Fresno breaks housing stalemate for one new development

Fresno’s housing stalemate – built on a bar on annexing new land from the County of Fresno – has broken for only the second time in three years for a single housing project.

In the three years since the last tax sharing master agreement expired, the City of Fresno and Fresno County are nearing just their second tax sharing deal for new home construction after Fresno lawmakers approved a one-off tax agreement.

The backstory: The previous master tax sharing agreement that the city and county had regarding developments that were brought into the city through the annexation process ended in 2020 after 17 years. 

• Under that deal, the city received 38 cents of every property tax dollar while the county received the rest. But, at the time, the city estimated that it provided 62 percent of the services for the properties, necessitating a new deal. 
• Fresno finally took its first expansion steps in a year in August 2021 when it approved a one-off tax sharing deal for a new 500-home development in west Fresno. The city agreed to do the deal under the terms of the old master agreement, giving developer Eddie Fanucchi the green light after a lengthy wait. 

Driving the news: Since Fanucchi’s deal was struck a couple years ago, Fresno has not expanded any more despite the housing crisis currently plaguing the city. 

The big picture: The first such expansion in two years is finally on the table with the council’s support. 

• The project is for 36.75 acres of land that has been approved for 199 single-family homes and an additional parcel that brings the total area up to 79.75 acres. 
• The property is located on the southeast and southwest corner of E. California Ave. and S. Willow Ave. 
• As before, the city agreed to the same 38 percent to 62 percent split that was held by the old master agreement. 

What we’re watching: With the city’s support, the deal will now go in front of the Fresno County Board of Supervisors for approval. 

• It appears that any future annexation projects that developers wish to bring forward will have to go through the same one-off process since neither side appears close to agreeing to a master tax sharing deal.