Fremont City Council Meeting: 06/16/26 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5752) DOC ID: 5752
Updated: 6/12/2026 10:24 AM by Alberto Quintanilla Page 1 Centerville Depot Lease Agreement - Receive Supplemental Information from Prospective Centerville Depot Operators and 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 Noe Veloso
Title: Real Property Agent Assistant City Engineer
Div/Dept: Public Works Public Works
Phone: 510-494-4759 510-494-4774
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to provide City Council with supplemental information that will help 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 (Amtrak) 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 lease duration is proposed to be an initial five-year term with options to renew for two additional five-year terms.
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 Council Staff Report (ID # 5752) Meeting of June 16, 2026 Updated: 6/12/2026 10:24 AM by Alberto Quintanilla Page 2 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. Both ACE and Amtrak offer online or app-based ticket purchasing options while Amtrak also provides an electronic kiosk in the waiting area of the Train Depot building.
Summary of Proposals
Three proposals were received within the deadline of March 31, 2026, from: (1) East Bay Café, (2) Zabihullah Akrami, and (3) Dirk Lorenz.
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 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.
Council Staff Report (ID # 5752) Meeting of June 16, 2026 Updated: 6/12/2026 10:24 AM by Alberto Quintanilla Page 3 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 selection committee 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.
The RFP noted that the selection committee would interview candidates prior to making their final recommendation for selection. Interviews are typically required when new or unknown operators or entities are being considered for selection. Since City staff were all familiar with the prospective operators having already operated within the Train Depot, the selection committee chose not to conduct any interviews.
Discussion/Analysis: At the May 12, 2026, City Council meeting, the City Council directed staff to gather supplemental information from the prospective operators on the following items:
• Information from the current East Bay Café operator regarding any financial investments they are willing to provide.
• Information on menu and types of food being offered by each operator.
• Data on monthly customers and sales from each operator. • Information regarding operating hours and staffing structures by each operator in order to comply with the terms of the RFP.
Council Staff Report (ID # 5752) Meeting of June 16, 2026 Updated: 6/12/2026 10:24 AM by Alberto Quintanilla Page 4 • Information from Dirk Lorenz on the allegations of employees not being paid minimum wage.
The responses received from the prospective operators are summarized in Attachment A and actual responses and documents provided by the prospective operators are included in Attachment B.
Other Considerations for Staff’s Recommendation
Staff was recently made aware of potentially concerning operations and practices at the Train Depot. On May 7, 2026, Staff met with an employee of Dirk Lorenz’ ticket sales office who confirmed that her employment contract with Dirk Lorenz allowed her to reside full-time at the Train Depot ticket office with no additional monetary compensation. In exchange, the employee was required to staff the ticket office during the morning ticket sales period.
Staff was also recently informed of an incident at the Train Depot that occurred on June 25, 2025. The Café operator reported vandalism that had occurred overnight that resulted in damage to the café patio and furniture.
According to the police report, officers returned to the Train Depot on June 26, 2025 regarding an emergency call of a woman brandishing a bat, chasing victims, throwing chairs, and damaging vehicles. Officers made contact with a suspect who informed them that she had been employed at the Train Depot for three months and was allowed to sleep at the ticket office at night. Allowing employees to reside at the Train Depot is a violation of the terms of the original lease.
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 increase annually based on either the Consumer Price Index or specified percentage increases.
Environmental Review: 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.
ATTACHMENTS:
• Attachment A - Summary of Supplemental Information
Council Staff Report (ID # 5752) Meeting of June 16, 2026 Updated: 6/12/2026 10:24 AM by Alberto Quintanilla Page 5 • Attachment B - Responses and Documents Provided by Prospective Operators
• Request for Proposal 26-014
• Addendum 1 for Posting RFP 26-014
• East Bay Café Proposal
• Zabihullah Akrami Proposal
• Dirk Lorenz Proposal
• Centerville Depot RFP Presentation
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.