Elk Grove lines up $152M for new freeway interchange — without federal funding
Elk Grove plans to fund a $152 million Highway 99 interchange largely with local taxes and development fees, with construction expected to begin in 2030.
The interchange, which will connect Whitelock Parkway in south Elk Grove with the freeway, is intended to relieve traffic congestion as the city grows, according to a staff report presented at a City Council meeting Wednesday. The project will link Whitelock and its closest major cross streets — Big Horn Boulevard and Bruceville Road — with new on- and off-ramps to Highway 99 as thousands of new homes are built nearby. Currently, the closest interchanges are at Elk Grove Boulevard and Kammerer Road.
A bike and pedestrian overcrossing connecting to Elk Grove Regional Park is also being considered as part of the project, along with auxiliary lanes on Highway 99 and improvements to surrounding roads.
Christina Castro, the city’s capital projects division manager, said the project was a “priority” for the city. More than 1,000 homes are planned in the area, along with additional business development, she said, which is expected to increase traffic.
The project is expected to cost about $152 million, according to Castro. A majority of the funding, $60.6 million, will come from several community facilities district revenue streams — Mello-Roos taxes that property owners in the neighborhood pay to fund local infrastructure.
Another $10 million will come from the city’s Measure E, the one-cent sales tax measure residents passed in 2022 to address community priorities. About $50 million will come from the city’s roadway fee, which is charged to new developments. Wilton Rancheria, the only federally recognized tribe in Sacramento County, will contribute $2 million. A state grant will provide $5 million, and $24.4 million will come from bond funding.
The city plans to rely largely on local funding, much of which was originally planned for a future Elk Grove Zoo. The zoo project fell through in 2025. When city leadership re-evaluated how to use the funds, the interchange project emerged as a top priority, Castro said.
The city originally planned to pursue federal funding for construction but determined the improvement was needed sooner than federal funding could likely be secured, Castro said.
The project’s study report was approved in 2020 and outlined the scope, schedule and estimated costs for future phases. The project is now undergoing environmental review, including under the California Environmental Quality Act, which is expected to be completed in 2028. Final design approval is expected in 2029.
The project’s schedule is “heavily dependent on review and approval by numerous stakeholders, including Caltrans,” the report said.
