City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Vanessa Carrera, Interim Deputy Director of Economic Development |
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Date: |
January 6, 2026 |
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Subject: |
Approve a Purchase and Sale Agreement with Steve Lewis for the acquisition of 103, 107, and 115 W. Yosemite Avenue (APNs 217-210-49, 217-210-48, and 217-210-47) |
Recommendation:
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Adopt a resolution approving a Purchase and Sale Agreement between the City of Manteca and Steve Lewis for the acquisition of 103, 107, and 115 W. Yosemite Avenue (APNs 217-210-49, 217-210-48, and 217-210-47); and approving a budget appropriation of $1,200,000 in the General Fund utilizing the General Fund Economic Development Reserve.
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Background:
Earlier this year, the owner of the Manteca Bedquarters property expressed interest in selling the building and adjacent parking lot to the City of Manteca. The potential acquisition was introduced to the City Council in closed session, where the Council directed staff to negotiate purchase terms for the property as a catalyst for downtown revitalization. Following that direction, staff toured the building and entered into negotiations with the owner.
The City and Seller have reached agreement on a purchase price and key terms. This site presents a unique opportunity for the City of Manteca. Located at a primary gateway into Downtown and including a corner parking lot, the property is highly visible and well-positioned to anchor future activity. Built in 1913, the Manteca Bedquarters building, formerly known as the Independent Order of Odd Fellows (IOOF) building, is one of the City’s most historic structures and holds both cultural and architectural significance.
Summary of the Purchase and Sale Agreement
The agreed purchase price for the property is $1,200,000. Within ten (10) business days of executing the agreement, the City will deposit $50,000 into escrow as a refundable deposit. The City will have a 90-day feasibility period to conduct due diligence, during which the deposit will remain fully refundable. If the City proceeds with the purchase, the deposit will be credited toward the purchase price.
The property is being sold in as-is condition, and the City relying on its own inspections to evaluate zoning, utilities, building condition, and environmental factors. As part of the agreement, the Seller is required to repair and update the parking lot in accordance with agreed-upon specifications prior to closing.
Closing is anticipated to occur within 180 days following completion of the feasibility period, unless otherwise agreed, and will be finalized when the Grant Deed transferring ownership to the City is recorded with the County. If the City were to default after the feasibility period, the Seller’s sole remedy would be retention of the $50,000 deposit as liquidated damages. The Seller will have up to six months to vacate the building, during which time the City will work cooperatively with the Seller and assist the nonprofit currently occupying the second floor in identifying relocation opportunities within Manteca.
Community Benefits
This acquisition represents an opportunity for the City to lead by example in Downtown Manteca. As the first fully renovated downtown building led by the City, the project sends a clear signal that revitalization is underway and that the City is willing to invest in its future.
Ownership of the property would allow the City to shape the design, tenant mix, and overall experience, setting a standard for quality development and encouraging additional private investment nearby. The site’s location at a major downtown entry point provides an opportunity to create a welcoming, vibrant gateway that draws people in and encourages them to stay, dine, shop, and spend time downtown.
The project also provides an opportunity to honor Manteca’s history while introducing the types of experiences the community has expressed interest in-places to gather, eat, shop, and enjoy entertainment in a walkable setting. If the City wants to see meaningful change occur sooner rather than later, public investment is often the catalyst. Other cities in the region, including Elk Grove and Livermore, have successfully taken similar approaches to downtown revitalization.
Long-Term Vision
If the Purchase and Sale Agreement is approved, staff will return to the City Council with options for redeveloping the site. These options may include public-private partnerships or City-led design and construction, with the City serving as landlord and securing commercial tenants.
At this time, no final design or tenant plan has been established. The intent is to activate the space with commercial uses that increase foot traffic and downtown activity, such as restaurants, retail, and entertainment. With Council approval, the City will work with a design firm and the Downtown Specific Plan consultant to develop a concept that reflects community needs, creates a sense of place, attracts visitors, and supports long-term economic vitality. Public investment at this site is expected to encourage additional private investment, creating a ripple effect that benefits Downtown Manteca as a whole.
Fiscal Impact:
If approved, the $1.2 million appropriation for this purchase will be funded from the General Fund Economic Development Reserve. The reserve has been at the maximum of $2.5 million since the limit was set at that amount in FY 2019-20. Following the appropriation, the reserve would increase in accordance with the formula outlined in the reserve policy until it reaches the maximum of $2.5 million.
Documents Attached:
Attachment 1 - Resolution
Attachment 2 - Purchase and Sale Agreement
Attachment 3 - PowerPoint Presentation