Tracy mayor highlights retail wins, new economic department and youth incentives in State of the City

Mayor Dan Areola used his State of the City address in Tracy to lay out a package of economic-development measures and community investments, announcing new retail and industrial projects, a restructuring of city permitting and economic services, and a policy proposal to attract youth‑oriented businesses.

Areola told attendees the city has reorganized its economic development functions into a single Community and Economic Development (CED) department and created a new land development engineering division to streamline plan review and permitting. "I am committed to cultivating a culture of transparency, collaboration, and trust," Mayor Dan Areola said, introducing the reorganized department and promising to cut red tape for businesses.

Why it matters: The mayor framed the initiatives as part of a broader strategy to retain and attract businesses, create jobs and expand retail and recreation options for residents. He tied economic development to measurable projects and private investments already under way in Tracy.

The mayor named several recent and forthcoming private-sector investments. He said city council approved an annex for a Costco facility that the city described as the first 100 percent renewable‑energy warehouse in Tracy and that the project committed to providing "over 250 prevailing wage careers with benefits for employees." He also noted the recent opening of BJ's Restaurant and Brewhouse (the mayor said the location has hired 220 employees) and cited a repurposed 17,500‑square‑foot facility by Sutter Tracy Community Hospital that now provides primary and urgent care exam rooms, labs, imaging services and about 15 physicians.

On retail, Areola said Trader Joe's has selected Tracy for a new store and announced an opening in summer 2025. "Trader Joe's has confirmed that it has selected Tracy as the location of its newest store," the mayor said.

The mayor highlighted local innovation in clean energy and manufacturing. He noted Heirloom, described in his remarks as "the first commercial carbon capture facility in the nation and fully powered by renewable energy," and said former U.S. Energy Secretary Jennifer Granholm and Lieutenant Governor Eleni Kounalakis attended Heirloom's ribbon cutting.

Parks and recreation projects cited by the mayor include a 61,300‑square‑foot, net‑zero multigenerational recreation center at El Pascadero Park (construction began in August 2024 and was described as a 24‑month program), a renewed plan for the Tracy Aquatic Center with community input (staff gathered more than 1,600 survey responses and will present conceptual plans to the city council on April 15), and recent ribbon cuttings for Jean Burke Park and Raymond P. Morelos Junior Park. The mayor also announced Ellis Dog Park opened five days before his speech, describing its nearly 2 acres of space and amenities.

Infrastructure and public safety: Areola told the audience the city laid 637 tons of asphalt in 2024, sealed about 30 lane miles of streets and installed over 5,400 feet of thermoplastic striping. He said the city secured a $41,300,000 grant from the U.S. Department of Transportation to support the Coral Hollow Road corridor project, which the mayor described as widening the corridor, replacing bridges over the California Aqueduct and Delta Mendota Canal, adding multimodal facilities and roundabouts, and improving interchange operations. Construction was described as set to begin in 2027; a specific final completion date stated in the address was garbled and is not specified in the transcript.

On public safety the mayor said the Tracy Police Department is fully staffed and described a new red‑light traffic safety program with camera installations at several intersections. He also noted the South San Joaquin Fire Authority, in partnership with Tracy, began construction of a new regional fire training facility expected to open for the 2026 training season.

Youth and engagement: Areola announced the Tracy Youth Activities Initiative, an economic‑development incentive program the mayor described as targeting businesses requested by young residents (for example, laser tag, roller skating rinks or escape rooms). He said the initiative "has been approved for a future council agenda." The mayor also described recent youth engagement efforts including a mayor's youth town hall, a student government day and an open summer internship program for students.

What the city will do next: The mayor named the CED department and the economic development strategic plan as the road map for implementing the described items, and he said staff will bring aquatic center findings to the April 15 city council meeting. The Youth Activities Initiative was described as pending further council consideration.

Ending: Areola closed by stressing transparency and partnership and asked residents to help shape a "new era" of progress for Tracy.