What’s in the deal for Sacramento Republic’s new stadium and entertainment venue downtown?
The Sacramento City Council is set to vote Tuesday on a proposed term sheet to build a soccer stadium and entertainment venue in the Railyards downtown.
The new deal came about after Wilton Rancheria became the majority owner of the Sacramento Republic FC and agreed to invest in the Railyards development.
The tribe’s chairman Jesus Tarango Jr. joined Mayor Darrell Steinberg, longtime Republic FC owner Kevin Nagle, other city and state leaders and a property owner in the Railyards for the announcement at City Hall last week.
Wilton Rancheria, the only federally recognized tribe in Sacramento County, became the first tribal nation to hold majority ownership of a men's professional sports team.
Tarango told KCRA 3 on Tuesday that getting involved in the project “speaks to who we are as a nation and what our obligation is to our land and wanting it to be better.”
(Hear more from Tarango and Nagle about how the deal came together in the video above.)
The new development will span 31 acres, which will nearly double the size of downtown Sacramento, according to a new release. The city estimates that total costs for the stadium new entertainment venue and ancillary infrastructure will be $321 million.
Here’s more to know about the deal, according to a fact sheet the city shared with KCRA 3 and its staff report.
Who is involved in the partnership?
The development involves a partnership between three players.
- The city of Sacramento.
- A company formed by Republic FC’s new majority owner Wilton Rancheria called “Indomitable.”
- Downtown Railyard Ventures (DRV), the current property owners at the Railyards.
What will each group focus on?
- The city and Indomitable will focus on the construction of the stadium, ancillary development and related infrastructure. The city expects more than $217 million in private investment with the stadium itself costing $175 million.
- The city and DRV will focus on rehabilitating the historic Paintshop building to make it into a live entertainment venue, along with associated infrastructure. The city expects more than $95 million in private investment here.
What do we know about the stadium and venue?
The stadium will seat 12,000 fans. The stadium could also host concerts and other events. It's expected to be completed in late 2026.
The deal anticipates Indomitable leading new development around the stadium, including residential, commercial or even a potential hotel.
The Paintshop, one of eight historic buildings known as the Central Shops, will be transformed into a 3,600-seat venue. That's expected to be completed in 2027.
How much will the private partners cover?
- Indomitable’s investments cover more than $217 million.
- DRV’s investments cover more than $125 million.
What will the city cover?
The city will plan to reimburse Indomitable $42 million and DRV $50 million for their private investments in infrastructure. (The city will not reimburse in Indomitable for another $9.7 million in fees.)
The city would do this by expanding its Enhanced Infrastructure Financing District (EFID) from 31 acres to 220 acres. An EIFD allows a portion of the tax revenue generated to be allocated towards specific community projects.
In this case, the city anticipates generating $518 million in tax increments from property taxes over 45 years and using a portion of that funding for the infrastructure reimbursements.
This funding would also reimburse the city for $14 million in economic development funds used to buy two lots as part of the Sacramento Valley Station project.
Here's how the reimbursements would work, according to the city's term sheet: "Indomitable [is provided] 100% of the revenue from the Stadium Area and a split between Indomitable, DRV, and the City of 40% / 40% / 20% from the Expanded Area until Indomitable gets $42M for infrastructure reimbursement. Once they receive that amount, the split between DRV and the City goes to 50% / 50% of the Total Area until the City gets $14M and DRV gets $50M for infrastructure reimbursement."
Regarding the stadium, the city would waive reimbursement for off-site police, fire, emergency medical services, traffic control and code enforcement for events for up to $300,000 per year for a 10-year period.
What economic benefits does the city envision?
The stadium is expected to generate 910 jobs. The entertainment venue is expected to create 390 jobs. Infrastructure investments are expected to generate 360 more jobs.
Other benefits include community fields, retail and transportation development.
For example, the soccer club would provide free soccer clinics in underserved neighborhoods for 1,000 youth a year. It would also built or upgrade at least once soccer field or futsal court in the city per year and give away 100 tickets per game to charities or nonprofits.
What else is in the Railyards?
Other developments include a Kaiser hospital, the Wong Center for senior housing, the AJ mixed-use housing project and office buildings.
| RELATED | Sacramento Railyards receiving a facelift as multiple projects are set to break ground
A new Sac Republic training complex, too?
The proposed deal also calls for Indomitable to negotiate "in good faith" with the city on the development of a "first-class, state-of-the-art facility" for training based in the city. The talks should start within four months of the term sheet being approved.
The possible site, financing and design of the training facility should be approved in 2025. It should open in early 2027.
What does this mean for Republic FC becoming a MLS team?
Nagle told KCRA 3 that Major League Soccer is still in communication with the club but they would do this stadium project regardless of if the club joins the league or doesn't in the future.
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