The South San Joaquin Irrigation District board will decide Tuesday whether to help make it possible for the City of Manteca to facilitate the sale of the former Qualex building on Industrial Park Drive to Inner City Action for $1 for the purpose of establishing a homeless resource center.
The SSJID is one of 10 entities that would have to agree to forgo receiving revenue from the property at auction. If the 57,000-square-foot building sold for $1.5 million, the SSJID would be giving up $77,000 in revenue.
Points the SSJID staff has made to facilitate the board’s discussion on the request so they can decide what to do are as follows:
uHomelessness is a growing concern within the City of Manteca and is an issue the Manteca City Council wishes to address. Providing a significant discount in exchange for non-profit services to the homeless within the City of Manteca would provide a public benefit to the community.
uSSJID’s entitlement to proceeds from the sale of the redevelopment property is provided through legislation to dissolve and fairly distribute RDA assets and not through SSJID enabling powers.
uOther tax receiving entities will be bringing up the issue within the next two weeks.
uDistrict staff is concerned about the potential for the beneficiary of the discounted property to profit from such a discount through subsequent sale in the future at market rates, City staff noted that forthcoming amendments to legislation by Assemblyman Heath Flora that would allow the sale to take place if all taxing entities sign off would attempt to prevent such a sale happening. Additional amendments would also require the property be sold with the proceeds going to the tax receiving entities under the current tax allocations, if the property ceases to serve the public or under other certain circumstances and conditions.
The Flora bill would need to pass the legislature to carve out an exception for a mandatory auction. Initially the Manteca RDA purchased the property with the intent to convert it into a new home for the Manteca Police Department.
Based on a $1.5 million sale other taxing entities that would have to agree to forgo sale proceeds are Manteca Unified, $750,000; San Joaquin County, $291,000; City of Manteca, $221,000; Delta College, $97,000; San Joaquin County Office of Education, $25,000; Stockton-San Joaquin County Library System, $25,000; the San Joaquin Mosquito Abatement and Vector Control District, $10,000; the San Joaquin County Flood Control District, $2,000; and Reclamation District 17, $24.
The SSJID board meets Tuesday at 9 a.m. at the district office, 11011 E. Highway 120.
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