REPORT TO THE CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF FRESNO October 20, 2016 FROM: MARLENE MURPHEY, Executive Director Successor Agency to the Redevelopment Agency of the City of Fresno SUBJECT ..Title Actions pertaining to a lease of space at the Convention Center for use by the Successor Agency: 1. Adopt a finding of categorical exemption of Class 1pursuant to CEQA Guidelines section 15301 (existing facilities) 2. Approve a lease with SMG, a Pennsylvania general partnership ..Body RECOMMENDATION It is recommended that the Successor Agency and City Council approve a lease between SMG, a Pennsylvania general partnership and the Successor Agency. EXECUTIVE SUMMARY The Agency's space needs have diminished and at the recommendation of the Council the Agency has sought alternative space with the City of Fresno. The Convention Center facility at 848 M Street has vacant space on the third floor that has been recommended as appropriate to serve the mutual needs of the City and Agency. The Agency presently leases from a private party and pays $1.00 per square foot for approximately 5,000 square feet of space all inclusive including parking. The space is not easily divisible thus alternative space has been sought to reduce the expense. The City expressed a desire to have the Agency consider a location within a city owned facility. The Convention Center third floor space is currently vacant and available. The draft lease agreement between the Agency and SMG is attached. The agreement provides for a three year term at $1.00 per square foot all inclusive for 2,000 square feet. ENVIRONMENTAL FINDINGS Staff has performed a preliminary evaluation and determined that the project is subject to a Class 1 Categorical Exemption pursuant to CEQA Guidelines section 15301 because it involves little to no expansion of existing facilities. In addition, none of the exceptions to exemptions set forth in CEQA Guidelines 15300.2 apply to this project. LOCAL PREFERENCE N/A FISCAL IMPACT Lease payments are included in the existing budget. No additional appropriations are necessary to fulfill this transaction. Attachment: Draft Lease Agreement