Norwalk council adopts resolution of intention to form Enhanced Infrastructure Financing District with county partner

The Norwalk City Council voted unanimously March 18 to adopt a resolution of intention to form an Enhanced Infrastructure Financing District (EIFD) and the Norwalk Enhanced Infrastructure Financing District Public Financing Authority, a step staff and consultants say will allow the city to set aside part of future assessed‑value growth in targeted areas to pay for infrastructure.

Joe Dieguez, a public‑finance adviser with Cosmont, told the council the EIFD is “a way, without adding any new or increased taxes, to capture value from new investment coming in” and dedicate a share of that incremental property tax growth to streets, utilities, affordable housing and other infrastructure. Dieguez said the county has tentatively scheduled its accompanying resolution of intention for April 15 and that the proposal focuses on roughly 200 acres in targeted growth areas.

Dieguez and Cosmont partner Ken Hera outlined key elements: the district would freeze current assessed values at formation, capture a portion of later increases as “tax increment,” create a public financing authority governed by local elected officials and public representatives, and pursue an infrastructure financing plan with detailed project lists, budgets and public hearings.

Council members asked about likely project types and future steps. City staff and consultants said eligible projects would include roadway and utility capacity improvements, affordable housing, parks and transit connectivity. Dieguez gave an illustrative order‑of‑magnitude estimate of roughly $30 million in available revenue over 10 years from the target area, noting that final numbers and any bonding plan would be set in a later infrastructure financing plan and public review process.

Mayor Tony Ayala and other council members described EIFD formation as a long‑term financing tool to attract other funding and accelerate redevelopment. The council approved the nonbinding resolution of intention by unanimous roll call; staff will proceed to draft a detailed financing plan, coordinate with Los Angeles County, and complete the required noticed public hearings before formal district formation.

The next steps enumerated by staff include preparing the infrastructure financing plan, conducting the statutory series of public meetings and hearings, finalizing a governance agreement with the county if it becomes a partner, and returning to council later this year with a recommended project list and financing schedule.