Manteca’s leaders are securing $16,000 per home for communitywide benefit from new developers beyond the required growth and connection fees.
It is apparently the new standard emerging for the “privilege” of building new hones in Manteca as obtained on behalf of city residents by Mayor Gary Singh and Councilman Mike Morowit who serve on the council’s economic development subcommittee.
The latest developer to agree to the add-on community benefits is Meritage Homes for a 305-home project.
As such, it could generate $4.86 million in community benefit payments.
The project consists of 58.45 acres that abuts the west side of Sedan Avenue between the two 90 degree curves that takes the primarily east-west road on a north-south alignment for a short distance.
The project’s annexation and pre-zoning is before the Manteca Planning Commission when they meet Thursday, Nov. 5, at 7 p.m. at the Civic Center.
The community benefits are part of development agreements. re agreements provide applicants with vested development rights, outlines project development obligations, and addressing phasing and infrastructure requirements.
The community benefits condition is a carbon copy of what Singh and Morowit negotiated for a 147-home subdivision in north Manteca along Airport Way that could contribute up to $2,352,000 for the city to use for community benefit projects.
The 39-acre subdivision is north of the Indelicato neighborhood Kiper Homes is now building and west of Del Webb at Woodbridge.
Then $16,000 community benefit fee could be lowered if paid sooner.
Both development agreements place the fee is $12,000 per home if paid when a phase of the project starts. If it is paid when the building permit is issued, it is $16,000 per unit.
Assuming the two mentioned projects pay the higher fee, the city would receive $7.2 million
To understand the impact, if the city applied it to paying off the 18-year $54 million bonds just sold, that money covers more than 1.5 years of annual debt payment of $4.3 million.
Again, the city hasn’t indicated that is what they may do with the money, but it illustrates how it would free up other funding sources such as Measure Q sales tax receipts for road works and other endeavors such as securing desired amenities including an aquatics center and a community center.
Meritage Home project
The 305-home neighborhood before planners Thursday incudes dedicating right-of-way for the Antone Raymus Parkway, Atherton Drive, and Sedan Avenue.
The property at 9715 Sedan Ave. currently has a three bedroom, one bathroom home and agricultural buildings used in connection with the bulk of the acreage that has been used to grow strawberries.
The development includes a 6-acre park.
The City of Manteca last year received plans for a proposed 202-home subdivision on land taha borders part of the Meritage project.
The 202 homes are proposed north of Sedan at the intersection with Alice Avenue. The land will also need to be annexed to Manteca in order for homes to be built.
Alice Avenue today T-intersects into Sedan Avenue just to the southeast of Manteca.
If Alice Avenue — which intersects with West Ripon Road to the south — continued north of Sedan it would run into a metal agriculture structure next to a house.
Nearby Hat Ranch
The two Sedan Avenue projects border The Hat Ranch neighborhood being advanced by Richland Communities.
The city has approved 738 homes on the 184 acres involved in the southeast Manteca
The City Council secured a development agreement last year with Richland that included an add-on $10,333 per home fee that provides:
*$2,000 (overall $1,476,000) to fund a new police headquarters.
*$2,003 (overall $1,478,214) to fund a new fire engine.
*$1,500 (overall $1,107,000) to go toward Phase IV sewer expansion and help pay for the city’s wastewater management plan.
*$1,500 (overall $1,107,000) that will go toward improvements of the city’s water, sewer and street networks beyond impact fees already charged.
*$1,600 (overall $1,180,800) to go toward the purchase of CNG powered solid waste collection trucks.
*$1,400 (overall $1,033,200) available for the council to use at their discretion.
The $7.4 million fees upfront are in addition to existing growth-related fees including sewer and water capacity connections that requires the developer to pay between $45,000 and $70,000 — depending upon the square footage and location of the home in reference to major street impacts — at the time they request a building permit for a house.
Richland also agreed to an overall community facilities district — in addition to a separate one for schools — to generate revenue above and beyond existing property and sales tax to help pay for an expansion of frontline police officers and firefighters.
It also covers future street maintenance needs for the neighborhood.
What that means, is the Hat Ranch streets won’t take away from street maintenance funds needed elsewhere in older potions of the city.
It is an ironclad obligation requiring those who purchase Hat Ranch homes when they are built or on the resale market in future years to essentially fund roughly one police officer and one firefighter using a community facilities district fee tax.
That’s on top of the public safety funds the 738 households would generate through property and sales tax.
In exchange, Richlands has a 15-year time window to build the project with an option to extend it by five years.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
