The Sacramento City Council unanimously approved a tourism investment package Tuesday to revitalize the Old Sacramento Waterfront, support festivals and advance plans for a new convention center hotel.
The initiatives will be funded through Transient Occupancy Tax (TOT) revenue. The Waterfront Reinvestment Program will be funded with TOT bonds, with the first bonds set to be issued early next year. The support for the festivals will come from existing TOT revenues.
“With this plan, we have the opportunity to modernize our waterfront for the next 60 years,” said Mayor Darrell Steinberg. “As our city grows, we’re taking bold steps towards building a thriving economy centered around tourism. From developing a convention center hotel to investing millions in music festivals, we’re shaping the future of Sacramento for generations to come. Thank you to our City Manager, City staff and the business owners for their unwavering dedication in making this vision a reality.”
City Council approved $25 million for the first phase of the Waterfront Reinvestment Program which will focus on infrastructure repairs and building out a new playground with construction expected to occur between spring and fall 2025. The projects include:
- Renovating or replacing public market buildings
- Redeveloping key waterfront sites
- Repairing the boardwalk and K Street Barge
- Building a new playground with design input from local Native American tribes
- Enhancing the Old Sacramento docks for safe public access and riverboat traffic
A future second phase, pending council approval, will allocate up to $15 million for continued redevelopment, including the full buildout of the public market buildings and surrounding open space.
“The Waterfront Reinvestment Program will build on our efforts to transform downtown Sacramento and the Sacramento Waterfront into a vibrant community and visitor destination,” said City Manager Howard Chan. “With the support of our partners, elected officials and dedicated City staff, this project will enrich our riverfront, celebrate Sacramento’s heritage and drive local economic growth.”
A similar plan approved in 2019 was postponed due to the pandemic’s impact on TOT revenue. With hotel occupancy rebounding, the City can now reinvest in tourism-related projects.
Additional improvements will be funded separately through a $1.5 million federal grant from the U.S. Department of Housing and Urban Development, secured by Congresswoman Doris Matsui, and $4.6 million from California’s AB157, recently signed by Governor Gavin Newsom.
Convention Center Hotel and event funding
The council also approved a proposal to use TOT revenues to support the development of a 330-room convention center hotel near the SAFE Credit Union Convention Center. While still in its early stages, the project’s approval allows developers to access TOT funds for construction within the next three years, subject to a formal agreement requiring council approval.
In addition, the council allocated $2 million to Visit Sacramento to make strategic investments to ensure Sacramento remains a premier destination for large scale festivals.
For more information, please view the following City reports:
