In May, Merced County official unemployment rate fell to 17.3 percent. -- Badlands
Dated
Merced County Economic Development Corporation
The New California
The Merced Region
http://www.mcedco.com/
Central California is increasingly viewed as a new location option for investors that wish to prosper in the state, but who are deterred by expensive coastal locations and large cities. Merced County typifies opportunities for growth and development in this "New California", offering an affordable alternative without compromising the advantages of a vast state economy, ranked fifth in the world.
Wealth generation opportunities are fueled by a state population in excess of 35 million, tremendous business diversity, extensive foreign trade, and unsurpassed productivity and innovation. The dynamic market and purchasing power, creativity and superb lifestyle combine to make California one of the most desirable places to live.
The cities and county of Merced collaborative Economic Development Strategy reflects a strong team approach. The region’s young and dynamic population of 251,000 is one of the fastest growing in the nation.
The economic base of the Merced region reflects the $2 billion annual agricultural output, yet Merced Region’s manufacturing operations also include commercial printing, automotive parts, construction suppliers and materials, and the world’s finest competition watercraft.
Merced is home to the newest campus of the University of California system. UC Merced opened in the fall of 2005 with a curriculum focused on research, engineering and the environment. The influence of improved education facilities is already impacting Merced as students scores continue to improve.
Castle Airport and Aviation Development Center, with one of the longest unimpeded runways on the west coast is ideal for cargo, couriers and aviation businesses. The former home of a squadron of B-52’s, Castle can accommodate any craft with non-stop access to and from Asian markets.
Governor Schwarzenegger has proclaimed that California is again open for business. On behalf of the Merced Region we invite you to visit "New California" and explore countless opportunities that our community offers.
6-18-09
BusinessWeek
Merced: Ghost Town, USA
http://www.businessweek.com/magazine/content/09_26/b4137038265539.htm
Some cities, such as Merced, Calif., are struggling more with the housing crisis than others The housing crisis is creating ghost towns of once-bustling communities like Merced. In largely abandoned neighborhoods, paved sidewalks and driveways lead to empty lots strewn with utility coils. Unfinished frames with rotting rafters and rusted hinges sit alongside occupied homes. Roughly 40% of the homes in Merced are considered distressed, meaning owners are behind on their mortgage payments or can't make them at all. The toll is expected to rise, even though California extended its moratorium on foreclosures for another 90 days.
Merced, situated in Central California's San Joaquin Valley, is an extreme example of what's happening across the country. As the economy tanks, foreclosures are soaring. Roughly one out of four subprime mortgages nationally is in trouble. Even so-called prime borrowers, who had good credit when they got their loans, now are having trouble keeping up; about 5% of these loans are in foreclosure, up from less than 1% in 2007, according to the Mortgage Bankers Assn. Rates are even higher in cities like Merced, Fort Myers, Fla., and Bakersfield, Calif., where the bust has been brutal.
Such markets will continue to suffer as they work through the inventory of foreclosed properties. In Merced, property values have dropped 70% in some cases. With banks and borrowers dumping distressed homes, prices could fall by 12.7% more, according to Karen Weaver, a Deutsche Bank (DB) analyst. Merced, say analysts, will hit bottom by mid- to late 2010—after the rest of the country. In places like Bloomington, Ind., and Fayetteville, N.C., where homeowners are in better shape, the markets should be more resilient.
Foreclosure does present opportunities: Buyers and investors are scooping up distressed properties at cut-rate prices. Those purchases are helping jump-start sales in hard-hit states like California, Nevada, and Florida—the first signs of life in otherwise moribund markets. Jillian Mendoza, a high school teacher in Merced, bought her first home out of foreclosure in September. She paid $143,000 for the three-bedroom home, which the previous owner had bought for $325,000 several years ago. "I never thought I'd be able to buy a house at 25," says Mendoza. "I got such a deal on it that I'm not that worried about it losing value."
Like many former boom towns, Merced is paying the price for unsustainable growth. The University of California announced in 2001 that it would open its first new campus in more than 40 years on 84 acres in northern Merced. In anticipation of the potential demand, builders flocked to the area, and real estate investors bid up prices.
But they were overly optimistic. The school projected only modest admission rates and faculty hires—and housing supply far exceeded demand. Now the market lies in ruins, as unemployment tops 20%. Says Janet Young, assistant chancellor at UC Merced, which opened in 2005: "The housing boom was a huge surprise to us."
6-19-09
News From…
Congressman Dennis Cardoza
18th Congressional District of California
Financial Services Committee commits to assist with Valley economic devastation
FOR IMMEDIATE RELEASE
CONTACT: Mike Jensen
(202) 225-6131
http://www.house.gov/list/press/ca18_cardoza/PRFINCOMIT.html
WASHINGTON, D.C. — Today, Financial Services Committee Chairman Barney Frank and several other Committee members pledged their support to work with Congressman Cardoza to address the economic devastation facing the San Joaquin Valley.
“I could not be more appreciative of Chairman Frank’s support. We have overcome a significant hurdle,” said Congressman Cardoza.
Congressman Cardoza has proposed legislation that would establish Economic Disaster Areas as a means of directing federal aid to areas that have been hardest hit by the recession.
On Friday, the Financial Services Committee heard testimony from Congressman Cardoza, as well as Los Banos Mayor Tommy Jones, about the cumulative impact of record-high foreclosure and unemployment rates, drought, and crashing dairy prices. Following the testimony, several members of the committee acknowledged the extreme difficulties faced by San Joaquin Valley residents. Chairman Frank expressed his commitment to working with Congressman Cardoza to find a means of directing funding to the region.
“We are going to make a serious effort to do this,” Chairman Frank announced.
Congressman Cardoza hopes to submit formal legislation within the coming weeks.
“We have much work to do,” said Congressman Cardoza. “However, today we made significant progress in educating Congress about our Valley, and our unique challenges.”
