Citing more than a million dollars in unpaid fees, the city of Fresno announced it is terminating its lease for the Granite Park with the nonprofit that runs the sports park.

In a letter dated Nov. 6 from City Manager Georgeanne White, the city informed Central Valley Community Sports Foundation of a three-day termination notice.

“You are required to vacate and surrender possession of the premises to the City within three days,” the letter said.

If CVCSF does not comply, “legal proceedings will be initiated.”

“The City will no longer be subsidizing CVCSF’s operations at Granite Park. However, all existing agreements for baseball and soccer events will continue to be honored by the City,” the city said in a news release.

News of the lease termination was a surprise to Terance Frazier, CVCSF president, when asked for comment. He did not have any further comment at this time.

Frazier’s nonprofit is also in litigation with neighbor Club One Casino over the use of parking spaces. Last month, a judge denied an injunction request that would deny patrons of the sports complex at Granite Park to use the parking lot at Club One Casino.

At the time, Frazier said he is committed to operating Granite Park.

“I thought about my purpose in life. I don’t think there’s ever been a time where I felt like I should give it back. I think kids need a place to play. The community enjoys the park. I enjoy going out there, listen to the kids having a great time,” Frazier said.

CVCSF filed a countersuit that also named the city of Fresno as a cross-defendant. The case returns to court Jan. 15.

Related Story: Frazier Wins First Round of Fresno Heavyweight Parking Brawl

City and Foundation Battling for Years

Once a weed-infested eye sore, the city entered into a lease with CVCSF in 2015. The nonprofit would run the park and receive a $150,000 yearly subsidy. CVCSF and the city would also share in electronic billboard revenue, for the signs that are visible from Highway 168.

Things turned sour in 2018, when CVCSF asked the city to double its payment. That resulted in an audit that found financial irregularities — that Frazier, and his then CVCSF-partner TJ Cox denied — and eventually a lawsuit. That case is set to resume in federal court next year.

City: CVCSF Owes $1.3 Million

In a May 17 letter to Frazier, White wrote that nonprofit owes $708,298 in back rent. Furthermore, the city paid $262,899 to PG&E, and $151,208 for water and sewer.

The lease also calls for a split of digital billboard revenues for the signs along the edge of Granite Park visible from Highway 168. The city said the foundation owes $181,000 as part of the sharing agreement.

White also accused CVCSF of multiple lease violations, including not maintaining a separate fund for capital improvements, failing to seek approval for concessions and improvements, neglecting park maintenance, not indemnifying the city, granting unauthorized licenses, and violating parking regulations.

The city said CVCSF has not made required improvements for the basketball and volleyball courts. It accused CVCSF of building soccer fields without the city’s consent.

White demanded CVCSF make good on its rent and utilities, cancel a concert (CVCSF did not), and cancel its deal with the soccer team. It it did not comply within 60 days, “the City will be forced to pursue its rights and remedies, at law and in equity, including, but not limited to, termination of the Ground Lease,” the letter said.

Granite Park: Read the Lease

CVCSF responded with a May 22 letter from attorney Kevin Little, saying the city has misinterpreted the lease, and to let the pending court case settle certain matters.

A second letter, dated Aug. 12, answered the city’s charges in a more point-by-point manner. It said the city “falsely” accused the nonprofit of defaulting on its ground lease “all of which are completely false.”

“It is obvious that whoever drafted your letter for you (sent by the city to CVSCSF on May 17, 2024) did not bother to even read the lease, nor attempt to reconcile the various provisions of the lease,” the Aug. 12 CVCSF response said.

Regarding the unpaid rent, the nonprofit countered that any rent would be credited against the value of improvements made, estimated at $2.7 million.

CVSCSF said it made more than $2 million in improvements and Granite Park appraised for $4.3 million in 2021.

“The Foundation has an accrued rent credit of between 35 years and 70 years, which makes the allegation of your letter not only patently false but also defamatory,” the Aug. 12 letter said. CVCSF demanded a retraction from City Manager Georgeanne White.

The CVSCSF letter said it has “a legally binding payment plan in effect with PG&E, which made the payments from the City gratuitous and without basis in law or in fact. You should contact PG&E and demand a refund.”

CVSCSF pointed out that the city, in the lease, would make a “reasonable effort” to provide purple pipe water — also known as recycled water — to help irrigate the fields, and in theory, keep the park’s water costs down.

The nonprofit said those efforts have been illusionary.

“(The city’s promise) has never been fulfilled and no reasonable efforts have ever been made by the City to provide such water, even though the infrastructure to receive the ‘purple pipe’ water have been installed,” the response letter said.

CVSCSF said the lease allows it to keep the first $60,000 of yearly billboard revenue to help fund the capital reserve account. The rest is split between the nonprofit and the city.

The nonprofit said it re-invests all revenue back into the park, noting that it still operates the park at a deficit.

“Since the City has never operated any programming at Granite Park all of the revenue generated is used to support the Foundation’s efforts to provide all of the programming. The City does not get to keep what you describe as its share of the billboard money,” the response letter said.

Pending Lawsuit in Federal Court

While the parking lawsuit and the letters continue, Frazier still has a lawsuit stemming from the audit in federal court.

Even an attempted settlement in 2021 led to the unusual intervention of Fresno County District Attorney Lisa Smittcamp.

A day before the scheduled June 2021 city council discussion, Smittcamp sent a letter to the city alleging possible Brown Act violations — the state’s open meeting laws.

The city council canceled the Frazier settlement talks. Smittcamp eventually dropped her investigation into possible illegal secret meetings — citing a lack of cooperation and not enough evidence to move forward.

The August Granite Park letter to the city addressed the upcoming federal court hearing.

“We are aware that the City Council set aside $1,000,000 to address deferred maintenance at Granite Park. What happened to that money? Did you purposefully can it out of spite for the federal lawsuit?” the letter said.

The letter also ponders if the city is treating other tenants of city-owned properties differently, such as the Fresno Grizzlies lease at Chukchansi Park.

The city has renegotiated the lease for the minor league baseball team several times, mostly in the team’s favor.

“Considering Granite Park serves approximately 300,000 customers, the same as the Grizzlies baseball club, why is Granite Park being treated differently? The City will eventually need to answer that question,” the letter said.