City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Brad Wungluck, Interim Director of Development Services |
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Date: |
June 3, 2025 |
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Subject: |
Extension of The Manteca Infill Zone and Fee Reduction Program |
Recommendation:
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Adopt a resolution extending the “Manteca Infill Zone” and approving the continued temporary fee reductions as specified through June 30, 2026.
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Background:
Local government agencies, under the authority of the California Mitigation Fee Act, may levy development impact fees to fund public infrastructure required to support new growth. In Manteca, these fees are imposed through the Municipal Code and set by Council resolution to help finance or expand facilities such as parks, transportation systems, and water infrastructure, in compliance with Government Code Section 66000.
Infill development and revitalization in the City’s core faces challenges due to site constraints and high costs, including impact fees that are equivalent to those for less constrained greenfield areas, despite differing impacts. Before the 1012 dissolution of Redevelopment, the City used redevelopment funds to support such projects - like Magnolia Court Apartments located at 777 N. Grant Avenue - but has since faced difficulties in funding infill development, leading developments struggling.
Despite challenges, infill development offers key benefits to the City by leveraging existing infrastructure. These projects typically require minimal upgrades, as roads, utilities, and parks in infill areas are already in place and adequately sized to support new development. Additionally, developing vacant parcels provides substantial social, environmental, and economic benefits. It enhances neighborhood appearance and safety, reduces crime and homelessness, and fosters community vibrancy. Environmentally, it limits sprawl, improves air quality, and lowers greenhouse gas emissions by reducing vehicle travel. Economically, it boosts property values, increases tax revenues, and creates local job opportunities.
In May 2022, City Council adopted the “Manteca Infill Zone and Fee Reduction Program” with an expiration date of June 30, 2025 (Attachment 2), for areas near the downtown core that is an area that is generally developed but still contains some areas of vacant or underutilized parcels that could be redeveloped and benefit the City and residents. The age of most structures within this area is over fifty years old, with many not seeing significant rehabilitation during that time. In June 2022, the City Council amended the Infill Zone Map to increase the size of the infill zone (Attachment 3) to encompass the areas shown in Attachment 4.
With the adoption of the Infill Zone staff identified five fees for reduction provided a significant incentive to property owners and potential developers of eligible projects. The fees reduced were the Government Building Facilities, PFIP Transportation Fee, the Park Acquisition Fee, the Park In lieu Fee, and the Long-Range Planning Fee. The reduction of these five fees projects allowed for an estimated reduction in total fees paid of twenty-five percent, thereby making their infill or revitalization projects much more viable.
Staff recommends extending the infill fee reduction program through June 30, 2026, to support several in-progress projects that would revitalize underutilized parcels. These developments offer key benefits, including new housing, reduced car dependency, shorter permitting timelines, and greater housing equity. Given these advantages, staff recommends City Council adopt the attached resolution to continue the program.
Fiscal Impact:
While reducing impact fees for projects in the Infill Zone would lower fee revenue, the City is expected to see a net fiscal benefit over time through increased property tax, sales tax, and other revenues generated by new development.
Documents Attached:
Attachment 1 - Resolution
Attachment 2 - Infill Zone Resolution
Attachment 3 - Amended Infill Zone Resolution
Attachment 4 - Infill Zone Map