REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of Mayor & City Manager BY: JENNIFER K. CLARK, Director Planning and Development Department TERRY COX, Project Liaison/Program Administrator Housing Planning and Development Department SUBJECT ..Title Actions pertaining to the Disposition and Development Agreement between Metro Hospitality Services, Inc., and City of Fresno regarding the Courtyard by Marriott Hotel in Downtown Fresno (District 3) 1. ***RESOLUTION - Finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code Section 4-204 relating to the Disposition of Real Property identified as Assessor's Parcel Number 468-212-20T (Northeast corner of Inyo and M Streets) (Requires Five Affirmative Votes) (Subject to Mayor's Veto) 2. Approve a Fourth Amendment to the Disposition and Development Agreement between Metro Hospitality Services, Inc., and City of Fresno to extend the project completion for the Courtyard by Marriott Hotel in Downtown Fresno located at the northeast corner of Inyo and M Street for completion on October 28, 2026 ..Body RECOMMENDATION Staff recommends the Council 1) adopt the Resolution finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code Section 4-204 relating to the Disposition of Real Property identified as Assessor's Parcel Number 468-212-20T (Northeast corner of Inyo and M Streets); and 2) approve the Fourth Amendment to the Disposition and Development Agreement (DDA) between Metro Hospitality Services, Inc. (Developer) and City of Fresno (City) to update the construction schedule of the downtown Fresno, Marriott Courtyard Hotel located at Inyo and M Street for completion on October 28, 2026. EXECUTIVE SUMMARY The proposed hotel has been a consideration for over 25 years to provide additional hotel rooms for conventions, events, and visitors to the city and downtown on land formally owned by the City of Fresno. This land was intended for a downtown hotel next to the Exhibit Hall and across from the Fresno Sports and Entertainment facilities that include Saroyan, Valdez Hall, and Selland Arena. The developer entered into a DDA with the City on December 18, 2017, for the development of a downtown Fresno hotel flagged as a Hilton or Marriott to be built at this location. BACKGROUND The City owned a parcel of land at the northeast corner of Inyo and M Streets in downtown Fresno, abutting the Convention Center. In 2017, the Developer submitted a Letter of Interest (LOI) to develop a hotel on the site. Subsequently, the Developer and the City agreed to a DDA on December 18, 2017, to develop a 200-room hotel branded as either a Hilton or Marriott. On March 14, 2022, a First Amendment to the DDA extended certain deadlines in the performance schedule and reduced the 200-room hotel to reflect a 144-room hotel, branded as a Courtyard by Marriott. This extension was granted due to residual supply chain disruptions stemming from the pandemic. The First Amendment extended Completion of Construction to December 31, 2024, and Certificate of Completion to March 31, 2025. Generally, the project includes the construction of a 144-room hotel with guest rooms on the 2nd to 5th floors and construction of a swimming pool, fitness center, meeting rooms, lounge, bar/bistro, and back of house on the 1st floor. On January 10, 2025, the Developer submitted a request for a one-year extension of the DDA due to significant construction delays due to unforeseen weather conditions as described in their request (attached). The Second Amendment proposes extending the deadline for Completion of Construction to September 30, 2025, the Certificate of Completion to December 31, 2025, and authorizes the City Manager to administratively extend the performance deadlines, upon determination of good cause, for up to 180 days without further Council approval. On December 31, 2025, the Developer submitted a request for a 180-day extension of the DDA due to significant construction delays due to onsite modifications to accommodate existing site conditions, including, but not limited to, the relocation of drainage piping. The Third Amendment extended the deadline for Completion of Construction to March 31, 2026, and the Certificate of Completion to June 29, 2026. On June 12, 2026, the Developer submitted a request for a 120-day extension of the DDA due to construction delays resulting from restricted access to the downtown infill site, relocation/modification of existing traffic control infrastructure, and compliance/installation of the Emergency Responder Communication Enhancement System. This Fourth Amendment would extend the deadline for Completion of Construction to July 30, 2026, and the Certificate of Completion to October 28, 2026. ENVIRONMENTAL FINDINGS This amendment is not a project subject to CEQA. LOCAL PREFERENCE Local preference is not applicable. FISCAL IMPACT There is no fiscal impact Attachments: Resolution Fourth Amendment to the DDA with Metro Hospitality Third Amendment to the DDA with Metro Hospitality Second Amendment to the DDA with Metro Hospitality First Amendment to the DDA with Metro Hospitality. Original DDA with Metro Hospitality-December 2017