A deal that will sell 3.7 acres of municipal land at 1403 Atherton Drive for a future Tesla showroom and service center is before the Manteca City Council on Tuesday.

Tesla has selected Drake Real Estate LLC for the development of a build-to-suit Tesla dealership and service center to the west of Living Spaces.

The city is being paid $4 million for the parcel that is part of a 3.85-acre triangle shaped parcel the city purchased in 2024 for $2.2 million.

The city acquired the site that was considered problematic by the private sector in a bid to search out a suitable user to develop it.

The deal means Manteca will net $1.8 million off the property in two years’ time.

But that is just the start of the return on the 2024 investment.

The city is retaining ownership of 0.15 acres that it is leasing long-term to OutFront Media for an electronic LED billboard.

The billboard deal led by Mayor Gary Singh will assure the city receives at least $300,000 annually.

A second billboard location on the southeast quadrant of the Highway 99/Lathrop Road interchange will also generate a minimum of $300,000 yearly.

The city is in the process of finalizing that deal.

The land-lease agreement for each site assures Manteca a minimum $300,000 yearly per location.

And if as revenue exceeds a set threshold, that revenue is split 50-50 at the Atherton Drive location east of Living Spaces furniture and three ways with a private property owner in the mix at the Highway 99 site.

The city would also be able to promote community events and municipal messages on the billboards at no cost.

The City Council meets at 6 p.m. at the Civic Center, 1001 West Center St.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com