STAFF REPORT
City of Lancaster
CC 24
8/12/2025
TN
Date: August 12, 2025
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Assistant City Manager
Sydney Yeseta, Manager - Economic Development
Subject: Rental Agreement of Property to First Public Hydrogen at 431 E. Avenue K-4 Recommendation:
Authorize the City Manager, or his designee, with the concurrence of the City Attorney, to negotiate, finalize and execute the Rental Agreement between the City of Lancaster and First Public Hydrogen for the lease of City property located at 431 E. Avenue K-4.
G.C. Section 84308: No
Fiscal Impact:
The lease will generate a monthly revenue of $2,000, amounting to $24,000 per year. The rental agreement can be extended five times, resulting in a total duration of six years.
Background:
Lancaster has long established itself as a leader in clean energy and hydrogen innovation. As the first city in the nation to be designated a “Hydrogen City,” Lancaster continues to champion green technology and sustainable development.
In December 2024, the City of Lancaster partnered with the City of Industry to launch First Public Hydrogen (FPH₂), the first publicly backed renewable hydrogen utility in the country. FPH₂ was created to support the growing hydrogen economy by connecting clean hydrogen producers with reliable end users.
The proposed lease will allow FPH₂ to establish its headquarters and operational base at a City owned property located at 431 E. Avenue K-4. The site, which consists of two parcels (Assessor Parcel Nos. 3126-031-901 and 3126-031-902), was previously occupied by Heliogen, a company that conducted hydrogen research and development. The facility is well suited for continued use 2 1
2 4
in the clean energy space and provides an ideal setting for incubation, research and development, and early stage hydrogen innovation.
The rental agreement is structured as a one year term, with the option of up to five one year extensions. This arrangement allows the City to put a strategic asset back into productive use, while supporting the growth of FPH₂ and our aligned clean energy goals.
This partnership underscores Lancaster’s continued commitment to clean technology and positions the City as a regional hub for renewable hydrogen development and investment.
SY/hb
Attachment:
FPH₂ Rental Agreement