I now call this meeting to order of the Aggie Square financing authority at 933 a.m.

With that, clerk will please call the roll.

Thank you, Chair.

Member De La Cruz.

Present.

Member Guerra.

Present.

Member Jennings is absent.

And Chair Maple.

I am here.

Okay, please join me in the land acknowledgement and the Pledge of Allegiance.

So please stand if you are able.

Please rise for the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands.

To the original people of this land, the Nisanan people, the Southern Maidu, Valley and Plains Miwok,

Pachua and Wintun peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe.

May we acknowledge and honor the native people who came before us and still walk beside us today on these ancestral lands,

by choosing to gather today in the active practice of acknowledgement and appreciation for Sacramento's indigenous peoples' history,

contributions, and lives.

You remain standing.

Salute and pledge.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands,

one nation, under God, indivisible, with liberty and justice for all.

Wonderful.

And welcome.

If anyone would like to submit a public comment on any item on the agenda, you can take a slip from the back,

fill it out, and bring it up to these wonderful women at the front who will take it and do your public comment.

Please submit that slip prior to the item starting, otherwise we will not be able to take it.

So with that, we'll start with the consent calendar.

We have items one and two.

Do we have any public comment on this item?

Thank you, Chair.

I have no speaker slips on this item.

Any comments for my colleagues?

I'll move consent, Madam Chair.

I have a motion.

Do I have a second?

I have a second.

Okay, I have a motion and a second.

All those in favor, please say aye.

Aye.

All right.

Any opposed or abstain?

That passes unanimously.

Thank you.

So now we move on to the main item of the agenda, item three.

Welcome.

Good morning.

Good morning.

Welcome back.

It's been every year we get to visit with the board.

I appreciate that.

And, Isabel, welcome to the PFA board.

Chair Maple, members of the PFA board of Aggie Square, Sini Mocasini with the finance department.

The item before you is a public hearing on the annual report of the City of Sacramento Aggie Square Enhanced Infrastructure Financing District.

Staff is here to conduct a public hearing and upon conclusion pass a motion adopting the fiscal year 2024-25 annual report for Aggie Square EIFD.

Also adopting the 25-26 revenue and expense budget, both of which were included in your packet.

The annual report requirements mandated under the EIFD statute have been addressed and shown on pages one and two of the annual report.

Before we open and close a public hearing, we do have Claire Drummond from the Wexford Development will give us a real-time update on the Aggie Square development.

And she's doing it remotely.

Thank you.

Thank you.

Thank you, Sini.

Good morning, all.

It's great to see you guys again.

One of these times I promise to do this in person and my travel just always conflicts with when this falls on.

So I'm excited to show you guys some visuals.

For those who I haven't had the opportunity to personally welcome to the site, I'm ecstatic for you to see what it looks like.

And I would love the opportunity to show anyone that wants to come see it in person.

So I'm going to screen share.

Is that working for everyone?

Yes.

Thank you.

All right.

And then I'll go into share mode.

Still good?

You know what?

I can see it behind you guys.

This is perfect.

All right.

So previous years when I've shown you guys this, it's been some beautiful high-quality renders and the idea of what Aggie Square will be.

And as of May 2nd, we have officially opened doors.

We hosted a ribbon cutting that had just shy of 2,000 people come through the space.

And now this deck and the presentation is full of not what could be with Aggie Square, but what has come to fruition.

So you'll see a lot of passion and excitedness when I'm discussing this.

But I do want to do some level setting for any new members or new community members who are listening in.

We have our roughly eight-acre parcel that sits directly south of the UC Davis Health System.

For those who are very familiar with the Stockton Corridor, you've got the Health Hospital, Shriners Hospital, the Courtyard, and the University and the City continue to invest millions of dollars, both in that health core and then in the way that the City is revitalizing the Stockton Corridor.

We're really excited to be a part of that.

And we've brought on just shy of 800,000 rentable square feet of our total projected 1.1 million.

That breaks down into two lab spaces, seven stories.

That's the 100 and 200 Aggie Square.

100 is currently on pause, so that is a vacant lot.

We can look into that as well.

But what you see on the map is the full projection of the 1.1 million square feet.

200 is that second lab building, which is adjoined on the first and second floors, to 300, which is an eight-story Class A office tower.

Across the Aggie Square proper plaza, you have our mixed-use residential.

And what is now known as 400 Aggie Square.

