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Cotati authorizes Cosmont contract to study tax‑increment financing feasibility; staff may proceed to phase 2
Summary
Council authorized the city manager to execute a phase‑1 agreement with Cosmont to evaluate feasibility of a tax‑increment financing district (EIFD/EIFD) in partnership with neighboring Rohnert Park; estimated phase‑1 cost ~$140,000 (50/50 split), a single‑district implementation target date of Dec. 1, 2026 was discussed, and staff may authorize phase‑2 work if warranted.
The Cotati City Council approved a consulting agreement with Cosmont to complete a phase‑1 feasibility analysis of a tax‑increment financing district, with Rohnert Park proposed as a partner on a 50/50 cost‑sharing basis.
Staff explained that the joint request for proposals returned four responses and Cosmont was the recommended firm because of broad state experience with enhanced infrastructure finance districts. The proposed work plan divides the effort into three phases: phase 1 is a preliminary feasibility analysis that examines potential district boundaries, baseline year timing and high‑level financial viability; phase 2 is a detailed fiscal‑impact (waterfall) analysis that quantifies impacts to participating entities; and phase 3 would be implementation and formation steps, including a resolution of intention and creation of a public financing authority if the district moves forward.
Cosmont’s estimated cost for doing a single joint district was presented at roughly $140,000; forming two separate districts would raise estimated total costs to about $185,000, staff said. The staff recommendation is for Cotati to be the contracting entity for phase 1 with Rohnert Park reimbursing half of the cost. Staff noted that phase 1 should produce a reasonable ballpark estimate of feasibility and allow initial county conversations; a full fiscal‑impact result is expected in phase 2.
Council discussed the timing and the county’s role; staff noted county policy could cap a county share of future increment (a figure in the packet suggested about 25–30% as a commonly discussed cap) and that timing mattered for setting a base year — a December 1, 2026 formation would allow fiscal 2026–27 to be the base year. The council authorized the city manager to execute the agreement with Cosmont and authorized staff to proceed to phase 2 if staff judged phase‑1 results and Rohnert Park alignment made it appropriate.
The motion to authorize the agreement passed unanimously.
