Category: Economy

Central CaliforniaEconomy
By Amanda Chandler Economy • Quality of Life 0 Comments

New transit center to bring face lift downtown, expand service

Downtown Hanford is in for a major face lift by 2024, courtesy of a $20 million transit system which is about to enter the design phase. Angie Dow, director of Kings Area Rural Transit, said the organization has outgrown its existing transit center, an open-air transfer station on 7th Street between a gym and the Amtrak station.

A study looking at improving the existing location found that the railroad made the location too loud, restricted the movement of buses and, more importantly, prevented KART from expanding service into transportation “deserts.” “The new transit center will ultimately allow for growth of our transit system, which will be of tremendous value to a significant population of our city that are dependent on public transportation,” said City Manager Mario Cifuentez.

While some business owners in the downtown area were nervous when the project was announced, Brown said KART’s plans to match the historic look of downtown, keep 24-hour security and have mixed-use spaces could increase interest in filling vacancies in nearby buildings. “We want to hopefully engage other developments around us,” Dow said. “Transit is a place where we move people through … there’s a lot of movement. We’re trying to design a facility that’s more geared around being a place people want to be.” On top of incorporating commercial space, Dow said the new center is being designed to serve as a cooling center. She said the switch would help the city save money because the transit center’s hours match cooling center hours, and they’ll have more amenities which residents might want while waiting for temperatures to drop. Dow said the center will also include solar power generation, electric vehicle charging, park-and-ride lots, bike lockers, parking for ride-share services and connection to Amtrak and other regional transit services.

The center will allow KART to get feedback from riders more readily, as the administration building and transit center will be in the same place and they may be able to integrate more technology to survey the public, Dow said. Dow said the planning of the center is not yet complete and they are still looking into tenants and options to add affordable housing. Having a transit center near population centers, like the neighborhoods downtown, will make Hanford more attractive in competitive loan applications, she said. KART will be awarding a design firm contract on Wednesday, starting an 18-month design period. Dow said they expect the project to be completed no later than 2024. KART is looking to fund the construction phase with grants.

https://hanfordsentinel.com/news/local/new-transit-center-to-bring-face-lift-downtown-expand-service/article_df501389-70ba-552f-9713-ad197c5231f7.html

By Faughn Economy • New Developments 0 Comments

New apartments, houses proposed near Stanislaus State

More housing options could soon be on the way for prospective renters and buyers in town as plans to build more apartments and homes have been submitted to the City of Turlock.  In addition to plans already under review for an apartment complex on 20th Century Boulevard and approved blueprints for a gated community on 5th Street, developers are clamoring to take advantage of two more infill properties located on the north side of town. A proposal for an apartment complex on the corner of Monte Vista Avenue and North Walnut Road was received by the City last month, as were plans for a 32-home subdivision at the dead end of Crowell Road.

Florsheim Homes, which is developing the 5th Street gated community and also constructed the Rose Verde subdivision near Monte Vista Crossings, is hoping to subdivide the 6.5-acre parcel located at 4510 Crowell Rd. into 32 lots varying in size from 5,340 to 9,264 square feet.  While the site is currently home to Light of Christ Lutheran Church, which hosted a popular light show this past Christmas, the existing structure and other features of the lot will be demolished to make way for the homes, if approved. The church is still the property owner, according to the application, and a public hearing for the project will be held on Aug. 5.

If Florsheim is able to stick to the proposed construction schedule, the homes will be built beginning in May 2022 and completed by early 2023. The new builds come amid a housing shortage in California, which as recently as 2018 was ranked 49th in the United States when it came to housing per capita. Chris Hawke, who is hoping to develop the 348-unit apartment complex on Monte Vista Avenue, said that Turlock is in need of more housing and is also involved with the Fairbanks Ranch homes being built on Tuolumne Road near Denair.

