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Adoption of the Second Amendment to the Infrastructure Financing Plan of the Aggie Square EIFD and Approval of the Third Amendment to the Master Funding Agreement for the Aggie Square Project [Noticed 08/26/2026]
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FileID
File ID: 2026-01482
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Location
Location: District 5 and District 6
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Recommendation
Recommendation: Conduct a Public Hearing and upon conclusion: 1) pass a Motion to close the public hearing; 2) adopt a Resolution approving the second amendment of the Infrastructure Financing Plan for the City of Sacramento Aggie Square Enhanced Infrastructure Financing District (EIFD); and 3) pass a Motion authorizing the PFA executive Director to enter into the Third Amendment to the Master Funding Agreement (City Agreement No. 2021-1293) between the Regents of the University of California; AS LSTE East OWNER, LLC, AS MUR Owner, LLC, AS P6 Owner, LLC and AS LLL Owner, LLC, (as successor by assignment of Wexford Development, LLC), the City of Sacramento and Aggie Square EIFD for the Aggie Square Project.
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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-Third Amendment to Master Funding Agreement
3-Resolution Approving Amendment to the Infrastructure Financing Plan
4-Exhibit A, Second Amendment to Infrastructure Financing Plan
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Description/Analysis
IssueDetail
Issue Detail: The Aggie Square Project (Aggie Square) is a public-private partnership between UC Davis and Wexford Development, LLC for the construction of a new innovation hub for the Sacramento region, driving commercialization of UC Davis research, hosting Sacramento start-ups, growing local companies, bringing new companies and jobs to Sacramento and adding vitality to the Stockton Boulevard corridor. Aggie Square is located on the UC Davis Sacramento Campus on land that is owned by the UC Regents. Wexford Development LLC, an affiliate of Wexford Science and Technology, is the developer and master lessee of the said development.
On April 13, 2021, the City Council approved the Aggie Square EIFD Infrastructure Financing Plan (IFP) for the Aggie Square Enhanced Infrastructure Finance District (Aggie Square EIFD). On April 20, 2021, the Aggie Square Public Finance Authority (PFA) approved the IFP and established the Aggie Square EIFD to assist with the financing of some of the facilities and infrastructure for the one million square foot project.
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 IFP 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 IFP.
The proposed second amendment to the IFP, 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 any listed facilities. Specifically, the second amendment to the IFP 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 either be located within the EIFD or have a tangible connection to the work of the Aggie Square EIFD as described in the IFP. To ensure the IFP and MFA remain aligned, the proposed third amendment to the MFA, included as Attachment 2 to this report, also reflects the changes made to the IFP.
The second amendment to the IFP was presented to the Aggie Square PFA on August 25, 2026. On that same date, the Aggie Square PFA adopted a Resolution of Consideration thereby directing the amendments to the IFP (Aggie Square PFA Resolution No. 2026-0001). In addition, the Resolution of Consideration called for a public hearing on the proposed adoption of the second amendment to the IFP to be held by the Aggie Square PFA on September 29, 2026. Lastly, on September 22, 2026, the Sacramento City Council approved the second amendment to the IFP and authorized the City Manager or designee to enter into the third amendment to the MFA on behalf of the City of Sacramento.
With both the third amendment to the MFA and the second amendment to the IFP approved by Council, the Aggie Square PFA now will have the opportunity to approve the second amendment to the IFP following a public hearing. Simultaneously, the Aggie Square PFA will also consider authorizing the Executive Director of the PFA or designee to enter into the third amendment to the MFA on behalf of the Aggie Square EIFD.
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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.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): 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 IFP and the formation of the Aggie Square EIFD. Nothing in the second amendment to the IFP or third amendment to the MFA 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 their development of the project including unexpected costs related to provision of utilities. To date, the amount of private investment has exceeded $529 million. The additional support from the EIFD outlined in the second amendment to the IFP and third Amendment to the MFA will help offset some of those unexpected costs.
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FinancialConsiderations
Financial Considerations: The allocation of revenues to the EIFD from the City is 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. As approved in the first amendment to the IFP, the total authorized reimbursement to Wexford for EIFD eligible facilities is $30,720,000 plus financing costs and interest on any unreimbursed balance.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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