Finance committee recommends council approve leases for Kingsburg Business Park sign

The Kingsburg Finance Committee on April 28 recommended that the City Council approve lease agreements for advertising panels on the Kingsburg Business Park highway sign, with final execution contingent on tenant signatures and last legal review.

The recommendation would allow tenants to occupy individual panels on the city-owned sign, with tenants responsible for design, manufacturing and installation costs and the city covering a partial façade grant for a local restaurant.

Alexander Henderson, a member of the finance committee, told the committee the leases have been negotiated to include panel size and number, minimum lease lengths, annual costs, security deposits, early-termination language and maintenance responsibilities. “City attorney Mike Nolan has reviewed and approved all forms of the leases,” Henderson said. He asked the committee to recommend execution of the leases by the City Council pending final lease-language negotiation, city-attorney review and tenant signatures.

Under the proposed arrangements, Valley Health Team committed to the top two full-panel spaces and elected to sign a three-year lease, paying the full amount upfront. Tenants who pay two years upfront are offered a 2.5% discount; tenants who pay three years upfront are offered a 5% discount.

T-Mobile’s customer-experience center committed to a single full panel on a two-year lease and has agreed to pay the full amount upfront; staff said the executed lease is pending the return of the company representative from vacation. A second Starbucks location at 301 West Sierra Street committed to a single full panel on a two-year lease and likewise elected to pay upfront; staff said final language with the tenant’s legal team remains under negotiation.

Cheyenne Steakhouse and Lounge committed to a single full panel on a two-year lease, has signed its lease and elected to make monthly lease payments. Cheyenne applied for the city’s façade grant program to offset installation costs; staff said the grant will cover about $6,000 of installation costs and a portion of the security deposit. A Plus Signs of Fresno will handle design, manufacturing and installation; those vendor costs are separate from the lease payments and are the responsibility of the tenants. A Plus will also be the ongoing on-call vendor under agreed rates.

Staff said the finance committee first received sign updates in June 2024 and was later advised by the City’s Economic Development Committee in September 2024 to refurbish the existing sign without adding a digital component because it was the least expensive option and had lower ongoing electricity and repair costs. On Oct. 28, 2024, the finance committee directed staff to begin negotiating leases. Staff told the committee that keeping the current vendor price hold is a priority because material-cost increases and tariffs could raise costs if work is delayed.

The finance committee voted to recommend the leases move forward to City Council; committee members voiced approval and the motion carried. Staff said finalized, executed leases would be presented to the City Council for consideration, with a target meeting on May 7, 2025, dependent on tenant signatures and final legal review.

The committee adjourned after the vote with no further items discussed.