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Fortuna approves $50,000 step to form enhanced infrastructure finance district, contingent on county participation
Summary
Council authorized a $50,000 supplemental request and contract with Cosmont to complete final formation work for a Fortuna Enhanced Infrastructure Finance District, citing a staff fiscal analysis that projected a $38 million present-value benefit to the city and a $26 million present-value benefit to the county over 50 years; county participation is required for the district to proceed.
City staff presented the final-phase work required to form the Fortuna Enhanced Infrastructure Finance District (eFID), a financing mechanism that captures future property-tax growth to fund major infrastructure without imposing a new tax. Staff said the eFID would fund projects such as the 12th Street and Kenmore interchange and help accelerate Mill District buildout.
A fiscal analysis attached to the council packet estimated a $38,000,000 present-value fiscal benefit to the city general fund over 50 years and a $26,000,000 present-value benefit to the county general fund over the same period. Staff emphasized that the eFID relies on county participation to create sufficient revenue increment for bonding; the council approved a $50,000 supplemental budget and contract authorization with Cosmont to complete final formation work contingent on the County of Humboldt agreeing to participate. Staff said no final money would be spent to create the district without county concurrence.
