Fresno City’s Challenge for the 21st Century

Fresno City's Challenge

For The 21st Century

Some years back in a much publicized rating of U.S. cities Fresno city placed dead last, 277th out of 277 Standard Metropolitan Areas. Immediately there followed from Fresnans a storm of protest. First, the Fresno Bee published a special 108-page edition to refute the "slander." Then the Fresno Chamber of Commerce brought the author to Fresno and gave him the grand tour. When all was said and done, the author agreed that Fresno deserved a better rating in the list of U. S. Cities. Presently Fresno City boasting an estimated population of 500,017 makes Fresno the fifth largest city in California and 36th largest in the nation. Fresno is part of the Fresno-Clovis metropolitan area, which, with a population of 1,002,046, is the second largest metropolitan area in the Central Valley after Sacramento. Fresno is also world renown for both its diverse ethnic population and agricultural produce. Fresno is, and not to forget the county seat of Fresno County.

Fresno is also well known as the Raisin Capital of the World and received in 2000 the All American City Award. The then mayors of Fresno were Jim Patterson (1993-2000) and the newly elected Alan Autry-November 2000. Immediately the newly elected Fresno Mayor Alan Autry encountered significant challenges; the greatest among them was how to make urban blight/flight become urban renewal, how to make a deteriorating downtown anew.

To his good fortune the newly elected Mayor Autry didn’t have to search far and wide for help. To the contrary help was just around the corner. Prior to Mayor Autry’s 2000 election, in April of 1997 the Redevelopment Agency (RDA) of the City of Fresno adopted new by-laws allowing the RDA to enter into a cooperative agreement with the City of Fresno which established a new Agency whose charge is urban renewal.

The newly elected Mayor wasted little or no time. In July 2001 Fresno Mayor Alan Autry formed The Review Research and Recommendation Committee (3RC) so to serve as an advisory group to the Downtown Implementation Team (DIT). In a meeting with the 3RC Mayor Alan Autry presented an overview of his vision for a revitalized Downtown Fresno and likewise challenged each member to make an unconditional commitment to the effort. On September 21, 2001 the 3RC completed “Destination Downtown,” a report of prioritized recommendations to improve and enhance Downtown Fresno.

Vision 2010 prepared in early 2002 by the Redevelopment Agency for the City Council and Mayor Alan Autry combined a variety of those projects into one comprehensive plan. Those portions of Destination Downtown such as the Fulton Mall, Chinatown and Armenian Town as presented to the City of Fresno by 3RC were later adopted and integrated into Vision 2010 by both Mayor Autry and the Fresno City Council. The mandate of Vision 2010 is thereto direct resources and development to downtown Fresno. The area encompasses the city of Fresno’s urban core 2500 acres bordered by Freeways 99, 41, and 180.

On June 8, 2002 Evelyn Nieves, a reporter for the New York Times, in her article/interview “A California Downtown Is Poised for a Comeback” with Mayor Alan Autry, she asked the mayor about his vision 2010 plan for the city of Fresno. In brief they discussed the recently completed Grizzlies stadium, the $130 million Federal Appellate Courthouse, a $250 million Fresno Community Regional Medical Center and a $50 million Office Tower all creating at least 1,100 new jobs in Downtown. Towards the end of the interview and amidst all the new construction Mayor Alan Autry said to the New York Times reporter “Fresno truly is the new frontier of California” and how “Downtown is the heart and soul of that new frontier.”

The City Council on Tuesday, March 30, 2004, unanimously voted to begin work on negotiating an exclusive agreement with Forest City Development to develop a proposed $350 to $400 million mixed use development of housing, entertainment and retailers in downtown Fresno. The area is known as the South Stadium project (phase 1) bounded by Van Ness Avenue, Tulare Street, H Street and Highway 41 and centered between two other major downtown developments plans (phases 2 and 3). To the west, a development group has proposed building hundreds of homes adding retail and commercial shopping to the historic Chinatown district. To the east, Gunner-Andros Investments plan to build in Old Armenian Town, a series of high-rise office buildings anchored by a state appellate courthouse.

The Redevelopment Agency (RDA) in July 2004 approved and entered into an Exclusive Negotiation Agreement with Forest City Development for the South Stadium Project-a three phase project. The Forest City Enterprises' South Stadium redevelopment project would transform 85 acres of downtown Fresno into a 12-block outdoor shopping district including not only 690,000 sq. ft. in new retail and a multi screen mega cinema, but also housing units, apartments, townhouses and more located south and southeast of Chukchansi Stadium. Forest City says it needs as much as $100 million in public financing to make the $232 million project work. The grant application filed jointly by Fresno city and Forest City Development sought $30 million from an infill grant program.

