Title
Delta Shores Finance Plan and Development Impact Fee Update [Two-Thirds Vote Required] [Noticed 01/30/2026] [In Lieu of Pass for Publication Ordinance to be Published in its Entirety]
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FileID
File ID: 2026-00515
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Location
Location: District 7 and 8
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Recommendation
Recommendation: Conduct a public hearing, and upon conclusion, 1) pass a Motion by two-thirds vote to have the Ordinance bypass the Law and Legislation Committee ; 2) adopt a Resolution adopting the updated Delta Shores Finance Plan and Nexus Study Findings; and 3) adopt an Ordinance amending Article X of Sacramento City Code Section 18.56 to replace all references to "Stone Boswell" with "Stone Beetland."
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Contact
Contact: Jessica Steinhauer, Senior Development Project Manager, (916) 808-8243, jsteinhauer@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance
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Presenter
Presenter: Jessica Steinhauer, Senior Development Project Manager, (916) 808-8243, jsteinhauer@cityofsacramento.org, Department of Finance
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Attachments
Attachments:
1-Description/Analysis
2-Background
3-Resolution
4-Exhibit A: Updated Delta Shores Finance Plan
5-Ordinance
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Description/Analysis
IssueDetail
Issue Detail: On January 13, 2009, the City Council approved the Delta Shores Planned Unit Development (PUD) and the associated Delta Shore Finance Plan (2009 Finance Plan), which identifies the public infrastructure and facilities required for buildout and potential financing mechanisms. The Delta Shores PUD anticipated development of a 782-acre master planned community with a mix of commercial and compact residential development. A development agreement with the master developer (M&H Realty Partners VI, L.P.) (M&H) was also approved in 2009 and describes some of the construction and timing requirements for infrastructure improvements.
On January 10, 2012, the City and M&H entered into the “Cost Sharing Agreement I-5 Interchange and Cosumnes River Boulevard Extension” (Cost Sharing Agreement) (City Contract No. 2012-0059) that describes the timing, funding, construction, and reimbursement terms between the City and M&H related to the funding of the Cosumnes River Boulevard (CRB) Extension and the CRB/I-5 Interchange.
Subsequently, on August 9, 2012, the City Council added chapter 18.38 to the City Code, thereby establishing the Delta Shores Planning Area Regional Infrastructure Fee (Regional Fee), which provides for reimbursing the developer’s costs related to the construction of the I-5 Interchange and Cosumnes River Boulevard extension.
On September 24, 2019, Council approved the updated Delta Shores Finance Plan (2019 Finance Plan) and established the associated Delta Shores Impact Fee (DSIF), whereby the City would collect fees from developers of new construction projects in the Delta Shores development to help pay for public facilities and infrastructure that will be needed as a result of the new development. The DSIF includes the I-5 Interchange and CRB Extension as one of the fee components and replaces the Regional Fee established in 2012.
The DSIF is comprised of two sub-areas: Delta Shores and Stone Beetland (previously known as “Stone Boswell”). Because many of the improvements in the 2019 Finance Plan serve both Delta Shores and Stone Beetland, both areas are included in the financing mechanisms included in the 2019 Finance Plan. However, the DSIF creates separate fees for each sub-area because there are certain improvement costs that are applicable to only one of the sub-areas, and therefore the DSIF fee applicable to each sub-area is different. Developers or landowners constructing certain public infrastructure that will be conveyed to the City upon completion in either sub-area are eligible for reimbursements or credits against applicable DSIF components per the 2019 Finance Plan.
The Stone Beetland PUD was approved in 2023 and consists of approximately 141 acres located to the east of the Delta Shores sub-area. It is envisioned that the Stone Beetland PUD will include a mix of single family and multifamily housing and a small amount of mixed-use commercial development.
Changes in land use assumptions, infrastructure needs and costs, and changes in facilities to be funded by the DSIF have necessitated an update to the 2019 Finance Plan, and that update is included as Exhibit A to the attached Resolution (the “Updated Finance Plan”). The purpose of the Updated Finance Plan is to update remaining development, remaining costs, and funding amounts by source. Based on these updates, the DSIF fee components were recalculated to ensure the required amount of DSIF funding is achieved. This Updated Finance Plan includes updates to land use assumptions, as well as to infrastructure and facility improvement costs based on actual costs of completed infrastructure and updated estimates for remaining infrastructure and facilities. In certain cases, Delta Shores infrastructure and facility requirements include the construction or advance-funding of improvements that also serve Stone Beetland. This Updated Finance Plan therefore also considers funding and reimbursement obligations associated with the Stone Beetland site as part of an overall update to the development and infrastructure funding strategy for Delta Shores.
