City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01680 2/24/2026
Economic Development Workshop
File ID: 2025-01680
Location: Citywide
Recommendation: Receive, comment, and provide direction.
Contact: Michael Jasso, Assistant City Manager/Director of the Office of Innovation and Economic Development, (916) 808-1380, [email protected], City Manager’s Office Presenters: Michael Jasso, Assistant City Manager/Director of the Office of Innovation and Economic Development, (916) 808-1380, [email protected], City Manager’s Office; Tom Pace, Director, (916) 808-2691, [email protected], Community Development Department; Megan Van Voorhis, Director, (916) 808-5979, [email protected], Convention and Cultural Services Department; Denise Malvetti, Deputy Director, (916) 808-7064, [email protected], City Manager’s Office of Innovation and Economic Development Attachments:
1-Description/Analysis
2-Presentation
Description/Analysis
Issue Detail: At the request of Mayor and Council, and as a follow-up to Council priority setting in 2025, the Community Development Department, Convention and Cultural Services Department and Office of Innovation and Economic Development will conduct an Economic Development Workshop highlighting current projects, programs and activities; and future opportunities.
Policy Considerations: On September 30, 2025, the City Council convened to discuss priorities and identified Economic Development, Public Safety and Homelessness as the top three priorities. On November 18, 2025, City Council voted to confirm the aforementioned as their top three priorities. As a follow-up to the priority setting, staff would like to engage Mayor and Council in an Economic Development workshop to discuss current initiatives, foundational principles and opportunities.
Economic Impacts: None.
File ID: 2025-01680 2/24/2026
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Not applicable.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
Creating the Conditions for Sacramento to Thrive
ECONOMIC DEVELOPMENT WORKSHOP SACRAMENTO CITY COUNCIL
February 24, 2026
Council's Top Priorities
Approved by City Council on November 18, 2025
Economic Development
Creating conditions for prosperity
Public Safety
Safe & engaged community
Homelessness
Shelter and stability for all
Foundational Principles
1 Equitable Investment
Ensuring benefits reach all communities (service and
infrastructure)
2 Fiscal Sustainability
Long-term financial responsibility
3 Accountability
Transparent outcomes and metrics
4 Good Governance
Ethical/Strategic/Innovative
Strategic Goals
Vibrant Economy & Community
Livability
Quality Infrastructure Safe & Engaged Community
What We Mean by Economic
Development
From policies, programs and projects to outcomes
Core Premise
Economic development is the collective outcome of how the City invests, aligns, and acts to create the conditions for people, place, and business to thrive.
Key Framing
Shared Responsibility
Economic development is a shared
responsibility across the
organization
Shaped by Multiple Levers
Policies, investments, fees,
processes, and partnerships all
contribute
Every Decision Matters
All City decisions have economic
consequences, intended or
unintended
Economic Snapshot
21k+
Businesses
25%
Regional Business
Share
83%
Businesses have
less than 10
Employees
5%
Unemployment
Rate
20%
Government Jobs
50%
Downtown Workers
Returned
The Operating Framework
People • Place
• Business
How the City delivers economic outcomes
Three Pillars of Economic Development
Every department contributes to at least one of these pillars — and most contribute to more than one.
People
Developing, attracting, and retaining
talent through workforce, inclusion, and
quality of life
Place
Planning, building, and activating
physical environments that support
safety, connection, and investment
Business
Enabling entrepreneurship and
enterprise through supportive systems,
policies, and access to capital
People
Talent, Opportunity & Quality of Life
Industry follows talent — and talent follows quality of life.
Workforce & Capacity Building
Workforce
Development
Programs
Youth Service Corps,
Certification & Apprenticeship
Programs
Early Childhood
Education
Apprenticeship
Pipeline for critical sector
Small Developer
Incubator
Building local capacity
Arts & Entertainment
Workforce
Fostering talent and
opportunities in the creative
economy
Inclusive Engagement & Financial
Stability
1 Community Engagement
Inclusive civic engagement to ensure that all residents are well informed about City matters, resources and opportunities. 2 Financial Empowerment Center
One-on-one counseling and resources for residents
3 CityStart
Black wealth building initiative
4 Language Access
Ensuring Sacramento's diverse population has meaningful access to the City
Arts, Culture, Entertainment & Tourism
SAFE Credit Union Convention & Performing
Arts District
A vibrant cultural anchor and convention destination, driving visitation and enhancing our city's quality of life.
Events & Festivals
Fostering community vibrancy and cultural celebration
through diverse city-wide events.
Arts & Cultural Partners
Collaborating with diverse partners to build a thriving arts and cultural ecosystem.
Arts & Cultural Community
Supporting local artists and arts and cultural groups who enrich our shared cultural landscape.
How Investing in People Drives Growth
When we invest in people and quality of life, it creates a cycle that drives Sacramento's growth.
Strategic Investments
Programs in workforce, financial
inclusion, and community support help
people reach their potential.
Talent Magnet
A vibrant community attracts and keeps
talented people.
Industry Growth
Talented people help businesses grow
and attract new companies to
Sacramento.
Increased Prosperity
Growing businesses create more jobs
and tax revenue, which we reinvest in the
community.
Place
Where Opportunity Takes Root
Strong places turn public investment into lasting economic value.
Planning & Zoning: Foundations of Place
General Plan Policies
Guiding citywide growth and
development.
Specific Plans &
Neighborhood Action
Plans
Stockton Blvd, River District,
Central City, and neighborhood-
level planning
Citywide Zoning
Missing middle housing, ADUs,
and zoning reforms
Land Use & Entitlement
Frameworks
Streamlining development
review and approval processes
Strategic Infrastructure Investments
Our commitment to foundational infrastructure paves the way for a resilient and prosperous future.
Infrastructure Planning &
Investments
Fostering coordinated planning between
Public Works and Planning to shape
infrastructure that creates vibrant, livable
places.
EIFD & Financing
Utilizing Enhanced Infrastructure Financing
Districts (EIFD) and other innovative
models to fund critical infrastructure
improvements.
Transportation & Green
Infrastructure
Developing sustainable transportation
networks—streets, sidewalks, and bike
lanes—alongside robust stormwater
management and green infrastructure for
resilient neighborhoods.
Five Levers for Housing Outcomes
The City of Sacramento actively shapes housing outcomes by controlling these five core levers:
Policy Direction
Pro-housing policies and zoning
reforms to boost supply and
affordability.
Planning & Regulation
Missing middle housing, ADUs,
reduced parking, and clear
standards.
Process & Predictability
Faster approvals, fewer handoffs,
and greater certainty.
Organizational Culture
Empowering staff for problem-
solving, building a pro-
development reputation, and a
collaborative approach.
Market Signaling
Consistent rules that lower risk and costs to boost production.
Housing outcomes improve when the City aligns policy, process, and culture — not just when it approves individual projects.
Housing Support & Resources
Impact Fee Reduction Program
Reducing development costs.
Housing Stabilization
Keeping people connected to housing.
Street to Housing Program
Targeted, innovative housing solutions.
Emergency Home Repair Program
Helping property owners pay for code upgrades.
Neighborhood Development Action Team
These initiatives demonstrate citywide collaboration across departments, working with trusted community partners and resident planning teams to extend our reach and impact.
Community-Led Planning
Implementation Grants
Cultural Districts & Creative Activation
Public Art
Historic Preservation
Cultural Districts & Heritage
Tourism
Innovation Districts & Catalytic Sites
Aggie Square
Innovation hub and economic catalyst
Railyards
Transformative mixed-use development
Public-Private Partnerships
Leveraging investment for impact
Investing in Place Creates Compounding Growth
Distinctive places attract residents, businesses, and investment.
Planning & Infrastructure
Clear land use rules, predictable
processes, infrastructure readiness,
housing capacity, and preservation.
Development & Activation
Housing production, mixed-use growth,
adaptive reuse, cultural districts, and
activated corridors.
Distinctive Identity and
Experience
Coherent neighborhoods, preserved
character, vibrant public spaces, and
waterfront vitality.
Attraction & Investment
Residents choose to live here.
Businesses choose to locate here.
Visitors choose to return.
Reinvestment
Higher valuation, stronger tax base, and
reinvestment in infrastructure and
housing.
Business
Systems That Enable Growth
Businesses thrive when City systems are aligned, predictable, and supportive.
