City Council Agenda
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Memo to: |
Manteca City Council |
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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 for 555 Industrial Park Drive. |
Recommendation:
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Adopt a resolution approving a purchase and sale agreement between the Successor Agency to the Manteca Redevelopment Agency, as seller, and the City of Manteca, as buyer, for the property owned by the Successor Agency at at 555 Industrial Park Drive in the City with the closing conditioned upon Oversight Board approval; and authorize City Manager or designee to execute agreement and other associate documents.
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Background:
Pursuant to the Dissolution Act, the Manteca Redevelopment Agency was dissolved as of February 1, 2012, and the Successor Agency to the Manteca Redevelopment Agency was established. Properties of the former Agency transferred to the Successor Agency by operation of law and are included on the Successor Agency’s Long-Range Property Management Plan (“LRPMP”). The Successor Agency is required to sell those properties that are listed in the LRPMP “for sale” for not less than their fair market value. One such property is the property located at 555 Industrial Park Drive, which is an approximately 4.9-acre parcel located in an industrial park (“Property”).
The Successor Agency previously adopted a resolution declaring that the Property is exempt surplus land under the Surplus Land Act (Government Code Sections 54220-54234) pursuant to Government Code Section 54221(f)(1)(D), which provides that land is exempt surplus land if a local agency is transferring the land to another local, state or federal agency for the local, state or federal agency’s use. By letter dated May 7, 2026, the California Department of Housing and Community Development concluded that the Property qualifies as exempt surplus land under Government Code Section 54221(f)(1)(D).
The City proposes to purchase the Property from the Successor Agency for the purpose of developing a homeless navigation center with associated supportive and transitional housing. Such purchase 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.
Pursuant to the Dissolution Act, the Oversight Board to the Successor Agency must approve the Successor 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 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.
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.
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 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