Merced Developers Learn to Be Careful What You Wish For

For years, UC promised – but didn’t actually – to build a Central Valley campus. In many respects, the promise without the delivery was the best of worlds for UC when it came to the legislature.

Real estate developers throughout the Central Valley, and their legislative representatives, had dreams of a new campus sparking a development boom. After all, it worked when UCLA moved to Westwood. Decades later, it worked for Irvine. Why not in my area (or legislative district)?, they thought. UC could study various locations but be noncommittal about the final decision. That way, multiple hopeful legislative members could be UC supporters. Indeed, all political leaders in the Central Valley saw the prospect of a UC-induced boom in their locale.

But eventually, once the location decision was made – putting it in Merced - only one state assembly member and one state senator cared.

UC-Merced still promotes its potential impact on local development. See the video clip below. But the news item below, which appears to be a NY Times and Sacramento Bee joint report, indicates that Merced is a major center of foreclosures. The beneficiaries, the report indicates, are students who get to live in “under water” McMansions built on spec by developers for the boom that wasn’t. Excerpt:

MERCED – Heather Alarab, a junior at the University of California, Merced, and Jill Foster, a freshman, know that their sudden popularity has little to do with their sparkling personalities, intelligence or athletic prowess. "Hey, what are you doing?" throngs of friends perpetually text. "Hot tub today?"

While students at other colleges cram into shoebox-size dorm rooms, Alarab, a management major, and Foster, who is studying applied math, come home from midterms to chill out under the stars in a curvaceous swimming pool and an adjoining hot tub behind the rapidly depreciating "McMansion" they rent for a song. In Merced, one of the country's hardest-hit areas for home foreclosures, the downturn in the real estate market has presented an unusual housing opportunity for thousands of college students. Facing a shortage of dorm space, they are moving into hundreds of luxurious homes in overbuilt planned communities…

A confluence of factors led to the unlikely presence of students in subdivisions, where the collegiate promise of sleeping in on a Saturday morning may be rudely interrupted by neighborhood children selling Girl Scout cookies door to door. This city of 79,000 is ranked third nationally in metropolitan-area home foreclosures, behind Las Vegas and Vallejo, said Daren Blomquist, a spokesman for RealtyTrac, a company based in Irvine that tracks housing sales. The speculative fever that gripped the region and drew waves of outside investors to this predominantly agricultural area was fueled in part by the promise of the university itself, which opened in 2005 as the first new University of California campus in 40 years.

The crash crashed harder here. "Builders were coming into the area by the bulkload," said Loren M. Gonella, who owns a real estate company in Merced. "It was, 'Holy moly, let's get on this gravy train.' "…

With hundreds of homes standing empty, many of them likely foreclosures, students willing to share houses have been "a blessing," said Ellie Wooten, a former mayor of Merced and a real estate broker. Five students paying $200 a month each trump families who cannot afford more than $800 a month…

The university's free transit system, Cat Tracks, stops at student-heavy subdivisions. There are also limitless creative possibilities, with decor ranging from a Kappa Kappa Gamma sorority bedroom motif to an archetypal male nightstand overflowing with empty bags of Flamin' Hot Cheetos.

Not all neighbors are amused. "Everybody on this street is underwater and can't see any relief," said John Angus, an out-of-work English teacher who paid $532,000 for a house that is now worth $221,000. "This was supposed to be an edge-of-town, Desperate Housewife-y community," he said. "These students are the reverse."…

Full story at http://www.sacbee.com/2011/11/13/4050655/uc-merced-students-fill-mcmansions.html

Developers and under water homeowners are not the only ones paying the cost - and in a period when UC budget dollars are scarce. Perhaps some lessons might be learned from this episode, systemwide and locally.

