City Council Extends Timeline for Stalled Motel Conversion Project After Financing Delays

Fresno City Council voted January 30 to give a developer 19 more months to finish converting a former motel into apartments, after the project missed its original August 2023 start date.

The vote approved an amendment to the agreement with Better Opportunities Builder, Inc., an affiliate of the Housing Authority of the City of Fresno, for the Econo North Apartments project in District 3. The project would turn the former Econo Inn Motel into 25 apartments.

The developer told city staff in October 2024 that the extension was needed to secure full financing. The staff report says the project hit “unforeseen financing delays” but does not say what those delays were or what financing is still missing.

The City Council originally approved the agreement in June 2023 using State and Local Fiscal Recovery Funds, which are federal COVID relief dollars. The staff report does not state how much taxpayer money the city committed to this project.

The Breakdown

• The Econo North Apartments project would convert and rehabilitate the former Econo Inn Motel into 25 affordable housing units.
• The City Council approved the original agreement in June 2023 with construction scheduled to start August 2023.
• The developer requested an extension in October 2024, citing unforeseen financing delays.
• The amendment grants a 19-month extension to the project timeline.
• The staff report says the extension will “facilitate the project’s progress toward completion” but does not specify a new deadline.

What This Means for You

This vote by the City Council shows how a project you were told about in 2023 has now been delayed. The material does not say how much of your federal COVID relief money is tied up in this project while it waits for the developer to find the rest of the financing.

What to Watch

The staff report does not state how much taxpayer money the city committed to this project, what share of the total project cost that represents, or what financing the developer is still trying to secure. The report also does not say whether the city has recourse if the developer misses the extended deadline, or whether the federal funds have an expiration date that could force the money back if construction doesn’t start soon enough.