A long-vacant plot of land in downtown Fresno may soon get new life as upscale apartments, though it may take financial help from the city.

Fresno Mayor Jerry Dyer said, however, if developers don’t move quickly, the city may take back the land given to them.

The city last month approved building plans for Lance Kashian and Co. to develop the empty lot at Van Ness Avenue and Stanislaus Street, Dyer said.

The problem, Dyer said, is getting financing for housing projects downtown. The high cost of construction, especially in downtown, makes it difficult for housing projects to pencil out because  rents often don’t justify the investment.

A spokesperson for Lance Kashian declined to comment for this story.

Dyer Wants to Accelerate Downtown Housing

Dyer said will send a plan for a 36-month market-rate bridge loan for the developer to the Fresno City Council for approval.

In addition, the mayor told GV Wire that he wants to make this type of loan available to four other downtown projects to help get them off the ground. He does not yet know the size of the loans. He also did not name the other projects.

“The reality is developers need assistance, whether that is market rate or affordable housing,” Dyer said. “In this case, it’s market rate and there is a short-term gap that they need filled for financing during construction.”

City Could Take Property Back if No Movement: Dyer

Plans call for a 54-unit market-rate apartment complex with a pool on the roof, Dyer said.

“It’s going to be a very, very nice development for downtown,” Dyer said.

Before the land at 1506 Van Ness Ave. was empty it had been a gas station. Business owner Mark Astone of Catalyst Communications demolished the property, removing the underground gas tank with the hopes of building a parking structure, Dyer said.

In 2015, the city of Fresno under then-Mayor Ashley Swearengin gave Astone two parcels of land under a development agreement to create housing instead.

Astone did not respond to a call for comment from GV Wire.

By 2019, the agreement had expired and Astone brought River Park developer Lance Kashian and Co. in as developer for the property under the business name Uptown LLC.

Five years later, in October 2024, with scant progress on the project, the city sent Uptown LLC a notice of default.

Normally, those letters give builders a six-month timeframe to complete, but since no construction had taken place, the city granted an extension, Dyer said.

Kashian satisfied four demands sent to the company by the city. Now, Dyer hopes the project will take off.

“We’re optimistic in this case this will happen, but if it doesn’t, we’ll have to take the property back,” Dyer said.

Downtown Property Financing Up for Consideration

Money for the bridge loans would come from state grants to accelerate housing in downtown, including from a $250 million infrastructure grant promised back in 2023.

The city has received $150 million of that money so far.

Terms of the loans would extend for no more than 36 months and the city would charge typical market-rate interest, Dyer said.

“We’re going to be putting out what’s called a notice of funding opportunity for developers downtown that will allow us to do a gap financing for construction loans for up to 36 months,” Dyer said. “We’re hopeful that is going to allow for several of the buildings or properties downtown to be developed rather quickly.”