Steakhouse was planned for former downtown Modesto bank. This agency will occupy it instead
A notable building in downtown Modesto will be the new home of the Stanislaus Council of Governments, which oversees transportation funding in the county.
Its board voted 9-3 on Wednesday night to purchase and remodel the property at 833 Tenth Street for about $6.6 million.
It was a bank for several decades and then revamped in 2019 for a high-end steakhouse. That plan did not go through, but the building has continued to be a venue for catered gatherings.
The new location means a more prominent presence for StanCOG, which has a nondescript entrance to its leased space on I Street. Access will be easier for disabled people.
Most of the money passing through StanCOG goes to maintaining or expanding roads. But an increasing share supports buses, passenger rail and street work that eases bicycling and walking.
The new headquarters is just a block from the Ninth Street hub for buses operated by the Stanislaus Regional Transit Authority. At its heart is a remodeled 1915 train depot that could serve the expanding Altamont Corridor Express as soon as 2026.
StanCOG also promotes new housing close to stores, transit stops and other destinations. This is part of state and federal efforts to ease climate change while reducing driving costs.
Concrete, glass create Modernist look
The Tenth Street structure 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 is one story with a high ceiling. It also has a mezzanine reached by a curving staircase.
The building opened in 1965 as Modesto Savings and Loan. It became World Savings and then Wachovia Bank over the ensuing decades.
Oakdale-based entrepreneur Jaime Jimenez bought the empty building in 2018 for about $1.4 million. He planned to open W. Stuart C. Steakhouse, named for his Scottish great-grandfather.
The COVID-19 pandemic upended those plans, Jimenez told The Modesto Bee in 2022. He said he hoped that the steakhouse would still pan out someday.
The event space was first called Venue 833 but goes by Dazz Event Center under the current lease. It offers various menus, along with alcoholic and other drinks, for weddings, corporate gatherings, fundraisers and more.
StanCOG’s plans for the building
StanCOG plans to extend the mezzanine into a full second story and install an elevator. The lobby and boardroom will be on the ground floor, along with some of the staff offices.
The agency coordinates road and transit funding from state and federal sources and the Measure L sales tax approved by county voters in 2016. A tiny fraction of the total goes to StanCOG’s administrative costs, including offices.
The current space has about 6,100 square feet, 20 work spaces and a boardroom, said Cindy Malekos, director of administrative services. The new site will provide about 12,500 square feet. StanCOG plans to rent out part of it until needed due to staff growth.
Malekos said the agency has annual expenses of about $130,000 for rent and $40,000 for utilities and off-site parking for employees. The larger site is expected to have about $96,000 in utility costs. It has its own parking lot.
The current space is atop a three-story building with the Fox Pub and other businesses on the other floors.
Cost of move raises concern
Dissenters cited the cost to buy and remodel the property for StanCOG’s use.
“I have no question we need a new spot,” County Supervisor Terry Withrow said. “I just don’t think this is it.”
Supporters said the purchase would save money in the long run compared with the StanCOG’s leased space. It has been at 1111 I Street since 2009.
The lease there runs through June 2026. The owner of the future building has rented it through December to Dazz Event Center. 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. About $2.5 million of the costs will be through a 10-year loan at about 5% interest from Oak Valley Community Bank. The rest will come from the agency’s reserves.
The 2018 sale price is less than half what StanCOG is paying for the building, but Jimenez upgraded it substantially. He removed asbestos and redid the flooring, electricity, lighting, heating and cooling.
The property was valued at $3.45 million in an appraisal done in December for StanCOG. That is $100,000 more than the negotiated price.
Two Modesto members join dissent
The board includes all five county supervisors, three Modesto representatives 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 weigh in on the idea. Councilman David Wright questioned the price.
The board has 16 members, but only 12 were on hand for Wednesday’s vote. The purchase got support from county supervisors Vito Chiesa and Buck Condit, Modesto Councilman Eric Alvarez, Ceres Mayor Javier Lopez, Turlock Councilwoman Pam Franco, Riverbank Mayor Richard O’Brien, Hughson Mayor George Carr, Waterford Mayor Charlie Goeken and Newman Councilman Scott Ball.