This beautiful little brick building has gone through multiple rebrands.

But it is now officially 400 Aggie Square.

And we are over the moon to announce and underscore that UC Davis is bringing their veterinary genetics testing facility over from Davis.

And they'll be anchoring that building.

We do have the mixed-use residential.

That's a traditional five floors over one floor of podium.

And it supports both master lease for the university students who are taking classes at Aggie Square and also has market rent rates as well.

And then the parking structure we'll talk a little bit more about.

And, of course, there is the opportunity and the excited potential of Phase 2 and Phase 3 development for Aggie Square.

When we look at what will benefit the community, I want to underscore that there are really two buckets here.

So what you're seeing on the color-coordinated map of delivery of what is the EIFD and CFD-eligible infrastructure, that represents about $33 million worth of underground work, hardscape, landscape.

And we'll look at what those examples are.

But there really is so much more that is community-facing and community-beneficial.

That was not included for the EIFD simply as a developer decision so that we could use our contractor that had been working with us on the other components.

So that's the parking structure.

There's about 15,000 rentable square feet of indoor community space.

That's event halls, conference rooms, public seating, working really hard to bring food services into that building.

And then the landscape and the hardscape is included.

But overall, we're looking at $30 million of eligible EIFD.

And overall, the contribution to pure community-facing is it supersedes $100 million.

And that does also include a university investment, which was an intersection light at 45th and 2nd.

And we'll look at that example as well.

So here we have the front entrance to Aggie Square.

It was really important to both partners, the university and Wexford, that we created an open invite into the space.

Hospitals and academic institutions are not always the most visually inviting, especially at the pedestrian scale.

So we've created these walkways, shaded canopies, really diverse and beautiful landscape structures, changes to height.

There's just a lot of things that will make you walk down the Stockton Corridor and say, this is interesting.

Let me peek my head in.

Within that remit, we have some specific call-outs.

So shade structure, obviously very important in California.

We want to be able to allow for as much outdoor activity and meetings and serendipitous collisions as possible.

We have the historic inlay.

We wanted to celebrate that we were the site of the once California State Fair.

So it's the very first thing that meets you when you turn onto the brand new 3rd Street that we created from Stockton Corridor.

Again, shade through both landscape and these beautiful canopies, which were produced locally.

And then the continuation and extension of 3rd Street, which we worked very closely with the city on to create a new signal there as well.

So there's a signal at 3rd and Stockton and one at 2nd and 45th that the university brought online.

You're now looking south into the project.

So from the perspective of essentially the courtyard, but a higher version of that.

And you're starting to see all of the different plazas and hardscape and landscape that the project provides.

You can also see where it still looks like an active construction site.

That is the future 100 Aggie Square lab building.

That's currently lay down area as we complete our work.

But at the, I'm not sure if you guys can see my mouse, but in this corner of the lab east or 200 Aggie Square building,

we have a beautiful mobility plaza, which will complement future mobility work provided by the university north of 2nd Avenue.

That has reclaimed wood benches.

It's got covered and illuminated pathways, bike racks galore all over the site, and then some really beautiful landscape.

That philosophy follows all the way down the street, which is 45th.

But interiorly, we call it the Paseo, just this really beautiful human scale connection between the mixed use and the commercial side.

And then you can see Aggie Square proper plaza, which is where all the trees converge.

We've got copious amounts of public seating out there.

And while the trees were contract grown for two years, we do estimate that they will continue to grow and fill in both for shade

and just that really nice feel of having a landscape in the area.

And the last thing I'll add as we do a zoomed in version of the mobility plaza is that we do have Wi-Fi bollards,

so you can work indoor and outdoor.

And then, of course, creating a campus environment, a university and ecosystem campus,

you want to provide CFA blue light phones for safety and emergency.

Happy to talk more about this.

I will say we're very early on in the bond process and timeline.

We had our kickoff last week that was predicated by having an advanced funding agreement in place between the city and Wexford

so that the city can bring on all the consultants that they need for us to be able to bond.

And so far, we've had really good confluence with all of these teams coming together.

So we're looking forward to a future bond sale, hopefully in the next few quarters,

but we'll keep you guys updated as we progress on that.

And then again, there is that $70 million of investment outside of EIFD.

And for those who have not had the opportunity to come,

I just want to show you what the final features look like.

We love to highlight that we had over $100 million spent locally within a 10 to 15 minute drive.