According to Fresno's Redevelopment Agency more than $240 million is available statewide, with about $24 million earmarked for Central California. Fresno's Redevelopment Agency is supporting efforts to acquire more than $60 million in state grant monies intended to help with the development of infill projects, greatly assisting the three projects backed by major developers. The competitive grants, Proposition 1C money from the state's Housing and Community Development Department, would be used for sewer lines, parking garages and other infrastructure improvements at six Fresno projects.

The Fresno City Council on Tuesday February 26, 2008 voted to make Forest City's South Stadium project a funding priority and authorized the city's Redevelopment Agency to begin buying property within the project area. The city council also directed city staff to assist Forest City in the closing of a multimillion-dollar funding gap in the $237 million project by researching various state programs for grants and loans.The developer has asked the city to use $99 million of public money to fund the project. Most of the development site will be owned by the Redevelopment Agency and leased on a long-term basis to Forest City. On April 15 2008 City Council members approved zoning changes and other items for the Legacy Downtown project. One of the Developers Brian Glover hopes to break ground sometime in May 2008. He projects that construction will take at least 14 to 15 months.To assist the developers Fresno city offered three types of incentives: Return half of the property taxes generated by the project until the developers receive $1.8 million. $750,000 in redevelopment funds for housing once the project is complete, and pay $80,000 annually to lease the ice rink for the parks and recreation department.

All and all the city is giving to the Downtown Legacy project incentives totaling more than 3 million dollars. City officials think of the money as a good investment securing the $42 million project. As the project progressed through the city's approval processes such as the already approved new mixed-use ordinance - giving the city flexibility in areas such as landscaping, parking and building height; or their reviewing the building plans and issuing permits, the developer Glover will finalize the project's financing with the lenders Bank of America and Morgan Stanley.

According to Fresno City Council members the Legacy project as a major development is proof positive to the public that the city is committed to revitalizing downtown-including the all-important addition of housing, mostly absent in downtown Fresno. In brief: on behalf of the City of Fresno the “Legacy” Project, filled by LREG Partners Brian Glover & Chris Cummings proposed a mixed used development of approximately 4.23 acres of property located on the corner of Ventura and Mono presently a parking lot used by Selland Arena, Saroyan Theatre, and the Fresno Convention Center.

The Legacy Project is a proposed vertical mixed-use development consisting of six separate buildings. In summary, of the 6 buildings, there are designated Office and Commercial spaces, 171 multiple family dwelling units (apartments). There will also be 24 units of affordable housing, with 1 recreational building-all with a similar contemporary and architectural style complimenting the newer existing structures. Additionally there is planned Green Space for public use, an indoor ice rink, and the allocation of 171 parking. There is planned Green Space for public use, an indoor ice rink, and the allocation of 171 parking spaces in the adjacent parking structure for tenant parking. Not only are there available 4,561 off street parking spaces nearby Selland Arena and Saroyan Theatre: there will be shuttle buses for transportation and an overflow parking lot available at the stadium.

Agency Accomplishments: The area addressed in Vision 2010 is in the area bounded by the 99, 41, and the 180 Freeways and thus represents the majority of the Merger No. 1 Project area. The Major projects that have been completed in the Project Area include:

1. $250 million for the ongoing development and expansion of the Community Regional Medical Center.

2. $30 million UCSF Fresno Medical Education Center.

3. $48 million Chukchansi Park – a 12,500 seat Downtown Stadium.

4. $130 million Federal Courthouse.

5. $26 million Four Story Convention Center Parking Garage-1,575 parking spaces.

6. $48 million for the construction of an 11-story Tower at the Convention Center and a seven story Parking Garage accommodating 900 parking spaces.

7. $18 million on the construction of 107,200 square foot Aardex Building including 120 parking spaces.

8. $35.6 million Civic Center Square project providing 225,000 square feet of class A office and retail space located at the hub of the Fresno’s downtown business district.

9. $18 million for the renovation of the Guarantee Building which includes 89,000 square feet of office space, and an adjacent six-story 624 space parking garage,

10. $23 Million Fifth District Court of Appeal.

11. $35 million IRS Compliance Center.

12. $2.5 million renovation of The Hobbs-Pearson Building.

13. $10 million Vagabond Lofts Development mixed-use project combining 38 residences with retail shops.

14. $3 million renovated 26,000 square feet banquet facility renovated as the “M” Street Civil Courthouse accommodating five courtrooms and a on-site parking lot.