While Hawke said both student housing and affordable housing models were considered for the proposed apartment complex, the project will consist of market-value apartments which he envisions being rented out by Stanislaus State employees, students and a mix of other community members. “We think it’s an exciting location just because of its proximity to the university,” Hawke said.

According to the project application, the apartment complex will consist of 12 three-story buildings with patios on the first floor and balconies on the second and third. Hawke said that the number of units, which is proposed at 348, could change as the process moves along.  Should the apartment complex be approved later this year, he expects construction to be complete on the project by 2023, as long as inflated labor and product shortages don’t interfere. There is not yet a public hearing date scheduled for the project. “I think there has been very little new apartment development in the city of Turlock, so it’s an opportunity for us to bring on a fairly large-sized project of apartments into the community,” Hawke said.
By Faughn Economy • New Developments 0 Comments

Major affordable housing project coming to Porterville

The Porterville City Council took swift action during its meeting on Tuesday on two matters that should substantially help deal with the issues of homelessness and providing services for the most vulnerable in the community. The council approved $20 million in financing to come through a state agency for an 80-unit affordable housing development to be located at 385 South E. Street. In addition, the council also approved a $175,000 grant for the Central California Family Crisis Center.

The Chicago based real estate company UPholdings is spearheading the affordable housing project. A representative from the company said the project is now fully funded and construction on the project is scheduled to begin in October. The company hopes to have the facility open by the spring of 2022. The Finca Serena Affordable Housing project will be located on 3 acres. The complex will also feature services to help those living in the development such as computers for job searching. Input was sought on what other services needs to be provided at the complex as well.

It’s planned for 40 of the units to be for housing the homeless and the other 40 units to be available to the general public. Those 40 units will be designed to be high quality, low income housing. The project is being termed as an Affordable and Permanent Support Housing Project. The project is the first of its kind in the Central Valley. Financing of the $20 million for the project is being done through the California Municipal Finance Authority which was created to help finance economic, cultural and community development and charitable causes in cities throughout the state.

The CMFA will issue $20 million in tax-exempt bonds for the project, which will be a multi-family rental housing facility for low-income households and to provide permanent, supportive housing for those experiencing homelessness and chronic homelessness. The city staff report stated “the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project.” The $175,000 grant awarded to CCFCC located at 211 N. Main comes a Community Development Block Grant funded by the federal CARES Act.

CCFCC stated as a result of the COVID-19 pandemic, it has had to reduce its in-person services, close its thrift store and has also sustained a reduction in grant funding. CCFCC said without the $175,000 grant it would have to reduce staff and cut additional services. CCFCC offers programs designed to meet the needs of victims of domestic violence, the homeless and their children.

https://www.recorderonline.com/news/major-affordable-housing-project-coming-to-porterville/article_316005e4-cf86-11eb-ab97-c355968f6067.html

By Faughn Economy • Quality of Life 0 Comments

Planned Merced ACE train reaches new milestone, bringing prospect of more tourism, new jobs

The long-anticipated Altamont Corridor Express train connection to Merced recently reached a new milestone, bringing the project another step closer to fruition. Last month, the San Joaquin Regional Rail Commission released a draft environmental report outlining details of the planned ACE Ceres–Merced Extension Project.

Once completed, the Merced region will be connected via rail with the Bay Area and the Sacramento airport. “It’s a phenomenal project,” said Merced Mayor Matt Serratto. “You can go straight to a 49ers game on that train.” The Ceres-Merced Extension is part of the Valley Rail Program — a larger vision of several ACE extensions north and south. Three other ACE-related Valley Rail projects are currently in development to expand the ACE service.

The railway, Serratto said, will help streamline the city’s broader visions for developing downtown Merced, long-term economic growth, and bolstering tourism. ACE train service at new stations in Merced, Livingston, or Atwater, and Turlock may kick off operations as early as 2025, according to the environmental report. Expansion to Ceres and Sacramento County could be ready earlier, by 2023. Before any building begins, the final environmental report will be published and certified by the end of the year. Construction is projected to start in 2022 and wrap up in 2024.

