Report Prepared by: Joe Cardoso, P.L.S., City Surveyor and Frank Quintero, Deputy City Manager
Title
SUBJECT: Transfer a Strip of Land Situated at 626 West Main Street (APN 031-134-025) to the City of Merced
REPORT IN BRIEF
Authorizes the Successor Agency to the Redevelopment Agency of the City of Merced to transfer its interest in 626 West Main Street to the City of Merced for future development project.
RECOMMENDATION
Successor Agency to the Redevelopment Agency - Adopt a motion:
A. Approving the transfer of real property situated at 626 West Main Street (APN 031-134-025) to the City of Merced; and,
B. Authorizing the Executive Director or Designee to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, a recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
City of Merced Charter, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget
DISCUSSION
Background
The former Merced Redevelopment Agency was dissolved effective in February 2012 with legislation passed in 2011. The City opted not to be a Successor Agency, and the State formed a Designated Local Authority to close out the business of the former Redevelopment Agency. After nearly 10 years, the Designated Local Authority members and State desired to transition the closeout to the City of Merced
as the Successor Agency. At the City Council meeting of July 3, 2023, the City Council adopted Resolution 2023-57 empowering the City Council to serve as the Successor Agency to the Redevelopment Agency of the City of Merced.
Purpose
The City Council of the City of Merced, as Successor Agency to the Redevelopment Agency of the City of Merced, is charged with overseeing the implementation of recognized enforceable obligations and winding down the affairs of the former Redevelopment Agency of the City of Merced in accordance with California Health and Safety Code 34181(a)(1).
HEALTH AND SAFETY CODE - HSC
DIVISION 24. COMMUNITY DEVELOPMENT AND HOUSING [33000 - 37964]
PART 1.85. DISSOLUTION OF REDEVELOPMENT AGENCIES AND DESIGNATION OF SUCCESSOR AGENCIES [34170 - 34191.6]
34181. The oversight board shall direct the successor agency to do all the following:
(a)(1) Dispose of all assets and properties of the former redevelopment agency; provided, however, that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose, such as roads, school buildings, parks, police and fire stations, libraries, parking facilities and lots dedicated solely to public parking, and local agency administrative buildings, to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of such an asset. Any compensation to be provided to the successor agency for the transfer of the asset shall be governed by the agreements relating to the construction or use of that asset. Disposal shall be done expeditiously and in a manner aimed at maximizing value. Asset disposition may be accomplished by a distribution of income to taxing entities proportionate to their property tax share from one or more properties that may be transferred to a public or private agency for management pursuant to the direction of the oversight board.
Subject Site Background
The subject site is located at 626 W. Main Street. At one point, the site was surrounded by the former Simpson Cleaners, Asian Market, and Reinero’s Restaurant. The original purpose for the ±2,500 square foot strip of land was to install a walkway from W. Main Street to the parking lot fronting W. 16th Street. Subsequently, Redevelopment was dissolved, and the Simpson Cleaners, Asian Market and Reinero’s Restaurant were demolished, and the walkway was not constructed.
Subject Site Acquisition History
The Redevelopment Agency of the City of Merced acquired all of Lot 6 as described in Grant Deed recorded October 13, 1987, per Volume 2637, Official Records, Page 323, Merced County Records, for a redevelopment project. (Attachment # 1)
On April 9, 1999, The Redevelopment Agency of the City of Merced deeded a portion of Lot 6 to Allen Howard and Julia Jordan Larson, as Trustees of the Allen and Julia Larson Family Trust dated 1986, for a redevelopment project for Downtown Merced. (Attachment # 2),
As a result of the grant deed to the Larson’s, the remaining lot was left to the former Redevelopment Agency for the construction of a walkway connecting W. Main Street to a parking lot off W. 16th Street. The property has remained vacant and at times been a nuisance to the neighborhood.
Interest in the Subject Site
A local developer acquired the former Asian Market and Reinero’s Restaurant sites and has expressed interest to the City about acquiring the former walkway strip to add to the potential project. If successful, the developer desires to create a gathering space anchored by container units.
Subsequent Actions
In order to proceed with a transaction to the developer, the City of Merced will need to have an appraisal prepared, determine if the property is subject to the provisions of the California Surplus Land Act, and enter into a Compensation Agreement with Taxing Entities since the site is a former Redevelopment Agency asset.
The subject area is surrounded by recently completed renovation projects including the El Capitan Hotel, UC Merced Extension Facility, and others. The developer’s interest to acquire the site and construct a project continues to support the on-going revitalization of Downtown Merced. Therefore, staff is recommending the Successor Agency to the Redevelopment Agency of the City of Merced deed the remaining property to the City of Merced for disposal. (Attachment # 3)
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. Grant Deed to Redevelopment Agency of the City of Merced
2. Grant Deed to Allen Howard and Julia Jordan Larson, as Trustees of the Allen and Julia Larson Family Trust dated 1986
3. Grant Deed from the Successor Agency to the Redevelopment Agency of the City of Merced to the City of Merced