So in this visual alone, you see HC Muddox, which was the brick layer,

incredible bespoke brick layer.

That's one of three left in California.

They were just an instrumental partner with us.

Bagatellos as well did some of our most incredible hiring and resource generation with internships.

And they did the skin of the building, the glass on all sides.

You get to see the moments of the landscape and some of the reclaimed benches in this one.

Those were reclaimed from trees that we cut down in the process of building Aggie Square.

And then as we move interior, there are all of these really funky dynamic places to host meetings,

host community events.

We've already hosted close to 45 events since we opened May 2nd,

which has brought in 3,000 unique individuals into the space.

And on the left, you're looking at the university classrooms.

So really excited that we have the School of Nursing hosting classes there.

As well as the biomedical engineering program, starting up their master's program there.

The event space that we talked about, social labs, both on the first and the second floor.

See a lot of vibrant colors.

Again, active invites.

No security during business hours.

So you're encouraged to come work in these spaces.

And then as you go up the stairs, floors 2 to 7 and 2 to 8, respectively, on the buildings,

you have incredible university research and investment, how they've brought their teams and their researchers into the space.

The last thing I'll add before I move over to questions is, again, outside of the EIFD,

but something we're remarkably proud of.

And that was public RFPs for murals, both inside and outside of the space.

What you see on this screen is an incredible five-story mural by Micah Crandall-Bear,

who really overcame his fear of heights to be able to paint that beautiful landscape for us.

But we ended up running three different RFPs for both university space and then interior and exterior for Wexford space.

Of those three RFPs, we worked with Donald Gensler at the Office of Art and Culture.

Collectively, we spent close to $120,000 with these artists.

One of the best return on investments we've had, this is just a stellar showcase of the community coming into the space.

We selected four artists.

Two artists got selected twice.

And then one artist we actually created two new murals for.

So these are just beautiful intersection points within our space.

And I will turn it over for questions.

Thank you very much.

With that, do we have any additional presentation on this?

We don't.

Before we adopt the resolution or the recommendations, we don't have any presentations at this point.

Okay.

With that, do we have any public comment?

Thank you, Chair.

I have no speaker slips.

Okay.

I'll turn it over to our Vice Chair.

Council Member Goer.

Yeah, thank you.

Thank you, Claire.

I appreciate that.

I had the opportunity to obviously view the amazing public art and all of the great community spaces.

And I think already we had community members asking how they can participate and reserve the space and hold their meetings there.

You know, Kim from the HB, Building Healthy Communities.

I always mess up the acronym.

But it's already been asking there.

So one question is, what's our outreach efforts for that communal space so that people are aware of participating and how they can start reserving that open space?

Yeah.

Yeah.

Great question.

And great to see you again.

Thank you for coming to the Ribbon Cutting.

You and I were co-speakers, and I really appreciated that moment with you.

So there are a few different outreach strategies.

I think everyone in this room knows Sumiko Hong with the university, who is a dedicated community resource advocate.

So she hosts monthly group meetings, whether that's the Youth Commission that happened late last week, early this week, community meetings, which happen monthly.

There are a lot of different ways in which you could stumble upon the resources.

But if you're actively looking for the resources, especially renting space, I would go to visitaggiesquare.com.

You'll get connected with my incredible colleague, Monique Brown, who is our Knowledge Community Director.

And between Sumiko and Monique, they'd be able to put you in a myriad of different spaces and talk through what that programming opportunity looks like.

And we would be more than happy to host you guys.

Great.

Thank you.

And then the other question I had was, you know, I mean, obviously, building 200 and building 300 are amazing.

I'm glad to see the housing is, I don't know if it's completely finished.

It is.

Are there furniture in the room and whatnot?

Yes.

Perfect.

People moved in.

Oh, great.

Great, great.

So, one, I would like to, one, make sure that we have an opportunity for our city to engage as well.

I know a lot of them are students or faculty and then the pipeline.

I would like to get a sense on what that participation rate, because from what I understand is that it's students, faculty, employees of the campus, and then it's open to the public.

So, when appropriate, I'd like to report back on what that profile looks like of participation in residency.

And excited about the residence there, because it'll support the local businesses there and the local shops right there.

I'm interested to see if there's any veterans there that are going to participate on the Sunday breakfast at VFW's Post 67.

So, I don't even know if they know that there's some good biscuits and gravy there in Chilaquiles on Sunday mornings.

