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:
“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.
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.
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.
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.
The oversight board meeting will begin at 10:30a.m. Thursday in Room 3135 at Tenth Street Place.