The Sacramento City Council on Tuesday unanimously approved a change to the MLS stadium construction deal with Sacramento Republic. The City will now loan $27.2 million up front to pay for infrastructure development in the Railyards area, rather than recouping the money through taxes after the stadium opens.
“Instead of allowing the folks investing in the railyards to collect the $27 million over time, we would loan them the resources upfront so they can get a faster start,” Sacramento Mayor Darrell Steinberg. said. “And then, we get paid back dollar for dollar the money we have loaned. So, it’s zero risk for the city.”
If those costs exceed the $27.2 million loan the Republic investment group would pay for the overages, making it a low risk investment according to the Mayor.
“You have to invest in order to increase the tax base and that’s exactly what we’re doing with the soccer (stadium) and the Railyards,” he said.
Republic FC’s MLS stadium wil anchor a 31-acre parcel within the Downtown Railyards development and will be located east of 7th Street. The plans also call for an entertainment district adjacent to the stadium to extend use beyond game days for fans and visitors year-round.
Over the coming months we’ll be following this story and the other developments as Sacramento becomes part of Major League Soccer in 2022.