The story of an 82-unit luxury apartment complex in northwest Fresno continues as developers have sued the city for denying the project, saying the decision violates state law.

After an outpouring of opposition from neighbors of the proposed Lincoln Park Apartments at Herndon and Prospect avenues, the Fresno City Council in July used a special allowance granted by city staff to the developer as grounds to deny the project.

The attorneys for developer James Huelskamp of LandValue Management say the project met every requirement in the city code. Attorneys also said that overturning the allowance goes against state law and the city’s own rules.

“The City Council’s subterfuge to illegally deny the subject housing development project is based on its wrongful interpretation,” the lawsuit stated.

The lawsuit seeks to overturn the denial and to compensate the developer for damages and attorney fees.

Opposition to Apartments Brought Out the Neighborhood

Fresno City Councilmember Mike Karbassi said the city has not yet been served with the lawsuit.

“Instead of correcting the deficiencies in their luxury housing project, this developer has chosen to sue the taxpayers,” Karbassi said. “This is not surprising since they have refused to meaningfully engage with residents in the neighborhood who have legitimate concerns.”

The apartment complex would have brought 82 units across several buildings, one of them a 4-story building. Zoning changed on that land in 2011 and 2014,  under then-Mayor Ashley Swearengin, allowing buildings to go as high as 50 feet and up to 30 units per acre.

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At the project’s two public hearings, one before the Fresno Planning Commission and the other at Fresno City Council, dozens of people came opposing the project.

Many said the project would bring too much traffic or impact nearby Tatarian Elementary School.

Fresno County Sheriff John Zanoni — who lives in the area — said apartment dwellers could look out at children at the school and park.

“This is an open invite for people to take residence in one of these apartments and have easy access to monitor our children,” Zanoni said during the council meeting.

Others said they were opposed to the high density and possible crime it could bring.

The lawsuit cited one appeal letter that stated “a larger residential complex may attract unwanted attention from individuals with malicious intent putting our community’s safety and security at risk.”

Lawsuit States City Council Doesn’t Know its Own Rules: Attorneys

The only part of city code the project didn’t meet was the 68-foot distance from the 4-story building to Herndon Avenue. The city required 75 feet from Herndon Avenue. Developers say they were constrained by the plot of land.

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But city code allows for deviations less than 10% in the case of “unusual circumstances.” Attorneys said being located on Herndon Avenue — which has a special designation — constitutes that very “unusual circumstance.”

The Fresno Planning and Development Department gave the OK to the distance.

City staff agreed during the council meeting, saying Herndon’s designation is “unique” and that most development projects along major streets do not have that 75-foot setback requirement.

Attorneys say developers were never told about problems with minor deviation allowance given by Planning and Development Director Jennifer Clark. The issue didn’t come up until the city council meeting in July. The plaintiff’s attorneys also say the city should have notified the developer within 30 days if the project was not in compliance.

“That determination was not challenged by any of the appeals filed by appellants to the Planning Commission, nor was it questioned or criticized by the Planning Commission,” the lawsuit states.

Attorneys Call on California Law to Move Project Forward

Attorneys say denying a project that meets city code violates California’s Housing Accountability Act. The purpose of the Accountability Act is to limit local government’s ability to deny housing projects or reduce densities for projects that meet their own standards.

“The Legislature’s intent in enacting (the Housing Accountability Act) in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California’s communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters,” the lawsuit states.

Fresno City Councilmember Miguel Arias said under state law, developers could come back with an affordable housing element without needing public approval.

“It’s very clear that this project can come back immediately as an affordable housing project with double the amount of units and less parking and be automatically approved by the administration without ever having a public hearing,” Arias said.