Title
Overview of Proposed Amendments to the Railyards Enhanced Infrastructure Financing District (EIFD) and Draft Amended Infrastructure Financing Plan [Noticed 07/31/2026]
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FileID
File ID: 2026-01489
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Location
Location: District 4
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Recommendation
Recommendation: Receive and provide comments regarding the amendments to the Railyards Enhanced Infrastructure Financing District (EIFD) including its proposed expansion, and the draft amended EIFD Infrastructure Financing Plan (Plan) and upon conclusion, adopt a Resolution of Consideration approving the expansion of the EIFD boundaries, ordering the distribution of the amended Plan, and setting the date for a public hearing at which this Authority will consider comments to the draft amendment 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; Marco Gonzales, Senior Development Project Manager, (916) 808-5757, mgonzales@cityofsacramento.org, Office of Innovation and Economic Development
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Presenter
Presenter: Sini Makasini, Senior Development Project Manager, (916) 808-7967 smakasini@cityofsacramento.org, Department of Finance; Marco Gonzales, Senior Development Project Manager, (916) 808-5757, mgonzales@cityofsacramento.org, Office of Innovation and Economic Development; Jamie Gomes, Consultant, (916) 649-8010, Economic Planning Systems
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Attachments
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Resolution of Consideration
4-Exhibit A - Proposed Boundary Map
5-Exhibit B - Facilities List
6-Infrastructure Financing Plan Draft
7-Slide Presentation
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Description/Analysis
IssueDetail
Issue Detail: The Sacramento Railyards is a large urban infill project north of the downtown Central Business District area that is anticipated to provide new residents, employment opportunities, and services in an area that is substantially surrounded by urban development. The Sacramento Railyards Specific Plan (Specific Plan) was adopted in 2016 to establish goals and policies that are specific to the Railyards, while advancing the vision of the General Plan. The objectives of the Specific Plan are to:
• Integrate the Railyards into the fabric of the existing central City
• Create a dynamic, mixed-use environment of complementary uses
• Connect the Railyards with Sacramento’s downtown office, retail, tourism, residential and governmental centers
• Connect the Railyards to Sacramento’s riverfront
• Transform the Railyards from an abandoned industrial site into a nationally renowned urban environment
• Capitalize on the historic Central Shops
• Create a sustainable community
The Specific Plan establishes the overall project concept to accommodate a mix of residential and nonresidential uses around public transit and better connect the downtown Central Business District area to the riverfront, Old Sacramento, the River District, and other adjacent and existing neighborhoods. The 2016 approvals for the Railyards Project included a network of open space that will provide access to the historic Central Shops buildings, the riverfront, the sports stadium, and new parks. The specific plan has the following specific land uses:
• 6,000-10,000 dwelling units
• 514,270 square feet of retail
• 2,757,027 - 3,857,027 square feet of office use
• 771,405 square feet of flexible mixed use
• 1,228,000 square feet of medical campus
• 1,100 hotel rooms (keys)
• 485,390 square feet of historic and cultural uses
• 34 acres of open space
• A sport stadium with 20,000 seats
To support development of the stadium, the establishment of the Sacramento Stadium Area EIFD and the adoption of the Infrastructure Financing Plan was approved on December 10, 2019, by the Stadium Area EIFD Public Financing Authority (PFA). The original Stadium Area EIFD consisted of 42 acres east of 7th Street and included funding the infrastructure identified on the list and map below.
Although a significant number of improvements have been completed in the Railyards, project development still faces an extraordinary infrastructure funding burden of over $200 million of remaining infrastructure. The primary goal in financing public facilities is to catalyze significant private investment and to continue to support ongoing development of the Railyards project site and surrounding area. Infrastructure investment will support development of housing (both market rate and affordable), office, retail, hotels, and entertainment consistent with the 2016 Railyards Specific Plan. To support the continued development in the Railyards as a whole, the following amendments to the EIFD are proposed.
EIFD Boundary Expansion
The proposed EIFD is projected to be expanded from its current 42 acres to a total of 238 acres within the Railyards Specific Plan area, which consists of 55 parcels with eight existing property owners. The map below illustrates both the existing and proposed EIFD boundaries. The existing Railyards EIFD territory will be known as the “Railyards East” and the newly added territory as the “Railyards West.” Different base years will apply for tax increment calculations to each of the project areas.
Amending the Plan
The City Clerk distributed a Notice to each owner of land and resident in the proposed EIFD and each affected taxing entity notifying them of the PFA public meeting of August 11, 2026, to review the draft amended Plan. Notice of this meeting was also listed on the PFA’s website.
Pursuant to the EIFD Law, the PFA shall conduct a public meeting to allow the staff of the PFA to present the draft amended Plan, answer questions about the amended Plan, and consider comments about the amended Plan. The PFA must also hold two public hearings before approval of the final amended Plan, which at this time is expected to occur from September through October. After the conclusion of the second public hearing the PFA may adopt the Plan and amend and expand the EIFD. However, the Council must approve the amended Plan prior to the PFA’s proposal to amend and expand the EIFD.
