Aggie Square is moving right along. The push back from the community to slow gentrification seems to have quieted down. $5 billion and 25,000 jobs are said to be coming to Sacramento along with Aggie Square. There wasn’t much talk at the 9.28 City Council meeting, and the next steps were quietly moved along with the rest of the consent items.
Highlights from the Aggie Square Master Funding Plan:
Policy Considerations: The Master Agreement is for the Project, a project that furthers Sacramento’s position as a hub of bio-medical innovation and adheres with the adopted policies outlined in Sacramento’s Scale-up Strategy and 2021-2025 General Plan.
Economic Impacts: The Master Agreement further identifies the financial responsibilities of the parties to develop the Aggie Square Phase 1 project. This project, when built out is expected to add $5 billion annually and 25,000 jobs to the six-county region. City of Sacramento revenues are estimated to increase by $5 million annually. - The proposed Project is a mixed-use innovation and research center located on the University of California Davis (UC Davis) Sacramento Campus (home of the UC Davis Medical Center) along the Stockton Boulevard corridor.
- The Project is anticipated to develop in multiple phases. Phase 1 is planned to contain both UC Davis and private sector uses, including science, technology and data research; continuing and professional education; co-working and convening spaces; and mixed-use residential, food education, catering, and community-serving retail.
- Phase 1 of the Project is being developed under a public/private partnership collaboration between Wexford Development, LLC, and related entities (Wexford) and UC Davis, and is intended to be the catalyst for future development of the surrounding area.
- The Aggie Square EIFD (Enhanced Infrastructure Financing District) was established through a combination of actions by Council and the Aggie Square EIFD Public Financing Authority (Authority), the governing board of the Aggie Square EIFD. Specifically, Council approved the Infrastructure Financing Plan of the Aggie Square EIFD on April 6, 2021 (Resolution No. 2021-0080), and the Authority officially formed the Aggie Square EIFD on April 13, 2021 (Authority Resolution No. 2021-0002) following duly noticed public hearings that occurred on February 9, 2021, March 9, 2021, and on April 11, 2021. The Authority also adopted the Infrastructure Financing Plan of the Aggie Square EIFD on April 13, 2021 (Authority Ordinance No. 2021-0001).
- The Authority is scheduled to review and approve the Master Agreement at its meeting of September 21, 2021.
- Both the Aggie Square EIFD and proposed Aggie Square CFD will utilize the revenues they generate to reimburse Wexford for up to $30 million of the costs it incurs to design and construct infrastructure during Phase 1 of the Aggie Square Project (plus interest accruing on any unreimbursed balance until paid). The total infrastructure cost for Phase 1 of the project is estimated to be over $100 million with a total development cost of $1.1 billion.
- The 20% of tax increment designated for affordable housing is not pledged to the bonds or to Wexford but will be administered through the EIFD and the City.
- Housing Tax Increment - each year, the Aggie Square EIFD shall deposit the Housing Tax Increment in a fund that the Aggie Square EIFD shall establish and maintain for the sole purpose of funding the acquisition or construction of affordable housing in the vicinity of Aggie Square pursuant to the IFP (the “Housing Fund”).
- The parties are entering into this Master Agreement to evidence each party’s obligations with respect to the financing of the Required Facilities and affordable housing as contemplated by the Term Sheet.