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Record of Proceedings

Aggie Square EIFD Public Financing Authority Hearing - March 9, 2021

Aggie Square Enhanced Infrastructure Financing District Public Financing Authority — Tuesday, March 9, 2021
BodySacramento, California
SessionAggie Square Enhanced Infrastructure Financing District Public Financing Authority
DateTuesday, March 9, 2021
StatusFILED
Video Record
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Transcript — Verbatim
0:18

Chair Staff is ready when you are to establish the quorum.

0:28

Thank you, Member Getta.

0:30

Here.

0:30

Member Jennings.

0:32

I'm here.

0:33

Member Hernandez.

0:34

Here.

0:35

Member Titherington.

0:40

She shook her head, yes.

0:45

Present.

0:46

Thank you.

0:46

And Chair Shaneer.

0:48

Here.

0:48

Great.

0:49

Thank you very much.

0:50

Appreciate that.

0:51

We have one item on the agenda plus the potential for public comments.

0:56

So Ms.

0:57

Fritchies, let me turn it over to you.

1:03

You're on mute.

1:04

I know I'm joined.

1:06

My button wasn't finger wasn't pressing hard enough.

1:10

Good morning, members of the Aggy Square PFA.

1:13

As a as Chair Shineer indicated, we have one item on the council on the agenda for today.

1:19

And that is going to be kicked off by uh Eric Frederick of our finance of the city's finance department, who's going to then introduce Jamie Gormes of ETS to give some highlights about the infrastructure financing draft that is before you today, highlighting some of the changes from the draft that you saw at the previous meeting.

1:39

So Eric, do you have a few opening comments?

1:44

I do.

1:44

Thank you, Leslie.

1:45

Uh good morning, Chair Shneer and members of the uh Aggie Square PFA.

1:49

Again, I'm Eric Frederick with the finance department.

1:52

Uh as Leslie mentioned, Jamie Gomes from EPS is also joining us today.

1:57

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

2:14

This is the second of three required public hearings that this body must hold prior to forming the EIFD, and each hearing is required to be held at least 30 days apart.

2:25

Um in addition, the city council must approve the financing plan uh prior to this body adopting it and forming the EIFD.

2:33

Uh the purpose of today's hearing is to review the latest version of the plan uh for the PFA to consider any written and oral comments uh and to take any action to modify or reject the plan.

2:46

Um this plan, as Leslie mentioned, has been revised since the version that was presented at the last public hearing uh held on February 2nd.

2:54

And Jamie Gomes is here to provide a brief overview of the financing plan and some of the key revisions that were made since that last version.

3:02

Uh so Jamie, I'll turn it over to you.

3:05

If I can, just as an FYI, we are currently scheduled to go to the city council on April 6th.

3:12

So just for anyone watching or for those who are on this call.

3:17

Good morning.

3:19

Members of the public financing authority, can you hear me okay?

3:22

Yes.

3:22

All right, and are you able to see my presentation slides?

3:26

Yes.

3:26

Great.

3:27

Well, thank you again.

3:28

Uh Jamie Gomes with Economic and Planning Systems, EPS, uh, consultants of the city, uh to the PFA and preparing the infrastructure financing plan for the proposed EIFD.

3:40

So I'll refer to that as the IFP.

3:43

Um and as you know, this is a second public hearing, so some of this material would be familiar to you.

3:49

Um the primary purpose today really is to give you a quick update on what has changed in this second draft, uh, to answer any questions you may have, and then finally to take input, uh, both from the public financing and from the public as well.

4:07

So the the primary emphasis or changes that we'll talk about today are items one, three, and five, and those are updates to the land use plan, the area that's identified for city-led investments, and the new draft includes a little bit more detail on the plan for how the facilities will be financed.

4:29

And as I go through this, obviously feel free to interrupt and ask questions uh as we go along if you prefer.

4:37

On the top third of this slide, or top half of this slide, really, uh, these are the changes that have been reflected in the updated plan.

4:46

We have an updated phase one development program, and that's what we've labeled as Wexford development in the in the document, and it entails changes to all of the structures that are proposed for phase one that are as part of the agreement with Wexford.

5:04

So it doesn't include any changes to the rehabilitation hospital that is separate.

5:09

But for the Wexford development, um, it's a shift in the UC Davis commitment to lease space from the two buildings, LSTE East and LSTE West.

5:24

The shift is the more of the UC Davis committed space is in the East building.

5:30

So there's an increase there.

5:32

That building, the East Building has been revised to be to be instead of eight stories tall, would be seven stories tall.

Discussion Breakdown — Share of Meeting
Economic Development██████████████████████████████████████38%
Budget and Finance██████████████████████████26%
Procedural███████████████████████23%
Infrastructure██████████10%
Community Engagement███3%
Summary of Proceedings

Aggie Square Enhanced Infrastructure Financing District Public Financing Authority - March 9, 2021

The Aggie Square EIFD Public Financing Authority held its second required public hearing on the proposed formation of the City of Sacramento Aggie Square Enhanced Infrastructure Financing District (EIFD) and adoption of an Infrastructure Financing Plan. The meeting reviewed revisions to the plan, heard public testimony, and closed without a formal vote. The next hearing is scheduled for April 13, 2021.

