Developer updates council on Uptown Apartments; city explores short‑term loan program to bridge downtown financing gap
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Summary
Uptown Limited Partnership updated the council on a shovel‑ready 54‑unit mixed‑use project downtown and said it faces a capital‑stack gap due to rising construction and insurance costs. The administration said a NOFA for a revolving loan fund to help bridge financing is imminent.
A private developer told the Fresno City Council on Aug. 14 that its Uptown Apartments — a 54‑unit mixed‑use project in downtown Fresno — now has plan approvals and is effectively shovel‑ready, but requires gap financing to reach construction.
Developer presentation: Sal Gonzalez of Uptown LP said the project totals about 1.47 acres and includes 54 units with street‑level retail and work‑live lofts; he estimated a total development cost near $29 million and said final hard bids were due the week after the council meeting. Gonzalez said the sponsor has invested roughly $1.3–$1.4 million in soft costs and has closed on the land (an earlier city sale at roughly $315,000).
Financing challenges: Gonzalez described two market forces complicating funding: tighter lender underwriting that weights debt‑service coverage ratios more heavily than loan‑to‑value, and a marked increase in insurance costs for wood‑frame multifamily construction. Those changes, he said, have increased the cost and risk of converting construction loans to permanent financing.
City response and revolving loan fund NOFA: City staff and the mayor—onfirmed the administration plans to issue a notice of funding availability (NOFA) for a revolving loan fund using recently announced state funds to support housing gap financing. Chief of staff Kelly Furtado said the NOFA will solicit proposals and that staff will return to council with terms and recommended structure. City Manager and finance staff also noted the proposed loans would be bridge instruments (not forgivable grants) intended to revolve over time.
Why it matters: Council members said market‑rate development downtown can bring property‑tax revenue and broader economic activity; several members urged careful underwriting, clear timelines and protection of city funds. Council Member Bridal asked staff to circulate a list of projects that may be affected by the incoming 2025 California Building Code change and offered to prioritize projects that can meet an accelerated submittal deadline.
Next steps: The developer expects subcontractor bids and refined pro forma within days; staff will issue the NOFA and return with loan terms. The council asked for clear guardrails on loan terms, repayment expectations and performance deadlines in any agreement.
Provenance: Developer briefing and multi‑speaker Q&A (presentation began with a developer slide deck and planning staff updates).
