Modesto wants properties from dissolved redevelopment agency
10/15/2013 6:22 PM
10/16/2013 10:03 PM
Because the state has dissolved Modesto’s redevelopment agency, local officials want all the agency’s properties transferred to the city government. That essentially is what a proposed long-range property management plan says.
The agency’s downtown Modesto property includes Modesto Centre Plaza, the first-floor retail spaces in the 1010 10th St. government building, the pedestrian bridge over Ninth Street, parking garages on Ninth and 11th streets, and parking lots on Ninth and 10th streets.
The buildings and garages reportedly are worth nearly $14 million, but the property management plan does not disclose the value of the parking lots. That’s significant because the state wants to build Modesto’s new courthouse atop the 10th Street parking lot and on the block around it.
The Modesto Redevelopment Successor Agency’s Oversight Board will consider approving the 22-page property management plan at its meeting at 10:30a.m. Thursday.
Provisions for paying off the defunct agency’s nearly $129.7million in debt are not part of this plan. That debt includes nearly $77.7million in unpaid loans from the city of Modesto.
The state Department of Finance will have final say over how the agency’s assets are divided. The proposed property management plan is what Modesto’s city staff recommends be done.
Here are the properties being considered:
Modesto Centre Plaza – This community center at 1150 Ninth St. is estimated to be worth more than $4million. It generates an estimated $744,000 in revenue per year.
“The city of Modesto desires to take ownership of this property and the accompanying catering agreement ‘as is,’ as it is already responsible for the management of the agreement and the operations – including maintenance – of this facility,” the plan states.
Ninth Street parking garage – This 787-space parking facility is at 1125 Ninth St., across from Centre Plaza. It was built in 1988, and its estimated value is a little more than $1.7million. Even though the garage is larger than the 11th Street garage, the property management plan calculates it is worth only one-quarter as much, based on “straight line depreciation on fixed assets.”
The garage generates a little more than $175,000 in revenues but costs more than $300,000 to maintain per year. “In addition, this property shares in the debt service payments with the Modesto Centre Plaza and the Ninth Street pedestrian bridge – this annual payment is $1,961,450,” the plan states.
Ninth Street pedestrian bridge – This 703-foot-long bridge connects the parking garage to Modesto Centre Plaza. It was built in 1988. The plan states its value is unknown, but it costs $16,970 per year to maintain.
First-floor retail space at 1010 10th St. – This 26,984 square feet on the ground floor of the city-county office building is worth an estimated $957,000. It generates about $106,300 in revenues per year, but costs $63,000 for maintenance.
The debt payment on this property and the adjacent 11th Street parking garage is “a portion of $1,353,104” per year, according to the property management plan. The plan does not state how big a portion of the debt is attributable to that retail space.
11th Street parking garage – This 727-space facility on the southwest corner of 11th and K streets is worth an estimated $7 million. It was built in 2001. It generates about $409,000 in annual revenue and costs more than $281,000 per year to maintain. Annual debt payments of $1,353,104 must be made on this garage and the adjacent space at 1010 10th St.
10th Street parking lot – This flat lot at 777 10th St. is at the corner of H Street on the block where the new Modesto courthouse is proposed. It generates more than $89,000 in revenue but costs nearly $42,600 to maintain each year.
The plan does not disclose how much the land is worth, even though an appraisal was done recently in conjunction with the state’s plan to buy the land. The property management plan proposes the land be transferred to the city of Modesto, which then could sell it to the state for the courthouse.
Ninth Street parking lot – This 19,040-square-foot parking lot between I and J streets generates nearly $31,000 in revenue but costs more than $16,000 to maintain every year. Its current value is not listed in the plan.
The oversight board meeting will begin at 10:30a.m. Thursday in Room 3135 at Tenth Street Place.
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