Title
First Public Hearing of the City of Sacramento Railyards Enhanced Infrastructure Financing District Adoption of an Amended Infrastructure Financing Plan [Published 08/17/2026, 08/24/2026, 08/31/2026, and 09/08/2026]
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FileID
File ID: 2026-01239
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Location
Location: District 4
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Recommendation
Recommendation: Conduct a public hearing on the proposed expansion of the City of Sacramento Railyards Enhanced Infrastructure District (EIFD) and amendments to the Infrastructure Financing Plan (Plan) and upon conclusion, adopt a Resolution: 1) that memorializes the first public hearing of the Authority; 2) sets forth the schedule for the second public hearing of the Authority; 3) approves modifications to the proposed Plan; and 4) authorizes the Executive Director, the Secretary of the Authority, and all other officers, consultants and agents of the Authority to take all actions necessary or advisable to give effect to the transactions contemplated by this Resolution.
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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 Gonzalez, Senior Development Project Manager, (916) 808-5757, mgonzalez@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; Jamie Gomes, Consultant, (916) 649-8010, Economic Planning Systems
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Attachments
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Map Railyards EIFD
4-Resolution
5-Infrastructure Financing Plan Draft
6-Redline version of Infrastructure Financing Plan
7-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 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.
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 additional infrastructure, development of the Railyards project site and surrounding area development construction. Infrastructure investment will catalyze rehabilitation of the project and support development of housing (both market rate and affordable), office, retail, hotels, and entertainment consistent with the 2016 Railyards Specific Plan.
As proposed development continues to expand around the current Railyards EIFD (formerly known as the “Stadium Area EIFD”), an expansion and amendment to the current Railyards EIFD is necessary to account for the potential infrastructure and facilities required to sustain the growth within the Railyards. This expansion and amendment would provide a financing tool that is available to support the overall Project’s development.
The schedule of proceedings for the expansion and amendment commenced with the PFA Public Meeting that was held on August 11, 2026. At that meeting the PFA Board had the opportunity to review the amended draft of the Plan that included all items required by the EIFD Law.
In addition to the Public Meeting held on August 11, 2026, the EIFD Law requires that the Railyards PFA must hold two public hearings to gather public input and consider adoption, modification, or rejection of the proposed amended Plan, with each hearing required to be held at least 30 days apart. At the conclusion of the second public hearing, the Railyards PFA will either terminate the proceedings if a majority (over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age) protest exists, or adopt the amended Plan, which will officially expand the territory of the existing Railyards EIFD, and establish project areas for the Railyards EIFD, among other things. Adoption of the amended Plan and addition of the expanded territory may be subject to confirmation by the voters if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest. The EIFD Law also conditions formation of the expanded Railyards EIFD upon City Council approval of the amended Plan.
This is the first of the two required public hearings, and the time and place of this public hearing was duly fixed in the Public Hearing notice. In addition, in accordance with Section 53398.66 of the EIFD Law, City finance staff, by the direction of the City Clerk distributed a Notice to each owner of land and resident in the current and proposed expanded Railyards EIFD and each affected taxing entity notifying them of this public hearing. Notice of this public hearing was also posted on the Railyards EIFD’s website.
Section 53398.66(a)(2) of the EIFD Law states that the PFA “shall hear all written and oral comments and take action to modify or reject the draft Plan” at the first public hearing. The initial draft Plan was presented to the PFA at the Public Meeting on August 11, 2026. A summary of the Plan is provided below.
EIFD Boundary Expansion
As proposed, the Railyards EIFD is contemplated to be expanded from its current 42 acres to a total of 238 acres within the Railyards Specific Plan area, which currently consists of 55 parcels with nine existing property owners. Attachment 3 to this report includes a map that illustrates both the existing and proposed expanded boundaries of the Railyards EIFD. The currently existing Railyards EIFD territory (original Stadium EIFD territory) will be known as the “original area” and the newly added territory as the “amended area.” Different base years will apply for tax increment calculations. Currently two project areas within the expanded Railyards EIFD have been identified.
