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: |
September 15, 2026 |
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Subject: |
Land Exchange Agreement and Joint Escrow Instructions Between the City of Manteca and P.D. Danna, LLC and P.L. Danna, LLC for Acquisition of Property for Future Fire Station No. 6 |
Recommendation:
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Adopt a resolution approving the Land Exchange Agreement and Joint Escrow Instructions between the City of Manteca and P.D. Danna, LLC and P.L. Danna, LLC, authorizing the City Manager to execute the agreement and related escrow documents, and authorizing staff to undertake all actions necessary to complete the property exchange for future Fire Station Number 6.
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Background:
The City of Manteca has identified the need for a sixth fire station to maintain emergency response service levels and support continued growth within the community especially within southwest Manteca. The proposed Fire Station No. 6 site is located along the Woodward Avenue corridor and is intended to improve emergency response coverage in southwestern Manteca and surrounding service areas.
To facilitate acquisition of a suitable fire station site, the City entered into discussions with P.D. Danna, LLC and P.L. Danna, LLC (collectively "Danna"), resulting in a Non-Binding Letter of Intent approved by City Council and executed in late 2025. The Letter of Intent established the framework for a future land exchange whereby the City would convey two City-owned surplus parcels located at: 19465 McKinley Avenue (APN 241-410-019; approximately 0.51 acres) and 2901 Bronzan Road (APN 241-410-020; approximately 0.43 acres) for property owned by Danna located at 3131 W. Woodward Avenue (APN 241-260-330), which is strategically situated for construction of a future fire station.
Following completion of negotiations and due diligence, the parties have prepared a comprehensive Land Exchange Agreement and Joint Escrow Instructions establishing the terms and conditions for the exchange.
Purpose of the Exchange
The proposed transaction will provide the City with approximately two acres of land necessary for development of Fire Station No. 6.
Under the agreement, the City will acquire approximately 1.82 acres from Danna's Woodward Avenue property. The transaction also incorporates approximately 0.18 acres from a one-acre parcel to be transferred from the Manteca Unified School District to the City. Together, these components create an approximately two-acre public site suitable for the construction and operation of Fire Station No. 6.
In exchange, Danna will receive: The City's approximately 0.94-acre McKinley Avenue/Bronzan Road property; and Approximately 0.82 acres from the future one-acre parcel.
The parties have mutually agreed that the exchanged properties possess equivalent fair market value and that no additional monetary consideration will be exchanged.
Public Benefit
The proposed acquisition advances several City objectives:
• Secures a strategically located site for Fire Station No. 6.
• Improves long-term emergency response capabilities.
• Supports implementation of the City's public facilities planning objectives.
• Utilizes surplus City-owned property to obtain land needed for a critical municipal facility without requiring direct acquisition expenditures.
• Provides an opportunity to achieve a public infrastructure objective through a mutually beneficial exchange transaction.
Major Agreement Terms
Key provisions of the agreement include:
• Opening of escrow within three business days of execution.
• A 120-day feasibility period (or later as provided in the agreement) allowing both parties to conduct inspections, studies, title review, and due diligence.
• Mutual approval of feasibility conditions as a prerequisite to proceeding.
• Completion of all required lot line adjustments necessary to create the exchanged parcels.
• Approval of required General Plan Amendments and rezoning actions, including:
• Commercial and General Commercial designations for the City parcels to be conveyed to Danna.
• Public/Quasi-Public designations for the property to be acquired by the City for Fire Station No. 6.
• Completion of environmental investigation and any required remediation associated with the City-owned property.
• Confirmation of lawful storm drainage access and capacity for all affected parcels.
• Concurrent transfer of title through escrow and recording of grant deeds.
Surplus Land Act
The agreement recognizes that the exchange is exempt from the Surplus Land Act pursuant to Government Code Section 54221(f)(1)(C), as the transaction supports an identified public agency use contemplated within the City's adopted General Plan and Community Facilities and Services Element. Specifically, the property acquisition is intended for development of a municipal fire station serving the public health, safety, and welfare of the community. The State of California, Department of Housing and Community Development has confirmed the exemption from the Surplus Land Act.
Environmental Review
Approval of the Land Exchange Agreement does not, by itself, authorize construction of Fire Station No. 6 or any private development project. Environmental review associated with future entitlement actions and development proposals will be conducted in accordance with the California Environmental Quality Act (CEQA) prior to approval of any development project.
Fiscal Impact:
The land exchange is structured as an equal-value exchange and does not require payment of acquisition costs for the fire station site itself.
The City will be responsible for certain transaction-related expenses, including: Escrow and title costs allocated to the City, Lot line adjustment processing costs, and Costs associated with entitlement processing and related studies.
The transaction allows the City to obtain a future fire station site without expending funds for direct land acquisition, representing a significant public benefit and potential cost avoidance.
Future design, construction, and operational costs associated with Fire Station No. 6 will be considered through separate budgetary and capital improvement planning processes.
Documents Attached:
Attachment 1 - Resolution
Attachment 2 - Land Exchange Agreement and Joint Escrow Instructions