City plans initial funding, hopes for state and federal funding to be able to proceed.
City's plan puts $159 million into railyard project
By Mary Lynne Vellinga - mlvellinga@sacbee.com
Published 12:00 am PST Wednesday, December 5, 2007
The city of Sacramento is proposing initially to put $159 million toward public improvements needed for the redevelopment of the downtown railyard.
City staff members Tuesday presented the details of the proposed railyard spending as part of a briefing for the City Council on finances for the project.
City Economic Development Director Dave Harzoff said a formal agreement detailing the city's commitment would be brought back to the council in January, after a planned Dec. 11 vote on project approval.
The city money would offset some of the $745 million projected cost of the backbone of streets, sewers, utilities and other improvements needed to transform the railyard from a weed-filled industrial wasteland into a vibrant extension of downtown.
"We do believe public subsidies are warranted for this project," Harzoff said. "If we can get the project jump-started it will have huge financial benefits."
Even when combined with $168 million in private fees proposed for the project, the city's proposed contribution would fall far short of paying for the needed public improvements.
The city and Thomas Enterprises are hoping to land state and federal funds, particularly money from a recently passed state housing bond, Proposition 1C. The city's finance plan for the railyard anticipates receiving $354 million from such outside sources.
"If we don't get it, this project is not going to be going forward," said City Councilman Steve Cohn.