From the UCOP-top-website-press-releases-as-of-today file

MERCED — Chancellor Dorothy Leland of the University of California, Merced, said today (Oct. 3) the 6-year-old campus has made significant contributions to the state through its innovative research and that more investment is needed for it to meet its promise to bring greater economic prosperity to the San Joaquin Valley, the fastest-growing region in the state…

UC President Mark G. Yudof, along with some 300 community members, formally welcomed Leland to the university during a ceremony today in the Carol Tomlinson-Keasey Quad…

With countries such as Saudi Arabia, China and India aggressively funding higher education infrastructure for research, Leland called on public and private partners to continue their investment in UC Merced so the campus can build more research facilities and teaching labs, hire additional faculty members and expand research related to public health and medicine, among other fields. "In short, what UC Merced needs now is for the state and federal government, business and industry leaders, philanthropic foundations and individuals to step up and invest in this young university's extraordinary promise to improve lives and bring economic prosperity to the valley," Leland said…

Full release at http://www.universityofcalifornia.edu/news/article/26414

In short, what she would like in resources is:

The Money Tree at the Fresno Bee

You probably don’t follow the editorial page of the Fresno Bee religiously. With that in mind, yours truly reproduces an editorial that appeared on it last week – without comment.

But before I do, you might be interested in the comment by state controller John Chiang regarding state revenues through the first quarter of the fiscal year and the possibility that the so-called budget “trigger” would be pulled – further cutting the UC budget:

"For better or worse, the potential for revenue shortfalls is precisely why the Governor and Legislature included trigger cuts in this year's State spending plan," Chiang said… "September's revenues alone do not guarantee that triggers will be pulled. But as the largest revenue month before December, these numbers do not paint a hopeful picture."

From: http://blogs.sacbee.com/capitolalertlatest/2011/10/california-revenues-miss-mark-in-september.html

EDITORIAL: Applauding support for UC Merced

Oct. 7, 2011

We're pleased that University of California President Mark Yudof confirmed in his clearest terms yet the system's commitment to support UC Merced as a premier research university. Yudof made the statement after the formal welcoming ceremony for Dorothy Leland, UC Merced's new chancellor. Even though it's the first research university built in the 21st century, UC Merced has gotten some rough treatment from old-line UC members who think the six-year old university is cutting into the diminishing UC funding. But Yudof reiterated the UC Office of the President's agreement for several million dollars to fund UC Merced's student and faculty growth. He called for the state to come through with more money for desperately needed buildings to accommodate surging enrollment.

Here's what's on the drawing board:

The Science & Engineering 2 Building is the next state-funded building planned. A lease-revenue bond sale is scheduled for next month. If funding comes through as planned, the university expects occupancy in late 2014. The Office of the President has agreed to provide $20 million (from general university funds -- no state resources or tuition) this fall for a student services building, which should be ready for use by fall 2013.

Construction of a fourth housing facility (non-state-funded) is slated to begin this fall for occupancy in 2013. External financing and other non-state resources have been secured to expand the existing Joseph Edward Gallo Recreation and Wellness Center this year. Occupancy is anticipated next fall.

By the time all those buildings are ready for people, UC Merced will have run out of space. So we urge the UC administration and state lawmakers to favorably consider additional funding requests to help UC Merced continue to grow.

http://www.fresnobee.com/2011/10/06/2567364/editorial-applauding-support-for.html

As they apparently say in Fresno, let there Bee money:

Where the Money Is?

From the Merced Sun-Star comes a reminder of Willie Sutton who said he robbed banks because "that's where the money is."

University of California at Merced Chancellor Dorothy Leland came to learn, not lecture, this week on Capitol Hill. It's crucial terrain, after all, that could prove critical to her success with the 6-year-old university. "This is not a visit in which I've come with a specific request," Leland said Wednesday, amid the hubbub of the Longworth House Office Building cafeteria. "It's important for me to form relationships."

…The first UC Merced chancellor, the late Carol Tomlinson-Keasey, regularly traveled to Washington, placing considerable focus on issues such as securing wetlands development permits from the Army Corps of Engineers. Leland, too, has growth on her mind. "We're going to have to break some logjams, if we want to develop in the future," Leland said.

Instead of wetlands permits, though, Leland suggested that she might be looking for federal tax provisions or other assistance. She cited, for instance a "new markets tax credit" bill backed by Costa, Cardoza and Rep. Jeff Denham, R-Atwater, which could aid the university as it expands.

Leland will be adding her voice, and her uniquely tailored Merced message, to the robust D.C. lobbying presence maintained by the University of California. The university reported spending $700,000 on federal lobbying last year, records show.

