Merced city manager issues challenge to county officials, who accept

Merced City Manager Steve Carrigan has turned up the heat on county officials, issuing a letter that accuses them of “standing in the way” of a $420 million development that would benefit the city and the county.

The letter, published Wednesday on the Sun-Star’s website and on Friday’s opinion page, urges county CEO Jim Brown and supervisors to break the deadlock on how to divvy up tax revenue.

Carrigan wrote that Merced County is blocking development of the Bellevue Corridor near UC Merced.

The $420 million project would bring 1,000 apartments, research and development campuses and retail centers to what is now grassland, Carrigan said.

“I have been trying to reach an agreement on revenue sharing with the county, and they refuse to respond to our last two proposals,” the letter said. “It’s your call, Merced County. What’s your answer?”

The lengthy statement was paired with an email invitation from Carrigan to Brown and supervisors for a meeting at the Greater Merced Chamber of Commerce at 1:30 p.m. Tuesday.

Without an agreement, the city cannot annex new land into city limits, which stunts development, specifically near UC Merced.

The dispute over the agreement lies in how each governing board wants to split property tax revenue, including money for fire services.

The city formally requested that the two parties pursue the mediation process in a letter to the Board of Supervisors in early May. The board decided to wait until county counsel James Fincher could answer legal questions before responding to the letter.

In his letter, Carrigan said the only information he received on mediation was what was printed in the newspaper. “Why is it we learn that the county is open to pursuing alternatives to mediation by reading it in the newspaper rather than hearing it in a phone call from the CEO?”

Brown responded to Carrigan’s letter in an email to the Sun-Star, saying he disagrees with how revenue-sharing talks have been characterized. “It’s unfortunate to see it being politicized,” Brown said. “We are having productive conversations with other cities on these agreements and would hope to be able to continue these efforts with Merced City as well.”

Hub Walsh, the board chairman, said he was surprised by the letter. “I’m pleased he sent the invitation over,” Walsh said. “I’m surprised he thought he needed to do it in the press.”

County officials agreed Thursday to attend Carrigan’s meeting. Walsh said it’s likely he and one other supervisor will attend.

“It’s my understanding that Jim will be there,” said county spokesman Mike North.

“We consider our proposal to share equally in all net revenues fair and equitable to both parties,” Brown said in an email. “Our proposal is in line with other Valley counties. We have a responsibility to reach an agreement that is fair to all residents across the county, and with Merced City being the greatest user of county services, we need to make sure that we’re diligent during this process and reach a reasonable agreement.”

Walsh said he’s happy to be back at the table without a mediator. “Like I said before, the way to get to a deal is sitting down and talking to each other,” he said.

This story was originally published May 26, 2016 at 5:39 PM with the headline "Merced city manager issues challenge to county officials, who accept."