A concern about setting precedent for the deferral of growth fees tied to transportation improvements evolved into a report card, or sorts, about Manteca’s growing success for luring commercial development.

The issue before City Council Tuesday was a request by the developers of the proposed Three Strike bowling alley and family fun center on Atherton Drive between Union Road and Airport Way.

It was to defer — for two years — the payment of Public Facilities Implementation Plan fees for transportation that is among fees assessed on growth

There is also is second phase to the project that includes a banquet hall/wedding venue/events center.

The requirement that the developer install traffic signals on Atherton Drive at the access driveway for the two concerns posed cash flow issues.

Typically, developments occurring in Manteca contribute to part of the cost of traffic signals if they are needed at a nearby intersection due to the traffic they will generate.

In this case, 100 percent of the cost is being borne by the project. It’s a sizable as traffic signals — once installation costs are factored in — can cost more than $1 million.

Councilman Charlie Halford questioned of granting such a request as it would create a precedent for other developers to make similar requests.

Councilwoman Regina Lackey also shared that she has similar reservations.

Staff noted that the project was developing a barren parcel that was somewhat problematic in terms of its shape and location.

A similar shaped parcel on Atherton Drive to the west of Airport Way has recently opened as an 818-unit mini storage .

Such a use generates very low traffic and therefore didn’t require traffic signals on the major arterial.

It also is a low tax generating use as the city receives just property taxes.

The bowling alley/entertainment center will have taxable food beverage sales with the wedding venue having the ability to help book hotel rooms and generate room tax.

The complex also offers a desirable family entertainment venue that City Manager Toni Lundgren noted includes a restaurant with an in-house chef and a business plan that includes things such a Friday steak night.

Mayor Gary Singh noted the city will still be paid the fees as they are just being deferred for two years.

The mayor added that was in stark contrast to the past when the city had “to give up money” in order to secure a coveted use so as not to lose out to other jurisdictions.

Singh said Manteca has positioned itself in such a manner that it now has the full attention of retailers eliminating the need to lure them here away from other jurisdictions they were looking at such as Costco.

Costco did not have Manteca on its radar when the city snagged them 20 years ago.

Manteca agreed to a 55-45 sales tax split from store sales until such time Costco recovered the cost of building the 140,000 square-foot store.

The obligation was fulfilled four years ago and now Manteca is keeping 100 percent of the local portion of Costco generated sales tax.

A sales tax split that ends after 35 years enabled the developer of Orchard Valley to make a deal that secured Bass Pro Shops.

Manteca prevailed against other Northern San Joaquin Valley locations for Living Spaces with a sales tax split that ends after five years.

A room tax split that expires in less than 20 years allowed Manteca to beat out Brentwood and Gilroy for the 500-room Great Wolf indoor park that represented a $180 million investment.

In each, case city leaders at the time deals were struck noted the city would not be on the hook for any money and that when it came to the sales tax, they would be giving up taxes on retail sales they would never have been able to get.

Costco, as an example, was looking to open a store on the Interstate 5 corridor in Lathrop while Bass Pro was looking at Modesto.

Singh noted the city no longer has to give up money to secure retail stores.

Even though the city has numerous ways of securing money they are owed if the bowling alley developer “defaults” on the deferred fees, Halford said it would take the city considerable effort to do so.

It was also noted incentives now — especially to land preferred commercial ventures — may include incentives such as a fee deferral that doesn’t give up money but delays payments to allow financing to work in today’s lending and construction realities.

In the end, the council unanimously agreed to the two-year fee deferral.

The developer said he anticipates starting the events center within three years of breaking ground on the bowling alley.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com