The project will result in 26 miles of new track, three stations, infrastructure upgrades, and a 140,000-square-foot downtown Merced maintenance and layover facility. The facility would support train layovers, storage, maintenance, and extension operations. The downtown Merced facility is especially exciting to local officials. The biggest thing about the project overall, Serratto said, is the jobs that the facility will bring to the Merced area. “We would anticipate jobs being created there,” said ACE marketing manager David Lipari. “All these activities really create an industry here in the Valley.” The Merced station would be built downtown between R and O streets and include 380 parking spots.

When the project finishes, Merced-area passengers riding for business or pleasure will board two-story trains furnished with comfortable seating, ample electrical plugs, WiFi, and bike parking, Lipari said. The public can review the report and provide comments through June 7. In addition to enhancing regional connectivity, Lipari said the increased train service would help the Valley’s rising population of residents get conveniently to and from work — without adding more polluting single-passenger vehicles to already traffic-congested roads.

Merced County and the City of Merced, in particular, have each recently been distinguished as hot spots of population growth. Meanwhile, many California cities outside of the Valley and the state overall are seeing residents leave. “As our communities continue to grow, we need to become better at planning our transportation outside of expanding highway capacity,” Lipari said. “It (the train) is a clean, efficient way to get to work.” Going to work has taken on a new meaning during the COVID-19 pandemic, with many employees still working from home rather than commuting to offices. Ridership on both ACE and Amtrak trains plunged as low as 5%, and some commuter services were cut. While numbers are now steadily increasing, there is still a long way to go to reach normal passenger levels. Reaching that threshold largely depends on when employers and counties still promoting remote work policies revert to in-office work. But a recent survey of over 500 passengers showed that 92% intend to return to riding the train once they also return to in-person work, Lipari said.

https://www.mercedsunstar.com/news/local/article251674683.html

By Amanda Chandler Economy 0 Comments

The Hottest U.S. Rental Markets: Mid-sized Hubs Take the Lead in Competitivity

Following one of the most disruptive periods of our times, at the start of 2021, the most in demand locations for renters were certainly not the ones you would expect. 

When trying to assess the competitiveness of our country’s 125 largest rental markets, we found mid-sized markets like Central Valley, CA, Spokane, WA, and Boise, ID were the most sought-after this past quarter. These emerging renter hubs share a similar story, attracting renters from larger metros with a mix of cheaper, slower living and a growing number of opportunities. Coupled with a shift towards remote work, the nation’s mid-sized renter hubs were poised to get a boost in the first quarter of the year. 

“The largest markets and surrounding exurbs show renters are distinctly looking to get more square footage or more amenities for the same price, within these hubs and close to them. Residents from large gateway markets are “trading up”, and with work-from-home policies, exurb locations close to these areas are also benefitting from this behaviour.” says Doug Ressler, manager of business intelligence at Yardi Matrix. 

To rank the hottest rental markets in the nation, we looked at the most revealing industry metrics when it comes to competitivity: 

  • what percentage of apartments were occupied
  • how many days rentals were vacant   
  • how many prospective renters competed for apartments 
  • the rent price trend  

On a national level, U.S. apartments were vacant for an average of 39 days during the first quarter of 2021. 94% of rentals were occupied during the time period, with an average of 11 renters competing per apartment. The rent trend score was 20 in the first three months of the year, showing slight growth.

https://www.rentcafe.com/blog/rental-market/market-snapshots/rentcafe-market-competitivity-report-april-2021/

By Amanda Chandler Economy • Energy 0 Comments

Bakersfield looks to add 30 electric vehicle charging stations throughout city

The Bakersfield City Council is poised to dramatically expand the number of electric vehicle charging stations available on public property. At Wednesday’s meeting, the council is scheduled to vote on an agreement that would add 30 ChargePoint charging stations to six city-owned areas of Bakersfield, including the 18th Street and Eye Street parking structure. That’s a big jump from the four city-operated charging stations currently operating out of the Amtrak Station downtown.

