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Record of Proceedings

Aggie Square Enhanced Infrastructure Financing District Public Financing Authority Meeting - February 2, 2021

Aggie Square Enhanced Infrastructure Financing District Public Financing Authority — Tuesday, February 2, 2021
BodySacramento, California
SessionAggie Square Enhanced Infrastructure Financing District Public Financing Authority
DateTuesday, February 2, 2021
StatusFILED
Video Record
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Transcript — Verbatim
0:15

Vice Chair Gata staff is ready when you are.

0:18

Thank you very much, Madam Clerk.

0:20

I'm going to call this meeting of the Aggie Square Enhanced Infrastructure Financing District Financing Authority to order this Tuesday, February 2nd, 2021 at 10.02 a.m.

0:33

If the uh clerk would please call the role.

0:36

Vice Chair Getta.

0:38

Here.

0:39

Member Jennings.

0:40

Here.

0:41

Member Hernandez.

0:43

Here.

0:44

Member Titherington.

0:53

Here.

0:54

Sorry about that.

0:56

Thank you.

0:56

And Chair Shaneer is online but expected momentarily.

1:01

Great.

1:02

Thank you very much, Madam Clerk.

1:03

Appreciate that.

1:04

Okay, we'll uh we'll commence with our public hearing as uh as part of the uh public finance authority requirements.

1:10

We're required to have uh a number of public hearings spaced out.

1:14

Uh think of it, it's 30 days apart.

1:16

Um, to present our first item, we have Leslie Fritchy from uh the city's Department of Economic Development.

1:22

Good morning, Lizzie.

1:24

Good morning, uh members of the Aggie Square Public Financing Authority.

1:29

I am going to uh be turning over the presentation today to uh Eric Frederick and uh Jamie Goines of uh EPS.

1:38

Eric is with our uh finance staff, and so I will introduce Eric for just a few minutes of introduction to uh the infrastructure financing plan and then on to Jamie.

1:50

So Eric, do you want to say a few words of introduction?

1:54

Uh yes, thank you, Leslie.

1:55

Uh good morning, Victor Garrett and members of the Aggie Square PFA.

1:59

As mentioned, I'm Eric Frederick with the Finance Department, and I'm joined today by uh Jamie Gomes with EPS.

2:05

Uh the item before you this morning is a public hearing on the proposed formation of the City of Sacramento Aggie Square Enhanced Infrastructure Financing District, or EIFD for short, and review of the infrastructure financing plan for that district.

2:19

Uh this is the first of three required public hearings that this body must hold prior to forming the EIFD, uh, with each hearing required to be held as mentioned at least 30 days apart.

2:30

Uh the purpose of these hearings is for this PFA to gather public input and to consider adoption, modification or rejection of the proposed infrastructure financing plan.

2:41

That is included in your packet.

2:43

Uh the financing plan provided to you today has been revised since the initial draft that had been presented to your previous meetings.

2:49

And Jamie Gomes from EPS is here once again to provide a brief overview of the financing plan and some key revisions made uh since the last version that was presented to you.

3:00

So Jamie, with that, I'll turn it over to you.

3:04

Thank you, Eric.

3:04

Uh, good morning, everybody.

3:06

Uh I will begin to share my screen.

3:12

Vice Chair Getta, will you please uh let me know when you can see the screen.

3:18

I can see the screen perfectly fine.

3:20

Thank you.

3:20

Great, thank you very much.

3:21

Well, good morning again, Jamie Gomes with EPS, uh working with uh your finance and economic development staff uh behalf of the city.

3:30

Uh prepare the infrastructure financing plan, uh this draft for the proposed Aggie Square EIFD.

3:37

And I'll refer to the infrastructure financing plan as the IFP as I walk through the presentation.

3:43

Um, as a brief outline, um, you know, we'll focus today's presentation on what really has changed and updates that we've integrated into the plan.

3:52

Um, and you'll see some familiar slides, but we'll also focus on what's changed.

3:57

So we'll review the the proposed EFD development timeline.

4:01

Um describe to you some updated descriptions we've integrated uh regarding the EIFD land uses.

4:08

We'll talk about how the EIFD revenues are proposed to be segregated into developer-led and city-led investments.

4:16

We've integrated a new map that identifies the expected location for city-led investments to comply with the requirements of the EIFD.

4:27

And then we'll conclude with a review of the tax increment revenue forecast and a summary of the proposed or anticipated fiscal impacts of the project.

4:36

Um, with respect to the EIFD.

4:39

So if you recall, this is a developer advanced construction.

4:44

So the an EIFD is tax increment revenue financing, meaning that uh the development has to occur first.

4:52

So sequentially, we're looking at EIFD formation, followed by infrastructure, site development, and other improvements.

5:01

Then the vertical development commences, which would integrate that the buildings and the plazas and the parking structure.

5:09

Then that's when the assessed value is created and on the tax rules, which creates the incremental tax revenues that the EIFD can use.

Discussion Breakdown — Share of Meeting
Infrastructure████████████████████████████████32%
Procedural████████████████████20%
Public Comments████████████████16%
Public Engagement███████████11%
Public Finance█████5%
Community Engagement█████5%
Labor Relations████4%
Workforce Development████4%
Affordable Housing███3%
Summary of Proceedings

Aggie Square Enhanced Infrastructure Financing District Public Financing Authority Meeting - February 2, 2021

The Aggie Square Enhanced Infrastructure Financing District (EIFD) Public Financing Authority held a public hearing on Tuesday, February 2, 2021, starting at 10:02 AM and adjourning at 10:32 AM. This was the first of three required public hearings to consider the proposed formation of the City of Sacramento Aggie Square EIFD and adoption of an Infrastructure Financing Plan (IFP). The meeting was conducted by teleconference in response to COVID-19 emergency orders.

