KMA prepared the Infrastructure Financing Plan (IFP) for the formation of an EIFD at Metro Air Park in Sacramento County. The EIFD was formed by the County of Sacramento in 2022 to facilitate the continued development of the business park and commercial development surrounding the airport. The park has been very successful to date, with approximately 10 million square feet of new development, which represents 50% of the anticipated build-out of the project. Under the terms of the EIFD, up to 50% of the County’s share of annual property tax increment and property tax in-lieu of motor vehicle license fees to be generated by the properties within the EIFD will be dedicated to the EIFD for 36 years or until the aggregate dedication reaches $200 million, whichever occurs first. Dedicated tax increment will be used to fund a range of public infrastructure. Funds will be used to finance future projects, pay debt service on CFD bonds, and reimburse the private landowners and developers for a portion of costs expended to date.
As part of this effort, KMA provided the following services:
• Projected the future assessed value of anticipated new development over the next 45 years
• Estimated the amount of tax increment to be generated by the District
• Worked closely with both County staff and the property owners to develop absorption projections and valuation projections for the District
• Evaluated the fiscal impacts to be generated by the new development to the County at three stages of development
• Prepared a financing plan for public infrastructure comprised of: impact fees; developer advances and developer funds; CFD funds; EIFD revenues; and other public funds
• Drafted the IFP
• Provided guidance regarding the EIFD formation process and using the EIFD in tandem with CFD bond proceeds to enhance the project’s financing plan; and
• Participated in the public hearing process and responded to questions raised by the Board of Supervisors and the members of the Public Finance Authority.
