A decision delayed by neighborhood opposition
The vote followed more than a year of delay. The council first considered an enhanced infrastructure financing district, or EIFD, for the project in summer 2025, but postponed a decision amid opposition from neighbors. FOX40's 11 p.m. Tuesday report still described the plan as under consideration; its subsequent coverage reported the unanimous approval.
Supporters viewed the proposal as a way to extend downtown Sacramento. Critics said it offered too little affordable housing and too few jobs paying a living wage. According to Abridged, Unite Here Local 49 and Strong SacTown were among the opponents asking the council to wait. Strong SacTown also challenged the proposed use of district funds for a $63 million parking garage.
Property taxes and the housing allocation
The financing district would draw on future property taxes from owners within the Railyards District. The city projects that this revenue would exceed $800 million over 50 years.
The version presented Tuesday raised the affordable housing allocation to 25% from 20%. City officials expect the increase to provide an additional $36 million for affordable housing. Separately, Abridged cited a city staff report projecting about $800 million in total revenue over the district's 50-year life, including $180 million designated for affordable housing.
The housing debate comes amid a countywide shortage. California Housing Partnership data cited by Abridged put Sacramento County's deficit at more than 50,000 affordable homes for low-income renters. The data also show that a single worker would need to earn nearly $35 an hour to afford average asking rents.
The development planned for the Railyards
Covering 244 acres north of downtown Sacramento, the Railyards is described by the city as one of the nation's largest urban infill projects. Its planning entitlements, approved in October 2016, allow 6,000 to 10,000 dwelling units, 514,270 square feet of retail space and up to roughly 3.86 million square feet of office space.
The entitlements also provide for 1,100 hotel rooms and 33 acres of open space. A planned soccer stadium would seat 19,621 people, with the potential to expand to about 25,000.
Construction is already underway on a soccer stadium, a concert venue and a new Kaiser Permanente hospital in the Railyards, FOX40 reported.