Small Business & Entrepreneur Support
Small Business Solutions Center
One-stop resource hub
Small Business Liaison
Permitting 101 and guidance
Economic Gardening
Helping Business Scale
Innovation Grant Program
Funding for programs that support entrepreneurs
Business Attraction & Retention
Regional Partnership
Partnership with Greater
Sacramento Economic Council
Coordinated regional business
attraction efforts
Local Business Networks
Partnership with Property-Based
Improvement Districts (PBIDs)
Partnership with local Chambers
of Commerce
Supporting business community
connections
Visibility & Promotion
Getting out and making
Sacramento visible
Showcasing Sacramento's
strengths and opportunities
Building the city's profile for
business attraction
ScaleUp Sacramento &
Industry Opportunities
Future Mobility
Life Sciences
Clean Economy
Ag, Food and Beverage Manufacturing
Headquarter and Business Services
Regulatory & Process Improvements
1 Entertainment Permitting Modernization
Informed applicants, transparent processes, stronger policy and improved compliance.
2 Streamline Sacramento
Saving time and money.
Access to Capital & Markets
Increasing access to capital through partnerships and collaboration.
Creative Economy Capital Access Pilot
Local pilot and founding member of CA Creative Economy
Finance Network
Sac LIFT
Financial collaborative to support Sacramento residents and businesses
Creative Economy & Visitor Economy
EveryDay Creative
Creative economy-focused
accelerators & Investments
Sound Business Summit
Revenue generation tools for
musicians and producers
Film Production Rebates &
Support
Rebates and post-production grants
SAFE CU Convention & Performing Arts District
Promoter Rebate
Driving promoter activity and programming to district facilities Iconic Events
Building signature events that draw national and international attention and visitation
Nighttime Economy
A thriving nighttime economy creates jobs, supports local businesses, and enhances Sacramento's cultural vibrancy.
Training & Resources
Entertainment Zones
Economic Development Tools
Enhanced
Infrastructure
Finance Districts
(EIFDs)
Uses future tax revenue
from new development to
fund infrastructure in
designated areas.
Forgivable Loan
Program
Funding for entrepreneurs
to start, relocate, or grow
businesses in Sacramento.
Job Growth &
Employment
Incentive
Incentives for major
employers to create jobs
and diversify the economy.
Economic Gardening
Matching Grants
Matching grants up to
$50,000 for business
growth opportunities.
Small Business Microgrants
Microgrants and fee credits for
Business Solutions Center
participants.
Brownfields Funding
Assistance, loans, and grants to clean
up and redevelop contaminated
properties.
Opportunity Zones
Federal tax incentive program
encouraging long-term investment in
designated low-income communities.
How Investing in Business Drives Growth
When we support businesses through streamlined systems and strategic resources, it creates a cycle of economic expansion.
By investing in business systems, we create sustainable economic growth.
Supportive Systems
Clear rules, streamlined permitting,
access to capital, and targeted
incentives reduce risk.
Business Confidence &
Activation
Entrepreneurs start businesses, firms
expand, and creative enterprises scale.
Jobs, Industry & Destination
Growth
Job creation, industry diversification, and
increased visitation strengthen the base.
Expanded Revenue &
Reinvestment
Sales tax and TOT growth create fiscal
capacity to reinvest in people and place.
Alignment Is the Multiplier
Why Every Decision Matters
Fees, processes, enforcement practices, infrastructure timing, and service levels all affect economic outcomes.
Misalignment across departments can unintentionally undermine Council priorities.
Alignment increases return on limited resources and supports fiscal sustainability.
Economic development is shaped as much by how we align decisions as by what we invest in.
Opportunities & Challenges
Ahead
Strategic Opportunities
Catalytic Sites & Districts
Culture as Growth Engine
Infrastructure & Housing
Capacity
Structural Challenges
Funding & Fiscal Pressure
System Misalignment
Market Constraints
The greatest opportunity is alignment. The greatest risk is fragmentation.
What does progress look like?
People
More residents in quality jobs with rising wages
Workforce pathways accessible across neighborhoods
Young talent choosing to stay and build careers here
A creative and entrepreneurial workforce that reflects
Sacramento’s diversity
Place
More housing choices in more neighborhoods
Investment reaching historically underinvested corridors Active, safe, and vibrant public spaces citywide
Preservation and new development working together
Business
Businesses starting and scaling across the city
Small and local businesses accessing capital and support Growing industry clusters with broad participation
Increased visitation and economic activity
System-Level (Alignment)
Predictable, transparent processes for all applicants
Reduced barriers to entry
Coordinated systems that support growth rather than slow it Reputation as a city that gets things done
Council Discussion
What does meaningful
progress look like to you?
What criteria should guide
how we prioritize
investments and
activities?
Where should we focus to strengthen coordination?
Economic development is everyone's work — and together, we're creating the conditions for Sacramento's prosperity.