Public Comments & Testimony

  • Frank Louie, Executive Director of the Stockton Boulevard Partnership, requested that the city-led investment area (currently extending from Fruit Ridge Road south to Lemon Hill Avenue) be expanded further south to include Little Saigon Plaza, noting its vacancy and potential for affordable housing and development within an opportunity zone.

Discussion Items

  • Staff presented an updated infrastructure financing plan reflecting changes to the Phase 1 development program (Wexford development): UC Davis committed space shifted from the LSTE West building to the LSTE East building, the East building reduced from 8 to 7 stories, the lifelong learning tower restructured to 8 stories, and the mixed-use residential building slightly increased in square footage. Overall, the Phase 1 program decreased by approximately 88,000 rentable square feet.
  • Doug Woodruff (Wexford project lead) explained that the changes were driven by investor requirements for sufficient pre-leasing (60% threshold) to secure capital, with UC Davis’s combined tenancy in the East lab and lifelong learning buildings reaching that threshold.
  • The EIFD caps developer reimbursement at $30 million plus financing costs. Annual EIFD revenue after Phase 1 completion is estimated at approximately $2 million. Cumulative EIFD revenue is projected to reach $50 million by 2039 and $100 million by 2048. The plan also describes a proposed Mello-Roos Community Facilities District (CFD) to backstop the reimbursement.
  • The city’s general fund surplus is estimated at $139,000 annually after Phase 1 and up to $549,000 annually at full build-out. Members discussed the potential to reinvest surplus funds in the surrounding neighborhood for workforce development, housing, and infrastructure, though no formal commitment was made.
  • Staff noted that a second EIFD for the Stockton Boulevard corridor is under consideration and will be coordinated with the Stockton Boulevard Specific Plan process.

Key Outcomes

  • The public hearing was opened and closed; no vote was taken on the plan.
  • The next (third) public hearing is scheduled for April 13, 2021, at 11:00 AM (moved from 10:00 AM to accommodate member schedules).
  • Staff will consider including Little Saigon Plaza in the city-led investment area map for the next draft of the plan.

Meeting Transcript

Chair Staff is ready when you are to establish the quorum. Thank you, Member Getta. Here. Member Jennings. I'm here. Member Hernandez. Here. Member Titherington. She shook her head, yes. Present. Thank you. And Chair Shaneer. Here. Great. Thank you very much. Appreciate that. We have one item on the agenda plus the potential for public comments. So Ms. Fritchies, let me turn it over to you. You're on mute. I know I'm joined. My button wasn't finger wasn't pressing hard enough. Good morning, members of the Aggy Square PFA. As a as Chair Shineer indicated, we have one item on the council on the agenda for today. And that is going to be kicked off by uh Eric Frederick of our finance of the city's finance department, who's going to then introduce Jamie Gormes of ETS to give some highlights about the infrastructure financing draft that is before you today, highlighting some of the changes from the draft that you saw at the previous meeting. So Eric, do you have a few opening comments? I do. Thank you, Leslie. Uh good morning, Chair Shneer and members of the uh Aggie Square PFA. Again, I'm Eric Frederick with the finance department. Uh as Leslie mentioned, Jamie Gomes from EPS is also joining us today. Uh the item before you this morning is the second public hearing on the proposed formation of the City of Sacramento Aggie Square Enhanced Infrastructure Financing District or EIFD and review of the infrastructure financing plan for that proposed district. This is the second of three required public hearings that this body must hold prior to forming the EIFD, and each hearing is required to be held at least 30 days apart. Um in addition, the city council must approve the financing plan uh prior to this body adopting it and forming the EIFD. Uh the purpose of today's hearing is to review the latest version of the plan uh for the PFA to consider any written and oral comments uh and to take any action to modify or reject the plan. Um this plan, as Leslie mentioned, has been revised since the version that was presented at the last public hearing uh held on February 2nd. And Jamie Gomes is here to provide a brief overview of the financing plan and some of the key revisions that were made since that last version. Uh so Jamie, I'll turn it over to you. If I can, just as an FYI, we are currently scheduled to go to the city council on April 6th. So just for anyone watching or for those who are on this call. Good morning. Members of the public financing authority, can you hear me okay? Yes. All right, and are you able to see my presentation slides? Yes. Great. Well, thank you again. Uh Jamie Gomes with Economic and Planning Systems, EPS, uh, consultants of the city, uh to the PFA and preparing the infrastructure financing plan for the proposed EIFD. So I'll refer to that as the IFP. Um and as you know, this is a second public hearing, so some of this material would be familiar to you.

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