City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00890 4/30/2024 Discussion Item 37.
Approval of Term Sheet for Public Financing Assistance for Innovation Park File ID: 2024-00890
Location: Sports Parkway, Former Sleep Train Arena Site, bounded by East Commerce Way, Arena Boulevard, Truxel Boulevard and Del Paso Road, District 1, Represented by Councilmember Kaplan Recommendation: Adopt a Motion authorizing the City Manager or City Manager’s designee to enter into a non-binding Term Sheet for Public-Financing Assistance for Innovation Park with SBH Natomas LLC and California Northstate University.
Contact: Michael Jasso, Assistant City Manager, (916) 808-1380; Leslie Fritzsche, Economic Investment Manager, [email protected], (916) 808-5450, Office of Innovation and Economic Development, Office of the City Manager; Sheri Smith, Special Districts Manager, (916) 808-7204, [email protected], Finance Department, Sini Makasini, Senior Development Project Manager, (916) 808-7967, [email protected] <mailto:>, Finance Department
Presenter: Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, Office of Innovation and Economic Development, Office of the City Manager
Attachments:
1-Description/Analysis
2-Location Map
3-Innovation Park Planned Unit Development Map
4-Term Sheet for Innovation Park
5-Innovation Park Analysis of Economic Impacts
Description/Analysis
Issue Detail: In 2013 in response to the Sacramento Kings move to a downtown arena, SBH Natomas, LLC (“SBH”) as the site owner, City representatives and the Natomas community began work to explore, conceptualize, and invest in the redevelopment of the 183-acre site (see map, Attachment 2). The site includes the prior Sleep Train arena building and former Sacramento Kings practice facility, parking lots surrounding the arena building and undeveloped areas north of the arena. The size of the site, location within the North Natomas community along with freeway visibility, provides a unique redevelopment opportunity for a major economic catalyst project surrounded by mixed-use development.
File ID: 2024-00890 4/30/2024 Discussion Item 37.
In 2021, the City and SBH identified a landmark opportunity to bring a higher education campus and state of the art teaching hospital to the site, California Northstate University (CNU). In order to make CNU a reality in the City, SBH contributed the 35 acres necessary for the CNU hospital and CNU began development of plans and studies to advance the project.
Work ensued to further this new vision for the site and in February 2022, the Council approved the Innovation Park Planned Unit Development (PUD) plan. Created in partnership with the Natomas community and its leadership, the approved Innovation Park provides regional benefits through combining a groundbreaking approximately 730,000 sq. ft. CNU hospital and medical education campus along with a new mixed-use residential and commercial neighborhood with over 24 acres of parks and open spaces and a future school site for the Natomas Unified School District. This mixed- use, master planned community would be divided into three districts and would be anchored by the proposed CNU medical campus at the southwest corner of the site (see Attachment 3).
The three districts in the PUD include:
· Innovation District (25 acres) - 1480 residential units · Life District (72 acres) - 300 units of single family and 690 multi-family residential units, new school and parks
· Health District (48 acres; hospital on 35 acres) - 420 bed hospital, outpatient clinic, medical offices, parking structures and residential buildings.
The collective vision is to transform the underutilized sports complex into a vibrant district focused on health, education and living with a mix of uses that enhances the fabric of North Natomas and the region. The residential densities range from 20 units to 150 units per acre will assist in generating a diverse housing stock including affordable units and a significant pool of workforce housing. The site is subject to the Mixed Income Housing Strategy to ensure the creation of affordable along with market rate housing.
The development of Innovation Park requires SBH, CNU or subsequent development team to design and construct substantial new public infrastructure that is beyond the project’s financial capacity. The City, in recognition of the economic and community benefits that the project can bring, has reached a preliminary understanding with SBH and CNU on the terms of the public-private effort to fund the improvements. This effort will support the financial viability of the overall Innovation Park project and serve as a catalyst for project implementation. The Term Sheet for Public Financing Assistance for Innovation Park (“Term Sheet”, Attachment 4) outlines the key elements of the negotiated business transaction centered on the provision of funding from an Enhanced Infrastructure Financing District (EIFD) for the entire 183-acre Innovation Park and a potential Mello-Roos Community Facilities District (CFD). Proceeds from the EIFD will be used to reimburse SBH or successor and CNU for the design and construction of the backbone infrastructure within the project.
File ID: 2024-00890 4/30/2024 Discussion Item 37.
