West Sacramento, California
The 188-acre Bridge District Specific Plan (formerly referred to as the Triangle) represents a unique opportunity for the City of West Sacramento to transform its waterfront into a vibrant community. EPS was retained by the city to assist in developing the financing strategy for the redevelopment area, forming a Community Facilities District (CFD) for infrastructure to serve the Bridge District, and technical support for negotiations with land owners.
EPS conducted a financial feasibility analysis and an infrastructure financing strategy for development of an industrial infill site proposing high-density mixed uses along an urban waterfront. This analysis included evaluating development impact fee burdens, affordable housing requirements, and redevelopment financing mechanisms. Significant analysis was conducted to determine urban levels of service for infrastructure facilities (e.g., parks, water, sewer, and traffic), which then were applied to the City of West Sacramento’s existing impact fee program. EPS developed a working cash flow model to incorporate financing mechanisms, including State Proposition 1c, city impact fees, tax increment revenue, and private funding with the anticipated infrastructure costs over a 30-year period.
In addition, a CFD will be established for the Bridge District, which will incorporate incentives for developers to achieve the City of West Sacramento’s density targets. The CFD Special Tax Formula contained features that incorporated an annual special tax and one-time special taxes. The annual special tax will be used to service debt on bonds issued, which will fund construction of required infrastructure. The one-time taxes will provide a pay-as-you-go program to fund infrastructure that otherwise would be funded by development impact fees and redevelopment agency tax increment.