Where is new growth occurring? Where is there new subdivision activity?
In general, Merced's General Plan guides growth in a northerly direction, and this has been the area of greatest residential growth in the 1980's and 1990's. Several new subdivisions are located along the northern edge of the community. A major planned development of more than 7,000 units, Bellevue Ranch, was annexed in 1998 and will take more than 20 years to build out.

However, there is also substantial growth planned or in construction in southeast Merced, including a large residential annexation (Weaver) brought into the City in 1998.

How has Merced retail growth been in the past decade?
At a time when California was relatively stagnant in the early to middle 1990's, Merced retail expanded dramatically, with over 1.3 million square feet of retail added since 1992. Major entrants include Costco, Target, Walmart, Toys R Us, Orchard Supply, Home Depot, Circuit City, Marie Callender's, Chevys and others.

What is projected for the next five to ten years for Merced?
Two major trends will affect Merced retail and office development very positively over the next five to ten years: the development of the University of California, Merced and the increasing integration of Merced with the Bay Area economy.

UC Merced is already underway, with a rapidly growing staff and classes due to open in 2004. The campus will open with 1,500 students and is to build gradually to over 25,000. The University brings higher-paying jobs and the potential for different, more upscale retailing.

Not to be overlooked is the inevitable integration of Merced with other northern Valley communities into the greater Bay Area. Some already commute to jobs in the East Bay; this will increase as time goes on and commuter rails is extended into the Valley.

The combination of these trends has resulted in Merced being projected to have the fastest income growth in California over the next decade.

What particular opportunities are there in Merced for retail development?
The major retail growth over the last eight years has filled many niches in the Merced marketplace. However, clear opportunities still remain in the off-price apparel, books, sporting goods, pet supplies, and other specialty apparel.

Does the City encourage commercial development?
Yes, particularly within Redevelopment areas in the south and central Merced. More generally, the City supports commercial development which is a good fit with the City's General Plan.

What are City fees like?
City building fees and local school fees are at the low end, by California standards. Sewer and water fees are based on actual usage, but are usually not significant factors for retail and office developments. In 1998, the City adopted impact fees for traffic, public safety and other capital needs. These fees are low to mid-range by California standards, and are driven primarily by traffic generation characteristics of developments. Commercial development is not subject to park impact fees.

Upon request, City staff will provide you with a fee estimate for your specific project. This takes about three days.

What's the process for development of new commercial sites?
The City has areas designated for commercial development through its General Plan. In areas already "straight zoned" for industrial development, usually a Site Plan Review is required (staff process without a Planning Commission hearing). This will take from two to ten days, generally. In north Merced, most commercial sites are within Planned Development (PDs) and approvals require Conditional Use Permit (CUP) with public hearing before the Planning Commission. The typical CUP takes about five weeks.

The City encourages developers to contact us early to understand the process for any individual property.

Are there any special incentives available?
Yes. The City encourages commercial development within its Redevelopment Areas, which cover much of central and south Merced. Individually-tailored financial agreements are available in these areas. Some other areas in Merced are also within the Merced-Atwater Enterprise Zone, which offers certain state income tax benefits. The City also allows deferral of capital impact fees until time of occupancy, rather than upon issuance of building permit.

Is there a point of contact for new business?
It's probably good to start with the City's Economic Development Office. Staff are knowledgeable in the area of industrial development. Economic Development staff can serve as liaison with other City resources for you. Call the Department at 209/385-6827, fax us at 209/723-1780, or e-mail us.