As long as the building meets expectations, Fresno County supervisors will purchase a Clovis office building for $15.7 million in January, almost completing their collection of the former Pelco business park.
After a closed-door session Tuesday, supervisors and property owners came to an agreement to rent the building beginning in September to make sure there are no environmental issues with the property before executing a purchase agreement, according to Supervisor Nathan Magsig who oversaw negotiations.
The 37,282-square-foot building at 200 W. Pontiac Way will provide the county with additional space to bring another of its agencies to the business park near the Fresno Yosemite International Airport.
Pontiac 4 LLC is listed as the property owner. Jerry Cook, president of Cook Land Co., is the listed agent for Pontiac 4.
Magsig said in the long run the purchase will be a cost-saver considering the amount of space they lease for numerous agencies across the county.
Google Maps estimates the business park occupies 55 acres, including the former Costco at Ashlan Avenue that now houses Child Welfare Services. The Department of Social Services occupies a total of four buildings in that immediate vicinity.
KW Automotive North America operates out of one of the former Pelco buildings.
“We now have a significant footprint on the campus out there — the old Pelco campus — so there is value in purchasing this particular building that’s a part of that campus,” Magsig said.
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The county will begin renting the building in September for $165,767 a month, with $93,583 for the lease and an estimated $72,184 in operating costs.
Then in January, supervisors can decide to purchase the property.
Schneider Electric — the company that purchased Pelco — is still operating at the building, but it is expected to leave in August. Schneider can remain on the property if it needs more time, Magsig said.
That time allows the county to do due diligence, particularly with environmental analysis, said Magsig.
Security and manufacturing company Pelco used to operate there. While Magsig said it’s not believed that heavy welding and the use of solvents occurred in the space, the county wants to be sure.
“I don’t expect there to be any issues that get in the way of us purchasing the building come January,” Magsig said.
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The county in 2017 wanted the building for Child Welfare Services. But because Schneider Electric could not leave in time, property owner Cook Land Co. made the former Costco available.
Agencies such as the Department of Social Services get pass-through income from the state of California, and it was with those funds the county planned to purchase that building.
But now the county will have to pay out-of-pocket for the space.
Magsig said they have a couple different departments they are considering. For example, the Fresno County Assessor-Recorder needs storage space.
In June 2022, Fresno County bought a new office for the Assessor/Recorder for $11.9 million. The department still has massive amounts of documents that need to be preserved and stored.
Of the space at the building, 65,252 square feet is warehouse space.
Magsig said the Agricultural Commissioner will also need space in the near future.
The building provides much-needed parking at the site with its 270 stalls.
“I can tell you the county’s very excited that the footprint that we have at that campus is a substantial one,” said Magsig.