Does a Redevelopment Agency increase the amount of property taxes paid by property owners in the new project area? No. A Redevelopment Agency has no power to levy a property tax or any other tax. All property within the redevelopment project area is subject to the protections of Proposition 13. The same rules apply to property located inside or outside a redevelopment area. Only if the property owner sells the property or constructs improvements that increase the value of the property, will the amount of property taxes go up.
Who Governs the Redevelopment Agency? The Merced City Council is the Redevelopment Agency’s Board of Directors. The Council has also appointed a group of residents and business owners to the Redevelopment Advisory Committee to provide direction to Redevelopment Agency staff.
A portion of the Redevelopment funds must be spent on affordable housing - does this mean that massive public housing will be built in local neighborhoods?
No, the Redevelopment Agency is not a public housing authority. The Redevelopment Agency cannot own and operate a "housing project.” Rather, the Agency works with private property owners, housing developers (both for-profit and not-for-profit) and financial institutions in a wide variety of programs to assist in making a certain number of homes affordable for families with modest incomes. For a more complete look at the types of projects the Agency has completed, see below.
Are there any special incentives available?
Yes. The City encourages commercial development within its Redevelopment Areas, which cover much of central and south Merced. Individually-tailored financial agreements are available in these areas. Some other areas in Merced are also within the Merced Enterprise Zone, which offers certain state income tax benefits. The City also allows deferral of capital impact fees until time of occupancy, rather than upon issuance of building permit.
Does the City encourage industrial development?
Yes.The City’s three industrial parks are well planned, with all the services required for numerous industries.The General plan supports their continued development.
Doesn't the Redevelopment Agency take money away from the Schools and County? No. The formation of a redevelopment agency does not reduce the property tax revenues of either the schools or the county. The areas where a redevelopment project is formed usually have stagnant or declining property values because of blighted conditions. When the redevelopment project area is formed, a portion of the property tax revenue created by an increase in property values goes to the redevelopment agency to pay for the cost of improving the area. In fact, because of the method used by the state government to balance the revenue of various school districts, it is common for school districts to actually increase their revenue when they are included within a redevelopment area - particularly school construction and renovation funds.
Is there a point of contact for new business? It's probably good to start with the City's Economic Development Office. Staff are knowledgeable in the area of industrial development. Economic Development staff can serve as liaison with other City resources for you. Call the Department at 800/723-4788 or 209/385-6827, fax us at 209/723-1780, or e-mail us.
Redevelopment Agencies are created to eliminate blight - have they?
People who have lived in Merced for several years can attest to the progress made in downtown Merced. As the City’s oldest Redevelopment Project Area, it is a testament to the progress that can be made over time in a well-managed Redevelopment Project Area. You can look at the success stories to see some examples of how the Redevelopment Agency has removed blight in the community.
Upon what does the Redevelopment Agency spend its money?
The Merced Redevelopment Agency has spent its redevelopment funds on Commercial, Industrial, Residential Projects and Public Buildings and Infrastructure. For a more complete list of projects the Merced Redevelopment Agency has completed see below.
What are City fees like?
City building fees and local school fees are comparable to other California localities. Sewer and water fees are based on actual usage. In 1998, the City adopted impact fees for traffic, public safety and other capital needs. These fees are driven primarily by traffic generation characteristics of developments. Commercial development is not subject to park impact fees.
Upon request, City staff will provide you with a fee estimate for your specific project. This takes about three days.
What is Merced's labor market?
The regional labor market includes Merced County, Mariposa County, Madera County, Stanislaus County and part of Fresno County. The better the jobs and higher the wages the longer the commute radius that might be drawn upon.
Does the City encourage industrial development?
Yes. There is a strong supportive consensus for industrial development. The City Council continues to support a friendly environment for industrial expansion.
What is projected for the next five to ten years for Merced?
Two major trends will affect Merced retail and office development very positively over the next five to ten years: the development of the University of California, Merced and the increasing integration of Merced with the Bay Area economy.
UC Merced is already underway, with a rapidly growing staff and an increasing number of majors and programs. The current student population exceeds 1,800 students and will be building gradually to over 25,000 in the coming decades. The University brings higher-paying jobs and the potential for different, more upscale retailing.
Not to be overlooked is the inevitable integration of Merced with other northern Valley communities into the greater Bay Area. Some already commute to jobs in the East Bay; this will increase as time goes on and commuter rails is extended into the Valley.
The combination of these trends has resulted in Merced being projected to have the fastest income growth in California over the next decade.
What's the process for development of new commercial sites? The City has areas designated for commercial development through its General Plan. In areas already "straight zoned" for industrial development, usually a Site Plan Review is required (staff process without a Planning Commission hearing). This will take from two to ten days, generally. In north Merced, most commercial sites are within Planned Development (PDs) and approvals require Conditional Use Permit (CUP) with public hearing before the Planning Commission. The typical CUP takes about five weeks.
The City encourages developers to contact us early to understand the process for any individual property.
Why do Redevelopment Agencies have so much debt? When the voters of the state of California approved a constitutional amendment in the early 1950s, it added a requirement that a Redevelopment Agency must have debt in order to justify receipt of property tax revenue. Annually, the Redevelopment Agency prepares a statement listing all of its current and future obligations, including not only long-term bonds, but also contracts to pay rent, pay employees or to buy land. These are all considered "debt" of the agency. No other form of government is required to operate under mandatory debt.
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