It will be located in North Merced in the middle of Bellevue Ranch at M Street Circle and Bellevue Road.
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This public transportation infrastructure will benefit many in the community, including students like Allen Young.
"I used to have to walk back and forth from school every day but now, they have the bus the M4 and it's really convenient," he said.
It's also convenient for people who may use public transportation as a Plan B from driving their cars.
"I think it's very useful for anybody any ages, especially coming to the college," says Arturo Mendoza.
While there's already a main transportation hub in downtown, city leaders say there's plans in place for more residential and commercial property in the area.
This North Hub will also increase citywide and regional mobility.
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It will have 350 parking stalls with free parking - a big help for UC Merced students who may park in certain parts of North Merced neighborhoods.
"There are less cars in neighborhoods, less cars on campus, less miles to travel, just a more efficient transportation network," says Merced Mayor Matthew Serratto.
This project is federally funded by more than $1.6 million from the Congestion Mitigation and Air Quality Improvement Program, all to help reduce traffic congestion and improve air quality.
"When you look at that, you are seeing the future of Merced and the expansion of Merced in a very responsible way," says city engineer Mike Beltran.
The city expects the Hub to be operational and available for use in January of 2023.