The Downtown Merced Non-Profit Resource Center will open at Main and M Streets.
This community center will house several non-profit organizations which work with the United Way of Merced County, including the American Red Cross and the Youth Leadership Institute.
Another addition to the development is a certified community kitchen, which will also function as a full restaurant bar with training programs in the food services industry.
"We're really excited because this strip of downtown needs a food component, food and retail component," said Manuel Alvarado, CEO of United Way.
Construction for this project is set to be complete by the end of the year.
As it nears completion, the United Way will ask the community for help naming the community kitchen.