Fresno soccer club has ambitious plan for downtown stadium. Here’s why it won’t fly
This week’s Fresno City Council agenda includes a 12-page presentation outlining a fledgling pro soccer club’s ambitious plans for downtown Fresno.
Central Valley Fuego FC, slated to play its first USL League One match next spring, wants to purchase Selland Arena, Valdez Hall and a street-level parking lot along O Street from the city and build a 7,500-seat soccer venue in the parking lot. Selland would continue to host concerts and events, while Valdez Hall would become an indoor sports complex.
Club officials are slated to make their case during Thursday’s City Council meeting, though it’s possible, if not probable, the motion will be tabled.
Which is probably for the best. Because from what I gather, the proposal by Fuego FC owners Juan and Alicia Ruelas is pretty much dead on arrival.
In December, two days after the soccer club’s official launch, the City Council voted unanimously to designate Selland Arena, Valdez Hall and the parking lot as surplus properties, clearing the way for their potential sale.
However, city leaders aren’t just going to give them away — or sell for 25 cents on the dollar. Nor should they. No matter how much everyone wants pro soccer to return.
Fuego FC proposes to pay $5 million for Selland, Valdez Hall and the parking lot, according to multiple sources, but the deal includes $2 million worth of tax credits for site improvements as well as a $1 million credit for purchasing the Cosmopolitan Tavern & Italian Grill, relocated to the corner of O and Ventura in 2016.
Which essentially results in a sale price of $2 million. And get this: The Ruelas, sources said, want to borrow that money from the city and repay it at 1% interest.
Those terms won’t garner much City Council support, especially considering the two buildings and surface parking lot were recently appraised at $8 million, sources said. (Saroyan Theater, New Exhibit Hall and the multi-story parking structure are not part of the deal and would remain city owned.)
Chris Wilson, Fuego FC’s president/general manager, declined to answer any questions about the club’s proposal until after Thursday’s council meeting.
Why sell low on valuable downtown real estate?
City leaders should think long and hard about unloading Selland Arena and Valdez Hall at cut-rate prices, even for the promise of pro soccer. Those buildings may be a drain on city finances today (part of some $700,000 in annual debt for the entire Fresno Convention Center complex), but that doesn’t mean they always will be.
In addition to Chukchansi Park, the three properties (Selland, Valdez Hall and the parking lot) occupy some of the valuable city-owned real estate in downtown. That land, already zoned for buildings up to 15 stories, might be worth a heckuva lot more in 20 years than it is today. Especially if high-speed rail ever materializes.
So why sell low now?
Besides, there are other suitors. USA Wrestling has expressed interest in buying Selland Arena for use as a statewide training center, sources said, and there’s a certain amusement park corporation (ahem, Six Flags) that is rumored to be making cash offers on vacant downtown buildings.
After Fresno FC abruptly folded in October 2019 after being unable, or unwilling, to make a stadium deal, the return of pro soccer to the region was only a matter of time. There are too many loyal fans here and too much untapped potential. Someone would get their foot in the door.
Those someones were Juan and Alicia Ruelas, immigrants from Mexico who were educated in Fresno, became a high school and college teacher (in Juan’s case) and started several businesses under the Ruelas Enterprises Inc. umbrella. Those businesses must’ve been successful, since USL charges a $2 million expansion fee for League One clubs and owners must demonstrate a net worth of at least $10 million.
Proposal shuts out city from soccer’s potential windfall
Besides pro soccer, the Ruelas have a larger vision for soccer’s long-term development, including a nine-field training facility in Madera County. The club’s PowerPoint lists partnerships with local school districts and businesses, and also makes specific scholarships, training and tryout commitments for youth teams and players. It pledges to provide 50 jobs to south Fresno residents and 20 internships to Fresno Unified students.
All of that sounds terrific. The end result could leave the city holding the short end of the stick.
If Fuego FC proves successful, hosting large crowds for USL matches while putting on events at Selland and Valdez Hall, the city receives no direct economic benefit besides the tangential impact on nearby businesses. (Which is something.) But if the team loses money, as most minor-league sports franchises do, what’s to prevent club officials from asking for some form of bailout while using a vacant stadium and buildings as leverage?
That’s exactly what they would do. Although not analogous situations (the soccer stadium would be privately financed), we’ve seen it happen with the Fresno Grizzlies — more than once.
Talks between Fuego FC and city officials have gone on several months. Unfortunately for local fans, there’s little to no political support for the deal currently on the table.
This story was originally published May 26, 2021 at 9:26 AM.