Read more: http://www.mercedsunstar.com/2011/09/22/2052803/uc-merced-chancellor-works-the.html

More on Take Your Med at UC-Merced

UC Merced chief finds support for med school

Jul. 21, 2011 / Yesenia Amaro / Merced Sun-star

There's overwhelming support for a medical school at University of California at Merced, the school's chancellor said Thursday during an editorial board meeting with the Sun-Star and The Modesto Bee. In the 20 days that Dorothy Leland has been on the job as leader of the university, she has been meeting with people with a stake in the campus.

"Medical education, that's probably the first thing out of everybody's mouth ... 'How's the medical school coming?'" …

Full article at http://www.fresnobee.com/2011/07/21/2473185/uc-merced-chief-finds-support.html

(Not sure I want the first thing out of everybody’s mouth. Bad taste, etc. But that’s just me.)

(Sorry about that!)

Med at UC Merced

UC Merced picks 5 students for medical training (excerpts)

Jul. 19, 2011, Yesenia Amaro / Merced Sun-star

The doctor is not quite in. But he's on the way. University of California at Merced on Tuesday announced its first group of five students in its medical program set to begin this fall. The new program to train doctors is intended to address the lack of physicians and health gaps in the San Joaquin Valley…

The UC Merced San Joaquin Valley Program in Medical Education (PRIME) was born out of a partnership program between UC Davis and the UCSF's Fresno facility. Students will spend their first two years at UC Davis. Their last two years will be spent working in clinics and hospitals in the Valley.

The program eventually will lead to the future development of a UC Merced School of Medicine…

Full article at http://www.fresnobee.com/2011/07/19/v-print/2470258/uc-merced-picks-5-students-for.html

Will Jerry Brown somehow/some day come up with the money? You have to believe!

Don't Stop Now: UC Merced to start work on building

UC Merced to start work on building

Yesenia Amaro, March 24, 2011, Merced Sun-Star

University of California at Merced officials say students will soon have more space to exercise and hold meetings… The university recently received approval to move forward with its Recreation Center North project, an estimated 20,000-square-foot recreation building.

Jane Lawrence, vice chancellor for student affairs, said the university received an $8.5 million loan from the UC Office of the President to pay for the construction. The university will repay the loan with an existing student fee. No new student fees will be charged.

The project consists of a two-story building that will be behind the existing recreation building. The facility will feature office space for recreation and athletic staff, and a large weight room…

Full article at http://www.modbee.com/2011/03/24/1614767/uc-merced-to-start-work-on-building.html

Don't stop now:

UC ax doesn't fall on Merced

UC ax doesn't fall on Merced: Regents hear about other campuses' struggles to slash expenses further (excerpt):

Yesenia Amaro, Merced Sun-Star, 3/17/11

University of California officials are preparing plans to meet the proposed "draconian" cuts the university system is facing. But UC Merced seems to have eluded the budget ax.

Those plans were discussed during the UC Board of Regents' regularly scheduled meeting at the UC San Francisco Mission Bay campus Wednesday.

UC President Mark Yudof last month assigned the 10 UC campuses target reductions or other actions to help meet the $500 million reduction proposed by Gov. Jerry Brown. The 23-campus California State University system also faces a $500 million cut. Cuts could be deeper if Brown's budget proposal doesn't pass.

UC Merced was the only university that wasn't assigned target reductions. Still, university officials say the young college will find ways to save money...

There's No Stopping Expansion at UC-Merced: Budget Crisis or Not

UC Merced marks site for $89m science building

Yesenia Amaro / Merced Sun-Star / 1-16-11

University officials, students, and local and state elected officials convened at the school's library on Friday for a dedication ceremony for the new $88.8 million Science and Engineering Building 2.

The 102,000-square-foot, three-story building will be located across from the Science and Engineering Building. The new building is expected to open its doors in 2014.

Chancellor Steve Kang said the new building "will allow UC Merced to continue to provide exceptional academic and research opportunities." ...

UC Merced was allocated more than $100 million from the state in its 2010-11 budget. Of that amount, $81 million will be used to construct the building.

The rest of the money for the building will come from the university's 2011-12 budget and other sources, including private donations.

