the Second Amendment was considered for adoption by the Zoo Corporation and was approved true to form. On September 23, 2026 the Fresno County Zoo Authority, which oversees the Measure Z funding, also reviewed the Second Amendment prior to consideration and authorizing Measure Z funds to complete the design of the ‘California Exhibit’ project. During the discussion, the Zoo Authority Board requested that Zoo Corp include within the Second Amendment a provision for the Zoo to receive the parking citation revenue within the Expanded Lease Boundary. City Staff has since reviewed the request and recommends that City Council not include the parking citation revenue within the Second Amendment. Following the collection of the citations, the initial 80% collected is consumed to enforce and collect citations by the Planning and Development Department, Parking Division. The remaining net citation revenue is kept within the Parking Division to enforce parking citywide. The net parking citation revenue is estimated to be approximately $7,700 per year for the proposed parking within the Expanded Lease Boundary. Staff recommends that City Council consider the recommended amendment through the ENA, without including the parking citation revenue, and approve the Second Amendment. ENVIRONMENTAL FINDINGS The second amendment to the Lease Agreement is not a project for the purposes of the CEQA. The proposed improvements within the expanded lease boundary will be required to comply with applicable environmental impact laws. LOCAL PREFERENCE Local preference is not applicable as this is not a solicitation for a contract. FISCAL IMPACT The original Lease Agreement established a lease rate of $1.00 per year, paid at the inception of the Lease and each year thereafter. The Second Amendment increases the annual payment to $247,752 to be a net zero impact to the City, subject to adjustments to the parking fees within the Master Fee Schedule. This amount was determined by calculating the average revenue per stall within Roeding Park and assigning that to the proposed 558 stalls within the expanded area in order to keep the PARCS Department whole for maintenance and operation. Attachments: Amendment No. 2 to Lease Agreement with Exhibit “A-1” and “A-2” Amendment No. 1 to Lease Agreement (March 15, 2007) Lease Agreement (January 1, 2006)