Sacramento council approves implementation of Railyards term sheet, expands EIFD to finance stadium and central shops

The Sacramento City Council unanimously approved two resolutions Tuesday to implement the city's November 2024 term sheet for the downtown Railyards, expanding an Enhanced Infrastructure Financing District (EIFD) and authorizing the execution of definitive documents to move the project toward construction.

The package the council approved authorizes the city to finalize the master funding agreement and the infrastructure financing plan that will reimburse private parties and the city for certain site infrastructure and land purchases as new development occurs. Mayor McCarty moved the combined motion to approve items 1 and 2; Vice Mayor Talamantes seconded it, and the measure passed 9-0.

Why it matters: The votes advance a multi-decade redevelopment effort that city staff and development partners say is needed to build a commercially viable, mixed-use neighborhood around Sacramento Valley Station. Developers and the Wilton Rancheria have committed private capital to backstop major infrastructure work the city says it cannot fully fund on its own. Council and staff said the action is intended to accelerate construction of a 12,000-seat soccer stadium, the rehabilitation of the Central Shops, and other catalyzing projects that would enable additional housing, retail, health-care and office uses.

City staff framed the financing tool and the near-term effects. Marco Gonzalez of the City Manager's office of innovation and economic development said the 2016 plan for the Railyards and the 2024 term sheet together led to "final steps to implement the term sheet and for the projects to be under construction in earnest." Jamie Gomes of Economic & Planning Systems (EPS) told the council the EIFD amendment creates two project areas, forecasts tax increment revenues over many years and outlines how revenues will reimburse parties that advance infrastructure costs. Gomes emphasized that…