A list of infrastructure as well as a map illustrating the locations of the main elements is included as attachments to the Term Sheet. Key infrastructure include the north-south road bisecting the site, Innovator Drive, and an east-west road, and in-ground utilities. Twenty percent (20%) of the funds generated by the EIFD would be used for affordable housing in the areas surrounding Innovation Park. Additionally, funds remaining after payment for infrastructure would be used for a regional connection known as the Snowy Egret crossing which would assist in improving access across Natomas. The preliminary estimate for the backbone infrastructure to be financed by the EIFD is $75 million. The total infrastructure cost to open the site for development of Innovation Park is estimated to be over $126 million with a total development cost of $1.81 billion at complete build-out.
It is currently envisioned that the City may issue CFD bonds to reimburse SBH and/or CNU. EIFD tax increment revenue generated by the development of Innovation Park would be used to pay debt service payments on the CFD bonds, costs of issuance and district formation costs). If the City is unable to issue the full amount needed for the infrastructure in CFD bonds, the EIFD will repay the balance to SBH and/or CNU from annual EIFD revenues over time. The City will have no obligation to repay the costs of the backbone infrastructure outlined in the Term Sheet.
If the Term Sheet is authorized, work on the EIFD formation will begin with a goal of formation by late 2024/early 2025.
Policy Considerations: The City’s recently adopted Scale Up plan highlights the importance of the existing and emerging health care and life sciences industry in the Sacramento region. Scale Up along with the regional Prosperity Strategy recommends leveraging opportunities to tie together, accelerate and scale growth by enabling industry stakeholders to coordinate more effectively, collaboratively innovate, and invest in workforce, supply chain, new technology and market development. Established as a teaching hospital, CNU will provide an opportunity to increase the opportunities for workforce training and learning in the healthcare industry while enhancing access to healthcare for Sacramento region residents.
The project is anticipated to result in approximately 2500 new housing units, of which 10% of the units will be required to be affordable as part of the Mixed Income Housing Plan or contribute 2 net building acres to the Sacramento Housing and Redevelopment Agency. The residential densities range from 20 units to 150 units per acre assisting in generating a diverse housing stock including affordable units and a significant pool of workforce housing.
The funds generated by the EIFD will result in the creation of additional units above those required by the Mixed Income Housing Plan.
Economic Impacts: Innovation Park will generate significant economic benefits to the community,
File ID: 2024-00890 4/30/2024 Discussion Item 37.
the City and the region by creating high paying jobs and generating significant additional investment and tax revenue. A 2024 analysis of Innovation Park completed by Goodwin Consulting Group, Inc. (see Attachment 5, Economic Impact Analysis) estimates the following economic impacts from the project:
City County
Construction Impact $2.090 billion $2.85 billion
Ongoing Operational
Impact
$2.665 billion $3.481 billion
CNU is envisioned to create an estimated 3,000 permanent jobs of all wage levels and over 7,600 jobs during construction. The Health District, once completed at full built out, is estimated to generate over 5,300 jobs while the rest of Innovation Park’s various uses are anticipated to yield an additional 700 jobs. Annual tax increment for Innovation Park is estimated to be approximately $1.76 million upon completion of the project’s initial phase including the hospital.
Environmental Considerations:
California Environmental Quality Act (CEQA): The action included in this staff report is to authorize a Term Sheet. The Term Sheet provides informal direction to staff for discussions relating to a future potential project. The action does not approve, fund, or commit the City to any future project.
No physical changes in the environment would occur. The action is considered an administrative act under CEQA, and not a project. CEQA Guidelines section 15378(b)(5); 15060(c)(3); 15352(a). The Term Sheet specifically states that “[]no obligation to enter into definitive documents shall exist and or be deemed approved until after all definitive documents have been approved, and the City has confirmed either no subsequent review is required under CEQA, or if further CEQA analysis is required, such analysis is completed in accordance with all applicable laws and regulations, including but not limited to the City’s independent discretion under CEQA.” (See Save Tara v. City of West Hollywood (2008) 45 Cal.4th 116, 139) In this regard, the discussions are related to the Innovation project. To comply with CEQA, the City prepared a Draft and Final Environmental Impact Report for the Innovation Park Planned Unit Development Project and the CNU Medical Center. On February 15, 2022, Council approved the Final Environmental Impact Report Findings and Overriding Considerations and Mitigation Monitoring Plan for the Innovation Park Planned Unit Development and the CNU Medical Campus.
Sustainability: Development of Innovation Park will create new jobs and balance the jobs/housing impacts of development in the area.
Commission/Committee Action: None.
File ID: 2024-00890 4/30/2024 Discussion Item 37.
