INVESTFresnoCA.com
January 8, 2024
Tyler Maxwell, President Submitted via Email
Fresno City Council
2600 Fresno Street
Room 3065
Fresno, CA 93721
RE: SUPPORT – ID 24-12 – Development Permit Application No. P21-02699 – Scannell Properties Office/Warehouse Project
Dear Council President Maxwell and City Council,
I am writing today on behalf of INVEST Fresno, a coalition of Fresno residents, businesses, and community organizations committed to building a diverse and sustainable economy in Fresno, to express our strong support for Permit Application P21-02699 – Scannell Properties Office/Warehouse Project at 2740 W. Nielsen Ave. Fresno, CA 93704.
In Scannell Properties’ Nielsen and Hughes Industrial project (hereinafter “Scannell Project”), we find a properly zoned, environmentally sound development concept to deliver more than $100 million in direct investment in construction and several billion in economic activity and municipal tax revenue for the City of Fresno.
The City of Fresno is approaching a crossroads over whether it will build a next-generation economy by maximizing its built-in advantages of location and workforce or forfeit its position as the Valley’s economic leader to neighboring communities in Madera and Tulare counties.
The Scannell Project’s benefits to the City of Fresno include:
Expanding Fresno’s Tax Base
At a time when the City of Fresno is limited in its ability to grow its tax base through annexation and development due to the lack of an active master tax sharing agreement with the County of Fresno, the Scannell Project offers a direct pipeline to a growing tax base through its deep ties to Fortune 100 tenants and operators.
Because of visionary city leadership and the approval of projects similar to the proposed Scannell Project, Fresno’s sales tax revenue and overall tax base have skyrocketed in recent years. In fact, over the past five years, Fresno has seen a nearly 42% increase in sales tax revenue – enabling Fresno to invest more in essential neighborhood services and enhancing infrastructure, public safety, and support for local businesses.
These figures reveal a dynamic shift in our local economy, one that is bringing new hope and prospects for the future and ultimately improving the quality of life for all residents.
Delivering Jobs of All Skill Levels
The Scannell Project is a unique opportunity for Fresno’s workforce of all stripes to participate in the construction and operation of a once-in-a-generation development.
Aside from the hundreds of construction jobs and the multiplier effect of jobs supporting the direct construction workforce on the Project, the Scannell Project is likely to boast nearly 1,000 permanent jobs upon full build-out and tenancy, with most light and heavy industrial tenants paying well above market wages to similarly situated workers in the Fresno workforce.
Meeting Soaring Demand for Industrial Space
Fresno faces an extraordinarily tight industrial real estate market, with tenants currently occupying 99% of all industrial space.
This lack of availability has led to increased numbers of prospective tenants eyeing municipalities in Madera, Tulare, and Kern counties, where capacity is more readily available. Routinely, however, tenants have expressed to our members their preference to open and operate in the Fresno market due to its unique position in the San Joaquin Valley and readily available workforce.
The Scannell Project is the first-of-its-kind to meet development and environmental requirements, all while increasing supply to meet the soaring demand for industrial space.
As mentioned, Fresno is at a crossroads when it comes to developing its next-generation economy.
We have grown deeply concerned that extraneous, economically tenuous demands on Scannell and its project are threatening the approval of Scannell’s Development Permit application. Such demands are likely not only to eliminate the economic viability of the project itself, but send a chilling message to investors and developers that the City of Fresno is not welcoming to economic development and investment at mass scale.
Fresno has just begun to unlock the potential of the 21st Century industrial economy. Fresno residents deserve an opportunity to lift this community through modern, high-paying jobs.
We appreciate your consideration and respectfully request the City Council approve Permit Application P21-02699 and allow for continued economic and community development and career growth.
Sincerely,
Ben Granholm
Interim Executive Director
cc: Fresno City Council
Mayor Jerry Dyer