📘 THE FULL GOVERNMENT-FORMAT CEDS DOCUMENT

(This is the format required by the U.S. Economic Development Administration, adapted for Merced.)

CEDS 2025–2030 — Merced County

A Distributed, Dual-Engine Rural Development Strategy

1. SUMMARY BACKGROUND

Merced County is a rural, majority working-class, majority Latino county composed of distinct communities:

  • Merced

  • Los Banos

  • Livingston

  • Delhi

  • Winton

  • Atwater

  • Dos Palos

  • Planada

  • Le Grand

  • Franklin–Beachwood

The county contains two major economic assets:

1. UC Merced — a federally funded research university with high R&D potential
 2. Castle Commerce Center — a major logistics and advanced manufacturing hub

Yet the county faces:

  • severe housing affordability mismatch

  • limited behavioral-health capacity

  • workforce shortages

  • small-business fragility

  • internal displacement pressures

  • inequitable infrastructure distribution in rural towns

  • low-wage employment patterns

A new CEDS must balance economic growth with community stabilization.

2. SWOT ANALYSIS

Strengths

  • UC Merced research & talent

  • Castle’s airfield and industrial zones

  • Agricultural heritage & supply chains

  • Diverse working-class labor force

  • Strategic location between Bay Area & Central Valley

Weaknesses

  • BHRS instability

  • Underinvestment in rural towns

  • Inadequate transit

  • Housing mismatched to local wages

  • Workforce gaps in trades and logistics

Opportunities

  • Water/Ag-climate innovation

  • UC Merced tech transfer

  • Advanced manufacturing at Castle

  • Renewable energy systems

  • Countywide apprenticeship programs

Threats

  • Outside displacement pressures

  • Bay Area income spillover

  • Climate/flood impacts on Eastside towns

  • Behavioral-health crisis

  • Small business closures during development

3. GOALS & OBJECTIVES

Goal 1: Community Stabilization Precedes Growth

  • Expand behavioral-health services countywide

  • Build stabilization facilities

  • Tie housing affordability to local wages

  • Improve rural infrastructure

  • Protect small businesses

Goal 2: UC Merced as a Countywide Innovation Engine

  • Create research-to-career pipelines

  • Expand community-based education

  • Integrate UC Merced with all towns

  • Create countywide tech-transfer benefits

Goal 3: Castle as an Industrial & Logistics Engine

  • Attract advanced manufacturing

  • Local hiring requirements

  • Create rural workforce ladders

  • Build trades & aviation tech programs

Goal 4: Agriculture + Science Integration

  • Ag-tech innovation in Los Banos, Delhi, Livingston, Dos Palos

  • Water-tech pilots

  • Climate & flood resilience

  • Strengthen small farms

Goal 5: Countywide Labor Partnerships (AFSCME + employers)

  • Create a Stability Compact

  • Expand apprenticeships

  • Establish wage floors tied to cost of living

  • Improve community-worker pathways

4. STRATEGIC PROJECTS

Project A: Rural Corridor Workforce Centers

(Los Banos, Winton, Livingston, Delhi)

Project B: Behavioral Health Expansion

Stabilization site + mobile crisis units

Project C: UC Merced–Castle Innovation District

Project D: Local-Hire Manufacturing Zoning at Castle

Project E: Eastside Resilience Infrastructure

(Planada, Le Grand)

Project F: Small Business Preservation Fund

5. IMPLEMENTATION PLAN

Year 1–2

  • BHRS audit

  • Housing ordinance reform

  • Create Rural Corridor Workforce Centers

  • Launch UC + AFSCME + Merced College workforce council

  • Begin UC–Castle Innovation Council

Year 3–5

  • Operationalize stabilization facilities

  • Expand Castle manufacturing zone

  • Begin Ag-Tech clusters in Los Banos and Livingston

  • Launch countywide digital apprenticeship platform

6. EVALUATION METRICS

  • Local hiring % increases

  • BHRS wait times decrease

  • Housing affordability index

  • Small business retention rate

  • R&D dollars secured

  • Eastside flood resilience upgrades

  • Workforce certification completions

7. ECONOMIC RESILIENCE

  • Disaster planning for Eastside

  • Water and climate innovation sector

  • Sustainable agriculture industry

  • Long-term funding for behavioral health

  • Anti-displacement housing policies