The Sacramento City Council is scheduled to vote at 2 p.m. Tuesday, June 10, on a proposal to expand the City’s Enhanced Infrastructure Financing District (EIFD) in the Railyards and approve development agreements that would bring a new professional soccer stadium, an entertainment venue, and significant infrastructure improvements to the 244-acre Railyards site.
The $325 million private investment package includes construction of a 14-acre stadium for Sacramento Republic FC and the long-awaited rehabilitation of the Central Shops, the brick industrial buildings once used to repair locomotives. If the plan is approved, stadium construction could begin as early as July 2025, with completion targeted for 2027.
“This plan represents a major step toward realizing the long-standing vision for the Railyards,” said Mayor Kevin McCarty. “With strong private investment, we can deliver the public infrastructure needed to support jobs, housing, and a permanent home for professional soccer in Sacramento, all without relying on the City’s general fund.”
“The Railyards has been a priority for this district and the city for decades,” said Councilmember Phil Pluckebaum, who represents the area. “This proposal brings real momentum, transforming vacant land into infrastructure, housing, and community spaces while honoring the site’s historic significance. It’s a chance to build something lasting for Sacramento residents.”
What’s being proposed
The City seeks to expand the existing EIFD from 31 acres to 220 acres to support infrastructure improvements in the Railyards. The EIFD allows a portion of future property tax growth to be used for reimbursing upfront infrastructure costs, which will be privately financed by developers.
The projects include:
- A soccer stadium to be built and owned by Indomitable, a partnership between Sacramento Republic FC and Wilton Rancheria
- Related infrastructure improvements east of 7th Street, estimated at $45 million
- Renovation of the Central Shops, privately funded by Downtown Railyard Venture (DRV) with an estimated $75 million investment and $50 million in infrastructure work west of 7th Street
- Acquisition of 3.5 acres by the City to support buildout of the Sacramento Valley Station area, funded with $14 million from proceeds of the 2015 Sheraton hotel sale, which will be reimbursed by the EIFD
Economic and community impact
The projects are projected to create 13,539 on-site jobs, generate $2.11 billion in annual wages, and contribute $4.4 billion in yearly economic output.
The EIFD is projected to generate $518 million in tax increment over 45 years, with an estimated $133 million generated for affordable housing construction after infrastructure reimbursements are complete. The Railyards currently includes 495 built housing units, 219 of which are affordable, with more planned as development continues. The area is subject to the City’s Mixed Income Housing Strategy adopted in 2016.
The Railyards has been the focus of redevelopment efforts since the 1990s, following the end of Union Pacific operations at the site. The 2016 Railyards Specific Plan envisioned a mixed-use district with housing, open space, transit, retail, and cultural amenities. While housing and hospital development are underway, much of the eastern portion of the site remains undeveloped. The stadium and entertainment venue will accelerate broader buildout.
The stadium and infrastructure projects will not draw on the City’s general fund. However, the City would cover up to $300,000 annually in municipal service costs related to stadium events for a period of 10 years, with EIFD revenue being the priority source to backfill this contribution.
What’s next
The June 10 City Council vote will determine whether to approve the EIFD expansion and finalize the development agreements. If approved, the Railyards Public Financing Authority will hold a second public hearing to complete the process.
Find more information on the proposal in this FAQ.
