Fresno Council Blocks Vote on Development Debt Ballot Measure

Four Fresno City Council members voted Thursday to pull a proposed ballot initiative from the agenda that would have let voters decide limits on public subsidies and debt for the Southeast Development Area.

The 4-3 vote gives the “No Debt on Development” initiative one more week — until August 7 — to reach the November ballot. Council President Nelson Esparza introduced the measure earlier this week.

Councilmembers Miguel Arias, Annalisa Perea, Brandon Vang, and Nick Richardson formed the majority that removed the item from consideration. Vang said the council still lacks the financial clarity it requested seven months ago.

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“The council was still in the dark about the financial uncertainties of the first phase of SEDA,” Vang said Thursday, referring to a December hearing where the council asked Mayor Jerry Dyer’s administration for a fresh financial report on how to pay for SEDA’s first phase.

That first phase, which Dyer has described as affordable, carries $440 million in infrastructure costs not covered by existing developer fees, according to a Fresnoland report published Wednesday.

The ballot initiative would open the door for subsidies to cover those costs if voters approved it. The measure would also restrict some public funds eligible for later SEDA phases — a provision opposed by the region’s major developer advocacy group.

Vang also cited lawsuit threats against the city if the measure passes. “My office, the council members and the mayor’s office have received letters threatening to move forward with lawsuits with regards to this item,” he said.

The Breakdown

• The “No Debt on Development” ballot initiative proposed by Council President Nelson Esparza would let voters decide whether to allow public subsidies for SEDA’s first phase and restrict certain public funds for later phases.
• Four council members voted Thursday to remove it from the agenda rather than vote on placing it on the November ballot.
• The council has until August 7 to approve placing the measure before voters.
• SEDA’s first industrial phase has $440 million in infrastructure costs not covered by existing developer fees.
• The council requested a financial report on paying for the first phase seven months ago in December; Councilmember Vang said the council is still in the dark about the financial uncertainties.

What This Means for You

Whether Fresno voters get to decide limits on public money for SEDA now depends on what the council does in the next week. If the measure reaches the ballot and passes, you would be approving subsidies to cover the $440 million gap in the first phase while restricting some funds for later phases.

The December request for financial information, and Vang’s statement that the council is still in the dark about financial uncertainties seven months later, indicates the council does not have clarity on how this development gets paid for.

What You Can Do

The Fresno City Council meets again before the August 7 deadline. Contact the council members who voted to remove the measure — Miguel Arias, Annalisa Perea, Brandon Vang, and Nick Richardson — or the three who did not, to let them know whether you want a say on SEDA funding limits.

If the measure does reach the ballot, you’ll vote on it in November.

What to Watch

The $440 million infrastructure gap for SEDA’s first phase represents costs that existing fees don’t cover. The measure Esparza proposed would allow subsidies to fill that gap only if voters approved them. The council majority that blocked a vote on that measure Thursday has one more week until the August 7 deadline.

The lawsuit threats Vang cited raise the question of who opposes bringing this decision to voters.