Merced approves new medical clinic, residences — but many details still in the works

A long-vacant property in north Merced that’s seen a series of unrealized projects come and go since the 1970s is on the verge of transformation.

Plans for the nearly 7-acre site at the corner of Loughborough Drive and Meadows Avenue received unanimous support by the Merced City Council on Tuesday. The currently empty field is envisioned as a new development that would create over 160 housing units, as well as a medical and dental clinic.

“We’re looking forward to a great project that’s extremely important to that neighborhood,” Merced Mayor Matt Serratto said Tuesday.

A procession of schemes that never came to pass left the north Merced parcel empty as apartments, businesses and other developments cropped up around it. Past plans included an elderly care facility, commercial buildings and town homes.

The current project was originally imagined as an affordable housing development in conjunction with the medical and dental clinic.

While the north Merced project is expected to include affordable housing, it’s still unclear whether some or all units will be affordable.

Affordable units have costs fixed so that lower-income occupants spend no more than 30% of their income on housing.

Many Merced residents have been vocal about building more affordable units to mitigate the city’s housing scarcity and lack of affordable options. They’ve been met with varying levels of support from electeds.

Earlier during Tuesday’s City Council meeting, scores of community members urged electeds to dedicate extra city dollars to affordable housing during Merced’s final budget talks. The 2022-23 budget just narrowly passed with a 4-3 vote due to the City Council’s split feelings toward spending local monies on affordable housing.

Some project plans still unclear

Plans for the north Merced project’s affordable housing component became uncertain when the original developer backed out and it was put on hold.

In April, the property owner purchased the development plans and informed city staff that the project could proceed. The property owner is working with another affordable housing developer, but a final agreement has not been reached. If an agreement isn’t made, the property owner will seek out another developer.

It’s possible that plans for the property could change as new deals take shape. The clinic could be developed at a separate time than the housing units, and those units might be market rate rather than affordable housing.

At the least, a resolution recently adopted by the City Council in April requires that a minimum of 12.5% of market rate units be designated for affordable housing. Some projects can be exempted at the City Council’s discretion.

Only time will tell if the project’s affordable housing plans will see a similar fate as the property’s sequence of other unfulfilled ideas going back decades.

As plans currently stand, the development is envisioned as a mixed-use project consisting of high density multi-family units neighboring the dental and medical clinic, according to preliminary planning documents.

The housing portion spans across roughly 5.6 acres. A combination of two and three-story buildings would consist of 68 one bedroom apartments, 48 two bedroom apartments and 45 three bedroom apartments, adding up to 161 units total.

The clinic would take up about 1.3 acres on a separate parcel from the apartments. It’s imagined as a 12,667-square-foot space with 15 exam rooms.

The project was initially intended to include both the apartments and clinic. Since the original developer is no longer involved, the project might be built as two separate projects. Other design elements could change, too.