Santa Rosa PFA pauses action on EIFD plan after wide debate over project mix, locations and metrics

The Public Financing Authority (PFA) on Thursday reviewed proposed changes to the draft Infrastructure Financing Plan (IFP) for the City of Santa Rosa Enhanced Infrastructure Financing District (EIFD) -- also called the Downtown Business Corridor -- but did not adopt the revised plan. After extensive discussion about project categories, percentage allocations, whether projects may lie outside the district boundary and what metrics should be used to judge "tangible benefit," the PFA continued the public hearing to May 15 at 1 p.m. and left the hearing record open for additional public comment.

The IFP revision under review would set categorical limits on how EIFD tax increment could be applied. The draft discussed in the PFA meeting carried language capping funding for a major catalyst project (the performing-arts / sports-entertainment center) at up to 70% of district bond proceeds, placemaking and streetscape improvements at up to 10%, and affordable housing at up to 20% of funding. Staff described earlier drafts that separated streetscaping and placemaking (formerly 20% combined) and said those categories were revised following city and county comments.

Gabe (staff presenter) summarized the edits and the legal process for the IFP, saying the second public hearing is the point "to either modify, and those can be really accepting the proposed modifications as is, or making modifications in this meeting." Lenny (staff member) read specific revised language from the draft, including: "the EIFD will not fund or reimburse projects under…