The City of Manteca early next year will receive $850,000 from the forced sale of two former redevelopment agency properties after the California Legislature pulled the plug on RDAs up and down the state.
The current council will treat the $850,000 — the city’s share of the $6.1 million property at Daniels Street and Airport Way as well as South Main Street — fetched during an online auction as a windfall at it was not budgeted. Proceeds under state law are split proportionately by the property taxation of 10 local agencies. Manteca Unified that collects 51 percent of all property taxes will receive more than $3 million.
In reality, city taxpayers within the RDA boundaries that are paying off bonds that have about 20 years left until they are retired will see a $6.1 million investment paid with their property taxes with the intent to eliminate blight and boost economic growth within Manteca reduced to $850,000. Overall it represents a $2.2 million hit for city taxpayers who are in the RDA.
The hit to the city on 3.1 acres on the northwest corner of Daniels and Airport Way is only $34,000 given their share of the recent sale will come to $500,000. That is because of the value escalating due to its location relative to the 500-room Great Wolf Resort and the Stadium Retail Center. The RDA paid $534,743 for it a decade ago. Prior to going to auction several months ago it was appraised at $2,750,000. It sold for $3,622,502, or 32 percent above the appraisal.
The RDA — of which council members double as directors — bought the land about a decade ago. They then made a deal to sell it to San Joaquin County for a satellite county office complex to serve the South County at a cost of $1. The low price was to beat out Tracy to bring in what was estimated to be 200 plus county employees but also to make it more convenient for Manteca residents to access county services. That deal eventually fell through.
The city was not as lucky regarding 8.07 acres sold on South Main Street. The land zoned for mixed commercial use bought for $2,600,000 when the county was seriously considering building a courts complex for the South County in Manteca. That deal also fell through.
The South Main Street property was appraised at $2 million or $200,000 less than what the RDA paid for it. The land sold for $2,511,000. While that is 5 percent above the appraisal at $89,000 less than the RDA paid for it more than 10 years ago. The city’s share of the recent sale is $350,000.
The loss in value is cushioned somewhat by $330,000 in lease payments the city collected over a five-year period from American Modular.
The council has not discussed what to do with the money although several members have said they would like to see it possibly help fund a solution for the city’s homeless problem.
Manteca Unified Superintendent Clark Burke also indicated a decision hasn’t been made on what to do with the school district’s share of the proceeds.
The $3 million plus will likely go toward facilities.
The district currently has a laundry list of $635 million in safety needs and instructional space housing needs for existing students. That is in addition to the $159 million of work that has been done and is in the process of being done using Measure M bond proceeds. The district is seeking voter approval of a $260 million bond on March 3, 2020 in a bid to tackle the facilities needs list.
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