Sacramento, Calif., downtown businesses next month will vote on creating a tax district designed to generate $30 million for a proposed streetcar project, initiated by neighboring West Sacramento in 2008 and designed to link up with existing Regional Transit District (RTD) light rail service in the state capital.
A mailed ballot will be distributed on Jan. 13, 2015 to several hundred companies and individuals owning 1,200 parcels within three blocks of the planned streetcar route. Landowners will be asked to commit to annual payments for 30 years to help Sacramento and West Sacramento the proposed line. Property owners will be given a month to cast a vote.
West Sacramento voters in November 2008 approved a tax for the plan despite the presence then of what became known as the Great Recession. Within neighboring Sacramento, several business leaders believe the project will bolster economic activity in both municipalities..
The 3.3-mile, $150 million proposal has gained backing from the Federal Transit Administration, which has pledged to cover roughly half of the project's capital cost, contingent on fiscal commitments from state, Sacramento County, municipal, and other sources. West Sacramento is slated to contribute $25 million, while Sacramento is expected to commit $7 million. The proposed fee on downtown Sacramento property is projected to generate $30 million, or roughly $1 million annually.
Supporters include the owner of U.S. Bank Tower, located on Capitol Mall, and the Hyatt Regency Hotel. An early vocal supporter has been the Sacramento Kings Group, owners of the namesake National Basketball Association team developing a home arena downtown, which already has contributed $500,000 to the effort.
Some small property owners have questioned the proposal. But Sacramento City Councilman Hansen, who owns a house three blocks from the proposed line, said the impact on smaller owners would be proportional, and that he himself would pay a $36 annual fee.