City Council reviews $2.4M cost increase for senior activity center project

The Fresno City Council held a budget meeting on June 2, 2025, where key discussions centered on the funding and development of a senior activity center. The meeting highlighted the challenges faced by the project, particularly due to rising costs associated with labor and materials.

City officials provided an update on the senior housing initiative, which was initially intended to be part of a larger development with the Lingo brothers. However, the project faced setbacks when it did not secure funding through tax credits, leaving only the senior activity center to be developed. This shift has raised concerns, as the developers are more experienced in affordable housing rather than community centers.

During the meeting, it was revealed that the maximum guaranteed price for the senior center was set at $30.5 million. However, recent evaluations indicated an additional cost of approximately $2.4 million. This increase stems from a combination of factors, including a reduction in design fees and a significant rise in material costs, which have surged by about 7%.

Council members discussed the implications of exceeding the maximum guaranteed price and considered whether to allocate additional funds for the project. The city is now faced with the decision of how to manage these unexpected costs, including the possibility of establishing a contingency fund for better control over future expenses.

The discussions reflect ongoing efforts to communicate effectively with residents, particularly seniors who have been invested in the project for many years. The council aims to ensure transparency and address community concerns as they navigate the complexities of the budget and project development.