Rationale for Recommendation: The vision created in the Innovation Park Planned Unit Development is the product of years of discussion between the community, the landowners, City staff and council members. This 183-acre site is a “hole in the donut” of development in the northern part of the city. To deliver the comprehensive development and the significant benefits accruing from a new teaching hospital in the region will take investment well beyond the expenses normally required for greenfield development. Specifically, the site will require the demolition of the major onsite infrastructure that served the arena and baseball stadium foundation and developing new connecting infrastructure that completes the connectors to the surrounding communities, parks and roadways.
These costs create a significant deterrent to redevelopment of the site. Assistance through an EIFD will provide the resources needed to catalyze the development of CNU and the entire Innovation Park.
Financial Considerations: The Term Sheet includes a reimbursement to SBH and/or CNU for the costs of key infrastructure (see Exhibit 4 of the Term Sheet) (plus financing costs and interest accruing on any unreimbursed balance until paid) from the incremental property tax revenue generated by property within the boundaries of the EIFD. The current estimate for the infrastructure is $75 million. The City has no additional financial obligation if the incremental property tax revenue generated is insufficient to cover the cost of the proposed improvements or bond debt service. No funds from the EIFD would be distributed to SBH/CNU until building approvals are obtained for CNU or similar catalyst economic development project or issuance of building permits for construction of the infrastructure to service the CNU project or non-residential economic development project in Innovation Park.
The project financing structure contemplates the formation of a Community Facilities District, but that formation, along with the Resolution of Intention for the EIFD, will be the subject of future Council actions.
Local Business Enterprise (LBE): Not applicable.
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CITY OF SACRAMENTO
INNOVATION PARK
ANALYSIS OF
ECONOMIC IMPACTS
Final Report
APRIL 22, 2024
City of Sacramento
Innovation Park
Analysis of Economic Impacts
Table of Contents
PROJECT DESCRIPTION ........................................................................ 1
METHODOLOGY ................................................................................... 1
ANALYSIS .............................................................................................. 3
CONCLUSIONS ....................................................................................... 4
Appendix: General Assumptions, Methodology, and Results Tables
Innovation Park
Analysis of Economic Impacts 1 April 22, 2024
INNOVATION PARK ECONOMIC IMPACT ANALYSIS
This brief report presents the results of an analysis to estimate the economic impacts that will be produced by the proposed Innovation Park project (Project) within the City of Sacramento (City) and the County of Sacramento (County) . The economic impact analysis addresses the impacts of planned development and future land uses on the City’s and County’s private sector economies; impacts on the City’s and County’s public sector economies would be addressed in a comparable fiscal impact analysis. The economic impacts estimated in this analysis can generally be organized into two broad categories: 1) interim jobs and economic output generated during construction of the Project; and 2) ongoing, or permanent, jobs and economic output generated by the proposed Project.
PROJECT DESCRIPTION
The City, two primary landowners, and the Natomas community recently completed the processing of P roject entitlements for Innovation Park. Innovation Park is the first large scale urban infill site in Natomas , which includes the demoli tion and redevelopment of the approximately 183-acre former Sleep Train Arena site. Created in partnership with the Natomas community and its leadership, Innovation Park provides regional benefits by combining a groundbreaking hospital and medical education campus with a new urban, mixed-use residential and commercial neighborhood environment, creating thousands of diverse, permanent, full -time employment opportunities, providing a wide range of affordable and market-rate housing, diverse regional scale open spaces, and a future school site for Natomas Unified School district, and delivering and completing an infrastructure network that benefits the surrounding community and embraces smart growth priorities and principles. The City and other applicable public agencies have already approved Innovation Park planning entitlements and a development agreement, and have certified the Project’s compliance with the California Environmental Quality Act (“CEQA”).
The two primary landowners will be focusing on different sections of the Project. The Health District, where the hospital and medical campus will be constructed, constitutes roughly 25% of the total acreage; the primarily residential and mixed-use commercial portion of the project comprises the other 75% within the Innovation District and Life District. Upon completion, the entire Project is anticipated to include approximately 2.5 million square feet of hospital, medical, and educational facilities, as well as mixed-use office, retail, and hotel uses. The Project will also include housing for students and faculty, combined with multi -family and mixed -use housing totaling approximately 2,500 residential units. The map on the following page illustrates the Project vicinity and site plan.
METHODOLOGY
One particular source of data used to project impacts on local and regional econom ies is the IMPLAN data set, which is developed by the Implan Group. The IMPLAN methodology was selected for use in this analysis for the following reasons:
Innovation Park
Analysis of Economic Impacts 2 April 22, 2024
1. Initially developed in the late 1970s by the University of Minnesota for the U.S. Forest Service to facilitate land and resource management planning, the IMPLAN approach provides a thoroughly documented and widely respected standard. A technology transfer agreement allowed the developers of IMPLAN to spin off privately held Minnesota Implan Group from its academic roots at the University of Minnesota.
