Despite billion-dollar road backlog, Dyer says southeast Fresno mega-development is a must

For Fresno Mayor Jerry Dyer, undertaking a major expansion of southeast Fresno is a must. 

At his annual state of the city address at the Fresno Convention Center, Dyer said the Southeast Development Area plan, also known as SEDA, needs to come together. 

“We are committed to meeting the housing crisis head on, which means it’s also time to grow in our city,” Dyer told more than 900 people at the Thursday afternoon event organized by the Fresno Chamber of Commerce. 

Since 1958, Dyer said, SEDA has been envisioned as a cornerstone of Fresno’s growth strategy and includes the prospect of 45,000 homes. But right now, he’s only calling for a pared down version of that growth plan, which he refers to as South SEDA.

He said not moving forward with SEDA would mean “further exacerbating the city’s housing prices and limiting its ability to meet state mandated housing goals.”

Dyer also appeared to acknowledge growing community opposition to giant expansion in southeast Fresno. Dyer said he hopes the smaller version of SEDA “allays some of the fears that certain folks have in the community about urban sprawl.”

He credited city and county officials for brokering a tax-sharing agreement, which he said allows SEDA to pay for itself. Just last week, Dyer told the Fresno City Council the resources and infrastructure needed for SEDA was too expensive — as much as $1.5 billion.

Additionally, he claimed neighboring jurisdictions have capitalized on delays to SEDA. 

“Clovis has rapidly expanded its housing stock and has plans to further expand its boundaries, while Madera has seen new developments that could have been located in the southeast development area,” Dyer said. “Think about all that property tax revenue that we lost in our city.”

In his speech Thursday, the second-term mayor touched on a number of subjects, including homelessness, crime and public safety. He also touched on the importance of state funds to revitalize downtown Fresno. 

“I’m going to say this loud enough for the governor to hear: the delayed $200 million in state funds is absolutely essential to completing the remaining work in downtown and Chinatown. Together, these projects represent the commitment to revitalizing our city’s core, fostering economic growth and creating a vibrant community for all.”

Dyer said the first phase of water and sewer improvements will be completed this fall, thanks to about $100 million in state funds the city received back in 2023. He added that he’s hopeful Fresno ends up with another $100 million to move forward with infrastructure improvements. 

While Dyer didn’t make any specific mention of Measure C or its variants that could end up on the ballot next year, he did refer to the importance of fixing Fresno’s roads. 

“Fresno faces a $1.2 billion backlog of paving projects and deferred road maintenance costs in our city primarily due to decades of neglect and an overall lack of funding for the city,” Dyer said. 

One long term solution is to pursue a $100 million bond, which he said would allow the city to pave more roads and cover the cost of it later. 

“The benefits of preventative maintenance on our roads is not only cost effective, it reduces long term repair expenses and improves road safety,” Dyer said, “which is why I anticipate full council support in the pave more now and pay later program — right council?”

Dyer’s quip was heard loud and clear by every member of the Fresno City Council. All seven of them were thanked for being present at the Thursday event in downtown Fresno.

For a few minutes, Dyer also talked about the city’s budget. He didn’t give an updated estimate of how big the city’s projected deficit is now, but referred to the projected $20.6 million deficit from a few months ago. 

Dyer said it has become increasingly challenging to balance the budget in the absence of temporary pandemic relief funds. Bearing resemblance to Dyer’s approach with Fresno’s roads — “pave more now, pay later” — his considerable expansions to the police and fire departments using temporary COVID-19 federal funds have grown long term fixed expenses for the city. 

For months, questions have loomed at Fresno City Hall over whether those increased costs can be covered by the city’s general fund. 

However, Dyer announced he’d be presenting a balanced budget next week. 

To cap off the State of the City address, Dyer paraphrased the bible: “There is a time to tear down and there is a time to build.”

Referencing the tiny shovels on every table at the Thursday event, he asked for everyone’s help. 

“Now please grab the shovels on your table and let’s start building,” Dyer said.