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Sacramento City Council Advances Plan to Develop Soccer Stadium at Railyards
The Sacramento City Council approved key steps to advance a new, privately funded soccer stadium for Sacramento Republic FC in the downtown Railyards, a long-anticipated project expected to generate over $8 billion in one-time economic impact and thousands of jobs. The vote included a "definitive documents" resolution, indicating that the city and developers are in alignment, and the approval of the expansion of the Railyards Enhanced Infrastructure Financing District. While supporters praise the stadium as a catalyst for revitalizing the 237-acre site, with backing from Wilton Rancheria and over $217 million committed, opponents, including labor unions and housing advocates, argue the financing plan lacks transparency, prioritizes private developers and neglects affordable housing. The infrastructure plan, which leverages future property tax revenue through an Enhanced Infrastructure Financing District (EIFD), would offer $92 million in tax rebates for roads and utilities but not fund the stadium itself. Critics worry the plan is being rushed amid Sacramento's $44 million budget shortfall, though city leaders insist the stadium poses no fiscal risk and will ultimately benefit the city financially. The full Railyards development, including a 20,000-seat stadium, retail venues, housing and a major medical center, is slated for completion by 2027. (See related CP&DR coverage .)
California Forever Will Fund Efforts to Explore Annexation of Properties to Suisun City
The Suisun City City Council approved, on a 3-1 vote, a reimbursement agreement, which is a initial step toward annexing over 22,000 acres of California Forever-owned land, with the possibility of adding 150,000 residents by 2048. The agreement allows California Forever to fund city staff and environmental review costs without obligating Suisun to finalize annexation, though a $10 million public benefit package could follow if the project proceeds. California Forever, which failed to pass a ballot initiative last year due to environmental and fiscal concerns, has shifted strategies by offering property purchases and grants to build goodwill in financially struggling Suisun. The plan has sparked fierce debate, with supporters citing economic revitalization and opponents warning of lost open space, mistrust in the developer and lack of voter input. The Solano County Board of Supervisors asked Suisun City to pause annexation talks with California Forever while the county updates its general plan, raising concerns about transparency and potential Brown Act violations. (See related CP&DR coverage.)
Kern County Grand Jury Improbably Weighs in on Bike Lanes
In an unusual move, Kern County Civil Grand Jury released a report titled "The Proliferation of Bike Lanes: Whose Road is It?", in which it criticized Bakersfield's bicycle infrastructure planning. The report acknowledges benefits such as reduced injuries and emissions, but argues bike lanes are impractical due to the city's heat, air quality, and traffic. It accuses the firm Alta Planning + Design, responsible for the city's most recent bike and pedestrian plan, of being "biased towards bicycles". Critics of the report have raised concerns of the Civil Grand Jury overstepping its role, arguing the report does not fall under the Grand Jury's mandate to investigate "inefficiencies and misconduct in government", as described on Kern County's website. The Civil Grand Jury has recommended revising RFP materials to "better identify potential biases or conflicts of proposals", conduct auto and bike counts before constructing new bikeways, and develop a cost-benefit model for bike lanes (a model already exists and is in use).
Studies Contemplate Increased Tsunami Danger
New studies indicate that California's entire coastline is more vulnerable to tsunamis than previously thought, with the potential for widespread destruction and potentially displace or endanger over 680,000 people during daytime hours. The state faces two types of tsunami threats: distant-source events, which offer hours of warning but can still inundate major coastal cities, and near-source tsunamis, which strike within minutes, leaving little time to evacuate. In Southern California, distant tsunamis could bring waves as high as 15 feet and over $1.4 billion in damages, while local events could generate even higher surges in places like Catalina Island and Palos Verdes. The Bay Area and Central Coast are similarly exposed, with possible fatalities in the thousands and economic losses topping $10 billion combined. Northern California is the most at risk due to its proximity to the Cascadia subduction zone, where a major quake could trigger waves up to 50 feet and inflict over $1 billion in damages to Del Norte County alone. (See related CP&DR coverage.)