Full article at http://www.fresnobee.com/2011/01/16/2235409/uc-merced-marks-site-for-89m-science.html

If They Build It (With Federally Subsidized Bonds), Someone Will Come

If only we could get the LA-area unemployment rate up higher, maybe UCLA could get some of those bonds. See below:

UC Merced turns to federal bonds (excerpt)

Jamie Oppenheim, November 23, 2010, Modesto Bee

MERCED — Merced County's recent classification as an economic recovery zone has been a boon to the University of California at Merced — making its future expansion more affordable. That could mean lots more construction jobs and a positive trickle-down impact on the area's economy. Merced County supervisors recently gave the OK for UC Merced to use low-interest recovery zone bonds, designated for areas with high unemployment, for the construction of a $49.7 million residence hall. Merced County supervisors declared the county an economic recovery zone in January, which allowed the university to qualify for the federal bonds, part of the American Recovery and Reinvestment Act…

John White, UC Merced vice chancellor for Capital Development, said the UC can get other types of bonds, but this was the most attractive financing option because it discounts the cost of financing significantly. Chin said the university may be the state's only public university that has taken advantage of these bonds… "We hope that this will go out to bid summer 2011," White said…

Full article at http://www.modbee.com/2010/11/22/1441003/uc-merced-turns-to-federal-bonds.html

Good idea:

Searching for Merced

Still expanding in Hard Times, UC-Merced needs a new chancellor. From a UCOP press release of 10/15/10:

University of California President Mark G. Yudof has named a committee of university faculty, staff, students, alumni and community representatives to advise him in the national search for the next chancellor of UC Merced. Russell S. Gould, chairman of the UC Board of Regents and a member of the committee, appointed five regents to serve.

Sung-Mo "Steve" Kang, who has been chancellor of UC Merced since March 2007, announced in September that he plans to step down on June 30, 2011. He will continue in his current position throughout the search process, and return to teaching and research as a member of the University of California faculty...

Named to serve on the advisory committee are:

• UC Regents Rex Hime, Sherry Lansing, Hadi Makarechian, Frederick Ruiz and Jesse Cheng;
• Faculty representatives Dan Simmons, chair of the Universitywide Academic Senate and UC Davis professor of law; Henry C. Powell, former chair of the Universitywide Academic Senate and UC San Diego professor, Department of Pathology; Evan Heit, chair of the UC Merced Academic Senate and UC Merced professor, School of Social Sciences, Humanities and Arts; Michael Colvin, UC Merced professor, School of Natural Sciences; and Martha Conklin, UC Merced professor, School of Engineering;
• Staff representative Erin Webb, president of the UC Merced Staff Assembly;
• Student representatives Katherine Harris, campus affairs officer, UC Merced Graduate Student Association; and Lamar Williams, president, UC Merced Associated Students;
• Alumni representative Josh Franco, former president of UC Merced Associated Students;
• UC Merced Foundation representative Josh Becker, chair of the foundation board; and
• Ex-officio members of the committee — President Yudof, convener of the committee; and Russell S. Gould, chairman of the UC Board of Regents.

http://www.universityofcalifornia.edu/news/article/24297

Strong funding for UC Merced

From the Merced Sun-Star, Saturday, Oct. 09, 2010

Strong funding for UC Merced included in state budget

UC Merced has praised the state for allotting more than $100 million to support the school.

The funding entails $81 million for construction of the Science and Engineering II building, $10 million in base funding for operations, $6.5 million for continued site development and infrastructure at UC Merced and $5 million in supplemental operating funds, according to UC Merced officials.

"We are very pleased that the approved state budget reflects the critical importance of higher education to the people of California," said UC Merced Chancellor Steve Kang. "We expressly thank Gov. Arnold Schwarzenegger, who has enthusiastically supported UC Merced since before the campus opening in 2005. His readiness -- along with the Legislature's -- to include these funds this year attests to their commitment to UC Merced and to the growing contribution this campus is making to the San Joaquin Valley and the state."

UC Merced spokeswoman Patti Waid Istas said the funding offered by the state was the amount the school had anticipated.

"This is a perfect example of us working with the state to accommodate more students and faculty," she said.

Construction on the Science and Engineering II building will begin this academic year and should be completed by fall 2014, she said.

Full article at http://www.mercedsunstar.com/2010/10/09/1603452/strong-funding-for-uc-merced-included.html

Not to worry!

