Title
Amendments to the Infrastructure Finance Plan for the Aggie Square Enhanced Infrastructure Financing District
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FileID
File ID: 2026-01479
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Location
Location: District 5, District 6
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Recommendation
Recommendation: Receive and provide comments regarding amendments to the Aggie Square Enhanced Infrastructure Financing District (EIFD) and the draft amended EIFD Infrastructure Finance Plan (Plan) and upon conclusion, adopt a Resolution of Consideration directing amendments to the Plan, and establishing the date for a public hearing of the Public Financing Authority at which this Authority will consider comments to the draft amendments of the Plan.
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Contact
Contact: Sini Makasini, Senior Development Project Manager, (916) 808-7967, smakasini@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance; Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, lfritzsche@cityofsacramento.org, Office of Innovation and Economic Development, City Manager’s Office
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Presenter
Presenter: Sini Makasini, Senior Development Project Manager, (916) 808-7967, smakasini@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance; Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, lfritzsche@cityofsacramento.org, Office of Innovation and Economic Development, City Manager’s Office
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Attachments
Attachments:
1-Description/Analysis
2-Resolution of Consideration
3-Exhibit A - Amended Plan
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Description/Analysis
IssueDetail
Issue Detail: On April 20, 2021, the Aggie Square EIFD Public Financing Authority (PFA) established the EIFD near the University of California Davis Sacramento Campus along the Stockton Blvd. corridor (Resolution No. 2021-0002). The EIFD was formed in accordance with Chapter 2.99 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with Section 53398.50) (EIFD Law) for the purpose of financing certain public infrastructure improvements in support of a new mixed-use innovation and research center.
The Aggie Square Project is being developed under a public/private partnership collaboration between Wexford Development, LLC, and related entities (Wexford) and UC Davis. Phase 1 is intended to be the catalyst for eventual development of the overall Aggie Square EIFD geographical area. Phase 1 of the Project also is referred to in the Plan as the “Wexford Development.” Subsequent phases of the Project, as outlined and described in more detail in the Plan, include Phase 2 and other additional future development by UC Davis and private parties.
Section 53398.66(j)(1) of the EIFD Law requires that the PFA review the Plan and make any necessary and appropriate amendments. The Plan was adopted by the PFA on April 20, 2021, by its Ordinance No. 2021-0001 and included the methodology to distribute revenue and the facilities to be funded by the EIFD.
On November 17, 2021, the City, UC Davis, Wexford Development, LLC, and the Aggie Square EIFD (collectively referred to as the “Parties”) entered into a Master Funding Agreement (MFA) to evidence the obligations of the parties for the financing of the Aggie Square facilities, infrastructure and affordable housing.
On June 21, 2022, the Parties agreed to the first amendment to the MFA, which was necessary to align the MFA with revised schematic plans for the buildings. Specifically, there was a slight change to the percentage of the total space that would be leased to UC Davis based on new calculations for storage and mechanical rooms versus direct office or lab space. As a result, the MFA was amended to modify the square footage cap contained therein that would trigger any housing hold harmless payments owed.
On June 17, 2025, the PFA approved by Resolution 2025-0001 the first amendment to the Plan to increase Wexford’s maximum authorized reimbursement amount for EIFD eligible facilities by $720,000, for a total authorized reimbursement of $30,720,000 plus financing costs and interest on any unreimbursed balance. On that same day the PFA approved the second amendment to the MFA to memorialize this $720,000 increase in the MFA and align it with the amended Plan.
The proposed second amendment to the Plan, included as Exhibit A to the attached Resolution, will clarify the types of sewer and water facilities in the list of eligible facilities to be financed by the EIFD, as well as modifying the approved methods of financing those facilities. Specifically, the second amendment to the Plan proposes to allow for the payment of impact fees as a financing method that may be used by the EIFD to finance authorized facilities. All facilities to be funded by the EIFD shall have a tangible connection to the work of the Aggie Square EIFD as described in the Plan. To ensure the Plan and MFA remain aligned, a third amendment to the MFA that reflects the changes to the Plan outlined above must be adopted, and the MFA will be considered for approval at the next PFA meeting to allow for Council adoption of the amendment to the Plan.
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PolicyConsiderations
Policy Considerations: Aggie Square is an infill project and furthers the city’s goal to support economic development opportunities and grow Sacramento’s economy. The second amendment to the Plan is necessary to sustain the growth and development within Aggie Square and to continue the City Council’s goal to assist in the provision of public facilities of communitywide significance that provide significant benefits within the boundaries of the EIFD or the surrounding community.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): Under the California Environmental Quality Act Guidelines, The City and the Authority, as responsible agencies under the CEQA Guidelines Section 15096, approved the Supplemental Environmental Impact Report prepared for the UC Davis Sacramento Campus 2020 Long Range Development Plan Update and Aggie Square Project (SEIR) and the Addendum to the SEIR prepared by the City with respect to the approval of the Infrastructure Financing Plan and the formation of the Aggie Square EIFD. Nothing in the third amendment to the Master Agreement changes the analysis, recommendation or conclusions of the SEIR and the Addendum.
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Sustainability
Sustainability: Not applicable.
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Commission/CommitteeAction
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Aggie Square is a significant economic driver for the City and the region. Wexford has experienced cost overruns in the development of the project including unexpected costs related to provision of utilities. To date, the amount of private investment has exceeded over $529 million. The second amendment to the Plan will assist Wexford by expanding the list of facilities that are authorized to be reimbursed through the EIFD.
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FinancialConsiderations
Financial Considerations: The allocation of revenues to the EIFD from the City will be limited to incremental property tax revenue generated by property within the boundaries of the EIFD, which is to be used to assist in the direct funding of facilities, reimbursement of the developer for its cost of construction of facilities, payment of bonds to be issued by the PFA, or all or some of the foregoing. The original maximum authorized reimbursement amount for EIFD eligible facilities was $30 million. The first amendment to the Plan increased the eligible amount by $720,000 for a total of $30,720,000 plus financing costs and interest on any unreimbursed balance. To date, no costs have been reimbursed to Wexford, although reimbursements are expected to commence in the near future.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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