Property owners have been trying to find a use for the massive IRS facility in southeast Fresno for some time. A proposal would tear down the 532,000 square feet of office space to make way for single-family homes.

Carlsbad-based Roundtree Properties hosted a community meeting in November to begin the process of changing the zoning at the property from public facility to medium-density residential, according to a letter sent to property owners in the area.

Developers estimate they can fit 400 single-family homes on the nearly 60-acre property. A call made to Roundtree Properties was not returned before publication of this story.

Fresno City Councilmember Luis Chavez said some issues need to be worked out, including the city’s revoked environmental document — possibly forcing developers to do their own. An “ambitious” outlook could have some homes online in the next 18 to 20 months, Chavez said.

“I think because the market demand is there right now, and obviously we want to make sure they capitalize on that,” Chavez said. “But you’re still seeing such strong home sales in southeast Fresno that I think that model is good for them for a good, foreseeable future.”

Chavez Killed Distribution Center Idea

Chavez said developers had originally wanted to do a last-mile warehouse on the location. A representative for property owners Phoenix Fresno Industrial Investors LLC said the group had been marketing the property for multiple uses.

But considering the property’s proximity to Greenberg Elementary School, it didn’t fit the neighborhood, Chavez said. He said single-family residential does.

The IRS building would have to be demolished to build single-family homes. He also asked for town homes for the area.

“If they could do some townhomes, that would be also helpful, but more than anything, just chipping away at this housing crisis that we have,” Chavez said. “I think for me, the other distribution center was just not a good fit for the neighborhood.”

Lawsuit Against City’s Enviro Docs Could Delay Project

In August, two environmental justice groups, Leadership Council for Justice and Accountability and South Fresno Community Alliance, won a lawsuit against the city of Fresno. The court said the city’s environmental documents that developers use to expedite building did not adequately address traffic, water, and air pollution issues.

Many industrial, commercial, and residential developers got notices that their projects were delayed and that they would have to do their own studies.

Related Story: Hundreds of Homes Impacted by Court Ruling on Fresno Enviro Docs

Chavez said he asked developers to do their own analysis, a process that could cost hundreds of thousands of dollars. He said traffic issues along Butler Avenue and with several nearby schools would have to be mitigated.

“We have to obviously do our due diligence, in-depth analysis,” Chavez said. “And I asked them to do that just in preparation for any potential litigation or anything like that.”

Property Valued at $6 Million in 2021

The IRS left the property in 2021, closing the processing center, sending many workers to the downtown Fresno center. Nearly 800 people were laid off at that time.

Previous owners listed the property in 2022, according to a representative with Phoenix Properties, which purchased the property from RMR Properties. A deed of trust transferred from Government Properties Income Trust LLC to Phoenix shows an assessed value of $6 million for the property.