Sacramento City Council to consider preliminary terms for soccer stadium

Conceptual rendering of the soccer stadium planned for the Sacramento railyard.
Conceptual rendering of the soccer stadium planned for the Sacramento railyard. Sacramento Republic FC

The Sacramento City Council on Tuesday will consider allocating $100,000 in hotel tax revenue for technical services the city would require if it pursues a privately funded stadium project for major league soccer.

The council is scheduled to vote on a preliminary term sheet presented by Republic FC outlining plans for a 25,000-seat stadium in the downtown railyard costing $226 million. If the term sheet is approved, the council will be asked to authorize $100,000 in hotel tax revenues for services necessary to protect the city’s interests as the project progresses, said John Dangberg, assistant city manager. This could include specialized consulting services to prepare documents, tax revenue analyses, or to retain someone with expertise in sports facilities planning, he said.

Dangberg said these services are separate from those associated with the planning and development process, such as preparing an environmental impact report. Those costs would be covered by Republic FC. Dangberg said Republic FC also provided $25,000 to cover the cost of developing the preliminary term sheet.

The city would expect to benefit significantly through increased sales tax, parking and hotel tax revenue generated by a soccer stadium, he said.

The total project budget includes $180 million in private financing for construction of a stadium on 16 acres in the northeast section of the railyard. The other $46 million would come from the “significant infrastructure investments” already spent by the city, state and federal governments at the railyard, including the ongoing construction of roads and utilities in the development.

The stadium would not be built unless the minor-league Republic FC is granted an expansion spot in the country’s top professional league, Major League Soccer. If approved by the council, the term sheet would be submitted to MLS with the goal of proving Sacramento’s viability as an expansion market.

Cathy Locke: 916-321-5287, @lockecathy