UC Lobbyist Protests Regents Action on Tuition

An article appears today in the Merced Sun-Star about a student protest over rising tuition. It is not unusual for faculty members to join such protests over Regents actions. (The Regents raised tuition substantially last year.) But under the photograph above that accompanied the article, the caption reads:

SUN-STAR PHOTO BY MARCI STENBERG Bryant Ziemba, head lobbyist for UC Merced signs a banner against fee hikes Thursday, Oct. 7, 2010 afternoon, during a protest against fee hikes in the quad area in front of the Koolligan Library at UC Merced.

The head lobbyist for a campus protesting a Regents action is, well, unusual.

The full story with the photo is at http://www.mercedsunstar.com/2010/10/08/v-print/1601985/uc-students-say-enough-with-spending.html

Maybe it's a case of:

If You Build It, the Money Will Come Seems to Be Theory Behind UC-Merced Med School

UC Merced, Davis to train students in valley's clinics (excerpts) Modesto Bee

By Ken Carlson and Jamie Oppenheim
September 15, 2010, posted 9/16/10

UC Merced has entered a partnership with the University of California at Davis School of Medicine, which brings the university closer to establishing a medical school at the Merced campus.

In fall of 2011, the school will enroll six medical students in the partnership program.

For the first two years of the program, students will take classes in science and medicine at the University of California at Davis medical school campus. Their second two years will be spent getting clinical training in health care facilities in the San Joaquin Valley.

That means that by 2013, students should be working in area clinics.

Fred Meyers, executive associate dean of the UC Davis School of Medicine and executive director of medical education and academic planning for UC Merced, unveiled the plans Wednesday at the UC regents' meeting in San Francisco.

The program will draw on UC Davis' medical education and research programs, and one program in particular, the Rural Program in Medical Education, according to a news release from UC Merced.

Given today's economic climate, it is a cost-effective approach to starting a medical school that leverages resources and relies on the affluence of the UC system, Meyers said.

Students accepted into the program must qualify to be accepted into the UC Davis School of Medicine and express an interest in serving the San Joaquin Valley. The program wants students to have experience working with diverse populations in underserved communities.

"We are committed to students who want to improve community health in the area," Meyers said.

Applications to the program will be accepted until Oct. 1. The program already has 100 applicants, Meyers said.

Planning for the UC Merced medical school began before the school opened in 2005. It is viewed as important to expanding physician training in the Northern San Joaquin Valley, a region with a shortage of physicians and increasing demand for health care providers...

The partnership program drew some criticism at the UC regents' meeting.

UC Regent George Marcus warned UC Merced not to divert its attention too far away from its infrastructure.

But other UC regents lauded Meyers and UC Merced Chancellor Steve Kang for their efforts.

"I'm amazed you've come this far given the scarcity of resources," said UC Regent Eddie Island. "I urge you to redouble your efforts."

Full article at http://www.modbee.com/2010/09/15/1340923/uc-merced-davis-to-train-students.html

UC-Merced Med School: UC Budget Problems Not a Concern?

Richard III might have trouble getting a horse at UC-Davis thanks to UC budget woes - see the previous post. But if he fell off one at UC-Merced, he could get his injuries cared for at the new med school if grand plans continue to go forward.

From the Merced Sun-Star:

Friday, Aug. 13, 2010

Lawmakers support UC Merced med school Assembly members recognize need for doctors in Central Valley.

By JAMIE OPPENHEIM SACRAMENTO -- Members of the Valley Coalition for UC Merced Medical School and other UC Merced officials made the case for the need for a medical school in the Central Valley on Thursday to a handful of state assembly members at the school's 13th annual hearing at the state Capitol. But Assembly members didn't need any convincing.

"You're doing the right thing, this is critical for the state of California," said Assemblyman Joe Coto (D-San Jose). Coto said he supports the creation of the medical school not only because it would boost the economy in the Central Valley, but it would also increase the number of doctors serving the state. UC Merced Medical School proponents pointed out that by 2015 the state will have a shortage of 17,000 physicians. Once created, the UC Merced Medical School would serve nine counties in the San Joaquin Valley, a historically underserved area in terms of medical care.