2. The IMPLAN methodology is the result of extensive and ongoing research by the IMPLAN Group into the very complicated inter -industry relationships that constitute the basis of input-output theory. These relationships are embodied in multipliers that are periodically evaluated and updated to reflect improvements in technology and other factors. The multipliers used in this analysis — for the C ity of Sacramento at a zip code level, and for the County of Sacramento based on its jurisdictional boundaries — are based on the annual input -output accounts and over 40 other data sources for the U.S., California, and local Sacramento economies.
3. The IMPLAN model has demonstrated its flexibility by being applied to a broad range of projects and activities, including land development, infrastructure construction projects, airport operations and expansions, military base closures, and many more.
Economic impact theory generally contends that a dollar injected into a local economy will generate additional output through a multiplier, or “ ripple,” effect as the dollar changes hands through successive cycles of spending. This economic effect has been thoroughly studied by the IMPLAN Group, which has developed numerous tables of economic coefficients (i.e., multipliers) and an economic model to estimate economic impact s. In essence, the IMPLAN input -output model estimates the effects of expenditures by one industry on other industries in a region and facilitates the analysis of complex interactions between consumers, producers, and industries.
Total economic impact is composed of three parts: 1) direct impacts; 2) indirect impacts; and 3) induced impacts. These three types of impacts are described briefly below:
Direct Impacts: The initial monetary investment in the local or regional economy, which generates additional rounds of output and final demand, creates direct impacts. The monetary investments associated with the proposed Project, including land acquisition, site work, infrastructure, vertical construction, and other builder costs and profit (referred to collectively as estimated market value), constitute the direct impacts of construction.
Employees, annual retail output, and resident and visitor spendi ng represent the ongoing direct impacts for the Project.
Indirect Impacts: The initial investment/expenditure described above will cycle through the economy in various forms. Indirect impacts are the measure of economic activity created by direct expenditures in other business sectors of the economy. For example, a homebuilder buys carpeting to install in a new house. The carpet supplier in turn purchases carpet inputs from other businesses, including fabric, backing, padding, and other raw materials and goods and services that are in turn manufactured or provided by yet another set of businesses. Generally, the dollar amount of indirect impacts is less than that of direct impacts because many of the subsequent purchases are made from businesses located
Innovation Park
Analysis of Economic Impacts 3 April 22, 2024
outside the local economy being evaluated. However, more of the subsequent purchases are captured as the study area expands.
Induced Impacts: Aside from the initial investment or expenditure (direct impacts) and its subsequent re-spending (indirect impacts), the Project will generate consumer spending activity that stimulates the economy in a variety of ways. Induced impacts result from wages and other income paid to employees and households, which in turn purchase goods and services such as food, clothing, housing, and entertainment.
ANALYSIS
This analysis measures the following three types of economic impacts on the City’s and County’s local economies, based on local and regional trade flows for the City and County:
Employment: Permanent employment opportunities are created on-site and off-site by the Project. In addition, construction of the Project will create interim employment in a variety of specialized jobs. Direct, indirect, and induced jobs are evaluated.
Compensation: Compensation impacts are comprised of two components, employee wages and employee benefits. Direct, indirect, and induced compensation associated with ongoing operations of the Project, as well as during construction of all of the different land uses, is estimated.
Industry Output: Industry output represents the total production for all industries in the City and County economies. Direct, indirect, and induced output associated with ongoing operations of the Project , as well as during construction of this future development, are examined.
Table 1 in the Appendix presents a summary of the current economic activity in the City and County. In the City, total industry output is estimated to be $73.7 billion, total compensation is approximately $30.4 billion, and total jobs amount to about 383,000 . The County area is estimated to account for approximately $179.9 billion in total industry output, $74.8 billion in total compensation, and 934,000 total jobs.
Tables 2, 5, and 6 in the Appendix present the assumptions incorporated into the construction (Table 2) and operational impacts (Tables 5 and 6) , respectively. Each assumption represents an input into the IMPLAN model that has been developed specifically for the City and the County areas as part of the economic impact analysis. As shown in Table 2, the projected total construction cost for the Project is used to determine the direct output ($1.9 billion) on the City and County economies during construction.
Similarly, Table s 5 and 6 summarize inputs related to recurring economic impacts anticipated from the Project once it is built out . Economic impacts are based on the number of direct jobs for various non- residential, non-retail land uses, the amount of direct sales for retail uses, and the amount of disposable income (i.e., direct spending) for residential uses.