So, I think the housing there is important.

But the question that I have here is on building 100.

So, what's the rationale for the delay in construction of building 100?

Yeah, that's a fair question.

So, bringing 800 rentable square feet to a new market is already a huge undertaking.

So, we have 100 designed up through design documentation, which is two stages away from being able to bring it to construction fruition.

In timeline, that's about four or five more months to design and four or five more months to permit.

What I love about that stage where it's currently at is we could bring in an anchor tenant, which is what we would need to do to facilitate the construction and development of 100 Aggie Square.

And we could co-design with that potential prospect what they need for their spaces.

So, for example, if we brought in someone that was doing CDMO manufacturing, which is very high-end life science research manufacturing, like a Pfizer in the world.

I'm not saying that Pfizer is on the list.

I'm saying that's a good example to hold on to.

They might require certain floor-to-ceiling heights or certain vibration criteria.

So, with being flexible, we're able to approach and really engage with a wide, diverse set of prospects who would come and anchor that building.

Okay, fair point.

And I guess the anchor tenant for the current building 200 would be the UC Davis Biotech Lab that we toured there.

Correct.

Yeah, UC Davis is our tenant, our anchor tenant for both of those buildings, 200 and 300.

Okay, great, great.

And the last piece here, one, I just encourage that more discussion happen, and I think this is also more on the University of California's side, not necessarily your side, but on the parking and the also traffic mitigation around the campus.

I appreciate the infrastructure improvements on 2nd Avenue and 3rd Avenue on Stockton.

Those obviously were a priority in the transportation conversation on the CBA.

But there are still, I think, more safety improvements for both bike and pad around the campus.

I think the design has been great internally, but I think those, when we're discussing it with UC, on the UC side, those, I think we still have more work to do there.

So thank you, Chair, and glad to move the item.

All right.

Is this a public hearing?

Are we opening it?

Oh, yeah.

I'll go ahead and move the open and close the public hearing and move the item.

All right.

We have a motion.

Perhaps a second.

I don't know what the opportunity is to ask a question about EIN.

I'm happy to pass it on over to you right now.

Wonderful.

I just had a question about the 20% of net EIFD revenues towards affordable housing to the larger housing market.

I know you guys are doing a fabulous job on the space.

I just visited it last week for the community partnership meeting, and it does feel very walkable, very open.

The space feels well thought out.

I just know from the community perspective there's, like, a huge concern about, you know, how it will impact the housing around the surrounding area.

And so I just wanted to follow up to see if there's any items that have been identified for those specific funds.

Yeah.

Thank you very much, Isabel.

At this point in time, we have received plus or minus $900,000 of EIFD funds,

so about $180,000 is going to be set aside into that housing pot.

Now, we have not determined an exact use for that $180,000,

because right now we have money that was included in the community benefits agreement

for the housing stabilization efforts, of which it's $5 million from the city and $5 million from UC Davis to support housing stabilization through the priorities of codes around Aggie Square.

So that's the culture home ownership program that we have launched.

We've also assisted with home repair through Habitat for Humanity.

And then also Salvation Army and Step Up have provided some utility and mortgage assistance for people throughout the neighborhood.

And I just had it up to give you some idea of statistics there of how many people have been served.

Each of the programs have kind of a unique defined area of expertise.

As I said, the Salvation Army and Step Up provide kind of programs to help people that might get behind in their rent

or get behind in their mortgage assistance.

And so the money that is going to be flowing from the EIFD itself may augment those types of programs.

We're still defining exactly how that would be used to bring those projects into the future

once we have exhausted the original $5 million of housing funds.

Wonderful. Thanks for that update.

Okay.

Additional comment from the Vice Chair.

Yes, thank you.

Well, I'm glad you brought that up.

Most of the time we forget to toot our own horn about how, you know, what we're doing.

And today we're doing the ribbon cutting for the Mercy Housing Project,

which is a product of being able to secure those dollars from the Community Benefits Agreement.

So even before we tap into the 20% of the EIFD, because, you know, the EIFD only works as we increase and create more tax revenue.

So until we get more tax increments, so we fill those lease spaces and those lease spaces add more into the revenue bucket,

then we actually don't have that much.

So, I mean, $180K is really not enough to fund a project.

We're in the millions there.

But one product of that is the Mercy Housing Project that is about 200 units of townhomes.

And that is fully occupied now.

And so we're excited about that today.

