Sacramento City Council approves framework for $321 million downtown Railyards soccer stadium and entertainment venue

The Sacramento City Council Tuesday unanimously approved a preliminary term sheetfor an estimated $321 million in private investments to build a soccer stadium for Sacramento Republic FC and a live entertainment venue in The Railyards downtown.

"We are breaking barriers and making history here in Sacramento," said Mayor Darrell Steinberg. "Wilton Rancheria is the first tribe to own a professional men's sports team in North America, and the projects in The Railyards will double the size of the central business district-what an incredible opportunity! This is the foundation for something beautiful today that will become even more beautiful in the years and decades to come."

The term sheet sets the foundation for future agreements and City approvals on the expansion of the district, design and construction of the stadium and entertainment venue. It also includes community benefits, such as youth programs, community fields, and public access to facilities.

"This approval is a pivotal first step in in this multi-phase approval process to transform the Railyards into a destination that will benefit all Sacramentans," said City Manager Howard Chan. "We're grateful for the support of our partners and the leadership of our elected officials, whose dedication has helped bring this vision closer to reality."

The planned developments include:

1. Soccer stadium and adjacent development: Sacramento Republic FC, through Indomitable LLC, will finance and build a 12,000-seat stadium with supporting infrastructure. This privately funded $226 million project includes all aspects of design, construction, maintenance and infrastructure.
2. Live entertainment venue: Developer Downtown Railyard Venture (DRV) will transform the existing historic buildings in The Railyards, specifically the Paint Shop building, into a 3,600-seat venue with $95 million in private funding.

The new stadium will be supported by the Wilton Rancheria Tribe, who last week became majority owners of Sacramento Republic FC.

These developments will partially be funded by expanding the existing Stadium Enhanced Infrastructure Financing District (EIFD) to cover the entire 220-acre site. The EIFD will use increased property taxes generated from the site for infrastructure reimbursement, with an estimated $518 million generated over 45 years. Approximately $95 million from the EIFD will be allocated for infrastructure to support the developments.

City Council also approved $14 million in City economic development funds to acquire parcels for the Sacramento Valley Station Area Plan, with full reimbursement through the EIFD.

The stadium is anticipated to generate 910 jobs, and the entertainment venue is anticipated to generate 390 jobs with over $90 million in infrastructure anticipated to generate an additional 360 jobs.

Following the approval, City staff will initiate work on the expansion of the EIFD and anticipate returning to Council in early 2025 for approval of the EIFD plan.

The stadium is projected for completion by late 2026, and the entertainment venue by 2027.