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Campus Pointe development wins CSU panel's approval

Fresno Bee 3/14/07

Campus Pointe, a proposed 45-acre commercial project on Fresno State land, won the unanimous endorsement Tuesday of a committee of California State University trustees.

The full board of trustees is expected to follow suit today, despite continued opposition to the plan from business interests and discord with Fresno city officials over traffic and other issues.

Before voting, trustees heard Fresno State President John Welty discuss educational benefits expected from Campus Pointe -- including hotel and conference space for university-related meetings, and training opportunities for gerontology and hospitality students.

Opponents have scoffed at those benefits, and at least one trustee Tuesday also expressed skepticism.

"I consider that a bit of a stretch, I must say," trustee Murray L. Galinson said. He added, however, that he was reassured that the development would be financed privately rather than with university funds.

The office, shopping, apartment and hotel project would be built just east of the Save Mart Center arena complex.

Opponents allege that the main benefit from Campus Pointe will be the $750,000 annual share of rental income that Fresno State plans to use to help pay off debt from the $103 million Save Mart Center. They complain that the development will pose a threat to other businesses in the area.

"Our City Council, on behalf of businesses in Clovis, is very concerned about, particularly, the 14-screen theater" that would be included in the project, Clovis City Manager Kathy Millison said.

Just Monday night, Clovis officials reached an agreement with the university over compensation for the project's expected traffic impacts.

Fran Blackney of the Clovis Chamber of Commerce said that Campus Pointe would unfairly compete with other businesses because of tax advantages resulting from operating on university land.

But university officials say Campus Pointe's developer, Ed Kashian, would pay other taxes in lieu of property taxes. Kashian said after the meeting that the amount would be identical.

"It's going to be the same amount as a normal real-estate tax," he said, "except it's a different avenue under state law."

The continuing disagreement with Fresno officials was outlined in a staff report handed out to the trustees as discussion began. The report said city officials are asking for more than $3 million for impacts on streets, parks, and police and fire services.

Despite negotiations that continued until Monday, the two sides were unable to reach agreement in advance of the meeting.

Assistant City Manager Jon Ruiz said afterward that he believes the two sides have reached agreement on fire impact fees, for which the city was asking $322,785. But they remain apart on streets, for which the city wants $808,031, police, for which the city is seeking $515,877, and $1,492,560 sought for parks.

Such fees are paid by developers to compensate the city for additional facilities needed as a result of development.

"We believe they should be treated like any other developer," Ruiz said.

Several local leaders spoke in support of the project. One was local businessman Doug Davidian, who cited Fresno State's involvement with programs like the Regional Jobs Initiative, an effort to lower the local unemployment rate.

"I think this university over the last decade has earned our community's trust in helping us lead the way in transforming who were are," Davidian said.

The board's two student trustees and a student government representative urged the trustees to pay careful attention to how Campus Pointe would affect parking availability on campus.

In the end, however, the trustees gave their approval, although several voiced concern about the project's size and potential impacts.

"We like the project, with some reservations," trustee George Gowgani said.

"In the short term," he told opponents, "you probably are going to be affected with this kind of facility. But come back in about 10 years, and probably you will be the first one to say this is probably the best thing to happen to our community."