Council initiates EFD process to help fund Metro K‑line northern extension

The West Hollywood City Council voted April 7 to begin the formal, multi‑step process of evaluating and forming an Enhanced Infrastructure Financing District (EFD) to capture a portion of future tax increment to help fund Metro's K‑line northern extension. The vote follows Metro's recent selection of the San Vicente–Fairfax locally preferred alternative (LPA), which the Metro Board conditioned on local jurisdictions' willingness to pursue value capture mechanisms.

City senior planner David Fen briefed the council on the LPA and the role an EFD could play. "An EFD would allow jurisdictions that participate to dedicate a portion of incremental property tax growth within defined boundaries to pay for station area and transit construction costs," Fen said; staff estimated formation and public hearings would take roughly 12–18 months. The Metro Board's motion also directs Metro staff to pursue federal NEPA review and value engineering and to coordinate with the city and county as project activities are reinitiated.

Supervisor Lindsey Horvath told the council the recent board vote was a "momentous" milestone and urged prompt local action. "To realize the benefits in our lifetime, the city and county need to move now on potential value capture," she said, adding that an EFD would be one tool among many—federal grants, Measure M and state programs would also be required.

Public speakers praised the rail alignment but urged transparency about who pays, what services might be affected, and how long tax increment would be directed to an EFD. "Every dollar of property tax growth diverted to the K‑line for the next 75 years is a dollar taken away from our general fund," a resident said, asking for detailed modeling and a consolidated timeline showing when payments start and finish.

Council members asked technical questions about boundaries, whether the city of Los Angeles would participate, and protections if projected growth does not materialize. Staff said boundaries and participation share will be negotiated with the county; educational taxing entities cannot be included in the EFD. Staff emphasized multiple public hearings and direct outreach would accompany the process and that the council will approve any final financing plan.

Council action: the council authorized staff to open negotiations with Los Angeles County, reengage consultants to produce detailed modeling, coordinate with Metro, and proceed with the statutory steps toward forming an EFD. The council instructed staff to return with a formal resolution of intent, public hearing schedule, and outreach plan.

Why it matters: The northern extension could provide transit access to major employment centers and hospitals and generate economic and environmental benefits, but funding requires a multi‑jurisdictional effort. Forming an EFD is a significant fiscal policy choice that would redirect a share of future incremental property tax revenue for transit construction and repayment of financing instruments.

Quote: "This is an investment of your city's future dollars for a public community benefit today," Supervisor Horvath said.

Next steps: Staff will refine boundary and revenue assumptions, negotiate a county participation agreement, and return with a resolution of intent and a public engagement plan. The city emphasized the process is lengthy and will include multiple public hearings before any funds are committed.