Manteca will have $43.6 million to invest in infrastructure.
It is money that was set aside for capital improvements but not spent when the California Legislature pulled the plug on redevelopment agencies.
Follow-up state legislation protected such unspent RDA funds generated through long-term debt from being seized by the state. It will be returned to the city but cannot be spent without the blessing of both the local oversight board put in place to monitor the successor agency to the RDA as well as the state Department of Finance.
The money can only be spent on projects it was earmarked for prior to the RDA’s demise. Among those projects is infrastructure such as streets, storm drains, and such to open up city-owned property for development along the future extension of Daniels Street. McWhinney Real Estate Services is in talks with Manteca about using 30 acres of that land to develop a Great Wolf Resort that could have up to 600 rooms, a conference center, and a 70,000-square-foot indoor water park.
It is also along Daniels Street that city envisions another 90 acres being developed as a family entertainment zone immediately adjacent to the Big League Dreams sports complex.
The wind down of the RDA will take a number of years as the city is still paying off $120.1 million in long-term debt.
The now defunct Manteca RDA was taking in more money from property tax revenues than necessary to service its debts and other obligations. The state is allowing the successor agency to keep enough tax receipts to pay off the debt. The current annual debt service is $9.8 million.
The agency has four outstanding assets totaling $3.5 million in the form of money it is owed.
The largest is a $1.7 million loan used to provide seed money to make municipal development services self-sufficient. The idea was that growth-related projects such as subdivision map reviews and such would be charged actual costs which in turn would pay for city staff resources. The loan allowed the city to set up development services to stand on its own with the idea seed money would be repaid over time.
The next largest is a $1.4 million note receivable to the B.S. Family Partnership relating to the construction of the southern extension of Vasconcellos Avenue and traffic signals at East Yosemite Avenue.
The others are a $338,040 performance note with Cabral Motors and $54,080 for a performance note held by AKF Development for Sexton Chevrolet.
On performance notes, if certain benchmarks are obtained such as a set amount of an increase in sales tax and new jobs the RDA agency agreed to forgive the debt.
City Manager Karen McLaughlin indicated the successor agency may be looking at the note receivable with AKF. Sexton Chevrolet went out of business suspending the collection of sales tax. But the replacement business - J&M Equipment - is expected to match or succeed the sales tax the deal with Sexton Chevrolet promised the city.
McLaughlin said since the property the investment was made for is being used for a business that is contributing to the Manteca economy, the successor agency could decide to continue with the original arrangement or they could call the note due.