City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Brad Wungluck, Director of Development Services |
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Date: |
June 16, 2026 |
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Subject: |
Approval of a Pre-Annexation Agreement with RAFF2, LLC and Scannell Properties, LLC for the Proposed North Manteca Industrial Project |
Recommendation:
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Adopt a resolution approving the Agreement to Process Entitlements and for the Interim Storm Basin Easement and Conveyance of 60-Acre Property to City between the City of Manteca, RAFF2, LLC, and Scannell Properties, LLC, and authorize the City Manager to execute the agreement and related documents.
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Background:
RAFF2, LLC and Scannell Properties, LLC (collectively "Developer") control approximately 230 acres of property located within the City's Sphere of Influence in north Manteca. The property is currently located within unincorporated San Joaquin County and is proposed for annexation into the City of Manteca for development of an industrial distribution project to be constructed in multiple phases.
To facilitate processing of the project, annexation, infrastructure planning, and acquisition of community benefits associated with the project, the City and Developer have negotiated this Agreement to Process Entitlement and for the Interim Storm Basin Easement and Conveyance of 60-Acre Property to City (Pre-Annexation Agreement) establishing the responsibilities of each party during the entitlement and annexation process.
The agreement is intended to provide certainty regarding entitlement processing, infrastructure responsibilities, storm drainage improvements, utility service, annexation procedures, and the City's acquisition of land for future public facilities.
The proposed agreement establishes a framework for processing the project while preserving the City's discretion over all future land use approvals and annexation actions.
Key Provisions of the agreement include:
• Project Entitlements and Annexation
Developer agrees to submit applications for environmental review, annexation, pre-zoning, and subdivision approvals necessary for development of the project. The City agrees to process the applications in accordance with applicable laws, regulations, and development standards and to utilize reasonable efforts to process the applications in an efficient manner. The agreement further establishes a target schedule for annexation processing and submission to the San Joaquin Local Agency Formation Commission (LAFCO).
• City Property Acquisition
Concurrent with the Pre-Annexation Agreement, the City and Developer have negotiated a Purchase and Sale Agreement for the acquisition of approximately 60 acres for a future community public facilities and stormwater basin facility. The property acquisition consists of approximately 40 acres of future community public facilities upland and 20 acres of basin/open space area and is anticipated to occur following project entitlement approvals and annexation. The acquisition secures a significant public benefit associated with the project.
• Storm Drainage Infrastructure
The Pre-Annexation Agreement provides for dedication of a 5-acre interim storm basin easement to support the adjacent Union Ranch North development and future regional drainage needs. The agreement further establishes responsibilities for future basin expansion, pump station construction, drainage improvements, PFIP participation, and reimbursement mechanisms for oversized facilities serving future development.
• Infrastructure and Utility Improvements
Developer will construct the required water, sewer, roadway, and drainage improvements necessary to serve the project. The agreement establishes eligibility for PFIP credits and reimbursement where applicable and defines responsibilities for future infrastructure improvements, including portions of Roth Road, utility extensions, and storm drainage facilities.
• Community Benefits
The agreement secures several significant public benefits, including:
o Acquisition of approximately 60 acres for a future community facilities and basin facility.
o Dedication of an interim storm basin easement supporting Union Ranch North and future regional drainage needs.
o Construction of major utility infrastructure within Union Road.
o Participation in future infrastructure financing programs.
o Coordination of future Roth Road improvements and regional transportation infrastructure.
o The agreement also supports implementation of the City's long-term parks and recreation strategy by securing a future community facilities site and providing certainty regarding future planning and funding opportunities.
• City Discretion Preserved
The agreement expressly preserves the City's authority and discretion regarding all entitlement approvals, environmental review, annexation proceedings, conditions of approval, fees, and applicable development standards. Approval of the agreement does not constitute approval of the project, annexation, environmental review document, subdivision map, or any other land use entitlement.
Approval of the Pre-Annexation Agreement is not a commitment to any specific development project and does not approve any physical development of the property. Environmental review for the proposed industrial project, annexation, future park development, and related infrastructure improvements will be conducted in accordance with the California Environmental Quality Act (CEQA) prior to consideration of those actions.
The proposed Pre-Annexation Agreement establishes a comprehensive framework for processing the annexation and entitlement of approximately 230 acres of industrially planned property while securing significant public benefits for the City. The agreement provides certainty regarding infrastructure responsibilities, utility service, drainage improvements, annexation procedures, and future transportation improvements, while also facilitating the acquisition of approximately 60 acres for a future community facilities and stormwater basin facility. Importantly, the agreement preserves the City's full discretion over all future land use approvals, environmental review, and annexation decisions, while providing a clear path forward for the orderly planning and development of this strategically important area within the City's Sphere of Influence.
Fiscal Impact:
Approval of the agreement does not create an immediate fiscal obligation to the City, except as otherwise approved through the associated Purchase and Sale Agreement for acquisition of the 60-acre City Property. The Developer will be responsible for funding entitlement processing, annexation activities, environmental review, and project-related infrastructure improvements in accordance with the agreement.
The agreement establishes a framework for future PFIP participation and infrastructure financing, with any reimbursements or City participation subject to adopted policies and available funding. It also secures approximately 60 acres for future community facilities and regional stormwater infrastructure, reducing future land acquisition costs for these public purposes.
Documents Attached:
Attachment 1 - Resolution
Attachment 2 - Agreement to Process Entitlements and for the Interim Storm Basin Easement and Conveyance of 60-Acre Property to City