And that's a product of the CBA.

Along with the – those are for new tenants.

But as Leslie brought up, you know, we've been doing to protect existing residents in that area.

So –

I do want to add, because I have the numbers here.

It's about 700 individuals that have been assisted through the housing stabilization programs.

And then the money that Council Member Guerra just alluded to for new housing development and development projects along Stockton Boulevard,

that's to generate about 1,700 new units along the corridor and along Broadway as well.

So we're trying to leverage and use kind of a comprehensive approach, helping people that are there, but also bringing new units online.

And what time is that?

11 o'clock, I think, is the dedication for the project on Stockton.

Wonderful.

Thank you for that update.

Okay.

Well, thank you.

Well, I just want to start by saying this is a really exciting update.

I had an opportunity.

In fact, I think I've hosted now two community events there myself.

One just a week or so ago.

It's a beautiful space.

I had the opportunity to tour as well.

And fortunately, I missed the ribbon cutting.

It happened to be smack dab in the middle of my wedding.

But otherwise, I would have been there.

I wouldn't have missed it for the world other than that.

So a really beautiful space.

And we're thrilled to have it in our community.

As you know, also, I'm a UC Davis grad.

So it's extra special to me.

And I see a lot of the work that's going on.

I want to share some of the vice chair's comments as it relates to some of the pedestrian and cyclist safety issues.

I've received quite a few emails recently about some of the construction work that's happened along Broadway, kind of in front of the space.

And people are feeling concerned about their ability to get around.

So if there's a way we can work together, whether that is public works, and to see if there's a way that we can get people through in a safe fashion, that would be, I think, a great thing for the community.

Because there's certainly some concerns there.

But, you know, other than that, I think this is, it's very exciting to see something that was discussed for so long come to fruition.

I'm also really loved hearing that data point on how many people were helped through the housing assistance.

And it got my wheels turning.

Maybe at the next PFA meeting, we can have a more full report on how all of the programming that has gone on through the CBA has, what are the numbers?

How has it benefited the community?

And I think we know it has.

I think it would be great for this body to see how that has happened and the public to see that, too.

The only question I have is, I noticed in the staff report, it talks about the eligible facilities reimbursement for $720,000, just for the public's edification.

Can we, the staff, speak to that a little bit?

What is that dollar amount for?

What does it mean?

Sure.

Yes.

So I think that would be my real house.

So the $720,000 that's outlined in the change to the enhanced, excuse me, infrastructure financing plan is to offset some unforeseen costs that were experienced by Wexford.

These costs related to water and sewer fees, city water and city sewer fees.

And it came about because UC Davis indicated to the developer, Wexford, that they were exempt from the fees.

That's, in the city's view, not the case.

And so Wexford, and you'll probably see a little bit of dismay on Claire's face, as I mentioned this number, but received a bill that was for $4.2 million for that water and sewer fee.

So we've been working very collaboratively with Wexford over time, over probably the past year and a half, to find out a strategy to pay those fees.

So the $720,000 represent a bit of a compromise.

Those funds would come from the enhanced infrastructure financing district, those fees that we've, or the funds that we've already received.

And then Wexford would pay the balance of about $3.5 million.

So it is a middle bit of a middle ground that we're asking support for today.

And this item also will have to be heard by city council, which we're envisioning to occur sometime early in July as part of a settlement agreement.

So thank you for that question, Council Member Maple, and open to any other additional questions on this matter.

Thank you.

Thank you.

Just good to know that that's also going to be heard at council.

So there'll be at least one other opportunity for this body and beyond to weigh in.

And I really want to thank you and the staff for your work on having this conversation.

I'm sure it wasn't easy.

And glad to see that there was a conclusion that works for both parties.

And so hopefully we can move this on and have it be heard by the full council soon.

So with that, I'm actually happy to second your motion, vice chair.

And with that, all those in favor, please say aye.

Aye.

Aye.

Any opposed or abstain?

Okay.

That passes unanimously.

Thank you very much.

Thank you.

All right.

And with that, we're moving on to committee questions, comments, concerns, anything that you want to bring up?

I'm not seeing anything.

Well, I thought I'd read a poem about Stockton Boulevard during Council.

I will only be accepting a haiku.

Okay.

Hearing none, seeing none.

There's no public comments on the agenda.

So we will adjourn at 10.02 a.m.

Thank you.

Thank you.

Thank you.