There are 71 charging locations throughout Kern County, with 42 in Bakersfield, meaning the six proposed locations would increase the total by around 15 percent. However, those locations are in places like hospital parking lots and car dealerships, potentially unavailable to the general public. If approved, the new charging stations would be installed at The Park at Riverwalk, the parking lot across the street from Cal State Bakersfield on Stockdale Highway, City Hall South, Mechanics Bank Arena, McMurtrey Aquatic Center, and the downtown parking structure.

Unlike the Amtrak electric vehicle charging stations downtown, the new additions will be Level 2 chargers, which charge faster than Level 1. The city is taking advantage of funds provided by the San Joaquin Valley Air Pollution Control District and the California Energy Commission to complete the proposal. The $266,000 combined will fund around 80 percent of the project. The funding is just one part of a state plan to put more electric vehicles on the road. California has a goal of 5 million zero emission vehicles on the road by 2030 and 250,000 charging stations by 2025.

As more and more funding becomes available for zero transmission projects, these proposed charging stations could be just the beginning. “It’s going to really expand. We are talking with different privately-owned gas stations that are interested in putting them in,” said Linda Urata, a regional planner for Kern Council of Governments who focuses on electric vehicles. “You’re going to see huge growth in the next two years.”

Lately, charging options have increased for electric vehicle owners. In January, the state Department of Transportation opened nine new stations throughout the Central Valley, including one at the Tejon Pass and in Delano and the city of McFarland recently held a groundbreaking ceremony for a new station. More are planned for cities such as Arvin, Wasco and Shafter. But questions remain about how popular the charging stations will be. Kern COG Executive Director Ahron Hakimi described demand for the products as a “chicken and egg” scenario. Consumers may be more liable to buy an electric vehicle if more charging stations were available, but more charging stations might not be built without the purchase of more vehicles. “In the three years that I owned the Chevy Volt, I think I charged it, other than home, less than five times. That gives you an example of how many chargers are out there,” he said. “If we want as a society more EVs, than we absolutely have to invest in more places to charge.”

The city plans to watch how often each charging station is used to determine if more are necessary. “It’s a trial project,” said Assistant Public Works Director Stuart Patteson. “I’m sure they will get used. The intent is for them to be entered into whatever databases exist that direct people to EV charging stations, but until we have them in place for a while, it’s hard to say how well they will be utilized.”

https://www.bakersfield.com/news/bakersfield-looks-to-add-30-electric-vehicle-charging-stations-throughout-city/article_b4a0cdb4-a22a-11eb-9cf4-c73267a32dd6.html

By Amanda Chandler Economy 0 Comments

Site Selectors Guild Activity Outlook

The latest survey of the Site Selectors Guild views on site selection activity and trends is attached and I have a few comments. While I generally agree with the greater optimism, I’m more cautious and think that there are uncertainty and nuances to consider.

Guild members are much more optimistic today than in April last year, at the depth of the Covid-19 recessions and uncertainty, that companies will move forward with site selection projects. The pace and coverage of Covid-19 vaccinations is an obvious concern. Second, some projects, such as facilities with long planning and construction timelines and notably those tied to e-commerce such as data centers, e-commerce fulfillment centers, delivery equipment and others seem to have hardly paused. I spoke yesterday to representatives from California’s Central Valley who said that e-commerce fulfillment has been strong throughout in their area driven by access to LA and the Bay Area combined with available land and lower costs.

There is a difference between site selection activity and starting construction. Companies may resume their site searches, but at some time they have to weigh their views of future economic activity and demand for their products and decide whether to start construction or not. Increased activity is not the same as increased investment. We’ll see, but my feeling is that the second half of the year or early 2021is more promising for increase divestment.

I think that stabilization of FDI into the U.S. is more likely than growth. Greater predictability of trade and tariff policy and reliance on rules-based procedures will help confidence. But FDI into the U.S. also depends on pandemic control progress and economic stability in historical investment sources from the EU and other developed countries.

