A notable building in downtown Modesto will become the new home of the Stanislaus Council of Government, which oversees transportation funding in the county.
The board voted 9-3 Wednesday evening to purchase and renovate the property at 833 Tenth Street for approximately $6.6 million.
It was a bank for decades and then was renovated into a luxury steakhouse in 2019. That plan fell through, but the building remained a location for catered meetings.
The new location means a more prominent presence for StanCOG, which has unobtrusive access to the leased space on I Street. Access will be easier for people with disabilities.
Most of the money that goes through StanCOG goes to maintaining or expanding roads. But an increasing share supports buses, passenger rail and street work that makes cycling and walking easier.
The new headquarters is just steps from the Ninth Street interchange for Stanislaus Regional Transit Authority buses. At its heart is a renovated 1915 train depot that could serve the growing Altamont Corridor Express as early as 2026.
StanCOG also promotes new homes close to shopping, transit stops and other destinations. This is part of state and federal efforts to mitigate climate change while lowering driving costs.
Concrete and glass create a modernist look
The Tenth Street building is admired by fans of modernist architecture, which rejects most of the decorative features of earlier styles. The exterior has concrete arches and large windows. Part of the interior consists of one floor with a high ceiling. It also has a mezzanine accessible by a curved staircase.
The building opened in 1965 as the Modesto Savings and Loan. It became World Savings and then Wachovia Bank in subsequent decades.
Oakdale-based entrepreneur Jaime Jimenez purchased the vacant building in 2018 for about $1.4 million. He planned to open the W. Stuart C. Steakhouse, named after his Scottish great-grandfather.
The COVID-19 pandemic upended those plans, Jimenez told The Modesto Bee in 2022. He said he hoped the steakhouse would one day succeed.
The event space was previously called Venue 833, but under the current lease contract it will be owned by Dazz Event Center. It offers various menus, along with alcoholic and other beverages, for weddings, corporate meetings, fundraisers and more.
StanCOG’s plans for the building
StanCOG plans to expand the mezzanine to a full second floor and install an elevator. The lobby and boardroom will be located on the ground floor, along with several staff offices.
The agency coordinates road and transportation funding from state and federal sources and the Measure L sales tax approved by county voters in 2016. A small part of the total goes to StanCOG’s administrative costs, including offices.
The current space has about 6,100 square feet, 20 workspaces and a boardroom, said Cindy Malekos, director of administrative services. The new location will cover approximately 12,500 square meters. StanCOG plans to rent out some of it until needed due to workforce growth.
Malekos said the agency has annual costs of about $130,000 in rent and $40,000 for utilities and off-site parking for employees. The larger site is expected to have approximately $96,000 in energy costs. It has its own parking space.
The current space sits atop a three-story building with the Fox Pub and other businesses on the other floors.
The costs of the move are a concern
Dissenters cited the costs to purchase and renovate the property for StanCOG use.
“There is no doubt in my mind that we need a new place,” said County Supervisor Terry Withrow. “I just don’t think this is it.”
Supporters said the purchase would save money in the long run compared to StanCOG’s leased space. It has been located at 1111 I Street since 2009.
The lease there runs until June 2026. The owner of the future building has rented it to Dazz Event Center until December. The agency plans to begin renovations in early 2025 and move in by mid-2026.
StanCOG will pay $3.35 million for its new building and an estimated $3.3 million for renovations. Approximately $2.5 million of the cost will be paid through a 10-year loan at an interest rate of approximately 5% from Oak Valley Community Bank. The rest comes from the agency’s reserves.
The 2018 sales price is less than half of what StanCOG pays for the building, but Jimenez has significantly upgraded it. He removed asbestos and renovated the flooring, electricity, lighting, heating and cooling.
The property was valued at $3.45 million during an appraisal conducted for StanCOG in December. That’s $100,000 more than the negotiated price.
Two Modesto members join the dissent
The board consists of all five county supervisors, three representatives from Modesto and one council member from each of the smaller cities. Withrow was joined in his dissent by two of the Modesto members. Mayor Sue Zwahlen said the public needed more time to buy into the idea. Councilor David Wright questioned the price.
The board has 16 members, but only 12 were present for Wednesday’s vote. The purchase received support from county supervisors Vito Chiesa and Buck Condit, Modesto Councilor Eric Alvarez, Ceres Mayor Javier Lopez, Turlock Councilor Pam Franco, Riverbank Mayor Richard O’Brien, Hughson Mayor George Carr, Waterford Mayor Charlie Goeken and Newman Councilman Scott Ball.