Los Angeles Considers Major Subway Expansion
LA Metro released new details for the Sepulveda Transit Corridor Project, an ambitious rail proposal to connect the San Fernando Valley and the Westside with a rail service. The project is currently in the planning phase and under environmental review alongside five alternative proposals that call for either a monorail or a heavy rail solution with above-ground, underground and combination alignments. LA Metro's established goals of the project are to improve mobility, access and equity, support community and economic development, improve sustainability, provide low-cost transportation, and enhance resiliency. The project will run between the Van Nuys Metrolink/Amtrak station and Metro E Line. The Measure M expenditure plan has identified $9.5 billion of funding.
CP&DR Legal Coverage: Anti-Housing Litigants Rebuffed in Eureka; Aesthetics and CEQA
Opponents of downtown affordable housing in Eureka may have lost a ballot measure last fall, but they are continuing a barrage of litigation to try to stop conversion of three downtown parking lots to housing. "Citizens for a Better Eureka" lost the latest round, however, when an appellate court ruled that the designated developer – an affordable housing affiliate of the Wiyot Tribe – is indeed a “necessary party” to a lawsuit filed by Citizens for a Better Eureka challenging the city’s claim that its declaration of a downtown parking lot as surplus land qualified for a Class 12 exemption under the California Environmental Quality Act. The battle over the downtown parking lots has been going on for several years, in large part because opposition to building affordable housing on the lots has been bankrolled by “local billionaire” Ron Arkley.
Reversing a lower court ruling, an appellate court has thrown out the City of Mount Shasta’s mitigated negative declaration for a charter school and ordered the city to do an environmental impact report. The ruling would seem to run counter to the current trend – at least in the legislature – to minimize the use of EIRs. The main issue in the situation is aesthetics. The charter school plans to use prefabricated metal buildings, which are allowable in industrial zones in the city but not in residential zones.
Quick Hits & Updates
The UCLA Luskin Center for Innovation and American Forests launched a national Shade Map that identifies areas lacking shade infrastructure across over 360 U.S. cities to help governments address extreme urban heat. By showing where and when shade from trees and buildings exists, especially in cities like Austin, Detroit and Phoenix, the tool enables targeted planning to improve heat resilience and equity in vulnerable communities.
The proposed Zero Emission Passenger Rail and Trail project, consisting of a 22-mile rail line between Santa Cruz and Pajaro alongside 12 miles of the Coastal Rail Trail, will cost an estimated $4.3 billion. The high cost reflects major infrastructure upgrades, including replacement of 28 bridges, new right-of-way, stations and advanced train control systems, with operational plans featuring zero-emission Stadler FLIRT trainsets running every 30 minutes. The project expects weekday ridership between 3,500 and 6,000 passengers and includes potential future connections to San Francisco and existing tourist rail operations.
A new housing progress report shows Los Angeles permitted more than 17,200 housing units last year, which is only around 30% of the yearly rate needed to comply with state law requiring the city to permit more than 456,000 new homes between 2021 and 2029. The city permitted 18,618 new homes in 2023, and 23,422 in 2022.
On May 7, the California Air Resources Board accepted the Southern California Association of Governments' determination that Connect SoCal 2024 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) meets CARB’s greenhouse gas emission reduction targets. CARB’s acceptance ensures transportation projects in the SCAG region remain eligible for all Senate Bill 1 funding programs.
The San Jose City Council voted to increase the number of new homes qualifying for a 50% tax break under the multifamily housing incentive program from 1,500 to 1,800, The Council also signed off on $4.1 million in program tax incentives for Urban Catalyst’s 278-apartment development, the latest in a series of breaks for apartment projects as the city seeks to boost housing supply.
The Los Gatos Town Council approved its first Builder’s Remedy project, a four-story mixed-use development near the high school, amid debate over traffic, safety and design impacts. While praised for its architecture and walkability, the project sparked debate over congestion concerns, with some officials warning of adverse effects and others asserting no legal basis to block or significantly alter the plan under state housing laws.
Pro-housing advocates in San Diego are pushing to eliminate the city’s longstanding 5,000-square-foot minimum lot size to allow denser, more affordable housing developments like two- to three-story single-family homes on smaller lots. They argue this change would increase housing supply, lower home prices and boost property tax revenues for the city, potentially generating tens to hundreds of millions annually depending on development scale.
