Sacramento, Calif., Board Puts Plan for New Airport in Motion

Posted on Thu, Mar. 25, 2004 
 
Sacramento, Calif., Board Puts Plan for New Airport in
Motion

By Dirk Werkman, The Sacramento Bee, Calif. Knight
Ridder/Tribune Business News


Mar. 25 - A $222 million plan to finance roads,
sewers, water and drainage facilities for the
1,900-acre Metro Air Park could take a major step
forward next week if the Sacramento County Board of
Supervisors gives its approval.

Infrastructure facilities for the park near Sacramento
International Airport -- where 38,000 people may
someday be employed -- would be privately financed
through the sale of bonds and developer fees.

"This is a bold step into the future for Sacramento
County," County Supervisor Roger Dickinson declared
Tuesday as the board voted 4-1 to waive certain county
policies regarding property lien requirements, a first
step in the approval of the overall plan. Four votes
were required to waive the county policies. The board
will take up the matter again Tuesday.

County Supervisor Illa Collin said Wednesday in an
e-mail that she voted against the proposal this week
over what she called the value-to-lien issue.
Value-to-lien refers to a relationship between the
value of a property and the amount of money owed on
privately held bonds if a project fails and payments
on the bonds cannot be made.

"We have never 'endorsed' the issuance of Mello-Roos
bonds in this county before with such an imbalance of
value to the bonds being issued," she said.

Landowners in the Air Park would purchase the initial
$63.5 million in bonds following the Board of
Supervisors' vote Tuesday.

Gerry N. Kamilos, project manager for the Air Park,
emphasized Tuesday there are no county general funds
involved in the infrastructure financing, only
private-sector funds.

The business-oriented park lies north of Elkhorn
Boulevard and between Lone Tree Road on the east and
Power Line Road on the west. The park will be adjacent
to the Sacramento International Airport.

"This is an opportunity to grow the economy in
Sacramento and create jobs," Dickinson said.

Supervisor Roger Niello said the Air Park is needed,
noting that, "People from out of town wonder why there
isn't more development around the airport."

Most airports have development around them, Niello
said.

Kamilos said in an interview that, in addition to the
38,000 people who will work at the Air Park, jobs
indirectly related to the facility will boost the
region's overall work force by 66,000 people. He said
those jobs will be created by companies that provide
goods and services to firms in the Air Park and by
dollars spent by people employed by park firms.

Kamilos said it will take 20 to 25 years to develop
Metro Air Park. By then the complex will be pumping $4
billion a year into the economy, he said studies have
shown.

Groundbreaking for the Air Park was held last year and
grading is under way, Kamilos said.

The updated $222 million facilities master plan and
financing plan, scheduled for a board vote Tuesday,
will be considered along with an authorization to sell
$63.5 million in bonds to begin the infrastructure
construction.

Robert A. Davison, manager of special districts for
the county, said in an interview that some $107
million in infrastructure financing will come from the
bond sales and $103 million will come from developer
fees. The remainder will come from other landowner
contributions, he said.

 

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