Here is a list of ways Sebastopol can use an EIFD to boost economic development:
1. Downtown Revitalization
- Invest in streetscape improvements, facade restoration, and public spaces
- Create a vibrant city center to attract businesses and visitors
- Leverage Sebastopol's unique character to enhance its appeal
- Potential focus: Enhancing the Town Plaza and Main Street corridor
2. Infrastructure Modernization
- Upgrade water, sewer, and electrical grid systems
- Improve roads, focusing on key corridors and problematic areas
- Consider: Addressing flooding issues in the Laguna de Santa Rosa area
3. Brownfield Remediation and Infill Development
- Clean up and repurpose contaminated or underutilized sites within commercial zones
- Promote residential development in appropriate commercial areas to increase housing stock
4. Recreation and Quality of Life Improvements
- Develop Ives Park and pool, install trails, and create more greenspace
- Invest in cultural amenities like the library or the community center to attract visitors from outlying areas and encourage longer stays downtown
- Consider: Connecting with the West County Trail system to Laguna for all year use
5. Renewable Energy Initiatives
- Implement solar and wind projects, capitalizing on IRA funding
- Use as matching funds for additional energy-related grants
- Upgrade city facilities for energy efficiency
- Showcase solutions that residents and businesses can implement
- Potential project: Community solar installation or municipal building retrofits
6. Affordable Housing Initiatives
- Develop affordable infill housing to attract young families
- Focus on projects that align with Sebastopol's small-town character
- Consider: Partnership with non-profit housing developers or community land trusts
My Key Considerations for Sebastopol:
- Align bond-funded projects with Sebastopol's General Plan and sustainability goals
- Engage the community extensively. Sebastopol has a strong tradition of civic participation
- Carefully assess the city's debt capacity, understanding an EIFD affects only property tax growth and not the general fund, keeping in mind Sebastopol's small size and and the potential for county property tax growth
- Prioritize projects that can generate revenue or significantly reduce costs to ensure bond repayment ( enabling downtown property development )
- Aggressively seek matching funds or grants to leverage bond investments and reduce local financial burden
- Implement a transparent system for regular evaluation and reporting on bond-funded project outcomes
- Consider the impact on Sebastopol's small-town character and ensure projects enhance rather than detract from it
- Explore opportunities for regional cooperation, particularly for infrastructure and recreational projects
My Next Steps:
1. Conduct a thorough needs assessment and prioritization of potential projects
2. Engage in community outreach to gauge thoughtful input and support for various initiatives
3. Perform detailed review of the consultant's financial analysis to determine the optimal bond structure, if there are options, and evaluate with the city's repayment capacity
4. Explore potential synergies between different projects to maximize impact
5. Investigate state and federal grant opportunities that could complement bond funding
6. Develop a clear, long-term implementation and monitoring plan for selected projects
In order to clarify my apparent confusion, I am writing to share my thoughts about the proposed Enhanced Infrastructure Financing District (EIFD) in Sebastopol, based on my research into similar projects across California. It's crucial for our community to understand the following points:
1. EIFD Basics:
•An EIFD is a funding mechanism that allows cities to finance public infrastructure projects.
•It operates by capturing a portion of future increases in property tax revenue within a designated area.
2. Bond Creation Without Voter Approval:
• EIFDs enable cities to create bonds without requiring a public vote, circumventing traditional democratic processes for public debt.
•This feature, while potentially expediting development, raises concerns about fiscal responsibility and public oversight.
3. Public-Private Partnerships:
• EIFDs are designed to spur public-private relationships, often favoring large-scale development projects.
• While this can attract investment, it may also prioritize developer interests over broader community needs.
4. Key Variables:
• The size of the district, projected increase in property values, and specific projects to be funded as well as bond rates ( typically higher for this type of bond) are critical factors.
• Success depends on accurate projections of future tax revenue and careful selection of growth-stimulating infrastructure projects.
5. Financial Considerations:
• An EIFD is not a gift or grant, but a financial device with an uncertain track record.
• It's a long-term commitment, typically lasting 45 years, that can significantly impact our city's financial future.
• Increases in tax revenue should ideally cover both the EIFD investment and increased demand for city services that often accompanies growth.
• Sonoma County's contribution from the intial numbers appears to be a large percentage, but I am not clear on the area where this contribution would come from or if it is a guaranteed percentage.
6. Sebastopol's Context:
• As a small town with limited capacity to grow, Sebastopol must carefully consider whether an EIFD is appropriate.
• There may be less encumbering solutions, but there are few other funding opportunities that could catalyze combing funding sources to achieve impactful projects.
• To justify this mechanism, we need a very strong project that aligns with our community's long-term vision and needs.
• We must not "put the cart before the horse" by committing to an EIFD before having a clear, community-supported project in mind.
7. Potential Risks:
• EIFDs rely on future growth, which is inherently unpredictable, especially in a small town like ours.
• If growth projections are not met, our city may face financial challenges.
I greatly appreciate the opportunity for this funding and hope that we can use it to create infrastructure and enhancements that are truly impactful.
Please know that I understand the complexity of financial arrangements and look for unforeseen consequences. My stumbling was based on my inability to calculate the outcome, which is due to the early stage of this prospect. In my experience, these zones can have a neutral to negative effect on small towns decades later.
The current council was asking questions to understand this mechanism better but appeared to be guided to pick projects so that the consultant could properly prepare financial estimations for viability. I understand this guidance from the consultant. I would like a thorough, transparent evaluation of case studies alongside projections, as well as a better catalog of infrastructure projects that might be more impactful before considering this complex financial tool.
