Fremont City Council Meeting: 05/12/26 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5718) DOC ID: 5718
Updated: 5/8/2026 10:28 AM by Dina Lewis Page 1
Centerville Depot Lease Agreement - Approval to Execute a Five-Year Lease Agreement Between the City of Fremont and Zabihullah Akrami for the Operation of a Café at the Historic Centerville Train Depot with the Option to Renew For Two Additional Five-Year Terms.
Contact Persons:
Name: Ian Champeny Hans Larsen
Title: Real Property Agent Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-494-4759 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to facilitate a lease agreement for café operations at the historic Centerville Train Depot building. In addition to serving the users of the Train Station, an active café at the site is an important strategy that contributes to the vibrancy of the Centerville commercial district and surrounding community.
Background: First built in 1910, the historic Centerville Train Depot (Train Depot) is a transit hub with train service provided by the Altamont Commuter Express (ACE) and the Amtrak Capitol Corridor to destinations in Silicon Valley, the East Bay and the Central Valley. The Train Depot is also served by a mix of bus and shuttle services provided by AC Transit and other private operators that include connections to Meta, Tesla, and Stanford University. The Train Depot features a café space (840 square feet) and an office space (654 square feet) that has been used for ticket sales, office functions, and storage.
On January 22, 2026, the City of Fremont issued a Request for Proposals (RFP #26-014) to solicit proposals, including a business plan, hours of operation, staffing, tenant improvements, and projected financials for the lease and operation of the Centerville Train Depot spaces. The RFP noted that the City prefers that one tenant operate both the café and office space, though interested parties had the option of submitting for the lease and operation of one or both of the café and office spaces. The lease duration is proposed to be an initial five-year term. Three proposals were received within the deadline of March 31, 2026, from: (1) East Bay Café, (2) Zabihullah Akrami, and (3) Dirk Lorenz.
Council Staff Report (ID # 5718) Meeting of May 12, 2026 Updated: 5/8/2026 10:28 AM by Dina Lewis Page 2
East Bay Café is the current operator, having signed a month-to-month assignment of the lease in 2022. In 2025, East Bay Café sold its business to Zabihullah Akrami. Mr. Akrami operated the Café business in 2025; however, Mr. Akrami was notified by the Alameda County Health Department that he was not legally a party to the lease, and therefore, could not be issued the appropriate health inspection approval to operate the Café business. Since the business was sold without the knowledge or approval by the City and Mr. Akrami could not receive County Health Department approval, the business was transferred back to the East Bay Café owners.
Discussion/Analysis: The primary focus of the RFP is for Café operations to serve the train riders, residents and visitors to the Centerville Train Station. An additional goal of the RFP is to identify a partner interested in opportunities to program and activate the Train Depot plaza area. The City has received a State grant to enhance the Depot plaza area to: improve visibility of the historic Centerville Train Depot building; improve pedestrian and bicycle access to the Depot building and train platforms; and enable the plaza area to be activated as a gathering and event space for the Centerville community. A successful café operation will play a critical role in programming and activating the Train Depot plaza area.
An existing function at the Train Depot is ACE paper ticket sales. Based on discussions with the San Joaquin Regional Rail Commission (which oversees ACE), Fremont paper ticket sales average approximately 7 paper tickets sold per train service day (155 tickets per month this fiscal year). The Rail Commission stated that they are open to an agreement with a new operator to sell paper tickets at the Centerville Depot. ACE has also transitioned to a new ticketing system, in which a point-of-sale computer will print on-demand for anyone who wishes to purchase a train ticket, making the sale process more efficient. Tickets are typically available for purchase 20 minutes prior to and until each train departs. Amtrak does not sell tickets in-person and has an electronic kiosk on site for ticket purchases.
Summary of Proposals
East Bay Café
• Proposal for operating café only, not office.
• Proposed hours of operation: Monday-Friday 7:00am-6:00pm, Saturday 7:00am-5:00pm, Sunday 8:00am-2:00pm.
• Staffing: 1-2 employees.
• Projected financials: Not specified in dollars. Proposal listed 65% core café sales, 15% event-driven revenue. Other 20% not listed. Historical Council Staff Report (ID # 5718) Meeting of May 12, 2026 Updated: 5/8/2026 10:28 AM by Dina Lewis Page 3
performance operating revenue has been between $6,500
and $11,000 per month.
• Investment/Tenant Improvements: Minor interior updates to bathroom floor. Use of existing equipment.
Zabihullah Akrami
• Proposal for operating both café and office.
• Proposed hours of operation: Sunday-Saturday (seven days) 5:00am-10:00pm.
• Staffing: 5-6 employees.
• Projected financials: $32,000/month or $384,000/year. Historical performance operating revenue at the Depot Café
was $20,000 - $35,000/month.
• Investment/Tenant Improvements: $200,000 for equipment, furnishings, seating, approved improvements, inventory, etc.
Dirk Lorenz
• Proposal for operating office only, not café.
• Proposed hours of operation: Monday-Friday 4:30am-9:30am, 2:20pm– 6:30pm.
• Staffing: 4 ticket agents shared with Santa Clara location. Two agents have historically worked at Fremont location.
• Projected financials: none provided.
• Investment/Tenant Improvements: none provided.
All three proposers have experience working at the Centerville Depot. East Bay Café is the current operator of the Café; Zabihullah Akrami is a previous operator of the Café; and Dirk Lorenz has experience selling Altamont Commuter Express (ACE) train paper tickets at the office.
A review team of City staff from the departments of Economic Development, Community Development, and Public Works independently ranked the proposals based on the criteria outlined in the RFP. All three reviewers ranked the proposals in the same order, with Zabihullah Akrami ranked in first position, East Bay Café in the second position, and Dirk Lorenz in the third position. The proposal from Zabihullah Akrami offers the greatest number of café service hours, a history of higher revenue generation from café services, and a higher investment level for tenant improvements.
Fiscal Impact: Current rent at the Centerville Depot is $2,272.50 per month ($27,270 per year). While rent for a new agreement is not finalized, the expected range is $32,400 - $40,000 for the first year in rent, which will Council Staff Report (ID # 5718) Meeting of May 12, 2026 Updated: 5/8/2026 10:28 AM by Dina Lewis Page 4
increase annually based on either the Consumer Price Index or specified percentage increases.
Environmental Review: The proposed Lease Agreement is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities), which exempts projects that consist of the operation, repair, maintenance, permitting, leasing, or minor alteration to existing public or private structures.
Recommendation: Authorize the City Manager, or designee, to negotiate and execute a five-year lease agreement with Zabihullah Akrami for the operation of a café at the historic Centerville Train Depot with the option to renew for two additional five-year terms.