This story was originally published by Fresnoland.
The Fresno City Council greenlit another bond and a long-term lease that city leaders say will help address longtime facility challenges at their meeting Thursday.
The city council unanimously approved a public safety lease revenue bond to pay for, among other things, $12 million in building upgrades at the beginning of a 21-year lease to rent a new police headquarters.
The lease, which will cost the city another $30 million, was unanimously approved on the consent calendar at the top of the meeting. City leaders have yet to find a way to pay for the $1.3 million in annual rent payments, in addition to property taxes and utility bills, coming due this time next year.
Fresno Mayor Jerry Dyer said for now, the money to pay the city’s rent will likely come from the city’s general fund, although there’s a possibility down the line that police impact fees, paid by developers building new projects, could help with those costs.
He added that the city has waived those fees for developers too often, historically, for there to be enough money from that pool to pay for the lease now.
The city has the option to purchase the building at the end of the 21-year term for $1.
City leaders cited the current headquarters’ dilapidated conditions as a reason for fast-tracking the financing. Councilmember Tyler Maxwell said a new police headquarters was “long overdue.”
“I think that our first-responders and dispatchers deserve much better than what they’ve had. What they’ve had has kind of been out of necessity,” Maxwell said.
He added that the new resource could help lead to better call times and service from the police department.
The police headquarters is part of a trio of city projects the bond will fund. The other two projects are the construction of northwest Fresno’s Fire Station 12, and the new 911 emergency call center in downtown. The other two projects are already under construction, necessitating the city to find financing fast to fund the projects.
Both the new police headquarters and fire station will replace old facilities that have been giving their users trouble for years.
The police headquarters, according to former police chief and Fresno Mayor Jerry Dyer, was built in 1959 and suffers from lead and asbestos contamination, as well as HVAC issues. He added that the current Fire Station 12 was never meant to be a permanent solution, and the new building will go toward rectifying that problem.
“I always think it is a good time to be able to support our public safety,” Dyer said.
Renovation of the current headquarters, located at the old City Hall annex building on Mariposa — was not considered as a serious option, with costs to temporary relocate staff and abate the building from hazardous materials clocking in at $7 million.
The bond to fund the three projects is valued at $56 million, though the projects’ total financing cost is $47 million. City staff said the inflated price was to cover interest and financing costs.
News of the lease was sudden, as the public was first made aware of the proposal last Friday when the council agenda was released. Fresno City Council Vice President Miguel Arias, who raised questions about the speed at which the plan was going to be approved, also said on the dais Thursday that council only saw the full lease on Tuesday.
“What is the time-sensitive nature of us going to bond today?” Arias asked.
Council President Mike Karbassi, City Manager Georgeanne White and multiple members of the police department during public comment noted that conversations to get an improved or new police headquarters have been ongoing for years.
“If you plug in an electric pencil sharpener at the same time you’re using another electrical vent, you’ll blow a fuse,” said White, while listing off a myriad of issues the building faced due to its age and being “past its useful life.”
Karbassi added that the move should not be seen as a pro- or anti-law enforcement policy, but as an issue of public safety. He said police officers should have better working conditions to operate at the highest levels.
“We can treat our law enforcement better, and if we can’t, shame on us,” Karbassi said. “And I think we’re about to correct that today, and we’re doing it in a very fiscally responsible way. This shouldn’t come as a surprise to anybody, as the mayor said. ”
Still, many questions about the lease remain unclear. One real estate expert who spoke with Fresnoland questioned the strategy of leasing a police station instead of buying.
The new police headquarters will be across the street from the current HQ on 2314 Mariposa St. The building is owned by Ed Kashian — a prominent local developer.