Here is a list of ways Sebastopol can use an EIFD to boost economic development:
1. Downtown Revitalization
- Invest in streetscape improvements, facade restoration, and public spaces
- Create a vibrant city center to attract businesses and visitors
- Leverage Sebastopol's unique character to enhance its appeal
- Potential focus: Enhancing the Town Plaza and Main Street corridor
2. Infrastructure Modernization
- Upgrade water, sewer, and electrical grid systems
- Improve roads, focusing on key corridors and problematic areas
- Consider: Addressing flooding issues in the Laguna de Santa Rosa area
3. Brownfield Remediation and Infill Development
- Clean up and repurpose contaminated or underutilized sites within commercial zones
- Promote residential development in appropriate commercial areas to increase housing stock
4. Recreation and Quality of Life Improvements
- Develop Ives Park and pool, install trails, and create more greenspace
- Invest in cultural amenities like the library or the community center to attract visitors from outlying areas and encourage longer stays downtown
- Consider: Connecting with the West County Trail system to Laguna for all year use
5. Renewable Energy Initiatives
- Implement solar and wind projects, capitalizing on IRA funding
- Use as matching funds for additional energy-related grants
- Upgrade city facilities for energy efficiency
- Showcase solutions that residents and businesses can implement
- Potential project: Community solar installation or municipal building retrofits
6. Affordable Housing Initiatives
- Develop affordable infill housing to attract young families
- Focus on projects that align with Sebastopol's small-town character
- Consider: Partnership with non-profit housing developers or community land trusts
My Key Considerations for Sebastopol:
- Align bond-funded projects with Sebastopol's General Plan and sustainability goals
- Engage the community extensively. Sebastopol has a strong tradition of civic participation
- Carefully assess the city's debt capacity, understanding an EIFD affects only property tax growth and not the general fund, keeping in mind Sebastopol's small size and and the potential for county property tax growth
- Prioritize projects that can generate revenue or significantly reduce costs to ensure bond repayment ( enabling downtown property development )
- Aggressively seek matching funds or grants to leverage bond investments and reduce local financial burden
- Implement a transparent system for regular evaluation and reporting on bond-funded project outcomes
- Consider the impact on Sebastopol's small-town character and ensure projects enhance rather than detract from it
- Explore opportunities for regional cooperation, particularly for infrastructure and recreational projects
My Next Steps:
1. Conduct a thorough needs assessment and prioritization of potential projects
2. Engage in community outreach to gauge thoughtful input and support for various initiatives
3. Perform detailed review of the consultant's financial analysis to determine the optimal bond structure, if there are options, and evaluate with the city's repayment capacity
4. Explore potential synergies between different projects to maximize impact
5. Investigate state and federal grant opportunities that could complement bond funding
6. Develop a clear, long-term implementation and monitoring plan for selected projects
Dear Editor,
In order to clarify my apparent confusion, I am writing to share my thoughts about the proposed Enhanced Infrastructure Financing District (EIFD) in Sebastopol, based on my research into similar projects across California. It's crucial for our community to understand the following points:
1. EIFD Basics:
•An EIFD is a funding mechanism that allows cities to finance public infrastructure projects.
•It operates by capturing a portion of future increases in property tax revenue within a designated area.
2. Bond Creation Without Voter Approval:
• EIFDs enable cities to create bonds without requiring a public vote, circumventing traditional democratic processes for public debt.
•This feature, while potentially expediting development, raises concerns about fiscal responsibility and public oversight.
3. Public-Private Partnerships:
• EIFDs are designed to spur public-private relationships, often favoring large-scale development projects.
• While this can attract investment, it may also prioritize developer interests over broader community needs.
4. Key Variables:
• The size of the district, projected increase in property values, and specific projects to be funded as well as bond rates ( typically higher for this type of bond) are critical factors.
• Success depends on accurate projections of future tax revenue and careful selection of growth-stimulating infrastructure projects.
5. Financial Considerations:
• An EIFD is not a gift or grant, but a financial device with an uncertain track record.
• It's a long-term commitment, typically lasting 45 years, that can significantly impact our city's financial future.
• Increases in tax revenue should ideally cover both the EIFD investment and increased demand for city services that often accompanies growth.
• Sonoma County's contribution from the intial numbers appears to be a large percentage, but I am not clear on the area where this contribution would come from or if it is a guaranteed percentage.
6. Sebastopol's Context:
• As a small town with limited capacity to grow, Sebastopol must carefully consider whether an EIFD is appropriate.
• There may be less encumbering solutions, but there are few other funding opportunities that could catalyze combing funding sources to achieve impactful projects.
• To justify this mechanism, we need a very strong project that aligns with our community's long-term vision and needs.
• We must not "put the cart before the horse" by committing to an EIFD before having a clear, community-supported project in mind.
7. Potential Risks:
• EIFDs rely on future growth, which is inherently unpredictable, especially in a small town like ours.
• If growth projections are not met, our city may face financial challenges.
I greatly appreciate the opportunity for this funding and hope that we can use it to create infrastructure and enhancements that are truly impactful.
Please know that I understand the complexity of financial arrangements and look for unforeseen consequences. My stumbling was based on my inability to calculate the outcome, which is due to the early stage of this prospect. In my experience, these zones can have a neutral to negative effect on small towns decades later.
The current council was asking questions to understand this mechanism better but appeared to be guided to pick projects so that the consultant could properly prepare financial estimations for viability. I understand this guidance from the consultant. I would like a thorough, transparent evaluation of case studies alongside projections, as well as a better catalog of infrastructure projects that might be more impactful before considering this complex financial tool.
Sincerely,
Phill Carter
Thanks, Phil, for this clarification!