Downtown developer must pay thousands to city of Fresno, councilmember. Here’s why
UPDATE: Councilmember Miguel Arias announced Feb. 14 that the ruling is final.
A Fresno County Superior Court Judge is poised to award the city of Fresno and Councilmember Miguel Arias $30,000 in legal fees after developer Cliff Tutelian sued him and lost the case.
The award is pending a January court hearing. Judge D. Tyler Tharpe amended his previous judgment, siding with Arias. The amendment awards Arias the fees after Tutelian did not pursue an appeal.
Tutelian, a downtown developer who owns The Grand Tower, sued Arias and the city of Fresno last September, alleging breach of contract, fraud and bribery. The allegations stem from a failed deal between Tutelian and the city to develop apartments and retail buildings. Tutelian blamed Arias for the project’s failure and sought $12.45 million in a claim for damages.
The issue boiled down to a downtown parking lot.
At the center of the dispute was parking “Lot 2” on the north side of Fulton Street in front of CVS and another one used by the Fresno Housing Authority. Tutelian hoped to develop the downtown sites. Former Mayor Lee Brand worked out a deal with Tutelian to make it happen, but years passed and no projects came to fruition. Plus, the Brand-era deal expired and new laws made that sort of deal illegal.
Tutelian blamed Arias for halting the project and accused Arias of trying to bribe him. Arias denied the allegations.
Tutelian alleged Arias demanded a $12,000 campaign contribution, saying “don’t hate the player, hate the game,” and that it was time for the rich to pay up.
Tharpe in May ruled that the lawsuit against Arias was without merit and imposed a chilling effect on free speech rights. Tharpe in his ruling also said Tutelian’s lawsuit lacked evidence.
In a statement, Arias said on Friday that by awarding the attorneys fees, the judge held Tutelian accountable for trying to bully city officials.
“The judge also held Tutelian accountable for his failed attempt to bully the city into making decisions for his exclusive benefit rather than the public interest by ordering Tutelian to reimburse the city for attorney’s fees, making taxpayers financially whole,” Arias said. “Today, city of Fresno residents and taxpayers won.”
Arias said Tutelian’s false claims were designed to intimidate him and other councilmembers into rubber stamping a deal that benefited Tutelian at the expense of Fresno residents and property owners who want downtown projects developed in a timely manner.
“We will continue to uniformly apply city rules to everyone, irrespective of the threats we receive by those who prefer to operate in the old good old boys system,” Arias said.
Tutelian and his attorney could not be immediately reached for comment. The Bee left phone messages and sent text messages seeking comment.
This story was originally published August 20, 2022 at 5:00 AM.