The current amended draft Plan, which is the subject of the PFA’s August 11, 2026, meeting, is included as Attachment 6 and includes all items required by the EIFD Law. The Plan remains subject to revision and may continue to be amended during the public hearing process. A summary of the key requirements included in the amended Plan is provided below.
Map and legal Description: The proposed amended EIFD, depicted in the above map, consists of approximately 238 acres on 55 parcels. It includes properties owned by Downtown Railyard Venture LLC, Gilreath Robert/Robert J Hoffman, Kaiser Foundation Hosps, City of Sacramento, State of California, State Lands Commission, Indomitable Landco LLC, and the Sacramento Municipal Utility District. All property owners are aware of their inclusion and have not protested their inclusion. A map and legal description of the proposed boundaries are in the Plan.
Public Facilities and Development Proposed to be Financed: The additional public capital facilities proposed to be financed through the amended EIFD in addition to those in the original Plan include roadway, storm water, sewer and utility improvements within and surrounding the Project. The improvements are of communitywide significance and provide significant benefit to the area of the amended EIFD and surrounding community. A list of the public improvements and development that may be financed by the amended EIFD is detailed in the amended Plan.
Necessity of Expanded EIFD: The expansion of the EIFD is necessary to finance the construction of public infrastructure and development that serves the Railyards Project area, the Central City, the River District and surrounding neighborhood while providing significant communitywide benefits.
Fiscal Impact Analysis: The current amended draft Plan does not include a complete fiscal impact analysis and therefore some numbers related to that analysis in the draft plan are still being developed and placeholders have instead been inserted. The City approved budget figures for Fiscal Year 2026/27 recently became available, and the PFA’s financial consultant will use these figures to provide a full fiscal impact analysis in the next iteration of the draft Plan, which is anticipated to be brought to the PFA for review at the first Public Hearing.
Use of Incremental Tax Revenue: The EIFD will use the incremental property tax revenue that the City contributes to it to finance the facilities and costs included in the amended Plan authorized by law to be financed through the EIFD. The authorized incremental property tax financing is described in the Plan. As noted above, Council will have the opportunity to review and approve the amended Plan and the proposed use of incremental property tax revenue prior to adoption of the amended Plan by the PFA. The Plan indicates that the EIFD will use incremental property tax revenue that is generated by parcels within the boundaries of the EIFD to finance direct funding of facilities, reimbursement of the developers of the projects for their cost of construction of facilities, and to pay costs of issuance and payment of debt service of bonds or other debt of the EIFD or of any other public agency for authorized facilities thereon to finance facilities authorized to be financed through the EIFD.
Goals of the EIFD: The primary goal in financing the public facilities is to catalyze significant private investment and additional infrastructure for development of the Railyards project site and surrounding area. The EIFD goals are further detailed in the Plan.
Other items required by the EIFD Law are included in the amended Plan, which is attached hereto. A summary of the key actions for expanding the EIFD and amending the Plan, as well as estimated dates of completion, is provided in the Schedule of Proceedings (Attachment 2 to this report).
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PolicyConsiderations
Policy Considerations: Amending the EIFD boundaries and Plan are necessary steps towards the successful development of the public infrastructure and other projects of communitywide significance necessary for development of the Railyards.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: California Environmental Quality Act (CEQA): The action involves review of the potential financing mechanisms for improvements associated with the Railyards Development project. The action is not considered a project under CEQA. The action involves review and discussion of the creation of a government funding mechanism or other government fiscal activities, which do not involve any approval or commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15352. CEQA Guidelines section 15378(b) (4) & (5); 15060(c)(3). To the extent any planned infrastructure funded by the financing mechanism will result in physical changes to the environment, those changes have been studied in the Railyards Specific Plan Environmental Impact Report SCH No. 2006032058 (Resolution # 2007-903), the Railyards Specific Plan Update, Kaiser Permanente Medical Center and Stadium Subsequent Environmental Impact Report (Resolution #2016-0379) and Addendum. None of the circumstances set forth in Public Resources Code section 21166 and Guidelines sections 15162 and 15183 require additional environmental review. The affordable housing component of the EIFD is only a funding mechanism at this point and therefore exempt from environmental review pursuant to CEQA Guidelines section 15378(b) (4). When a specific affordable housing project is identified and proposed, it will be reviewed for CEQA compliance. The creation of the funding mechanism does not commit the City to any particular affordable housing project or require its construction.
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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: Expansion of the EIFD is necessary to support the development of the Railyards, and review of the draft amended Plan is a necessary step in the expansion process pursuant to the EIFD Law.
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FinancialConsiderations
Financial Considerations: As described in the amended Plan, 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 (including residual funds from the old redevelopment project area) which is to be used to assist in the direct funding of facilities, reimbursement of developers for the costs of construction of facilities, payment of debt service on bonds or other debt issued to finance eligible costs, or all or some of the foregoing. The amended Plan contains a limit of $824 million in tax dollars over the life of the EIFD that may be allocated by the City to the EIFD. The tax allocation to the EIFD will end in 2077, at which time the EIFD will dissolve under the EIFD Law. The City has no obligation to contribute revenues to the EIFD beyond the limits set forth in the amended Plan.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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