Taxes, veterans and marketing on Merced docket

A tentative tax-sharing agreement with Merced County from June has been finalized and will cross the desk of the Merced City Council on Monday, according to records.

The city of Merced has been working with Agoura Hills-based AMCAL Housing, which has plans for about $240 million in projects on three parcels of land across Lake Road from UC Merced. The apartments are to be built in four phases and the first part could be ready by fall 2018, according to developers.

Such development had been stalled while the city and county were in a tug-of-war over how tax dollars in newly annexed land should be split. The AMCAL project is just the first on the list of developers banging at the door.

The revenue-sharing deal, more than a decade in the making, was described by City Manager Steve Carrigan in June as “win-win” for the city and the county.

Reaching agreement on how the two bodies will divvy up tax revenue is crucial for the city of Merced to jump-start development in the Bellevue corridor near UC Merced. Much of the land around the campus is outside of city boundaries and the city cannot provide services such as police, fire and recreation until it annexes the area, a step that cannot win state approval without the revenue-sharing agreement in place.

Under the tentative agreement, funding to support firefighting would be shifted to the city. All general fund taxes would go to the city, but after a required allotment of money is directed to a state education fund, the city would keep 37 percent of leftover tax revenue while sending 63 percent to the county.

Overall, the city stands to collect about 53 percent of taxes and the county will collect 47 percent, officials have said.

The city must approve the agreement before the county Board of Supervisors will.

Also planned Monday are a marketing contract and one for an interim city attorney.

The first agreement, which would be with the Merced Main Street Association, is for $105,000. The association would promote the Merced certified farmers market, continue its facade improvement program, market the downtown core, support Merced Downtown Street Faire and support Merced Art Hop, among other promotional efforts, according to a news release.

On its consent calendar, the council is asked to hire an interim city attorney. The city’s contract with Jennifer McGrath, who was hired in March, was terminated in May by the Merced City Council, following a closed session discussion, staffers said.

The council also has scheduled a public hearing on a proposed plan to hang honorary “Veterans Boulevard” signs along M Street.

Merced City Council’s regular meeting is 7 p.m. Monday at City Hall, 678 W. 18th St. A study session is also planned before the meeting at 5:45 p.m.

This story was originally published August 14, 2016 at 3:29 PM with the headline "Taxes, veterans and marketing on Merced docket."