Forest City funding a priority

Fresno council clears way to buy land downtown.

Published online on Tuesday, Feb. 26, 2008

The Fresno City Council voted Tuesday 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 council also directed city staff to work with Forest City to close a multimillion-dollar funding gap in the $237 million project by scouring state programs for grants and loans.

"The state is a large organization," said Council Member Larry Westerlund. "If you turn it upside down and shake it, it's amazing what falls out."

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.

South Stadium is a six-block project that will include 665 loft-style apartments, 102 town houses and 60,000 square feet of neighborhood retail space. The project gained initial council approval in August, and an environmental impact report is being written.

It's the first step in a larger revitalization effort that could eventually include 85 acres southeast of Chukchansi Park, and include up to a half-billion dollars of private investment downtown.

"When Forest City goes up, we'll see more interest from other developers than we've ever seen," said Council Member Jerry Duncan. "It is a challenge to find the money, but it's also a rare opportunity to have the leading urban development company in the world show this much interest in Fresno."

Council Member Mike Dages said he would support the project, but he was concerned that it would become a drain to Fresno's taxpayers.

"This is a huge commitment," Dages said. "We have to be really cautious to make sure it pencils out for the taxpayers. I like the idea, but if it turns out to be a negative cash flow, I can't support it."

Kevin Ratner, president of Forest City Residential West, said Tuesday's council action would speed up the South Stadium project, and also make it easier for property owners to work with the developer if they want to stay in the area, or sell their property if they want to move.

"We have heard complaints that the project was on hold and that it was holding up other property owners," Ratner said. "Today, the council said go forward, talk to those people. I'm excited that we can get those conversations started."

Ratner said finding the final funding for the project and having the city acquire the land is the hard part of the project.

"Once those issues are resolved, all we need to do is build it," Ratner said. "Building it is the easy part."