Title
A Resolution Directing the Preparation of an Infrastructure Financing Plan for the Innovation Park Project, Adopting a Conflict of Interest Code, Establishing Regular Meeting Dates, and Adopting the State CEQA Guidelines for Use in Implementing CEQA
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FileID
File ID: 2026-01668
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Location
Location: District 1
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Recommendation
Recommendation: Adopt a Resolution directing the preparation of an Infrastructure Financing Plan (IFP) for the Innovation Park Project, adopting a conflict of interest code, designating officials and disclosure categories, establishing a time and place for holding regular meetings, and adopting California Environmental Quality Act (CEQA) guidelines.
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Contact
Contact: Sini Makasini, Senior Development Project Manager, (916) 808-7967, smakasini@cityofsacramento.org, Infrastructure Finance Division, Finance Department; Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, lfritzsche@cityofsacramento.org, Economic Development Department
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Presenter
Presenter: None.
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Attachments
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Proposed Boundaries of EIFD
4-Resolution
5-Exhibit A: List of Designated Officials & Disclosure Categories
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Description/Analysis
IssueDetail
Issue Detail: The Innovation Park Project (Project) is a private development partnership between Argent Management, LLC (Argent), and California Northstate University (CNU). The proposed Project covers approximately 171 acres in the North Natomas area on the site of the former Sleep Train Arena. The Project is anticipated to provide an urban mixed-use development consisting of residential, commercial, health and educational uses and public amenities. As a catalyst to jump start the development of the Project, the proposed CNU Hospital and Medical Campus would create thousands of employment opportunities. The Project is projected to provide a wide range of affordable and market-rate housing, diverse regional-scale open spaces, a future school site for Natomas residents and additional infrastructure benefiting the surrounding community.
On April 30, 2024, Council approved a non-binding term sheet for public financing assistance for Innovation Park (Term Sheet) between the City, CNU, and Sacramento Basketball Holdings (SBH). The Term Sheet provides a framework for a public-private partnership to support the financial viability of the overall Project and serves as a catalyst for project implementation. One element of the Term Sheet is the proposed formation of an Enhanced Infrastructure Financing District (EIFD) to finance the design and construction of backbone infrastructure improvements within and surrounding the Project, as well as to generate funds for affordable housing. After approval of the Term Sheet, Argent acquired approximately 130 acres of land in the Project from SBH. Therefore, the current owners of land in the Project area consist of CNU, Argent, and Natomas Unified School District, although the Natomas Unified School District parcel is excluded from the proposed boundary of the EIFD.
On July 28, 2026, Council adopted a Resolution of Intention (ROI) to form the Innovation Park EIFD and established the Innovation Park Public Finance Authority (PFA) to serve as the governing board of the EIFD (Resolution No. 2026-0221). As part of the EIFD formation process, the PFA is required to direct the preparation of an IFP. The IFP is a legal document which describes the EIFD and specific requirements related to financing and implementing goals of the EIFD over the life of the EIFD.
Upon the completion of the IFP, it will be distributed to Council and other interested parties as identified in the EIFD Law. In addition, the PFA will hold a public meeting at which PFA staff will present a draft IFP. The PFA will also conduct two public hearings on the formation of the EIFD and, upon conclusion of the second public hearing, approve the IFP and officially establish the EIFD. However, the PFA cannot establish the EIFD without Council first approving the IFP.
The IFP will include the following key components:
• A map and legal description of the proposed EIFD;
• A description of public facilities and other forms of development or financial assistance proposed for the EIFD, and a finding that such development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the EIFD;
• A financing section that addresses the maximum amount of tax increment to be committed to the EIFD, a projection of tax increment expected to be received by the EIFD each year, a limit on total dollars of taxes that may be allocated to the EIFD and an analysis of the projected fiscal impact to the City of committing tax increment to the EIFD;
• The goals the EIFD proposes to achieve for each project to be financed.
In addition to ordering the preparation of the IFP, the PFA must also, at its first meeting, adopt a Conflict of Interest Code (per the Political Reform Act, Government Code section 81000 et seq.), establish a regular meeting place and time, and adopt local CEQA Guidelines.
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PolicyConsiderations
Policy Considerations: Establishing the EIFD is outlined in the Term Sheet as a necessary step towards the successful development of the public infrastructure and other projects of communitywide significance necessary for large economic development project. Proceedings for the establishment of the EIFD have begun through adoption of the Resolution of Intention. The actions recommended in this report are necessary steps towards forming the Innovation Park EIFD.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: The actions outlined in this report are in regard to financing, organizational and administrative activities and will not result in direct or indirect physical changes in the environment. A subsequent resolution establishing the EIFD and other actions, including review under CEQA, are required prior to any proposed physical changes. Thus, the adoption of the proposed Resolution does not constitute a project and is not subject to CEQA review. CEQA Guidelines section 15378(b) (4) & (5); 15060(c)(3).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The PFA ordering the preparation of the IFP is a necessary step in forming the EIFD pursuant to the EIFD Law. In addition, because the PFA is the governing board of the EIFD it must adopt conflict of interest codes and CEQA guidelines and establish a regular meeting place and time in order to conduct the business of the PFA.
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FinancialConsiderations
Financial Considerations: Once the EIFD is formed, the allocation of revenues to the EIFD from the City would be limited to incremental property tax revenue generated by property within the boundaries of the EIFD. In addition, a fiscal impact analysis of the EIFD to the City’s General Fund will be completed as part of the preparation of the IFP. This fiscal impact analysis will compare annual revenues to the City’s General Fund from the EIFD to the annual costs of the EIFD. The City has no additional financial obligation if the incremental property tax revenue generated is insufficient to cover the cost of the proposed improvements or debt service on bonds issued to pay for the proposed improvements.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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