Financing District for 710 Corridor Infrastructure Under Consideration – Pasadena Now

The Economic Development and Technology Committee is scheduled to discuss an overview of a 710 Infrastructure Funding and Financing Toolkit on Tuesday, March 17. The proposal focuses on establishing an Enhanced Infrastructure Financing District (EIFD), a tool that captures a portion of property tax revenue from new development to fund local projects without raising new taxes.

If approved, the EIFD could generate up to approximately $230 million in funding capacity on a present-value basis. The proposed district boundary will encompass approximately 551 acres, including the 710 Vision Plan area, Lincoln Avenue, Fair Oaks Avenue/Orange Grove Boulevard, and North Lake Avenue Specific Plan areas — representing about 3.7% of the city, with $1.31 billion in existing assessed property value. The analysis was prepared by Kosmont Companies, a municipal advisory firm.

The EIFD would potentially allow the City of Pasadena to fund a broad range of projects, including affordable housing, roadway and transit improvements, parks and open space, broadband infrastructure, and climate change response initiatives.

The district would also elevate the city’s ability to attract state and federal grants, which increasingly favor jurisdictions with established local funding mechanisms. A TIF district has a maximum term of 45 years from approval to issue debt.

A key component of the proposed strategy involves partnering with Los Angeles County.

While a city-only district would yield favorable returns on investment, a joint effort with the county would significantly improve financial feasibility. Under the county’s EIFD participation policy, the city’s contributed share must be equal to or greater than the county’s share, and 20% of units or tax increment must be set aside for affordable housing uses. The city’s share of property tax in the study area averages approximately 17% to 21% of every dollar collected, plus an additional 6% in lieu of motor vehicle license fees, for a combined total of approximately 27%. The county’s share could average approximately 28%.

The formation of an EIFD does not require a public vote but includes a majority protest opportunity for landowners and registered voters within the district. If the committee and City Council proceed, the next steps will involve outreach to the county to confirm a potential partnership, followed by the City Council’s consideration of a non-binding Resolution of Intention to form the district.

The district formation process — including public hearings and the drafting of an Infrastructure Financing Plan — could be scheduled to conclude with potential adoption by October 2026. Tax increment allocation would begin in the fiscal year following district formation, with debt issuance, if desired, occurring after a stabilized level of tax increment has been established, which may take three to five years.