There will the continued pressure for reshoring and crating redundancy particularly in health care related industries where bottlenecks and delays were heightened during the pandemic response. However, supply chains are complicated, and many recent articles have pointed out that supply chains for products as diverse as bicycles and computers are concentrated in east and southeast Asia and this will constrain reshoring in the near term and likely longer. As the Economist noted recently: “Is a wave of supply-chain reshoring around the corner? Experience and evidence suggests they are stickier than you think.”

https://siteselectorsguild.com/news/site-selection-predictions-2021/

By Amanda Chandler Economy • New Developments • Quality of Life • Workforce 0 Comments

Migration has turned the Central Valley into a suddenly hot housing market

A dozen years ago, the sprawling subdivisions of San Joaquin County became a national symbol of the financial crisis: cul-de-sacs lined with foreclosed homes and half-built neighborhoods abandoned by bankrupt speculators. Now builders in places like Tracy, Lathrop and Mountain House have a new problem. They can’t build homes fast enough to meet the demand of families looking to relocate from the Bay Area.The pandemic-driven desire for more living space, coupled with the freedoms afforded by corporate work-from-home rules, is luring thousands of Bay Area families over the Altamont Pass to planned communities where homes are often bigger — and 50% cheaper — than they are in Dublin or Fremont or San Leandro. Nowhere is the trend more pronounced than River Islands, a 5,000-acre development on the San Joaquin River in Lathrop that includes 13 man-made lakes and miles of riverfront trails. Schools, ball fields, parks and fire stations make up a community that will eventually include 11,000 single-family homes and another 4,000 apartments and condos clustered around a new town center.

After selling 371 homes in 2019, River Islands saw a 57% increase in 2020, with 641 sales. And the share of its buyers relocating from the Bay Area jumped, from 55% to 76%. About 2,300 families have moved in so far, and there are 1,500 kids — a number expected to eventually reach 9,000, according to the developer. “Our builders have so much demand they have waiting lists,” said River Islands Development President Susan Dell’Osso. “They are basically doing custom builds for every home buyer.”

Data from the United States Postal Service backs up the claim that the out-migration from the Bay Area to San Joaquin County is picking up. Between March and November, at least 6,320 households moved to ZIP codes in San Joaquin County from one of these Bay Area counties: Alameda, Contra Costa, San Mateo, Santa Clara, San Francisco and Marin. That’s a 22% increase over 2019. Sales are also exceeding expectations at Tracy Hills, a 5,000-home development west of Lathrop, according to John Stanek, a partner with Integral Communities, the master developer. Tracy Hills sold 400 homes in 2020. The project opened in the late spring of 2019, so there is nothing to compare the sales to, but the pace easily exceeded expectations.

The out-migration to the Central Valley is being driven by the Bay Area’s astronomical home prices and the fact that builders have failed to create enough housing to satisfy demand. Neighborhood opposition to development is widespread, and Bay Area developers often spend years bogged down in lawsuits before winning approvals. Homes at River Island average about $225 a square foot, compared to $375 in Hercules, $506 in Livermore, $533 in San Leandro and $711 in Fremont.

While many of the new residents are currently able to work from home, the danger is that remote employment may not last and that the Central Valley influx will worsen the environmental issues the Bay Area has been grappling with for years — clogged freeways, marathon commutes and cars pumping even more carbon dioxide into the air, according to David Garcia, policy director for the Terner Center for Housing Innovation. A 2019 study by the Bay Area Economic Institute found 80,000 commuters drive between the northern end of San Joaquin County and the Bay Area, an average of 120 miles, 75% of them alone in a car. “Traffic was very bad before COVID, and may be worse after COVID,” said Garcia, who was raised in Stockton and used to make the 2 ½-hour commute to Berkeley. “Having the Central Valley be the Bay Area’s affordable housing option is not an optimal outcome.”