Innovation Park
Analysis of Economic Impacts 4 April 22, 2024
CONCLUSIONS
Tables 3, 4, and 7 in the Appendix present the estimated economic impacts of the Project.
Tables 3 and 4 display the total shorter-term, construction-related impacts for the Project; Table 3 shows the total construction-related impacts during the course of Project development, while Table 4 shows construction- related impacts on an annual basis for the Project assuming a n eight-year construction period. Table 7 presents the annual long-term, permanent operational impacts once the Project is built out. All three of these detailed results tables show economic impacts within the City and within the entire County, bifurcated between the Health District and the mixed -use Innovation and Life Districts area, and delineated between direct, indirect, and induced economic impacts (as well as total impacts).
Table A below, following this page, summarizes the total and annual interim construction- related economic impacts, as well as the annual ongoing operational-related economic impacts, of the Project. The jobs, compensation, and industry output impacts are presented for both the City and County areas, and segregated between those impacts that relate to the Health District and those that relate to the mixed-use Innovation and Life Districts portion of the Project.
Note that the construction-related and operational impact results are conservative in nature since the analysis evaluates impacts on the City and County areas only. An analysis evaluating the economic impacts of the Project on the much larger six- county Sacramento region, or on the entire State of California, would produce estimate s of jobs, compensation, and economic output impacts that are significantly higher than those presented in this report.
Interim Impacts During Construction
As presented in Table A below, t emporary impacts associated with construction of the proposed Project, anticipated to occur over an eight-year period, are expected to involve a total of approximately 14,700 jobs within the City and 18,700 jobs within the entire County, roughly $1.2 billion of compensation inside the City and $1.4 billion across the County, and nearly $2.1 billion in economic activity in the City and $2.9 billion throughout the County.
On an annual basis, the total construction -related economic impacts translate into approximately 1,800 jobs within the City and 2,300 jobs within the entire County, around $140 million of compensation inside the City and $180 million across the County, and about $260 million in economic activity in the City and $360 million throughout the County.
Annual Ongoing Operational Impacts
In addition to the shorter-term jobs and related economic impacts from various construction activities, annual ongoing operations associated with the Project at buildout produce approximately 7,500 jobs within the City and 11,600 jobs within the entire County, roughly $0.9 billion of compensation inside the City and $1.2 billion across the County, and nearly $2.7 billion in economic activity in the City and $3.5 billion throughout the County.
Table A
Innovation Park PUD
Economic Impact Analysis
Summary of Economic Impacts
Estimated % of Estimated % of Estimated % of
Impacts Current Impacts Current Impacts Current
Total Construction Impacts - Total
City of Sacramento
CNU Innovation Park (Health District) 7,473 2.0% $587 M 1.9% $1,125 M 1.5% SBH Natomas LLC (Mixed Use) 7,217 1.9% $565 M 1.9% $965 M 1.3% Total 14,689 3.8% $1,152 M 3.8% $2,090 M 2.8%
County of Sacramento
