Cracked Pepper’s Fresno City Hall Free-Rent Deal Scrutinized Before Approval

Before getting unanimous approval by Fresno City Councilmembers, the terms of City Hall’s three-year, free-rent deal for its newest tenant, Cracked Pepper, underwent scrutiny from the dais.

Fresno City Councilmember Miguel Arias on Thursday questioned what he called “the most generous lease deal” in his tenure. The deal not only included free rent to serve food and coffee in the public building but also a $600,000 taxpayer commitment to improve the space.

A contract for utilities also required approval because there’s no separate meter for the space.

With the recent closure of downtown Fresno restaurants, Arias also wanted to know why those business owners weren’t given an offer.

However, Arias ultimately motioned to approve the deal.

Cracked Pepper Owner Vatche Moukhtarian told GV Wire he expects to open by fall.

“I’m really excited about it,” Moukhtarian said. “For a long time, I thought about (downtown) Fresno … and then this opportunity came up. I just couldn’t turn it down.”

Other Operators Would Have Gotten Same Terms: Janz

The city offered the three-year lease out of a “clear and convincing benefit” for employees to have access to food, said Brian Barr, director of general services for the city.

The city has tried for year to fill the space, but has had difficulty finding someone to agree, he told councilmembers.

The city received about 10 proposals before landing on Cracked Pepper. Fresno City Attorney Andrew Janz told GV Wire that any other operators would have received the same terms.

The city budgeted $600,000 for the project, including $400,000 in construction costs and about $100,000 for equipment, Barr said.

Seating will be added and front-of-counter enhancements will make public access easier, he said.

Fresno City Manager Georgeanne White told councilmembers the offer helps businesses establish themselves.

“It’s only for the first three years to give an opportunity to the business to become profitable,” White said during the meeting.

Moukhtarian told GV Wire that being in City Hall limits customer access and the operating hours.

“We’re limited to the amount of people that are in a building,” Moukhtarian said. “You kind of don’t have access to evening crowds, typically. Not just talking about the building, but in general, downtown is just really hard.”

‘Fast-Paced’ Menu Features From-Scratch Classics

Moukhtarian has run Cracked Pepper Bistro in north Fresno for 20 years. The fine-dining restaurant has won multiple awards and gained public acclaim for the bread pudding, which he will serve in City Hall. Recently, he’s added brunch to his restaurant at Palm and Herndon avenues.

Meanwhile, the City Hall location also will feature an all “from-scratch” menu focused on grab-and-go items.

“We’ll also have some interesting Caesar salad in the bowl. It’s going to be very fast-paced,” he said.

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