Eyewitness News investigates a potential way for the City of Fresno to make millions of dollars on property it already owns. City councilman Lee Brand wants to hire a property management company that would take stock of over 1,000 parcels, from fire stations to vacant land. It would then work with the council to sell and lease property for profit.
Hamburgers sizzle and fries are dished up at Colorado Grill in north Fresno. The owner of this bustling lunch spot wanted to open a restaurant in downtown Fresno back in 2007. The building was already in place; about 1,900-square-feet attached to the recently renovated Santa Fe train station.
"Serve the downtown population and also the visitors that were coming in. We had good plans for that store," said Ali Nekumanesh, owner of Colorado Grill in Fresno and Clovis.
Nekumanesh says he tried for over two years to work out a rental agreement with the City of Fresno. He says the deal fell through, in part, because of a maze of bureaucracy.
"It's been empty all these years, and as a business man, I don't see how that makes sense for the city. It could have been collecting rent all these years," said Nekumanesh.
That's why Brand says he wants to bring in a private property management company to handle deals like the one with Colorado Grill. He says a lack of city staffing has led to countless missed opportunities to make money.
"Money that will pay for parks, police, fire, public works, all these kids of operations," said Brand.
Brand wants the city council to approve his "Asset Management Act." The first step would be hiring a company to take stock of properties. The firm would make a commission if the council approves sales or leases. Brand also wants to rent out land to sign companies at places like Granite Park with high visibility from the 168 freeway.
"It's a loser for the City of Fresno so if there's an opportunity to put electronic billboards, whatever, lets try to do it," said Brand.
Brand cites Sacramento as a city that's benefited from a similar asset management model. A city spokesperson tells Eyewitness News that a private firm was hired several years ago, but no properties have actually been sold yet.
Brand is presenting his act to Fresno City Council in March. If it's approved, it would take six months to a year before the city could start making money.