CNU Innovation Park (Health District) 9,549 1.0% $722 M 1.0% $1,530 M 0.9% SBH Natomas LLC (Mixed Use) 9,121 1.0% $685 M 0.9% $1,326 M 0.7% Total 18,669 2.0% $1,406 M 1.9% $2,856 M 1.6%
Total Construction Impacts - Annual
City of Sacramento
CNU Innovation Park (Health District) 934 0.2% $73 M 0.2% $141 M 0.2% SBH Natomas LLC (Mixed Use) 902 0.2% $71 M 0.2% $121 M 0.2% Total 1,836 0.5% $144 M 0.5% $261 M 0.4%
County of Sacramento
CNU Innovation Park (Health District) 1,194 0.1% $90 M 0.1% $191 M 0.1% SBH Natomas LLC (Mixed Use) 1,140 0.1% $86 M 0.1% $166 M 0.1% Total 2,334 0.2% $176 M 0.2% $357 M 0.2%
Ongoing Operational Impacts - Annual
City of Sacramento
CNU Innovation Park (Health District) 6,478 1.7% $845 M 2.8% $2,525 M 3.4% SBH Natomas LLC (Mixed Use) 986 0.3% $56 M 0.2% $140 M 0.2% Total 7,464 2.0% $902 M 3.0% $2,664 M 3.6%
County of Sacramento
CNU Innovation Park (Health District) 10,606 1.1% $1,117 M 1.5% $3,335 M 1.9% SBH Natomas LLC (Mixed Use) 1,018 0.1% $59 M 0.1% $146 M 0.1% Total 11,624 1.2% $1,176 M 1.6% $3,481 M 1.9%
Sources: IMPLAN; Goodwin Consulting Group, Inc. 04/16/2024 Employment (Jobs) Compensation Industry Output
APPENDIX
INNOVATION PARK
ECONOMIC IMPACT ANALYSIS
General Assumptions, Methodology, and Results Tables
Table 1
Innovation Park PUD
Economic Impact Analysis
Current Economic Activity
Employment Industry Employment Industry
Industry Category (Jobs) Compensation Output (Jobs) Compensation Output Agriculture, Forestry, Fishing & Hunting 424 $25,172,000 $74,403,000 4,534 $254,304,000 $673,261,000 Mining 149 $5,518,000 $81,141,000 405 $8,108,000 $297,111,000 Utilities 1,832 $342,385,000 $2,063,551,000 2,823 $531,947,000 $3,174,212,000 Construction 24,383 $2,017,868,000 $4,780,908,000 62,927 $5,199,690,000 $12,380,832,000 Manufacturing 12,059 $1,110,638,000 $6,411,529,000 26,114 $2,364,962,000 $13,237,372,000 Wholesale Trade 9,375 $957,204,000 $4,234,751,000 18,747 $1,990,809,000 $9,054,883,000 Retail Trade 23,474 $1,044,544,000 $3,284,839,000 72,156 $3,277,035,000 $10,134,929,000 Transportation & Warehousing 25,074 $901,616,000 $2,304,763,000 62,312 $2,476,329,000 $6,331,413,000 Information 4,435 $516,506,000 $2,558,815,000 8,686 $995,562,000 $5,211,074,000 Finance & Insurance 13,601 $987,387,000 $3,769,268,000 44,673 $3,660,343,000 $14,556,867,000 Real Estate & Rental 13,912 $605,281,000 $7,214,359,000 37,939 $1,624,305,000 $19,796,527,000 Professional- Scientific & Tech Services 32,572 $3,727,266,000 $8,035,053,000 71,971 $8,179,129,000 $16,884,727,000 Management of Companies 2,853 $317,172,000 $639,107,000 11,055 $1,228,898,000 $2,476,250,000 Administrative & Support Services 24,649 $1,436,273,000 $2,987,967,000 63,328 $3,606,992,000 $7,639,886,000 Educational Services 7,144 $427,250,000 $673,807,000 14,245 $862,376,000 $1,307,422,000 Health & Social Services 60,635 $4,899,986,000 $7,787,764,000 122,714 $9,881,664,000 $15,401,397,000 Arts- Entertainment & Recreation 8,283 $290,281,000 $630,915,000 13,961 $474,477,000 $1,165,956,000 Accommodation & Food Services 30,158 $1,088,808,000 $3,032,141,000 67,700 $2,395,305,000 $6,846,278,000 Other Services 26,564 $1,599,925,000 $3,065,071,000 61,589 $3,529,339,000 $6,158,900,000 Government & Non-NAICs /2 61,020 $8,143,725,000 $10,065,294,000 166,525 $22,218,845,000 $27,201,282,000 Total 382,593 $30,444,805,000 $73,695,446,000 934,403 $74,760,419,000 $179,930,579,000 /1 Based on data for the following zip codes: 95811, 95814, 95815, 95816, 95817, 95818, 95819, 95820, 95822, 95823, 95824, 95826, 95831, 95832, 95833, 95834, 95835, and 95838. /2 NAICs = North American Industry Classification System.
