Sacramento’s new Major League Soccer stadium will be financed mostly with private money. The city’s contribution of approximately $33 million will be in incentives, such as helping pay for new streets and police officers to oversee traffic during games.
But a revised plan before City Council on Tuesday would instead loan the Republic FC up to $27 million in advance.
The loan though might not be repaid like a typical one; the team will use increased property tax revenues generated by the stadium and proposed nearby development for repayment.
City leaders say these revenues wouldn't exist without the new projects.
Ben Gumpert, the Republic FC’s president and chief operating officer, noted that the total dollar amount of $33 million from the city hasn’t changed. “That was always the plan,” Gumpert said. “But this way, we bring more cash and capital forward as soon as possible to develop the railyards as quickly as possible.”
The Republic has said it will likely cost at least a billion dollars to build the stadium and also develop the surrounding 17 acres.
The Republic scored an MLS franchise last month, and the city approved the framework for a stadium deal earlier this year.
CapRadio provides a trusted source of news because of you. As a nonprofit organization, donations from people like you sustain the journalism that allows us to discover stories that are important to our audience. If you believe in what we do and support our mission, please donate today.
