Sacramento City Council took a key step Monday toward clearing the way for new construction in Del Paso Heights and Old North Sacramento, advancing a proposal to create an enhanced infrastructure financing district for District 2. The financing tool would let future projects borrow against anticipated property tax growth to pay for sewers, streets, sidewalks and other public improvements tied to new construction. City officials say that could help unlock shovel ready projects, including the planned affordable housing development at 440 Arden Way, while easing pressure on the city’s general fund.
According to City of Sacramento Budget and Audit Committee minutes, committee members approved a motion directing staff to begin work on a District 2 enhanced infrastructure financing district and send the proposal to the full council for consideration. That procedural move gives staff the green light to sketch out proposed boundaries, identify eligible projects and build a financing plan that will come back to the council and the public for review.
What the EIFD Would Pay For
As reported by the Sacramento Business Journal, an enhanced infrastructure financing district would let developers tap future property tax revenues to help cover sewer upgrades, road and sidewalk repairs and other public works that often stall new construction. Supporters say steering those tax increments into upfront infrastructure can make transit adjacent parcels more attractive to builders without requiring immediate cash outlays from the city.
Where District 2 Reaches
City documents show the effort would center on Del Paso Heights and Old North Sacramento, with a focus on commercial corridors and transit nodes in Council District 2. Per the City of Sacramento, the District 2 business investment program targets storefronts along Del Paso Boulevard and nearby corridors between Lampasas Avenue and Evergreen Street and Highway 160. It is not flashy policy, but this is the plumbing that can determine whether long discussed projects ever break ground.
Why Developers Are Watching
The proposed district overlaps transit and several high priority housing sites, which has builders focused on infill development paying attention. BRIDGE Housing’s 440 Arden Way project is planned as about 124 affordable homes next to the Arden/Del Paso light rail stop, and proponents say an EIFD could help pick up the tab for the public works upgrades that projects like this need in order to move forward. Project specifics are outlined by BRIDGE Housing…