Manteca is setting the stage for a possible future business park on city-owned land at the wastewater treatment plant.

The City Council will consider adding a $1.2 million project to extend Milo Candini Drive from where it ends at the northern edge of the Big League Dreams Sports complex to connect with West Yosemite Avenue.

The funds are part of $42 million the now defunct Manteca Redevelopment Agency had left over after the state disbanded it to divert property tax money to Sacramento to help balance the California budget.

City leaders envision the new stretch of Milo Candini Drive will ultimately be lined with small business parks and such.

It would also provide additional traffic circulation for the area northwest of the Airport Way and 120 Bypass interchange where Great Wolf Resort is considering building a 500-room hotel with a 75,000-square-foot indoor water park. It is also where a proposed 140-acre family entertainment zone would be located.

It will also provide a second access point for BLD as well as Costco and the Stadium Retail Center anchored by Kohl’s.

Other projects identified for funding from the remaining RDA funds include:

• widening the Union Road overpass across the 120 Bypass to four lanes.

• improving community parks.

• the creation of an interchange at McKinley Avenue and the 120 Bypass by adding on and off ramps.

The money is from the $50.7 million RDA bond issuance in 2005.

The state has agreed that the money left from that bond legally belongs to the City of Manteca but must be used for projects outlined in the bond issuance documents that included the four mentioned above.

Property owners in the RDA have been paying taxes to repay the debt since 2005. When the state took over the RDA funds after shutting down agencies statewide, it was determined the state had no legal authority to keep the money. What the state is taking are RDA property taxes collected every year above and beyond what is needed to meet ongoing RDA debt as well as cover contracted costs such as for municipal parking lot leases until such time the agreements expire.

The two interchange projects are considered undertakings that would help stimulate the economy. There is an extensive area of land zoned for commercial development along the south side of the 120 Bypass near Union Road in addition to Bass Pro and the Promenade Shops at Orchard Valley.

An interchange at McKinley Avenue would provide an essential second access to some 140 acres that the city owns that they’d like to see developed as a family entertainment zone. Within that is a 30-acre site where Great Wolf Resorts is interested in developing. The city also owns that land.

The interchange would also serve residential and commercial development planned along the McKinley Avenue corridor south of the 120 Bypass.

The council meets Tuesday at 7 p.m. at the Civic Center at 1001 W. Center St.