Just over a month ago, the City of Sacramento approved financing plans for the Wilton Rancheria Tribe to develop the long awaited Republic FC soccer stadium and an entertainment district in the Downtown Railyards. Now, it appears the more than $90 million public financing deal has come to a screeching halt following protests from residents and labor advocates.
“I am deeply disappointed by this delay that will only add cost to much needed housing,” said Councilmember Phil Pluckebaum, who represents the district where the project is being constructed. “Despite this setback, I remain committed to building the soccer stadium, housing and amenities in the Railyards.”
The Railyards Public Financing Authority (PFA) confirmed there were a “sufficient” number of protests to pause the process of expanding the city’s Railyards Enhanced Infrastructure Financing District (EFID).
California law states if at least 50% of residents or landowners within the proposed boundaries file protests, the PFA can’t move forward for a one-year period. More than 100 protests were filed, according to Pluckebaum.
It's the result of an effort from residents led by Unite Here Local 49, a hospitality union that represents stadium workers, who opposed the development. They believe the city is prioritizing building 10,000 downtown luxury units rather than focusing on affordable housing for the working class.
“Members who work downtown deserve to be able to afford to live where they can work and this is an important step towards that goal,” Sonya Karabel, a researcher with Unite Here Local 49, said. “The city has an opportunity now to make this a city where families can afford to live where they work.”
“We are probably as in love with soccer and this soccer stadium as the city is,” said Nancy Williams, a resident of an affordable housing complex near the railyards district. “But we also need to afford to go to that soccer stadium. So, if we live in the neighborhood, we can walk there. We can take public transit there.”
The expansion would’ve allowed the city to move forward with a plan to reimburse private developers for the cost of infrastructure through future tax revenue generated by the 12,000 seat soccer stadium and the “Central Shops” area over 30 years. This would have included projects to build sidewalks, sewer lines, and utilities. Downtown Railyard Venture, or DRV, would have been repaid $50 million and Indomitable, an LLC formed by Sacramento Republic FC and Wilton Rancheria, would have received $45 million.
Protests around the project grew due to the development only having a 6% target for affordable housing, a proposal Karabel called “shamefully low.”
“We want the developers to do their part toward what Sacramento needs... we’re experiencing a crisis level here,” Karabel said.
Councilmember Pluckebaum said he's tried to work with the union on ideas to raise funds for affordable housing, but says the burden shouldn't be shifted.
“Let's do a city or even county-wide parcel tax and actually raise a source of funds for housing so that we're not only asking new projects to pay for all the affordable housing for our region,” Pluckebaum said. “It is fundamentally inequitable to ask only new people to pay for affordable housing.”
Pluckebaum stated postponing the EIFD won’t lead to more affordable housing and called the tactic a “negotiating lever.” He said it could have a chilling effect on new developers looking to bring projects to Sacramento.
“This really should be an uncontroversial, very positive project for the region,” Pluckebaum said. “That we’re going to treat our partners this way is just very disappointing.”
Mayor Kevin McCarty made clear the project is still moving forward and is expected to break ground soon, “We are building alternative pathways – which will not impact the General Fund – to support the project.”
CapRadio reached out to the Wilton Rancheria, but they didn’t return our request for comment.
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