West Park project is viable, studies say

Data projects 34,000 jobs, millions in tax revenue

By TIM MORAN
tmoran@modbee.com

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The PCCP West Park LLC development near Crows Landing would generate tens of thousands of jobs and contribute billions of dollars to the county's economy, according to new studies of the project.

For the first several years, however, the project would need to pay for the public services it will need.

West Park is the proposed 4,800-acre business and industrial park in and around the Crows Landing Air Facility southeast of Patterson. The development is anchored by a proposed short-haul rail system and inland port that would link it with the Port of Oakland.

The project has drawn opposition from many agencies and groups on the West Side. Objections include the size of the project, potential air quality problems, traffic, and train disruptions in Patterson.

Developer Gerry Kamilos is negotiating a master developer agreement with Stanislaus County. At its April 22 meeting, the Board of Supervisors is expected to vote on whether to proceed with the project.

The new studies, prepared by consultants for West Park and reviewed by an independent county consultant, were revealed Monday morning at a meeting of the Crows Landing Steering Committee.

They conclude that the project is economically viable and will generate jobs, tax dollars and other benefits for the county.

"This demonstrates that the project makes economic sense," Kamilos said. "We put into this an analysis of all the costs: agriculture mitigation, habitat mitigation, water and sewer, drainage. It's a 30-year horizon, not five or 10 years out. It's a three-decade program."

County Supervisor Jim DeMartini, who is chairman of the Crows Landing Steering Committee, remained skeptical, though he acknowledged that West Park officials had provided "a pile of information."

"Whether we believe it or not is another matter," DeMartini added. "I question the validity of it, and the impacts on the area."

Among the unanswered questions, DeMartini said, are where the water for the project is coming from, local air quality issues, and whether the job projections are realistic.

Supervisor Dick Monteith, who along with DeMartini sits on an ad hoc committee to negotiate a developer agreement with West Park, said the developer has provided "more than sufficient" information.

"I'm very satisfied with what they have presented. There may be disagreements on content, and there is additional work to do," Monteith said.

That work includes preparing a formal environmental impact report, with several public hearings plus reviews by multiple state agencies, Kamilos said. That process will take about two years and would begin immediately if the board gives West Park a green light April 22.

"The vote the county is considering on April 22 is certainly not a final vote for construction," Kamilos said. "Its purpose is to move to the next step."

According to the studies, the first phase of the project, which would include the 1,527-acre air facility, would require $251.7 million in infrastructure improvements. Those costs include road improvements, water and sewer services and a new fire station. They would be paid for with a combination of redevelopment property tax money; the formation of a community services district with a per-acre assessment; and cash from the developer, according to the studies.

Some findings from the studies, prepared by Goodwin Consulting Group of Sacramento:

West Park will cost the county $200,000 more for services in the first phase than the development generates in new taxes. At completion of the entire project, however, the county will take in $5.4 million more a year than West Park costs in services.

The first phase will include startup of a general aviation airport as well as the short-haul rail service. It also will include providing the community of Crows Landing with water and sewer service, at a cost of $9 million.

Public infrastructure -- roads, sewers, water supply and the like -- for the development will cost $251.7 million for the first phase, and $722.7 million for the entire project by the end of the 30 years. With county public facilities fees and school fees, the cost is $805 million. Road improvements are the biggest part of that cost, at $304.8 million for the entire project.

West Park will generate 34,000 permanent jobs at the completion of the project in 30 years. The number includes a 10 percent vacancy rate for buildings in the project. Another 3,000 jobs will be created during construction.

West Park will build a new fire station for the West Stanislaus Fire District, but operating the station will cost $1.5 million. A special assessment of $400 per acre within the development will cover the costs.

At the 30-year completion of the project, 50 million square feet of buildings valued at $6 billion will have been constructed.

The first phase will generate 8,400 jobs. The average salary of employees is estimated at more than $47,000 per year.

Bee staff writer Tim Moran can be reached at tmoran@modbee.com or 578-2349.