Environmental groups and labor unions, together with residents of an area of Fresno between Clovis and Sanger came out in opposition to a plan to develop southeast Fresno as Mayor Jerry Dyer’s administration presented its workshop on the decades-old plan.

The Fresno City Council heard Thursday the plan to build out the Southeast Development Area — a 9,000-acre expanse debated about since 2006.

Opponents to the plan say the cost to build in the rural area will further deteriorate the city’s interior and burden the city with billions of dollars needed for new infrastructure. Residents also say it destroys their rural lifestyle at the cost of prime farmland.

“The biggest concern is that they are taking 9,000 acres of some of the best farmland in the world,” said Helen Ramming, farmer and homeowner in the area. “It’s sandy soil farmland and when they take that and put a home on it, affordable housing on it, you’ll never get it back.”

Dillon Savory, executive director of the Central Labor Council, threatened legal action if the city council moves forward on the plan.

Fresno City Councilmember Tyler Maxwell, however, said the city has adapted the SEDA plan to the concerns that have arisen over the years. He praised the plan, saying it was an example of responsible growth that could help meet the need for housing.

“This city has a long history of growing irresponsibly that so many folks have been afraid to grow period, even though the housing crisis at our city and our state pretty much necessitates that we grow,” Maxwell said. “I think we have an opportunity to grow responsibly.”

Labor Group Threatens Lawsuits if SEDA Plan Moves Forward

About 75 people gathered outside City Hall to protest the plan. Coalition groups included the Central Labor Council, Southeast Property Owners, Greenfield Coalition, and the Southwest Fresno Development Corp.

Assemblymember Joaquin Arambula, D-Fresno, who spoke at the protest but would not explicitly oppose SEDA, said the city should focus on smart growth, primarily around transit areas. Arambula is running for Fresno City Council District 3.

“As we’re starting to connect California and building tomorrow today, we need to ensure that we have housing directly around those stations, around multimodal transportation so that people will have options going forward,” Arambula said.

The council still needs to approve the controversial mixed-use plan, which was once supported by many of the its detractors.

Meanwhile, Savory said the coalition of groups opposed to SEDA are prepared to file lawsuits against the city if the plan moves forward.

“We can put lawsuits forward, we can put a brand new general plan forward because we collectively know what it takes to build out our neighborhoods, and that is not a road to nowhere, that is not $3 billion in future interest payments and taxes,” Savory said at the protest.

Dyer: ‘We Have Lost Our Competitive Edge in Fresno’

The SEDA plan brings the largely ag area into the city of Fresno. The plan envisions complete neighborhoods, locating homes next to job centers and shopping.

A recent housing market study conducted by the city anticipates a need for 47,000 units between now and 2049. Planning and Development Department Director Jennifer Clark called the city’s 4.5% vacancy rate a “constraint,” leading to higher mortgages, rents, and less availability.

Despite low population forecasts from the California Department of Finance, Fresno’s growth has been sustained and predictable, Clark said. The .7% year-over-year growth in 2024 was the fifth-highest in the state.

While Fresno has not added new areas, Clovis and Madera have, Clark said. Since 2005, upwards of 7,000 acres and 15,000 units have been approved in new areas such as Heritage Grove, Loma Vista, and Vista Ranch.

Madera County has 24,000 units on 30,000 acres and 4.3 million square feet of commercial and office space, which she said “demonstrates demand for planned development.”

Mayor Jerry Dyer said other cities have grown at the expense of Fresno.

“We have lost our competitive edge in Fresno,” Dyer said.

Phased Approach to SEDA Minimizes Financial Impact: Clark

A new phased approach to SEDA would require new environmental studies if the council approves the plan when it’s presented, Clark said.

The plan begins with a portion called South SEDA, where it’s closest to existing infrastructure. The plan focuses mainly on a new land designation called “flexible research & development.”

While details about the designation are still being worked out, Clark likened it to the North Palm Industrial Park where limited retail, warehouse space, and small industrial uses are side by side.

Fresno City Councilmember Brandon Vang requested a buffer zone around Lone Star Elementary School that would be surrounded by this use. Other councilmembers and Dyer supported those changes.

Dyer said job creation, sales tax, and property tax generated from these uses would “far outweigh” the cost to build in SEDA.

“People want good paying jobs in our city, and we are going to pay for it through the Southeast Development Area,” Dyer said.

The cost to prepare south land for businesses could cost $2.2 billion, according to a city study released earlier this year. Developing all 9,000 acres could cost $4.3 billion. Special taxes would be needed to pay for the necessary infrastructure investment, though the city’s study cites a massive shortfall for what developer fees could raise and what it would actually cost.

Darren Rose, president and CEO of the Building Industry Association, said that infrastructure costs fall at the feet of developers who determine whether a plan is feasible and homes or buildings will sell. He added that tax contributions from SEDA would go back to support services.

A deal between the city and county evenly splits tax revenue between the two bodies, compared to less favorable tax splits for the city in other parts.

“Periphery growth pays property taxes at the highest current rate, which goes into the general fund, which goes to city services, which helps the interior of the city,” Rose said.

Clean Up the City First, Then Talk SEDA: Milrod

The $4.3 billion figure has SEDA opponents worried about what it means for the city’s interior.

“It’s a zero-sum game,” said attorney Patience Milrod, co-founder of the Greenfield Coalition, one of the advocacy groups leading the opposition to SEDA. “The city has a certain amount of money. For them to develop their new ‘smart growth’ way out in the fringes of the urban area… that’s dumb development.”

She said being 10 miles away from the urban core precludes SEDA from ever being “smart growth,” no matter how its built out. She said infill capacity of between 70,000 and 120,000 new housing units could provide the housing needs.

“We’re saying clean up first the area you’re actually responsible for, and then if there’s money left over, let’s talk about SEDA,” Milrod said.

Fresno City Councilmembers Annalisa Perea and Nelson Esparza both said they wanted to see a plan that pays for itself.

Group Calls for Entire Revise of General Plan

Savory said SEDA was only one example of poor development choices by the city of Fresno. Opponents to SEDA released their own plan for “smart growth” limiting housing to within the city limits.

“We are going to build high-rise buildings, affordable housing units, people want to live in the city of Fresno in the inner city. Folks do not need $500,000, $600,000, $700,000 homes out on the outskirts of town,” Savory said.

The group also called for a new, comprehensive general plan update — a complex citywide review process of land use and development code that can take years and requires significant public input.

Fresno City Council President Mike Karbassi called opposition to SEDA “incendiary” and misinforming the public. He said the city has adapted the original SEDA plan in response to opposition. The tax rate with the county Karbassi helped negotiate helps pay for the plan as does the phased approach, he said.

He said Fresno’s decision to not grow has caused the city to pay for services for people who choose to live in Madera but work in Fresno.

“In the past, previous administrations, decisions were made that were very anti-growth, and the result has been growth and jobs have gone to other communities and you have leapfrog development that has been detrimental to our environment,” Karbassi said.