Public Comments & Testimony

  • Patricia (Sacramento County resident and carpenter): Expressed concern that the project does not require prevailing wages, state-certified joint apprenticeships, or healthcare benefits for all workers. She questioned whether the university and city leaders would attach their names to a project that does not value working-class struggles. She urged that the development bring construction workers home from the Bay Area.

Discussion Items

  • Presentation by staff: Eric Frederick (Finance) and Jamie Gomes (EPS) presented the updated IFP. Key details included:
    • Phase one comprises approximately 1.4 million square feet (four Wexford buildings plus parking garage) and a 50,000–55,000 square foot rehabilitation hospital (Kindred Health/UC Davis Health).
    • EIFD revenues would be split: 80% for developer-led improvements (up to $30 million for infrastructure, plus financing costs) and 20% for city-led investments (affordable housing and related infrastructure).
    • Total phase one infrastructure costs are about $104 million; the EIFD would cover up to $30 million.
    • Tax increment revenue forecast: ~$2 million annually after phase one stabilization, reaching ~$50 million by 2037 and ~$100 million by 2046.
    • A new map identifies the expected area for city-led investments (bounded by Highway 99, 65th Street, Highway 50, and the city’s southern boundary).
  • Board comments:
    • Vice Chair Geta recommended extending the city-led investment map south to include the San Juan motel and trailer park property.
    • Councilmember Hernandez appreciated the job impact chart (page 5 of staff report) showing estimated job impacts by type within the county and region.
    • Councilmember Jennings raised a procedural question about responding to public callers. Staff (Leslie Fritzsche) clarified that public input would be considered for next draft documents and that a staff member would follow up with the caller regarding the project labor agreement and workforce town hall.
    • Several board members thanked staff, UC Davis, and community partners for their work.

Key Outcomes

  • The public hearing was held with no formal vote; this was the first of three required hearings, with subsequent hearings at least 30 days apart.
  • Staff will incorporate board and public comments (including the map extension request) into the next draft of the Infrastructure Financing Plan.
  • Staff committed to respond to the public caller and connect her with workforce meeting information.
  • Introduction of new legal counsel: Karen Tiedemann (Goldfarb & Lipman) was introduced as the PFA’s separate legal counsel, effective immediately.

Meeting Transcript

Vice Chair Gata staff is ready when you are. Thank you very much, Madam Clerk. I'm going to call this meeting of the Aggie Square Enhanced Infrastructure Financing District Financing Authority to order this Tuesday, February 2nd, 2021 at 10.02 a.m. If the uh clerk would please call the role. Vice Chair Getta. Here. Member Jennings. Here. Member Hernandez. Here. Member Titherington. Here. Sorry about that. Thank you. And Chair Shaneer is online but expected momentarily. Great. Thank you very much, Madam Clerk. Appreciate that. Okay, we'll uh we'll commence with our public hearing as uh as part of the uh public finance authority requirements. We're required to have uh a number of public hearings spaced out. Uh think of it, it's 30 days apart. Um, to present our first item, we have Leslie Fritchy from uh the city's Department of Economic Development. Good morning, Lizzie. Good morning, uh members of the Aggie Square Public Financing Authority. I am going to uh be turning over the presentation today to uh Eric Frederick and uh Jamie Goines of uh EPS. Eric is with our uh finance staff, and so I will introduce Eric for just a few minutes of introduction to uh the infrastructure financing plan and then on to Jamie. So Eric, do you want to say a few words of introduction? Uh yes, thank you, Leslie. Uh good morning, Victor Garrett and members of the Aggie Square PFA. As mentioned, I'm Eric Frederick with the Finance Department, and I'm joined today by uh Jamie Gomes with EPS. Uh the item before you this morning is a public hearing on the proposed formation of the City of Sacramento Aggie Square Enhanced Infrastructure Financing District, or EIFD for short, and review of the infrastructure financing plan for that district. Uh this is the first of three required public hearings that this body must hold prior to forming the EIFD, uh, with each hearing required to be held as mentioned at least 30 days apart. Uh the purpose of these hearings is for this PFA to gather public input and to consider adoption, modification or rejection of the proposed infrastructure financing plan. That is included in your packet. Uh the financing plan provided to you today has been revised since the initial draft that had been presented to your previous meetings. And Jamie Gomes from EPS is here once again to provide a brief overview of the financing plan and some key revisions made uh since the last version that was presented to you. So Jamie, with that, I'll turn it over to you. Thank you, Eric. Uh, good morning, everybody. Uh I will begin to share my screen. Vice Chair Getta, will you please uh let me know when you can see the screen. I can see the screen perfectly fine. Thank you. Great, thank you very much. Well, good morning again, Jamie Gomes with EPS, uh working with uh your finance and economic development staff uh behalf of the city. Uh prepare the infrastructure financing plan, uh this draft for the proposed Aggie Square EIFD. And I'll refer to the infrastructure financing plan as the IFP as I walk through the presentation. Um, as a brief outline, um, you know, we'll focus today's presentation on what really has changed and updates that we've integrated into the plan. Um, and you'll see some familiar slides, but we'll also focus on what's changed. So we'll review the the proposed EFD development timeline.

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