Pursuant to the EIFD Law, the Railyards PFA shall conduct a public meeting to review the draft amended Plan. The Railyards PFA must hold two public hearings before approval of the final amended Plan, which at this time is expected to occur on September 15 and November 10, 2026. At the second public hearing the Railyards PFA may adopt the Plan to amend and expand the Railyards EIFD. However, the City Council must approve the Plan prior to the Railyards PFA’s proposal to amend and expand the Railyards EIFD.
The current amended draft Plan, which is the subject of the Railyards PFA’s September 15, 2026, meeting, is included as Attachment 5 and includes all items required by EIFD Law. The Plan remains subject to revision and will continue to be amended during the public hearing process. A summary of the key requirements included in the Plan is provided below.
Updates to the draft Plan since the PFA’s Public Meeting on August 11, 2026, mainly consist of the addition of a draft fiscal impact analysis. A redline version of the Plan showing those updates is included as Attachment 6. The results of this analysis are contained in the amended Plan and summarized in the “Fiscal Impact Analysis” section below.
Map and Legal Description: The proposed expanded Railyards EIFD boundaries, depicted in Attachment 3, consist 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, and SMUD. 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.
Facilities and Development Proposed to be Financed: The capital facilities proposed to be financed through the Railyards EIFD 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 Railyards EIFD (as expanded) and surrounding community. A list of the improvements and development that may be financed by the Railyards EIFD is detailed in the Plan presented today.
Necessity of Expanded Railyards EIFD: The expansion of the Railyards 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 includes the results of a fiscal impact analysis of the EIFD to the City’s General Government Fund (comprised of General Fund and Measure U Fund) following completion of the initial phase of Railyards development (through 2030) and at buildout. As shown in the current amended draft Plan, incremental new development is anticipated to result in a net fiscal surplus for the City’s General Government Fund of approximately $362K annually in 2030 and a net fiscal surplus of approximately $3.4 million annually at buildout (both in 2026$). Thus, annual revenues to the City’s General Government Fund are approximately $362K (2026$) more than the annual General Government Fund costs to serve new EIFD development in the initial phase of development, and annual revenues are $3.4 million (2026$) greater than annual costs at buildout.
Use of Incremental Tax Revenue: The Railyards EIFD will use incremental property tax revenue to finance facilities and costs authorized by law to be financed through the Railyards EIFD. The authorized incremental property tax financing is described in the Plan. As noted above, the City Council will have the opportunity to review and approve the Plan and the proposed use of incremental property tax revenue prior to adoption of the amended Plan by the Railyards PFA. The Plan indicates that the Railyards EIFD will use incremental property tax revenue that is generated by parcels within the boundaries of the Railyards EIFD (as expanded) to finance direct funding of facilities and reimbursement of the developer of the project for its cost of construction of certain authorized facilities, and to pay costs of issuance of bonds or other debt of the Railyards EIFD, or of any other public agency for authorized facilities and payment of debt service thereon to finance facilities and costs authorized to be financed through the Railyards EIFD.
Goals of the Railyards 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 Railyards 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 Railyards 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: Expanding the Railyards EIFD boundaries and amending the Plan is a necessary step towards the successful Railyards development of the public infrastructure and other projects of communitywide significance necessary for development of the Railyards.
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EconomicImpacts
Economic Impacts: The project will generate significant economic benefits to the community, the City, and the region.
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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 Railyards EIFD is necessary to support the development of the Railyards and review of the draft Plan is a necessary step in the expansion process pursuant to the EIFD Law.
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FinancialConsiderations
Financial Considerations: The allocation of revenues to the Railyards EIFD from the City will be limited to incremental property tax revenue generated by property within the boundaries (as expanded) of the Railyards 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 the developer for its cost of construction of facilities, payment of debt service on bonds, debt issued to finance eligible costs, or all or some of the foregoing. The Plan contains a limit of $825 million in tax dollars over the life of the Railyards EIFD that may be allocated by the City to the Railyards EIFD; the tax allocation to the Railyards EIFD will end in 2077. The City has no obligation to contribute revenues to the Railyards EIFD beyond the limits set forth in the Plan.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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