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West Sacramento Enhanced Infrastructure Financing District No. 1 and Bridge District Infrastructure Financing District No. 1

Background

Since the City of West Sacramento incorporated nearly 30 years ago, property tax increment financing (TIF) has been an essential driver of positive economic and physical change. TIF, the concept of borrowing against future growth in property taxes to fund public infrastructure and other improvements to enable private investment, was available to the City through its former redevelopment agency. However, when the State Legislature eliminated redevelopment in 2011, communities throughout California were left without a viable mechanism for using TIF to promote economic development.

In response, the City acted quickly to develop a Community Investment Action Plan , which provides recommendations for continued investment in infrastructure and revitalization activities post redevelopment.  The Plan helped to inform the revision of an existing but seldom used TIF tool – Infrastructure Financing Districts (IFDs) – and shaped the development of a new set of financing and real estate tools made possible through the signing of Senate Bill 628 in September 2014 which authorized Enhanced Infrastructure Financing Districts (EIFDs).  Like redevelopment, IFDs and EIFDs enable local agencies to use TIF for economic development and community investment purposes.

Bridge District IFD No. 1 and West Sacramento EIFD No. 1 Overview

Bridge District IFD No. 1 

On June 4, 2014, the West Sacramento City Council adopted Resolutions 14-36, 14-37, and 14-38 which formed Bridge District IFD No. 1, replacing a portion of tax-increment revenues lost to redevelopment dissolution that were pledged to public improvements outlined in the Bridge District Specific Plan Financing Strategy. This IFD covers approximately 188 acres in the Bridge District area and is in place from 2014 through 2044.

EIFD No. 1

On June 14, 2017, the West Sacramento City Council adopted Resolution 17-17 approving the West Sacramento EIFD No. 1 Infrastructure Financing Plan. On June 28, 2017, the Public Financing Authority to EIFD No. 1 adopted Resolution 17-2 and Ordinance 17-2 forming the first EIFD in the State.

EIFD No. 1 will play an important role in the City’s future to continue its efforts to transition many areas of West Sacramento from heavy industrial to mixed-use developments that celebrate the City’s waterfront location and enhance the City’s transportation network as well as the quality of public facilities for residents, businesses, and visitors.  EIFD No. 1 will be in place from 2017 through

EIFD No. 1 consists of 14 subareas, encompassing approximately 4,144 acres, or approximately 25-percent of the entire City, as shown in the map below. 

Financing Districts Goals and Eligible Improvements

Bridge District IFD No. 1

The Bridge District IFD No. 1 was formed to ensure the timely financing and development of Backbone and Supplemental Infrastructure identified in the Bridge District Specific Plan Implementation Strategy. 

EIFD No. 1

EIFD No. 1 incorporates goals and community investment principles established in the Community Investment Action Plan. EIFD revenues will fund projects that advance the City’s current and future anticipated adopted General Plan, specific plans, facilities master plans, capital projects, development agreements, development projects, and related planning and economic development documents. EIFD investments in infrastructure, community and economic development activities are intended to result in private investment to improve the local economy, create new revenue for the City and enhance quality of life. Specific goals include:

  • Assisting with the infrastructure investment gap by allocating tax increment to provide a stable source of financing for the City’s Capital Improvement Plan (CIP), to strategic infrastructure projects, and to other eligible EIFD uses.
  • Provide a stable source of revenue for capital investment.
  • Leverage private investment.
  • Support land assembly and environmental cleanup.
  • Leverage outside funds, such as federal/state grants.
  • Use in conjunction with other financing district revenues, such as the formation of Community Facility Districts and Benefit Assessment Districts.
  • Support adaptive reuse and creative reuse of existing real estate assets.
  • Induce private investment where it would otherwise not occur.
  • Support projects with a community-wide or regional benefit.
  • EIFD No. 1 Infrastructure Financing Plan (IFP) identifies facilities eligible for EIFD investment, as detailed in IFP Exhibit C, linked below in the EIFD No. 1 Formation Documents section.

Financing Districts Formation and Implementation Documents

IFD No. 1 Formation Documents

EIFD No. 1 Formation Documents

EIFD No. 1 Implementation Documents