Successor Agency to the Manteca Redevelopment Agency Agenda
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Memo to: |
Successor Agency to the Manteca Redevelopment Agency |
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From: |
Toni Lundgren, City Manager |
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Prepared by: |
Vielka Guarascio, Homeless & Housing Services Manager |
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Date: |
August 18, 2026 |
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Subject: |
Adopt a Resolution Approving Purchase and Sale Agreement (“PSA”) for 555 Industrial Park Drive |
Recommendation:
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Adopt a resolution approving a purchase and sale agreement between the Successor Agency, as seller, and the City of Manteca, as buyer, for for exempt surplus property owned by the Successor Agency and located at 555 Industrial Park Drive, with the closing conditioned upon Oversight Board approval; and authorize City Manager or designee to execute agreement and other associated documents.
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Background:
Pursuant to the Dissolution Act, the Manteca Redevelopment Agency was dissolved on February 1, 2012, and the Successor Agency to the Manteca Redevelopment Agency (“Successor Agency”) was established. Properties formerly owned by the Redevelopment Agency transferred to the Successor Agency by operation of law and are included on the Long-Range Property Management Plan (“LRPMP”). Properties designated “for sale” in the LRPMP must be sold for no less than fair market value.
One such property is located at 555 Industrial Park Drive and consists of an approximately 4.9-acre parcel within an industrial park (“Property”).
The Successor Agency previously adopted a resolution declaring the Property exempt surplus land pursuant to Government Code Section 54221(f)(1)(D), which applies when property is transferred to another local, state or federal agency for that agency’s use. By letter dated May 7, 2026, the California Department of Housing and Community Development confirmed that the Property qualifies as exempt surplus land under Government Code Section 54221(f)(1)(D).
The property is proposed to be sold to the City for purpose of the city’s development of a homelesless naviation center with associated supportive and transitional housing. Such proposed sale is for the city’s use because it will assist the city in its continuing effort to combat homelessness.
The purchase price in the PSA $2,140,000 is the appraised value of the Property based on a recent appraisal.
On April 15, 2025, the City Council approved an agreement with the Manteca Unified School District (“MUSD”) under which MUSD waived its interest in purchasing the Property and agreed to relinquish its share of the sale proceeds to the City.
Pursuant to the the Dissolution Act, the Oversight Board to the Successor Agency must approve the Sucessor Agency;s sale of the Property to the City. The action of the Oversight Board taken to approve the PSA is required to be made at a public meeting of the Oversight Board after at least 10 days' notice to the public of the specific proposed action. The PSA includes as a condition to the closing thereunder that the Oversight Board approve the PSA.
CEQA (California Environmental Quality Act):
The proposed purchase and sale of the Property is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the State CEQA Guidelines. It can be seen with certainty that approval and execution of the PSA will not have a significant effect on the environment because the action involves only the transfer of real property and does not authorize physical development, construction, or a change in land use. Any future development of the Property will be subject to separate environmental review, as applicable.
Fiscal Impact:
The purchase price is $2,140,000. Funding for the acquisition will be provided through the Navigation Center Fund (Fund 126), project CIP 24001.
Net sale proceeds, after seller-paid closing costs, will generally be distributed among the affected taxing entities. Based on the gross purchase price, the estimated allocations are:
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Tax Entities |
Percentage (%) |
Approx. Amount |
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Manteca Unified School District |
50.04% |
$1,070,856 |
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County General |
19.39% |
$414,946 |
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City of Manteca |
14.80% |
$316,720 |
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San Joaquin Delta Community College |
6.45% |
$138,030 |
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South San Joaquin Irrigation District |
5.17% |
$110,638 |
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County Office of Education |
1.69% |
$36,166 |
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County Library |
1.64% |
$35,096 |
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SJC Mosquito Abatement |
0.67% |
$14,338 |
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SJC Flood Control |
0.15% |
$3,210 |
100% $2,140,000
Under the April 15, 2025 agreement, the City will receive MUSD’s approximate $1,070,856 share of the proceeds. The City will also receive its approximate $316,720 allocation. In addition, the County General and County Library have agreed to contribute their combined approximate share of $450,042 toward the City’s Navigation Center.
Collectively, these amounts total approximately $1,837,618, resulting in an estimated net acquisition cost to the City of $302,382, before closing costs and other adjustments.
Documents Attached:
Attachment 1 - Resolution
Attachment 2 - Purchase and Sell Agreement