15. $10 million renovation of the Santa Fe Railroad Depot…completed 2006.

As of 2009 July 16 many of the major projects outlined in the 2010 Downtown Vision for Fresno city are either finished or still underway. Both the Redevelopment Agency of Fresno and the City of Fresno will be the Co-Lead Agencies. They will prepare a subsequent environmental impact report based on the Final Program EIR 10124, Merged Redevelopment Project: Central Area Merged, Proposed Fulton Redevelopment Project Area, Proposed South Van Ness Industrial Redevelopment Project Area, SCH No. 97122009; June 1998, for the project identified below.

Description of Project: The Project consists of proposed amendments to nine redevelopment plans within the Redevelopment Agency of the City of Fresno (Agency) Merger No. 1 Redevelopment Project. The Merger No. 1 Redevelopment Project encompasses separate redevelopment project areas (Constituent Project Areas), each of which has its own redevelopment plan (Constituent Redevelopment Plans). The nine Constituent Project Areas are: Mariposa, Central Business District, Convention Center, Jefferson, Chinatown Expanded, West Fresno I, West Fresno II, Fulton, and South Van Ness Industrial.

The Project Area is the total of these nine separate Constituent Project Areas. The Project would extend the Agency’s ability to acquire property within the Project Area through use of eminent domain; streamline the Constituent Redevelopment Plans to ensure consistency of those plans with the 2025 City of Fresno General Plan (General Plan) and future General Plan updates and other specific or community plans; and amend specific time and financial limits for the Constituent Project Areas as described below. The Project further includes updating of mitigation measures previously adopted in conjunction with the Final Program EIR 10124, Merged Redevelopment Project: Central Area Merged, Proposed Fulton Redevelopment Project Area, Proposed South Van Ness Industrial Redevelopment Project Area, SCH No. 97122009, June 1998 (City of Fresno Redevelopment Agency 1998) (1998 EIR). Specifically, the Project consists of the following amendments:

Increase the tax increment limits for the Central Business District, Chinatown Expanded, Convention Center, Jefferson, Mariposa, West Fresno I, and West Fresno II Constituent Plans.

Increase the time limit on the effectiveness of the Constituent Redevelopment Plans for all the Constituent Project Areas, except Fulton and South Van Ness Industrial.

Increase the Agency’s time limit to incur indebtedness for the Fulton and South Van Ness Industrial Constituent Redevelopment Plans.

Increase the time limits to receive tax increment and repay bonded indebtedness for all of the Constituent Redevelopment Plans, except for Fulton and South Van Ness Industrial Constituent Project Areas.

Increase the time limit on the Agency’s authority to utilize eminent domain in all of the Constituent Project Areas, except the Agency would not have the authority to acquire, by use of eminent domain, any property on which persons lawfully reside in six of the Constituent Project Areas.

These six Constituent Project Areas are: 1 Central Business District, 2) Convention Center, 3 Fulton, 4 Jefferson, 5 Mariposa, and 6 South Van Ness Industrial (see Table 1 for more information). In the Convention Center, Jefferson, and Mariposa Constituent Project Areas, the ability to acquire properties by use of eminent domain would also be limited to specific properties. These specific properties are shown in the Preliminary Report (Keyser Marston Associates, Inc. 2008).

Amend the language found within the Constituent Redevelopment Plans for the Central Business District, Jefferson, Mariposa, West Fresno I, and West Fresno II, Fulton, and South Van Ness Industrial Constituent Project Areas, to ensure that the Constituent Redevelopment Plans are consistent with the current General Plan and future General Plan updates and any applicable specific or community plans, as the plans may be amended from time to time.

Project Purpose and Objectives

As described in the 1998 EIR, the Agency has the following existing objectives for undertaking redevelopment activities within the Project Area: they are the elimination and prevention of the spread of blight; the deterioration throughout the Project Area; to promote new and continuing private sector and government agency investment within the Project Area  so to prevent the loss of and to facilitate economic activity; the retention and expansion of existing businesses where possible by means of redevelopment and rehabilitation activities; encouraging and assisting the cooperation and participation of owners, businesses, and public agencies in the revitalization of the Project Area; the expansion and improvement of the City’s housing supply (inside and outside the Project Area), including opportunities for low- and moderate-income families and Households; the elimination or amelioration of deficiencies such as substandard vehicular circulation systems; inadequate water, sewer, and storm drainage systems; insufficient off-street parking; and other similar public facilities and utilities deficiencies adversely affecting the Project Area.

