Cotati authorizes feasibility study for tax‑increment financing district with Cosmont; staff may proceed to next phase

The Cotati City Council voted to authorize the city manager to execute an agreement with Cosmont Companies to evaluate the feasibility of a tax‑increment financing district, often referred to as an enhanced infrastructure financing district (EIFD). The proposed scope calls for a phased approach: phase 1 (feasibility and high‑level analysis), phase 2 (detailed fiscal impact report) and phase 3 (implementation, if pursued).

City staff recommended that Cotati lead a joint study with Rohnert Park, with each jurisdiction reimbursing half the phase‑1 cost. Staff reported Cosmont’s proposed fee for a single district is about $140,000 and noted a two‑district approach would increase total costs to about $185,000, with higher implementation costs occurring in phase 3. Staff said the target to form an EIFD (if pursued) would be Dec. 1, 2026, to meet property tax equalization deadlines that affect base‑year calculations.

Council members sought clarification about what would be learned at the end of phase 1 versus phase 2. Staff described phase 1 as identifying feasible boundaries, governance options and whether the county might participate; phase 2 was described as the detailed “waterfall” fiscal analysis that would quantify impacts to each affected taxing entity. Council authorized the contract and delegated to staff the go/no‑go decision point between phase 1 and phase 2 so work can move efficiently if early results are favorable.

The motion authorizing the city manager to execute the agreement and to take necessary actions to complete a reimbursement agreement with Rohnert Park was moved, seconded and carried unanimously per the meeting record. Staff said the project is budgeted and that using a 50/50 split with Rohnert Park would be less expensive than pursuing the study alone.