Manteca’s sales tax receipts — the city’s second largest revenue source to fund day-to-day municipal services such as police, fire and street maintenance — dropped 2 percent last year.

The reasons?

*A shift in the consumer economy from retail spending to service-related concerns that aren’t taxable.

*The growing use of online ordering where the city of the point of sale/shipping — such as Tracy with its three massive Amazon fulfillment centers — pockets the local portion of sales tax paid.

*A somewhat skittish economic outlook from the perspective of consumers.

That’s what the sales tax consultants the city uses to analyze trends and project revenue for budgeting say is happening.

In Manteca’s case, however, city leaders say there is something else at work.

The city is on the verge of securing the type of retail and entertainment/dining experiences that will prompt buyers of the sea of new homes selling  for $700,000 plus with household incomes far exceeding the citywide median of $94,700 per US Census figures  to spend their money in Manteca.

A large chunk of the new surge of household disposable income is now being spent in nearby cities with a greater variety of retail and dining options as well as online shopping. As such, sales tax dollars help underwrite services in other cities and not Manteca.

Each and every one of the council members Tuesday expressed confidence as the year unfolds, Manteca will see a substantial wave of new retail, dining, and entertainment to open or else commit to locating in Manteca especially south of the 120 Bypass. 

Leading the way will be the Manteca Crossing project saddling Airport Way at Atherton Drive.

The first business on target to open in the coming months is the city’s second Chik-fil-A, a Quick Quack Car Wash, and Manteca’s second Dutch Bros drive thru coffee.

The western portion of the project is where Food-4-Less has committed to opening its second Manteca location in a 55,000 square-foot space.

There will also be 47,200 square feet of additional retail and restaurant space built.

Also coming is a four-story, 117-room Courtyard by Marriott hotel.

Preliminary site work has started on the eastern portion of the Manteca Crossing project.

The 18.4 acre site will include:

*A 30,942 square-foot car dealership with 108 parking stalls.

*A four-story Woodbridge Springs Suites hotel with 112 rooms and 137 parking stalls.

*Four restaurant spaces encompassing 13,900 square feet with 70 parking stalls.

*General retail space in five buildings with a combined 58,000 square feet along with 298 parking stalls. The largest retail space would be 23,000 square feet.

*A 2,500 square-foot convenience store with 12 fueling station

Less than a mile to the east at Union Road and Atherton Drive where Living Spaces is located, developers and city entitlement experts have been working with potential commercial endeavors interested in locating there.

Across the street, the new owners of Orchard Valley have been updating facades and aggressively marketing available retail space and restaurant pads.

That activity is in addition to a ground breaking this year expected on a bowling alley/entertainment center and a separate banquet facility complex along Atherton Drive midway between Airport Way and Union Road.

The 2 percent loss of sales tax in 2024 has been offset by an $800,000, one-time, adjustment payment on taxes collected that weren’t originally returned to Manteca.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com