Sources: IMPLAN; Goodwin Consulting Group, Inc. 04/16/2024 City of Sacramento /1 County of Sacramento
Table 2
Innovation Park PUD
Economic Impact Analysis
Construction Assumptions
Estimated Total Estimated
Estimated Value per Construction Total
Units or Unit or Cost as % Construction
Land Use Building SF Building SF of Value Value (2024$) CNU Innovation Park (Health District)
Medical Center 750,000 SF $1,000 per SF 80% $600,000,000 Education Building 200,000 SF $450 per SF 80% $72,000,000 Clinical Lab 90,000 SF $450 per SF 80% $32,400,000
Pharma Manufacturing Plant 350,000 SF $400 per SF 80% $112,000,000 Student Housing 240,000 SF $400 per SF 80% $76,800,000
Faculty Housing 160,000 SF $400 per SF 80% $51,200,000
Nutrition and Rehabilitation 160,000 SF $300 per SF 80% $38,400,000 Day Care and Sport Center 55,000 SF $315 per SF 80% $13,860,000 Subtotal 2,005,000 SF $996,660,000
SBH Natomas LLC (Mixed Use)
Multi-Family 1,193 Units $375,000 per Unit 80% $357,900,000 Mixed Use Residential 1,278 Units $375,000 per Unit 80% $383,400,000 Commercial 50,000 SF $400 per SF 80% $16,000,000
Office 300,000 SF $400 per SF 80% $96,000,000
Hotel 120,000 SF $250 per SF 80% $24,000,000
Subtotal $877,300,000
Total $1,873,960,000
Sources: EPS; Goodwin Consulting Group, Inc. 04/16/2024 Table 3
Innovation Park PUD
Economic Impact Analysis
Total Construction Impacts
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) 6,861 272 340 7,473 SBH Natomas LLC (Mixed Use) 6,766 185 266 7,217
Total 13,628 457 605 14,689
% of Current City Employment 3.84%
County of Sacramento
CNU Innovation Park (Health District) 6,861 832 1,856 9,549 SBH Natomas LLC (Mixed Use) 6,766 590 1,765 9,121 Total 13,628 1,422 3,620 18,669
% of Current County Employment 2.00%
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) $544,861,608 $21,428,291 $21,189,310 $587,479,209 SBH Natomas LLC (Mixed Use) $535,054,453 $13,226,050 $16,529,033 $564,809,536 Total $1,079,916,060 $34,654,342 $37,718,344 $1,152,288,746 % of Current City Compensation 3.78%
County of Sacramento
CNU Innovation Park (Health District) $544,861,608 $61,800,304 $114,913,690 $721,575,602 SBH Natomas LLC (Mixed Use) $535,054,453 $40,291,779 $109,277,733 $684,623,964 Total $1,079,916,060 $102,092,083 $224,191,423 $1,406,199,565 % of Current County Compensation 1.88%
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) $996,660,000 $67,671,961 $60,592,192 $1,124,924,153 SBH Natomas LLC (Mixed Use) $877,300,000 $41,005,652 $46,993,787 $965,299,439 Total $1,873,960,000 $108,677,613 $107,585,979 $2,090,223,592 % of Current City Industry Output 2.84%
County of Sacramento
CNU Innovation Park (Health District) $996,660,000 $190,389,439 $342,471,882 $1,529,521,321 SBH Natomas LLC (Mixed Use) $877,300,000 $123,039,504 $325,675,384 $1,326,014,888 Total $1,873,960,000 $313,428,943 $668,147,265 $2,855,536,209 % of Current County Industry Output 1.59%
Sources: IMPLAN; Goodwin Consulting Group, Inc. 04/16/2024 Industry Output Impacts
Employment Impacts (Jobs)
Compensation Impacts
Table 4
Innovation Park PUD
Economic Impact Analysis
Annual Construction Impacts /1
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) (8 Years) 858 34 42 934 SBH Natomas LLC (Mixed Use) (8 Years) 846 23 33 902 Total 1,703 57 76 1,836
% of Current City Employment 0.48%
County of Sacramento
CNU Innovation Park (Health District) (8 Years) 858 104 232 1,194 SBH Natomas LLC (Mixed Use) (8 Years) 846 74 221 1,140 Total 1,703 178 453 2,334
% of Current County Employment 0.25%
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) (8 Years) $68,107,701 $2,678,536 $2,648,664 $73,434,901 SBH Natomas LLC (Mixed Use) (8 Years) $66,881,807 $1,653,256 $2,066,129 $70,601,192 Total $134,989,508 $4,331,793 $4,714,793 $144,036,093
% of Current City Compensation 0.47%
County of Sacramento
CNU Innovation Park (Health District) (8 Years) $68,107,701 $7,725,038 $14,364,211 $90,196,950 SBH Natomas LLC (Mixed Use) (8 Years) $66,881,807 $5,036,472 $13,659,717 $85,577,995 Total $134,989,508 $12,761,510 $28,023,928 $175,774,946 % of Current County Compensation 0.24%
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) (8 Years) $124,582,500 $8,458,995 $7,574,024 $140,615,519 SBH Natomas LLC (Mixed Use) (8 Years) $109,662,500 $5,125,706 $5,874,223 $120,662,430 Total $234,245,000 $13,584,702 $13,448,247 $261,277,949 % of Current City Industry Output 0.35%
County of Sacramento
CNU Innovation Park (Health District) (8 Years) $124,582,500 $23,798,680 $42,808,985 $191,190,165 SBH Natomas LLC (Mixed Use) (8 Years) $109,662,500 $15,379,938 $40,709,423 $165,751,861 Total $234,245,000 $39,178,618 $83,518,408 $356,942,026 % of Current County Industry Output 0.20%
/1 Assumes an 8-year construction period for the Innovation Park project.
