Fresno Business Park Owners Seek $100M From City in Zoning Dispute

Buzz Oates and SPAN Development, owners of the Elm Avenue Business Park, filed a formal tort claim against the City of Fresno seeking more than $100 million in damages over a Southwest Fresno zoning dispute, prompting Councilmember Miguel Arias to hold a news conference March 18 declaring the claim has "no legal foundation."

The claim, filed Tuesday with the city attorney's office, alleges "$100 million in diminution of property values and lost profits" tied to land-use decisions stretching back to a 2017 Southwest Fresno plan. That plan re-designated the owners' industrial buildings to Neighborhood Mixed Use from Industrial, allowing existing tenants to remain indefinitely but blocking future industrial expansion. Oates and SPAN Development want to restore zoning that would permit warehouse operations at the 60-acre Elm Avenue site, which the county currently assesses at roughly $50 million.

The filing was the third letter the owners sent to the city since the previous Friday, and according to Fresnoland, a claim for damages is generally a precursor to a lawsuit. Beyond the $100 million, the owners are also demanding a $64,000 refund for an environmental assessment they paid the city to conduct in connection with their rezone request.

Oates is not a minor local player. He runs a $3 billion real estate empire and holds a stake in the Sacramento Kings.

The tort claim also requests that Arias be barred from participating in the zoning decision and from discussions on the Central Southeast Area Specific Plan, and asks the city to delay both items by 90 to 120 days. Oates and SPAN Development argue that Arias' public comments and outreach efforts violate the impartial role required for what the city classifies as quasi-judicial proceedings, accusing him of taking an activist role against their application.

Arias pushed back on Facebook before convening his March 18 news conference. He said the proposed rezone would eliminate the potential for 3,500 housing units in West Fresno and warned that the applicants' request could delay the Central Southeast Area Specific Plan, a neighborhood planning effort launched in 2017, until after the 2026 primary election. He also raised concerns about large corporations postponing broader planning efforts affecting thousands of Southwest Fresno residents.

At the news conference, Arias said the city attorney's office had reviewed the claim and concluded it carries no legal foundation. The City Council was expected to discuss the matter in closed session as the dispute continues.