Summary of Blighting Conditions

There are Buildings are unsafe and unhealthy for person to live or work as evidenced by deteriorated and dilapidated buildings, unreinforced masonry buildings and a disproportionate.

There are conditions that present or substantially hinder the viable use or capacity of building lots, as evidenced by substandard and obsolete buildings.

There are depreciated or stagnant property values as evidenced by stagnant assessed property values and low median property sales prices for retail, office, or industry properties or single family homes.

There are abnormally low rates for office and industrial space, and an abnormally high number of vacant buildings and vacant lots.

There is a serious lack of necessary commercial facilities are normally found in neighborhoods, as evidenced by relatively high number of vacant builds and vacant lots.

There is serious residential overcrowding that has resulted in significant public health or safety problems, as evidenced by a relatively high percentage of over crowed units and high residential densities.

There is an excess of liquor stores, as evidenced by the much higher rates of alcohol licenses per capita. A high crime rate that constitutes a serious threat to the public safety and welfare, as evidenced by higher crime rates per capita inadequate Public Improvements.

Table 32 Estimated Redevelopment Project Cost

Affordable Housing Dent Service:

existing Administration Redevelopment Projects and Programs

Public Improvements $85,339,000.00

Land Assembly $66,375,000.00

Business Revitalization and Attraction $37,926,000.00

Subtotal Projects and Programs $189,642,000.00

                           Total Project Cost $368,937,000.00

Table 33 Financing Resources available for Redevelopment in the Project area

Net Tax Increment   $210,965,000.00

Housing Set Aside   $138,132,000.00

Other Revenue Sources $552,000.00

Total Aggregate Resources $368,939,000.00

Neighborhood Impact Report

In the near-term the agency does not anticipate causing the relocation of any persons or families…but future land assembly efforts could involve the acquisition and displacement of existing housing. Any non-voluntary or voluntary displacement as a result of agency redevelopment activities will be mitigated by adoption of relocation plans and relocation assistance including financial payments, advisory assistance, and replacement housing plan provisions of state law relating to agency assistance developments.

Recent Events

Because of a need to immediately address short-term budget challenges as well as long-term structural imbalances, Mayor Ashley Swearengin presented to City Council a mid-year budget revision calling for a total of $27.8 million in reductions over the next 18 months. She also cautioned that an additional $4 million to $9 million in cuts may be required in fiscal year 2011 to balance the fiscal year 2012 budget.

The Mayor’s plans include a staff reduction of 125 positions, 104 non-sworn positions in the Fresno Police Department (no sworn officers in the Police Department are affected), 11 in the Parks, After School, Recreation and Community Services department-(PARCS), a mandatory citywide 40-hour furlough for eligible employees. Other reductions will occur in the City’s Call Center (3 positions), Facilities Management (2 positions), Public Works (2 positions), Downtown and Community Revitalization (1 position), the Mayor/City Manager’s Office (1 position), and the City Attorney’s Office (1 positions). An additional 58 vacant positions will be affected. The staff reductions were effective Jan. 1, 2010, and the Records Bureau will be open Monday through Friday from 10 a.m. to 2 p.m.

As for the Fire Department: the City will implement an 84-hour furlough for all sworn staff (civilian staff will be furloughed consistent with the citywide furlough) and close two fire stations – Station 10 in southeast Fresno and Station 18 in northwest Fresno. Additionally, the department will reduce its response to lower-level medical calls that are already handled by American Ambulance, a move designed to protect response times for structure fires and high-priority medical calls.

PARCS Department: All green spaces, sports fields, and concrete skate and bike parks will remain open. A new neighborhood center (the EOC gym) will open in July 2010, and six neighborhood centers will remain open and continue all current youth programs. Seven neighborhood centers will reduce their hours to senior hot meals only, and four neighborhood centers will close.

As for the Downtown and Community Revitalization: The Office of Film and Entertainment Commission will be eliminated and the city will reduce its contract with the Development Corporation Servicing 
Fresno County by $50,000.00

The Economy

On Jan 5th 2010 Mayor Ashley Swearengin issued the following statement after Fresno Metropolitan Museum officials announced that the museum will be closing its doors indefinitely effective today. With the present economic crisis the multi-million dollar question is how will Fresno continue on in its attempts to revitalize Downtown Fresno especially with the recently announced $27.8 million in reductions over the next 18 months followed by an additional $4 million to $9 million in cuts.

As for the Downtown and Community Revitalization of Fresno

will their new song be?

"Oh those were the days my friend!"