Sources: IMPLAN; EPS; Goodwin Consulting Group, Inc. 04/16/2024 Employment Impacts (Jobs)
Compensation Impacts
Industry Output Impacts
Table 5
Innovation Park PUD
Economic Impact Analysis
Operational Assumptions - CNU Innovation Park (Health District) Non-Residential Operations Average
Estimated Square Feet Total
Square Feet per Employee Jobs
Medical Center 750,000 215 3,488
Education Building 200,000 621 322
Clinical Lab 90,000 621 145
Pharma Manufacturing Plant 350,000 621 564
Nutrition and Rehabilitation 160,000 215 744
Day Care and Sport Center 55,000 500 110
Residential Spending
% of New % of New
Avg Estimated Disposable Total Residents Residents
Monthly Annual Household Disposable Income Disposable Moving from Moving from Rent Rent Income Income % per unit Units Income Outside City Outside County (A) (B) (C = A x B) (D) (C x D)
Student Housing $1,139 $13,667 $46,000 96.1% $44,223 300 $13,266,784 100% 100% Faculty Housing $250,000 65.0% $162,560 200 $32,511,918 75% 50% Annual Rent as a % of HH Income 30%
Sources: IMPLAN; EPS; Goodwin Consulting Group, Inc. 04/16/2024 Table 6
Innovation Park PUD
Economic Impact Analysis
Operational Assumptions - SBH Natomas LLC (Mixed Use)
Non-Residential Operations Average Estimated
Estimated Square Feet Total Retail Sales
Square Feet per Employee Jobs per Square Foot
Commercial 50,000 500 100 $200
Office 300,000 621 483
Hotel 120,000 1,000 120
Residential Spending
% of New % of New
Avg Estimated Disposable Total Residents Residents
Monthly Annual Household Disposable Income Disposable Moving from Moving from Rent Rent Income Income % per unit Units Income Outside City Outside County (A) (B) (C = A x B) (D) (C x D)
Multi-Family $2,500 $30,000 $100,000 84.3% $84,325 1,193 $100,599,870 75% 50% Mixed Use Residential $2,500 $30,000 $100,000 84.3% $84,325 1,278 $107,767,506 75% 50% Annual Rent as a % of HH Income 30%
Sources: IMPLAN; EPS; Goodwin Consulting Group, Inc. 04/16/2024 Table 7
Innovation Park PUD
Economic Impact Analysis
Operational Phase - Annual Impacts
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) 5,373 784 321 6,478 SBH Natomas LLC (Mixed Use) 703 58 225 986
Total 6,076 842 546 7,464
% of Current City Employment 1.95%
County of Sacramento
CNU Innovation Park (Health District) 5,373 2,404 2,829 10,606 SBH Natomas LLC (Mixed Use) 703 165 150 1,018
Total 6,076 2,569 2,979 11,624
% of Current County Employment 1.24%
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) $770,815,896 $54,410,279 $20,013,179 $845,239,354 SBH Natomas LLC (Mixed Use) $38,118,997 $4,028,692 $14,155,376 $56,303,065 Total $808,934,893 $58,438,971 $34,168,555 $901,542,419 % of Current City Compensation 2.96%
County of Sacramento
CNU Innovation Park (Health District) $770,815,896 $170,883,862 $175,349,816 $1,117,049,574 SBH Natomas LLC (Mixed Use) $37,582,764 $11,652,584 $9,419,421 $58,654,769 Total $808,398,660 $182,536,446 $184,769,237 $1,175,704,343 % of Current County Compensation 1.57%
Direct Indirect Induced Total
City of Sacramento
CNU Innovation Park (Health District) $2,322,221,254 $145,345,920 $56,966,801 $2,524,533,975 SBH Natomas LLC (Mixed Use) $87,573,573 $10,801,481 $41,171,946 $139,547,000 Total $2,409,794,827 $156,147,401 $98,138,747 $2,664,080,975 % of Current City Industry Output 3.61%
County of Sacramento
CNU Innovation Park (Health District) $2,322,221,254 $490,493,322 $522,747,790 $3,335,462,366 SBH Natomas LLC (Mixed Use) $87,349,328 $31,372,266 $27,241,851 $145,963,445 Total $2,409,570,582 $521,865,588 $549,989,641 $3,481,425,811 % of Current County Industry Output 1.93%
Sources: IMPLAN; Goodwin Consulting Group, Inc. 04/16/2024 Employment Impacts (Jobs)
Compensation Impacts
Industry Output Impacts