Virgra Banaag, who goes by the name Bing, said that she was not really in the market for a new home when she checked out River Island while visiting her sister nearby. Her family of four — her husband is an electrician and her kids are 7 and 13 — were living in Hercules and had expected to stay. When she toured an open house in River Islands, “the house called to me.” They decided to move. “I had never even heard of River Islands before, and now everybody wants to live here,” she said. “It’s the talk of my friends right now.”

Leslie and Chad Bourdon moved to River Islands with their two kids just a few months before the pandemic hit. They had previously lived for 13 years in San Francisco and four years in Marin. Chad Bourdon is a co-owner of 25 Lusk, the fine-dining establishment in downtown San Francisco. Leslie Bourdon said they had been looking for a year for a house that had good schools and enough living space. Having grown up on Cape Cod in Massachusetts, she was drawn to the waterfront. The family put in a pool and have a private dock where they keep paddleboards, kayaks and a pedal boat. She said her Bay Area friends were surprised by the move. “You say ‘Lathrop,’ and people say, ‘Where is that?’ You say ‘Central Valley’ and people from the Bay Area cringe, thinking, ‘yikes.’”

Paul Jorge Dizon, a nurse who works at Kaiser Permanente, was paying $3,100 a month for his apartment in Hayward. He set out looking to buy something and quickly determined that on his budget, between $500,000 and $600,000, he could not afford anything in the Bay Area. In Tracy Hills he found a 2,500-square-foot house for $570,000. “You are away from the hustle and bustle of the Bay Area, but not too far,” he said.

Dean Wehrli, Northern California principal for John Burns Real Estate Consulting, said that River Islands is the best-selling planned community in the state. Wehrli said the influx has been driven by Silicon Valley workers who are more likely to be able to continue to work from home at least some of the time. “In the back of their mind, they are thinking that if they are called back into the office two or three days a week, it’s a terrible but doable commute,” he said. “Whereas Fresno or Reno or Boise are not.”

Newark-based mover Jose Martinez said about 20% of his business is Central Valley relocations, up from 10% a year ago. “Every time it’s always the same story,” he said. “Prices in the Bay Area are skyrocketing, and people find it easier these days to live in a home with bigger dimensions.” He is considering making a move himself. “I definitely have my eye on Manteca.”

https://www.msn.com/en-us/money/realestate/the-bay-area-migration-has-turned-the-central-valley-into-a-suddenly-hot-housing-market/ar-BB1emQvK
By Amanda Chandler Economy • New Location 0 Comments

North Fork Rancheria launches new business to support jobs, local economy

For Immediate Release: North Fork, California, January 28, 2021– During a time when the region has been impacted by the COVID 19 pandemic and devastating Creek Fire, a new business blossoms in the foothills of Madera County. In a continued effort to promote economic development for its tribal citizens and community, the North Fork Rancheria of Mono Indians of California (NFR or ‘Tribe’) is announcing plans to open an automotive shop in February of 2021.

The federally recognized Indian Tribe’s latest commercial venture will be located at the North Fork/’Old’ Mill Site at the corner of Road 225 and Douglas Ranger Station Rd. North Fork Rancheria Automotive Repair (NFRAR) will officially open its doors with a soft-opening ceremony scheduled for February 1, 2021. Due to the COVID19 Pandemic, a Grand Opening Celebration will be scheduled as soon as health experts determine it is safe to gather. New clients will be offered many service specials during February.

Tribal Economic Development

NFR Automotive Repair is a wholly owned subsidiary of the North Fork Rancheria Economic Development Authority (NFREDA), an unincorporated governmental instrumentality of the North Fork Rancheria of Mono Indians. NFREDA was established to improve the lives of Rancheria citizens by growing employment and business opportunities as well as funding sources for diverse tribal programs.

