Gavin Newsom’s final budget has $100M for downtown Fresno. What’s it slated for?

In addition to utility and stormwater improvements, a $100 million installment for downtown Fresno included in the state’s 2026-2027 budget will help the city fund a new transit center, park and more loans for housing construction in the area.

It will be the final installment of the $250 million Gov. Gavin Newsom promised the city for downtown infrastructure improvements in 2023. Downtown has long struggled with stalled housing construction, but city leaders are hoping the improvements, and the eventual arrival of high-speed rail, will spur a population and development boom in the area.

“This investment is changing the trajectory of Fresno,” Mayor Jerry Dyer said in a news release. “Downtown Fresno and Chinatown will never look the same. We are building the foundation for thousands of new residents, new businesses, new jobs, and a downtown that is active, walkable, and ready for the future.”

The city has not yet received the latest money. It previously received $150 million from Newsom’s budget since 2023, in addition to a separate $43.7 million infrastructure grant.

“We have replaced century-old infrastructure, moved major projects into construction, and created the conditions for new housing and private investment to move forward,” Dyer said.

What has City of Fresno done with state money for downtown so far?

The city has used the state dollars it has already received to add new sidewalks, lighting, sewer and water mains in parts of downtown and Chinatown. The city has also started building two new parking structures and opened a $20 million revolving loan fund for developers whose apartment projects have stalled for years.

City leaders and builders have said the delays are due to how difficult it’s been to secure financing for development in downtown Fresno, where rent prices have historically not justified construction costs. They say the state money has helped move projects along, and several downtown apartments are expected to break ground this year.

One of those is the 174-unit The Park at South Stadium apartments, a decade-old project that has been approved for a gap financing loan from the city.

Downtown City Councilmember Miguel Arias said he also expects housing projects planned for the Helm Building on Fulton Street and for vacant land at the intersection of Van Ness Avenue and Stanislaus Street to move forward this year.

“Essentially we will now be able to proceed and fast-track housing projects, because one, the infrastructure has been upgraded, and a lot of these developers were waiting for the city to upgrade the infrastructure,” Arias said.

High-speed rail station park, transit center, more developer loans

According to the city, the final $100 million from the state will fund additional stormwater and utility infrastructure improvements to support housing growth and investment in downtown and Chinatown. Some of the money will be used to expand the city’s revolving loan fund for developers.

Planning, environmental review and design work for the future Intermodal Transit Center are in the works. The center aims to be a space to connect local transit, rails, pedestrians, cyclists and visitors.

The Intermodal Transit Center will reposition the Courthouse Park bus stop for the construction of a mixed-use building. Next to the high-speed rail station, the new building will include lower floor retail, Fresno Area Express offices, housing and parking, according to Fresno Area Express planning documents.

Fresno Area Express identified 1920 Mariposa St. as a potential site of the Intermodal Transit Center.

The city also expects to use the state dollars to plan the construction of a five-block “linear park” that will sit along the high-speed rail corridor. The park will not only allow for flood management benefits but will also be a place for community.

“At the same time that we’re doing all those kind of under-the-ground benefits, there can be a nice place to jog, walk a dog, ride a bike, recreate,” said Elliott Balch, CEO and President of Downtown Fresno Partnership. “That also kind of provides a green buffer between the railroad and the rest of downtown.”