Kashian files lawsuit over Campus Pointe development. CSU chancellor’s office accused
One of Fresno’s leading developers is accusing the California State University Office of the Chancellor of being behind the decision to kill his plans for a convenience store at the Campus Pointe shopping center.
In a lawsuit filed Friday, Kashian Enterprises, headed by general partner Ed Kashian, alleges the group was unfairly denied permission to build the convenience store — despite having an agreement with the California State University Fresno Association to develop Campus Pointe.
The center is a mixed-use, 44-acre project on the northeast comer of Chestnut Street and Shaw Avenue in Fresno.
Kashian is suing the association — a public benefit corporation — and its leader Deborah Adishian-Astone, vice president of administration for alleged breach of contract, breach of the implied covenant of good faith and fair dealing and declaratory relief.
Located at Fresno State, Campus Pointe has become a popular center for entertainment, dining and apartment living.
According to the lawsuit, development projects were routinely approved by their project partner, Adishian-Astone and the association.
But that changed in 2018 when the developers proposed building a convenience store with four gas pumps at Campus Pointe. Initially, Adishian-Astone appeared to be on board with the project, the lawsuit states.
“Up to that point, Kashian and his development team were working with Astone on the site plan and were never told the proposed business was not allowed under the terms of the Development Agreement or violated any University policy,” according to the lawsuit.
By October 2019, however, Kashian learned of a letter to Astone from Steve Relyea, executive vice chancellor and chief financial officer of the California State University.
“That letter informed Astone that the “Chancellor’s Office” intended to interfere with Astone’s intent to approve the convenience store,” the lawsuit states.
Former Fresno State President Joseph I. Castro, who is not named in the lawsuit, is the current chancellor of the 23-campus California State University system.
Officials with the chancellor’s office could not be reached for comment Wednesday.
Fresno State spokeswoman Lisa Boyles said: “We have not yet received a copy of the papers filed with the court. We are working diligently with Kashian Enterprises to resolve concerns related to the proposed development at Campus Pointe, and continue our long-standing, amicable relationship.”
The lawsuit refers to “unknown senior officials within the Trustees,” who put pressure on Adishian-Astone and the Association to kill the project. It does not name the senior officials.
In May 2021, Kashian Enterprises received a letter saying the convenience store was being denied, the lawsuit states.
Kashian’s lawyers Whitney, Thompson & Jeffcoach allege the company’s damages are in excess of $2.1 million which represents Kashian’s lost profits from the convenience store along with Kashian’s out of pocket costs.
The lawsuit also hints that the relationship between the developer and the association could be in jeopardy.
“The Association and Astone’s bad faith refusal to permit the installation of the Convenience Store jeopardizes not only this project, but future ones in that the Association and Astone appear to have abandoned their representation and warranties under the Development Agreement and plainly ignored the language of the Commercial Sublease,” the lawsuit states.
This story was originally published August 12, 2021 at 5:00 AM.
