Council moves to form Enhanced Infrastructure Financing District; appoints members with instructions to refine geographic scope

The City Council voted to initiate formation of a Pasadena Enhanced Infrastructure Financing District (EIFD) after staff and consultants outlined how the tool could capture future property-tax increment to fund infrastructure, affordable housing and climate-resilience projects in targeted corridors. The consultant said present-value funding capacity could range from roughly $115 million to $230 million under different share-and-match scenarios.

Teresa Garcia, senior project manager in Economic Development, and Joe Dieguez of Cosmont explained that an EIFD is not a new tax but a mechanism to set aside a portion of future assessed-value growth in specified geographic areas. The proposed noncontiguous boundary includes the 7/10 vision-plan area and several specific-plan corridors (Lincoln Avenue, Fair Oaks, Orange Grove and North Lake Avenue). Cosmont noted that the county has indicated an interest in partnering and that a county companion resolution could be considered in July.

Some councilmembers welcomed the financing option as a way to accelerate infrastructure and housing projects; others urged caution, particularly given the 7/10 area includes city-owned land and carries additional governance and community-stakeholder complexity. Councilmember Madison abstained from the final vote citing concerns about the 7/10 inclusion and requested more committee-level vetting. Council approved the nonbinding resolution of intention and appointed Councilmembers Cole and Jones to the public financing authority, with Vice Mayor Rivas as an alternate, while directing staff to return to the EdTech committee for more detailed geographic analysis and community outreach steps.

Next steps: staff will return with an infrastructure-financing plan, additional neighborhood-level analysis and a public outreach schedule; the county's Board of Supervisors may consider a companion item on July 14.