FRESNO, Calif. (KFSN) \u2014\u00a0Fresno city staff presented a financial analysis of the proposed South Southeast Development Area, or South SEDA, to the City Council for the first time, outlining projected revenues and expenditures tied to the multi-million-dollar development.<\/p>\n
According to city estimates, South SEDA would generate $45.1 million through various taxes while requiring an estimated $27.9 million in expenditures for services such as police and fire protection. So, the analysis projects a net fiscal surplus of $17.2 million.<\/p>\n
Jennifer Clark, director of the Planning Department, said the development is expected to have a positive financial impact.<\/p>\n
\u201cAs a general rule found that South SEDA can pay for itself. South SEDA will have a net positive general fund impact, and it can be used to benefit existing residents and neighborhoods,\u201d Clark said.<\/p>\n
Mayor Jerry Dyer described the projected surplus as a conservative estimate and said the development represents a responsible approach to future growth.<\/p>\n
\u201cI think it is a fiscally prudent thing to do in the future. It is smart growth, it\u2019s not allowing for leapfrog development, it is planned growth,\u201d Dyer said.<\/p>\n
Despite the city\u2019s analysis, several residents questioned the financial projections, expressing concern that the forecast may not account for unforeseen economic challenges.<\/p>\n
\u201cIf this is passed, this is an open checkbook. That is just so not right,\u201d Helen Raming said.<\/p>\n
\u201cAs the young people in my office would say the math ain\u2019t mathing,\u201d Dillon Savory said.<\/p>\n
The proposed South SEDA area encompasses nearly 2,000 acres and is divided into two sections. Land south of Jensen Avenue is zoned for what the city has characterized as \u201cflexible research and redevelopment,\u201d while property east of Temperance Avenue is primarily planned for residential use.<\/p>\n
City officials now estimate the residential portion could accommodate about 10,000 housing units. The proposed density drew criticism from some speakers during the council discussion.<\/p>\n
\u201cThis concentration of population density is proposed to be developed onto just 467 acres of land,\u201d Brett Thompson said.<\/p>\n
The city\u2019s economic consulting firm advised officials that the project would require an enterprise revenue bond totaling about $86 million to fund development costs.<\/p>\n
During the presentation, Dyer discussed the project\u2019s anticipated upfront sewer infrastructure costs and said the city plans to implement the development in phases.<\/p>\n
\u201cUpfront cost to the city in today\u2019s dollar 2026 is $65.9 million but we know construction wouldn\u2019t start until 2029, so the reality it that\u2019s $72 million dollars upfront, sewer cost. Whether those monies are bonded or how we will pay that back, we know there are a number of financial opportunities to be able to do that,\u201d Dyer said.<\/p>\n
The City Council reviewed the financial analysis as debate continues over the scope, density, and long-term fiscal impacts of the proposed South SEDA development.<\/p>\n
No vote was taken Thursday, but the city council will be planning its next move following this report.<\/p>\n
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