REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of Mayor & City Manager BY: GREGORY A. BARFIELD, Assistant City Manager Office of the Mayor & City Manager SUBJECT ..Title Actions pertaining to a Parking Agreement between the City of Fresno and Metro Hospitality, Inc.: 1. Adopt a finding of Categorical Exemption per staff determination pursuant to Article 19, Section 15301 Class 1 (existing facility) of the California Environmental Quality Act Guidelines 2. Authorization to Approve a Parking Agreement with Metro Hospitality Inc. (DBA Courtyard Marriot- Fresno Downtown) for parking in City of Fresno Parking Garages 7, 8, 9 for one (5) year term starting upon possession of certificate of occupancy (Council District 3) ..Body RECOMMENDATION Staff recommends that the City Council adopt findings of Categorical Exemption per staff determination, pursuant to Article 19, Section 15301/Class 1 (Existing Facility) of the California Environmental Quality Act (CEQA) Guidelines for a Parking Agreement between the City of Fresno and Metro Hospitality Inc. (DBA Courtyard Marriot- Fresno Downtown) for up to 200 parking spaces in City of Fresno Parking Garages 7, 8, 9 for one (5) year term starting upon possession of certificate of occupancy. EXECUTIVE SUMMARY The downtown 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 the Saroyan Theater, Valdez Hall, and Selland Arena. Metro Hospitality Services, Inc has just completed all planning steps and is ready to pull building permits. As part of the closing of construction escrow, Metro Hospitality Inc.'s two lenders are requiring a parking agreement for up to 200 parking spaces to accommodate parking needs for 144 guest rooms, staff and meeting attendees. Approval of this agreement will allow for parking for hotel guests staying at the downtown hotel. BACKGROUND 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 the Saroyan Theater, Valdez Hall, and Selland Arena. Metro Hospitality Services, Inc has just completed all planning steps and is ready to pull building permits. As part of the closing of construction escrow, Metro Hospitality Inc.'s two lenders are requiring a parking agreement for up to 200 parking spaces to accommodate parking needs for 144 guest rooms, staff and meeting attendees. Approval of this agreement will allow for parking for hotel guests staying at the downtown hotel. ENVIRONMENTAL FINDINGS Staff has determined that the proposed contract is exempt under CEQA Guideline 15301 Class 1, which provides exemption for the operation, repair, maintenance, permitting, leasing, licensing, or other minor alterations of existing public structures and facilities, involving negligible or no expansion of use beyond that is existing at the time of the lead agency's determination. The proposed Agreement is within the Class 1 exemption because it involves existing City parking structures and facilities involving negligible or no expansion of use. The above exemption is not precluded by Guideline 15300.2, which prevents the use of categorical exemptions for projects where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances, or where a project may cause a substantial adverse change in the significance of a historical resource. The proposed Parking Agreement does not have a significant effect on the environment due to unusual circumstances, nor does it cause a substantial adverse change in the significance of ahistorical resource. None of the exceptions to the Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project. LOCAL PREFERENCE N/A FISCAL IMPACT There is no fiscal impact Attachment: Parking Agreement with Exhibit A Locations of Garages