City moves to partner with UC Davis in Aggie Square innovation district


Mayor Steinberg talks about the potential of Aggie Square

The City of Sacramento Tuesday took its first formal step to partner with UC Davis and Wexford Science and Technology on construction of the planned Aggie Square innovation and research district, which will bring thousands of jobs to the Stockton Boulevard corridor.

Council members unanimously approved initiating the process for creating an Enhanced Infrastructure Financing District to assist in the construction of the first phase of Aggie Square, which largely consists of properties owned by UC Davis and  totals 42 acres. The project is expected to create 3,000-4,000 ongoing jobs and as many as 5,000 construction jobs while it is being built.

The EIFD – which functions similarly to the way redevelopment did in the past – will use the City’s portion of the increased property taxes generated by Aggie Square to help fund the development and related improvements, including affordable housing.

UC Davis Chancellor Gary May (center), Barry Broome of GSEC (right), Jay Schenirer (third from left), Assemblyman Kevin McCarty and Mayor Darrell Steinberg at launch of Aggie Square in April 2018

UC Davis Chancellor Gary May (center), Barry Broome of GSEC (right), Jay Schenirer (third from left), Assemblyman Kevin McCarty and Mayor Darrell Steinberg at launch of Aggie Square in April 2018

“Aggie Square has the potential to be the most exciting and innovative center of economic activity in our entire city,” Mayor Darrell Steinberg said. “This a signature, city-wide opportunity.”

The City would provide $30 million in funding from the EIFD to assist in the construction of the project. In addition, at least 20 percent of the property taxes generated by the development in the coming decades would be slated for affordable housing—an amount expected to total about $37 million.

Tuesday’s vote is far from the last on the project. In the coming months, the City will be negotiating the terms of the EIFD with UC Davis and the project’s developer, Wexford Science and Technology.

Mayor Steinberg and members of the City Council have also pledged to adopt a community benefit agreement that will ensure that residents and businesses in the surrounding Stockton Boulevard corridor benefit from Aggie Square through training and educational opportunities, jobs and affordable housing, among other community priorities. This benefits agreement will be brought to Council at the same time it takes its next action on the EIFD, which is expected in January.

UC Davis and Wexford have also pledged to work with the Sacramento-Sierra’s Building and Construction Trades Council to hire local union construction workers and their families, with apprenticeships and local hiring targets in nearby communities of greatest need.

UC Davis Associate Chancellor Bob Seger, project manager for Aggie Square, said the university is already working to increase access for neighborhood residents to the thousands of existing jobs at the UC Davis Sacramento campus. UC Davis, along with other employers, is participating in a virtual job fair on Wednesday, Oct. 28, in conjunction with the offices of Councilmembers Jay Schenirer and Eric Guerra, who are leading negotiations with community groups. Additional job fairs will be held in the coming months.

“If this project doesn’t focus on supporting and investing in the surrounding neighborhoods, and especially in affordable housing, then we have a challenge,” said Councilmember Guerra.

Councilmember Schenirer said he and Guerra will continue their community outreach, holding town halls in November, December and January.

Schenirer noted that there are 100 vacant lots along the Stockton corridor between the UC Davis Sacramento campus and Fruitridge Boulevard. “What we need is a huge catalyst, and we think Aggie Square can be the catalyst that can bring a renaissance in these neighborhoods,” he said. “I think we’re on track, but we can only do it by working with the neighborhoods.”

The first phase of Aggie Square would include the Alice Waters Institute for Edible Education, new Life Science, Technology & Engineering buildings and a building for lifelong learning and community partnerships.

The first phase of Aggie Square would include the Alice Waters Institute for Edible Education, new Life Science, Technology & Engineering buildings and a building for lifelong learning and community partnerships.

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