Controversy Dogs Campus Pointe Project

Sunday, April 19, 2009
Cyndee Fontana
Fresno Bee

The first piece of a $200 million
mixed-use development at Fresno State should open this summer, even as
a legal challenge lingers in court.

When complete, Campus Pointe
will offer apartments, stores, a hotel and a 14-screen movie theater on
about 45 acres. The land is being leased through the university's
auxiliary organization to developer Ed Kashian.

Fresno State
officials say the finished project will return $1 million annually in
rent -- money that will help retire debt on the Save Mart Center and
support campus ag programs.

University President John D.
Welty called the project a "significant addition to the campus." He and
others view Campus Pointe as a natural complement to academics and
campus life.

Yet
the idea of a commercial -- and competing -- enterprise on Fresno State
property has drawn flak for years, especially in the business
community. Several controversies, mainly involving fees for road
improvements, had to be settled with Fresno, Clovis and Caltrans before
crews started work.

One legal dispute remains unresolved even as
the first Campus Pointe component -- a cluster of three-story
apartments -- prepares to open as early as July.

This month,
lawyers offered final arguments in a lawsuit filed in 2007 by the owner
of Sierra Vista Mall in Clovis. In part, the lawsuit challenges the
project's environmental work and approval process.

A judge is
expected to rule within the next few months. Lawyer David Doyle, who
represents mall owners LandValue 77, said if his clients prevail,
construction could stop and officials could be required to correct
flawed approvals and studies.

University officials said they
considered it a small risk to start construction in late 2007 and to
continue while the lawsuit is pending.

Today, the first
apartments can be seen from Highway 168. The 144 one- and two-bedroom
units -- featuring birch cabinets, textured Formica countertops and
indoor washer/dryers -- are aimed at campus employees.

Nearby,
walls are being framed for the second housing phase tailored toward
students. More than 200 suite-style units are expected to open in time
for fall 2010 classes.

"When the kids come back to school, we'll
be ready," said Chris McKee, division president for Professional
Constructors Inc., which is building the housing phases.

The
final housing phase is a four-story senior complex for tenants 55 and
older. Work should begin in late summer; the complex is expected to
open in spring 2011.

Deborah Adishian-Astone, associate vice
president for auxiliary operations at California State University,
Fresno, which runs commercial operations at the university, said the
project already has generated interest.

"We've had a number of
retired faculty call us about the senior housing," she said. Part of
the draw is the proximity to campus cultural, entertainment and
sporting events, she said.

Last month, crews started
infrastructure and road work on the retail section, which will include
150,000 square feet of shops and restaurants, the theater and lofts
where residents can live and work.

The last phase will be the 200-room hotel, which may break ground next year but likely wouldn't open until 2012.

University
officials see plenty of synergy between the campus and Campus Pointe --
more student housing, internship opportunities in the senior complex,
hotel rooms for visiting scholars and retail services aimed largely at
the campus.

"We don't have much retail" within walking distance, said Adishian-Astone. "You have to get in your car and drive."

Yet, the commercial, competitive aspects of the project have stirred controversy.

The Sierra Vista Mall, which operates a 16-screen theater about three miles from Campus Pointe, took its complaints to court.

The
lawsuit alleges environmental and procedural flaws in the project's
review, disputes any educational link and raises conflict-of-interest
questions.

Moctesuma Esparza, whose Maya Cinemas will build the
theater, was a member of the California State University trustees while
Campus Pointe was being planned and discussed.

Esparza, who
resigned from the board, did not participate in 2007 votes approving
the project. Lawyers defend the project's environmental work and
approvals, and say Esparza properly disclosed his interest when Maya
Cinemas became involved in the project.

Developer Kashian said
much of the lawsuit is aimed at stopping the movie theater. Doyle, the
mall's lawyer, said private business owners simply "want a level
playing field."

Both Kashian and the university deny that he received any special breaks.

The
project was opposed by both the Fresno and Clovis chambers of commerce.
Officials complained that it didn't meet the university's educational
mission and would compete with local businesses.

"But it's there.
There's not much you can do about it at this stage," said Al Smith,
president and chief executive officer for the Greater Fresno Area
Chamber of Commerce.

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