Major changes from the 2019 Finance Plan include reallocating DSIF credits (except roads and sewer) solely to Delta Shores, while road and sewer credits remain shared with Stone Beetland. Trails will be funded through the DSIF program, with Stone Beetland’s trail costs added. However, Stone Beetland will independently fund regional parks, storm drainage, open space, and transit improvements outside of the DSIF program so costs for those facilities are not included in calculating the amount of the proposed DSIF. Sewer costs have increased and will be covered by the DSIF program, and both areas are exempt from paying City Sewer Development Fees.
The increased costs of remaining fee-funded improvements and facilities have led to a higher overall fee amount in the Delta Shores sub-area compared to the most recent annual update in 2025. For example, the total Delta Shores sub-area fees are proposed to increase by $2,300 per unit for Low Density Residential Units and $1,242 per unit for High Density Residential units. This increase is primarily due to inflation adjustments in the outstanding fee credits obligation, the addition of sewer facilities as fee-funded infrastructure, and rising costs of remaining fee-funded public facilities. However, increases were partially offset by a decrease in the Regional Infrastructure component due to periodic partial redemption of the regional infrastructure credit. A full summary of the revised Delta Shores sub-area fees for all land uses is provided in Table 1-5 of the attached Updated Finance Plan.
For the Stone Beetland sub-area, the Regional Infrastructure fee component is charged on a “per-acre” basis and is collected prior to final map approval as outlined in the Cost Sharing Agreement. Similar to the Delta Shores sub-area, the Stone Beetland sub-area Regional Infrastructure fee decreased from the amounts currently in effect due to periodic partial redemption of the regional infrastructure credit. For example, the Regional Infrastructure fees are proposed to decrease by $31,038 per acre for Low Density Residential land and by $29,851 per acre for High Density Residential units.
The Backbone Infrastructure and Public Facilities components of the Stone Beetland sub-area are charged on a “per unit” basis. Similar to the Delta Shores sub-area, these components of the fee are proposed to increase from the amounts currently in effect. For example, in total these components of the Stone Beetland sub-area are proposed to increase by $2,488 per unit for Low Density Residential Units and $1,946 per unit for High Density Residential units. A full summary of the revised Stone Beetland sub-area fees for all land uses is provided in Table 1-6 of the attached Updated Finance Plan.
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PolicyConsiderations
Policy Considerations: The Updated Finance Plan is consistent with the requirements of the Mitigation Fee Act (Government Code section 66000 et seq.), City Code Chapter 18.56, and new requirements for nexus studies established by AB 602.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): Under the CEQA Guidelines, administrative proceedings related to implementation of an impact fee program (an impact fee program being a funding mechanism) without commitment to any specific projects which may result in a potentially significant physical impact to the environment do not constitute a project for purposes of CEQA and are not subject to CEQA review [14 Cal. Code Regs. § 15378(b)(4)]. Infrastructure projects or other public facility projects funded by the DSIF will be evaluated under CEQA before construction is authorized.
The City prepared an environmental impact report (the “EIR”) that evaluated the environmental effects of the Delta Shores project (P06-197). On January 13, 2009, by Resolution No. 2009-0030, the City Council certified the Environmental Impact Report and the Planning and Design Commission later certified the EIR and an addendum for the commercial-development portion of the Delta Shores project (P14-025) on April 16, 2015. By Resolution 2023-0318, City Council adopted the Sustainable Communities Environmental Assessment and Adopted the Mitigation Monitoring and Reporting Program for the Stone Beetland Planned Unit Development (PUD) Project (P21-042) on October 10, 2023.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Delta Shores Finance Plan is required to be updated periodically as more recent costs, funding, and land use data are available. Changes in the Delta Shores Finance Plan are re-evaluated within the context of the overall financing strategy to ensure required funding is available when needed. A nexus study is required under the Mitigation Fee Act when a new development impact fee is established or increased.
In regard to the proposed Ordinance, “Stone Beetland” is the same area previously identified as “Stone Boswell” in the 2019 Finance Plan and City Code Chapter 18.56, Article X. The name change reflects the developer’s updated name only; the boundaries and scope of the development area remain unchanged. Amending Article X of Sacramento City Code Section 18.56 to replace all references to "Stone Boswell" with "Stone Beetland" will ensure consistency between the City Code and the Updated Finance Flan.
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FinancialConsiderations
Financial Considerations: The Updated Finance Plan identifies and provides the estimated cost of regional, backbone infrastructure, other public facilities, and public operation and maintenance services needed to serve new development in the Delta Shores and Stone Beetland areas. The Updated Finance Plan also identifies the probable funding sources used to pay for the regional infrastructure, backbone infrastructure, and other public facilities.
The DSIF provides a mechanism to ensure that new development pays for the public infrastructure needed because of the effects of new growth. The DSIF framework also includes administrative fees to recoup staff time required to administer the DSIF. Revenues derived from the DSIF will be deposited in a separate fund and there is no impact on the General Fund from implementing the DSIF.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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