Title:
Title
A Resolution Directing the Preparation of an Infrastructure Financing Plan for the Aggie Square Project, Adopting a Conflict of Interest Code, Establishing a Regular Meeting Date, and Adopting the State CEQA Guidelines for Use in Implementing CEQA
End
FileID
File ID: 2020-1330
Location
Location: Districts 5 and 6, Stockton Blvd and 2nd Ave, UC Davis Sacramento Medical Center
End
Recommendation:
Recommendation
Adopt a Resolution directing the preparation of an Infrastructure Financing Plan (IFP) for the Aggie Square 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.
FileName
Contact: Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, City Manager’s Office of Innovation and Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-EIFD Boundaries
3-Aggie Square PFA 2020/21 Meeting Schedule Draft
4-Resolution
5-Exhibit A: List of Designated Officials and Disclosure Categories
Description/Analysis
Issue Detail: On October 27, 2020, the City Council adopted a Resolution of Intention (ROI) to form the Aggie Square Enhanced Infrastructure Financing District (EIFD) (Resolution No. 2020-0352). The PFA will serve as the governing board of the EIFD and is to consist of three members of Council and two members of the public. Subsequently, the following individuals were appointed to serve on the PFA: Joany Titherington and Nicolina Hernandez. It is now appropriate for the PFA to hold its first meeting.
The proposed EIFD consists of a 42-acre area primarily occupied by the UC Davis Sacramento Medical Center campus (Attachment 1). Located on the UC Davis Medical Center Campus, along the Stockton Boulevard corridor, the Aggie Square project is envisioned as an innovation hub for the Sacramento region, driving commercialization of university research, hosting Sacramento start-ups, growing local companies, bringing new companies and jobs to Sacramento and adding vitality to the Stockton Boulevard corridor. Phase 1 will consist of approximately 1.2 million square feet in four buildings which will contain a variety of UC Davis and private sector uses, including science, technology, data and research uses, co-working space, community serving retail, and residential.
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 (45-years from the first debt issuance).
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 three public hearings on the formation of the EIFD and, upon conclusion of the third 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.
Policy Considerations: This recommendation is a necessary step towards the successful development of the innovation district known as Aggie Square.
Economic Impacts: None
Environmental Considerations: The actions outlined in this report regard a financing, organizational and administrative activity that 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).
Sustainability: Not Applicable
Commission/Committee Action: None
Rationale for Recommendation: Preparation of the IFP as well as adoption of the conflict of interest code and CEQA guidelines and establishment of a regular meeting place and time are necessary to the EIFD formation process pursuant to the EIFD Law.
Financial Considerations: The EIFD’s funding of public facilities and other forms of development or financial assistance proposed for the EIFD will be limited to new incremental property tax revenue that is directly derived from the projected development within the proposed EIFD boundaries.
Local Business Enterprise (LBE): None