The City Council on Tuesday unanimously approved two resolutions to advance the Railyards development, including the expansion of the City’s Enhanced Infrastructure Financing District (EIFD) and agreements needed to begin construction on a new professional soccer stadium and other infrastructure improvements.
The project includes approximately $325 million in private investment to support several transformative elements of the 244-acre site, including a 14-acre stadium for Sacramento Republic FC, an adjacent entertainment venue, and the long-anticipated renovation of the historic Central Shops.
“I’m proud we’re making this happen here in Sacramento,” said Mayor Kevin McCarty. “This project is about more than just a stadium—it’s about bringing jobs, housing, entertainment and transit together to benefit the entire community. I want to thank Sacramento Republic FC and Wilton Rancheria for their partnership in helping move Sacramento forward.”
To support the implementation, the Council approved a comprehensive project agreement, a land purchase and sale agreement, and a master funding agreement. The expansion of the EIFD will help finance essential infrastructure by reinvesting a portion of future property tax revenues generated within the district.
“This is exactly the kind of catalyst our city needs,” said Councilmember Phil Pluckebaum, who represents the area. “It signals that Sacramento is entering a new era, one that calls for growth, collaboration and shared progress.”
As part of the approvals, the City authorized the $14 million purchase of two parcels west of 7th Street to support the Sacramento Valley Station Area Plan. The 3.5-acre site will enhance future transit-oriented development and improve access to the stadium, housing, and nearby amenities. The acquisition will be funded by proceeds from the City’s 2015 Sheraton hotel sale and reimbursed through the EIFD.
According to a recent economic impact analysis, the Railyards project is expected to generate nearly 24,000 jobs across Sacramento County, including more than 13,000 direct on-site positions. It is projected to contribute $2.11 billion in annual wages, $4.44 billion in economic output and attract more than 1 million visitors each year to the stadium area, providing a significant boost to the local economy.
The Railyards currently includes 495 completed housing units, 219 of which are affordable, with additional units planned as development continues. The area is subject to the City’s Mixed Income Housing Strategy, adopted in 2016, which ensures inclusive and equitable growth.
The site has already seen major investment in recent years, including the completed Wong Center, which provides affordable housing for seniors; The AJ, a mixed-use, mixed-income residential project nearing completion; the Tani Cantil-Sakauye Sacramento County Courthouse, expected to open in late 2025; and the Kaiser Permanente Railyards Medical Center, currently under construction.
The Railyards Public Financing Authority will hold a second public hearing on June 24 to complete the process. With final approval, construction on the stadium and Phase 1 of the Central Shops are expected to begin later this year, with both projects targeting completion in 2027.
Related articles
Sacramento City Council to vote on soccer stadium, Railyards development plan Tuesday
