Los Banos presents industrial park project to Merced County leaders

An ambitious plan to build a “shovel-ready” industrial park in Los Banos was presented to the county Board of Supervisors by City Manager Steve Carrigan last week.

Carrigan stressed that Los Banos city leaders aren’t asking the county to help fund the project but that they want to form a working group with property owners and county staff to discuss the plan’s details. The proposed site for the 1,585-acre industrial park is on county land, at Interstate 5 and Highway 165.

The venture includes plans to relocate Los Banos Municipal Airport and use those 125 acres to build a new regional hospital. “Our current hospital has no room for growth and expansion, and to be honest, it’s tired,” Carrigan told the supervisors during Tuesday’s board meeting.

The airport would be moved to a 300-acre piece of land next to the industrial park, according to documents. The move would involve decommissioning the airport and relocating its runway, but the Federal Aviation Administration has been open to discussions, Carrigan said.

The entire proposal is expected to bring more than 10,000 jobs to Merced County, Carrigan said.

County Supervisors Deidre Kelsey and Daron McDaniel both commended Carrigan on the plan and the city’s “out-of-the-box” thinking to spur economic growth in Merced County.

“The rest of the county can look at this as an example,” McDaniel said Tuesday. “Even if this project doesn’t go through, it starts the conversation.”

However, the project has a few glaring challenges, Carrigan told the board, especially because the proposed industrial site has no utilities. Installing water could cost $5 million to $8 million, storm drainage could be up to $1.5 million, and wastewater ranges from $4 million to $6 million.

Despite the cost, the investment could pay off in a big way, Carrigan said. The project is expected to generate more than $5 million in annual property and sales tax revenue.

The finished project’s tax revenue would be split 80 percent for Merced County and 20 percent for Los Banos.

Carrigan said the proposed site is “the best piece of property on the West Side” because of its close proximity to Interstate 5. Carrigan said nearby cities are winning the race for jobs by having “shovel-ready” sites to attract large businesses.

Companies such as Amazon, Grainger and Restoration Hardware chose to locate in Patterson, while Cordes Ranch made its home in Tracy. “It’s happening in Tracy, it’s happening in Patterson,” Carrigan said. “We might be the next logical step.”

Los Banos Mayor Mike Villalta said the city has been working on the project for about a year. The idea came from Carrigan, who joined the city staff in 2013.

“It’s a real carrot for Merced County, not just the West Side,” Villalta said Thursday. “With the county’s unemployment rate as high as it is, it would be a benefit to everyone in the county. If you look at the spot where this project is located, no one has such easy access on and off I-5.”

This story was originally published January 17, 2015 at 8:58 PM with the headline "Los Banos presents industrial park project to Merced County leaders."