In comparison to the rest of the state, the Central Valley has 31 percent fewer physicians and 51 percent less specialists, UC Merced officials said. Assemblywoman Cathleen Galgiani headed Thursday's committee hearing. Other members of the committee in attendance included eight assembly members from around the state. The purpose for the hearing was to inform state legislators of UC Merced's progress in terms of enrollment, curriculum and facility development and planning for a medical school. The target start date for the school is 2015, said Bryn Fornhan, chair of the Valley Coalition for UC Merced Medical School -- a group which began in 2008 with only 150 members and since increased to 1,000 members.

Full story at: http://www.mercedsunstar.com/2010/08/13/v-print/1528266/lawmakers-support-uc-merced-med.html

Music at:

UC Merced med school? Now?

Support for UC Merced med school grows: Valley groups want program despite tough times.

Posted at 12:52 AM on Friday, Jul. 09, 2010
By Barbara Anderson / The Fresno Bee

A proposed medical school at the UC Merced has overwhelming support in the San Joaquin Valley, with a growing coalition pushing to get money to build the school in tough economic times, a report released today shows.

"The Valley has embraced this project, this initiative," said Bryn Forhan, a Fresno businesswoman and chairwoman of the Valley Coalition for UC Merced Medical School.

At community meetings held last year in nine counties -- from San Joaquin to Kern -- participants cited doctor shortages and a need to train doctors for the Valley's diverse community.

Residents made recommendations on how a medical school at the University of California at Merced could meet the area's health-care needs, especially for patients from varied ethnic backgrounds.

The coalition planned to make its report public in a news conference this morning at the UCSF Fresno Center for Medical Education and Research. The report, titled "A Vision for the Valley," is partly an effort to educate the public about the proposed medical school, gauge community support -- and raise funds. The California Endowment paid for it.

The Valley has 31% fewer primary-care doctors and 51% fewer specialists per capita than the statewide average, according to the report. And more doctors will be needed to keep up with population growth, the report said.

"Without taking action, the doctor-patient ratio will become unsustainable," the report said.

Early steps already are being taken. Next month, plans will be announced for a pilot project involving six students. It will be a collaboration between UC Merced and UC Davis.

The next step would be to open a branch school at UC Davis by 2012. Medical school supporters want an independent school at the UC Merced by 2015.

A crucial step will be coming up with the money. Building costs could be as much as $75 million, according to estimates.

"This is important enough that we've got to find a way to fund it," Forhan said. And the coalition report should help, she said. "Having gone community to community and county to county and getting such widespread support, I think that in itself is a significant tool for us to move forward."

Since the coalition's start in 2008, it's grown from 142 members to more than 1,000, representing about 150 organizations from government, education, health, business and nonprofit areas, Forhan said.

The medical school has the support of Congressmen Dennis Cardoza, D-Merced, and Jim Costa, D-Fresno. Both helped form the coalition.

Cardoza said President Barack Obama's proposed federal budget includes $100 million for new medical schools. He'd like to see some of that go to the Merced project. "We have to see if we can get that through the process," he said in a telephone interview Wednesday.

Efforts to raise money in the community will be crucial, Costa said. A UC Merced medical school is competing for federal funds with other proposed medical schools, including one planned for UC Riverside, he said.

A medical school in Merced could bring money to the Valley, supporters of the school said. "Each year, over $845 million in health-care dollars leave the region to other areas of the state" and that amount reflects only four north Valley counties, the report said.

The economic climate makes advocacy for the medical school all the more important, said Pete Weber, a member of the coalition from Fresno County and a board member of the Regional Jobs Initiative, a public-private partnership working to increase jobs in the Valley.

There will be pressure to slow the project, "and we can't have that," Weber said.

A Medical School at UC Merced

“Loose Lips: How about a shorter name, please”

by Merced Sun-Star, Friday, Oct. 02, 2009

The Merced Sun Star published a short article last Friday on the process that appears to be leading to the building of a medical school at UC Merced.

Campus leaders said that with funds already received from the federal government, the next step is to establish an undergraduate program that “lays the groundwork for the medical school.” The name is the highly descriptive “Center of Excellence for the Study of Health Disparities in Rural and Ethnic Underserved Populations.”

The article pokes fun at the proposed name for this undergrad program but does not address the issue of building another medical school in this time of budget crisis both in the state and UC.