Merced weighs hiring economic development specialist

A couple of new options to ramp up economic development are on the Merced City Council’s radar, as the Valley’s economy continues its slow recovery.

To that end, the council’s weighing its need to hire a new employee for the Economic Development Department as well as to start prepping an industrial park for developers. But those are just some of the city’s many goals for new programs in the next fiscal year to improve unemployment, public safety and the quality of life. And there’s only so much discretionary money to go around.

Adding the necessary infrastructure to prepare the University Industrial Park would cost about $16.6 million. The more than 700-acre park is just east of Campus Parkway and south of Highway 140.

City Manager John Bramble said the money the city fronts to prepare the industrial site can be paid back by developers who move into the park. He also noted that the city may be able to use water and sewer funds to develop the land.

Mayor Stan Thurston said the city needs to start chipping away at the industrial park’s sewer, water, electrical and other utility needs. “Obviously there’s a risk of not getting paid back until there’s a user who’ll pay, but I guess that’s called an ‘investment by the taxpayer,’” he said.

The council’s looking for ways to create jobs in the city with a jobless rate of 12.7 percent, according to the most recent numbers from the Employment Development Department.

Another option to spur growth would be the hiring of a new economic development employee at a cost of about $79,000 a year. There could be about $750,000 in discretionary money from the general fund in the coming fiscal year, according to city staff, which could be used for the new staffer.

Frank Quintero, director of the department, said the new staff member, called an economic specialist, would increase the economic development team in Merced to three members. He said the overwhelming majority of the department’s time is spent on trying to attract new business.

Adding a third staffer could help the department respond faster to inquiries from developers. “(Timing’s) becoming such a critical factor,” Quintero said. “Other communities are really focusing on response time.”

Responding faster to those inquiries could make the city more competitive in attracting new development.

The economic specialist could also expand the effort the economic development team puts into helping existing businesses expand in town, he said.

Where an economic specialist fits on the list of priorities is yet to be seen in Merced, as police and fire officials are also looking to add to their crews. City staff has identified other areas of the city in need of extra help, including the departments that handle park maintenance, finance and animal control, among others.

This story was originally published February 24, 2015 at 4:22 PM with the headline "Merced weighs hiring economic development specialist."