The new venture will generate new jobs and roughly $170,000 in new annual revenue for the North Fork area, providing local area residents a way to shop and invest locally. Proceeds from the operation will fund tribal social, training, and assistance programs for enrolled citizens, further benefiting the surrounding community.  “The Tribe is proud to be a long-standing partner in developing Eastern Madera,” said Elaine Bethel-Fink, NFR Tribal Chair, “especially in a key service industry like this that is underserved locally.”

NFR Auto Repair is not the NFREDA’s first business venture. In 2019, NFR opened the Nim Nobe General Store, located at 32555 Way Up Way in North Fork. Lacking any casino funding, the Tribe has nonetheless managed to take the lead to build, expand, or refurbish numerous businesses and community assets, including a Tribal Headquarters Office, Community Center, Family Wellness Youth center, Volunteer Fire Station, TANF Social Services Building, Transportation & Training Center, Low-income housing, a water storage tank, Sierra Mono Museum Expansion and Renovation, and future Cultural and Environmental Protection Center. “This is what great tribal-local partnership looks like,” said Bobby Kahn, Executive Director of the Madera County Economic Development Commission (EDC), “and we look forward to more things to come.”

In keeping with the health concerns of the times, NFR Auto Repair personnel will take necessary precautions to maintain a clean environment.  Employees will wear gloves.  Steering wheel covers, floor mats, and seat-covers will be used while operating customer vehicles.  Customers with access to computers have the option of touchless repair orders and invoicing. For more information find us on Facebook, and our google business site https://nfrautorepair.business.site

https://www.northforkrancheria-nsn.gov/north-fork-rancheria-launches-new-business-to-support-jobs-local-economy/

By Faughn Economy • Education 0 Comments

UC Merced generated $500M in one year for San Joaquin Valley economy, report shows

A report commissioned by UC Merced’s chancellor shows the university has generated thousands of jobs — and hundreds of millions of dollars — for the San Joaquin Valley’s economy. Conducted by international market analysis firm Emsi Inc., the campus’s inaugural economic impact report indicated a total of $514.6 million was contributed to Valley’s economy by the university in fiscal year 2018-19 alone, helping create 5,560 jobs. For Merced County, the university generated $372.9 million and 4,109 jobs. “Like the Merced community, UC Merced is a dynamic institution with change on the horizon as we grow and expand,” Chancellor Juan Sánchez Muñoz said in a news release.

The report looked at how salaries and spending shaped the community, plus how the university generated a return on investments to its major stakeholders — students, taxpayers, and society at large. Students — specifically off-campus students — spent money on groceries, accommodation, transportation, and other household expenses, which contributed $27.4 million to Merced County’s economy and supported 564 jobs countywide. UC Merced’s student population for fall last year was more than 9,000.

The benefits created by UC Merced extend to state and local governments through increased tax revenues and public sector savings. “The university’s reputation and activities attract visitors and students from outside Merced County, whose expenditures benefit county vendors,” part of the report said. “In addition, UC Merced is a primary source of higher education to Merced County residents and a supplier of trained workers to county industries, enhancing overall productivity in the county workforce.”

The university regularly encourages students to volunteer in Merced County, which allowed room for growth for business and organizations, according to the report. As a result, students added $243.9 thousand in earnings to the county’s economy, and student volunteers “generated $368,000 in added income for the county in fiscal year 2018-19,” which is equivalent to supporting 15 jobs. Alumni produced $11.4 million in added income for the county’s economy, which equates to supporting 132 jobs. “This means that one out of every 26 jobs in Merced County is supported by the activities of UC Merced and its students,” the report said. “In addition, the $372.9 million, or 4,109 supported jobs, stemmed from different industry sectors. UC Merced’s spending and alumni in the construction industry sector supported 1,785 jobs in fiscal year 2018-19. These are impacts that would not have been generated without the university’s presence in Merced County.”

Ultimately, the report said the university creates value from multiple perspectives, from benefiting county businesses through consumer spending and supplying qualified and trained workers to different job fields.

https://www.mercedsunstar.com/news/local/education/article248883934.html