REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
JENNIFER CLARK, AICP, Director
Planning & Development Department
FROM: PHILIP SKEI, Assistant Director
Planning & Development Department, Development Admin Division
JANESSA SELZER, Business Manager
Capital Projects Department, Capital Administration Division
SUBJECT
Title
***RESOLUTION - Adopt the 10th Amendment to the Annual Appropriations Resolution (AAR) No. 2025-179 appropriating $100,000,000 in Downtown Fresno and Chinatown Infrastructure Grant funding (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto).
Body
RECOMMENDATION
Staff recommends the City Council adopt the 10th Amendment to the Annual Appropriations Resolution (AAR) No. 2025-179 appropriating $100,000,000 in Downtown Fresno Infrastructure Grant funds, with $80,000,000 allocated to the Capital Projects Department for the implementation of infrastructure projects and $20,000,000 allocated to the Planning & Development Department for the implementation of a revolving loan fund.
EXECUTIVE SUMMARY
The State’s FY 2025-26 budget includes an award of $100 million to the City for Downtown Fresno and Chinatown Infrastructure funding. While funding has not been received by the City at the time the staff report was written, the proposed action will appropriate the anticipated $100 million in the City’s 2025-26 budget. The recommended appropriations will allow the City to maintain momentum on infrastructure timelines and implement a new revolving loan fund to provide necessary gap financing to accelerate the construction of housing in the downtown area.
BACKGROUND
In 2023, the City Council approved acceptance of $250 million in Downtown Fresno and Chinatown Infrastructure Grant funding from the State of California to support catalytic infrastructure and economic development projects. The funding plan, discussed during the formation of the Capital Projects Department, outlined phased allocations across multiple fiscal years.
The initial $50 million appropriation advanced major infrastructure projects including the Downtown Redevelopment Grant Water and Sewer Improvements Project, the H Street Parking Structure, and other priority improvements.
The State’s FY 2025-26 budget includes the next $100 million installment, bringing the total received to $150 million of the $250 million commitment. Of this amount, $80 million will be allocated to the Capital Projects Department for continued delivery of high-impact infrastructure projects, and $20 million to the Planning & Development Department to establish a Revolving Loan Program (RLF) designed to provide necessary gap financing to incentivize and finance shovel-ready housing development in the project area.
This appropriation will allow the City to maintain momentum on critical infrastructure timelines while also launching a new financing tool to accelerate housing construction in the downtown area. The Downtown Fresno Infrastructure Grant is a multi-year, multi-phase initiative leveraging Governor’s Office of Business and Economic Development (GO-Biz) funding to support transportation, utilities, streetscape, and public facility improvements that unlock housing, commercial, and mixed-use development.
In 2023, City Council actions authorized acceptance of the full $250 million and delegated authority to the City Manager to execute necessary agreements. This second tranche of $100 million in FY 2025-26 will enable the City to:
• Complete priority phases of ongoing projects such as the H Street Parking Structure, North Fulton Parking Structure, and related street and sidewalk improvements.
• Launch a Revolving Loan Program to reduce barriers to financing infill and adaptive reuse projects.
Revolving Loan Program Framework (informational):
• Up to $20 million will be made available as a Revolving Loan Fund.
• Funds will be used as gap financing (last-in) for shovel-ready higher-density multi-family housing.
• Loan terms: up to 36 months at 5.5% interest (subject to change).
• Maximum loan amount per project: $8 million.
• Eligible projects must be entitled, environmentally cleared, and construction-ready.
• Developers will be responsible for property acquisition, entitlement, financing, and construction.
• Loan agreements will be subject to City Council approval prior to execution.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act Requirements.
FISCAL IMPACT
This action appropriates $100,000,000 in state funding into the City’s FY 2026 Budget with no impact to the General Fund. Of this amount, $80,000,000 will be allocated to the Capital Projects Department for infrastructure delivery and $20,000,000 to the Planning & Development Department for the Revolving Loan Program.
Attachment:
10th Amendment to the Annual Appropriations Resolution No. 2025-179