What is the Railyards?

The Railyards is a 244-acre, publicly and privately owned site immediately north of downtown Sacramento and one of the nation's largest urban infill redevelopment projects.

For more than a century, the site served as the western terminus of the Transcontinental Railroad and home to the Southern Pacific Railroad Shops, where thousands of workers built and repaired trains that helped shape the growth of California and the West.

Today, the Railyards is being transformed into a mixed-use neighborhood that will include:

• Housing (market rate and affordable)
• Healthcare
• Sacramento Valley Station (SVS)
• Live entertainment and sports
• Restaurants and retail
• Office space
• Parks and public spaces
• Multimodal transportation options
  

Why is the City investing in the Railyards?

The Railyards is one of Sacramento's most significant economic development opportunities. Redeveloping the site will reconnect downtown with surrounding neighborhoods while creating new places to live, work, and visit.

When complete, the project will:

• Create thousands of new jobs.
• Add new housing, including affordable housing.
• Attract businesses, visitors, and private investment. Improve streets, parks and public infrastructure.
• Strengthen Sacramento Valley Station as the region's transportation hub.
• Generate long-term economic growth and tax revenue.

By the numbers

• 244-acre infill redevelopment site
• $625 million in anticipated private investment for the stadium and Central Shops projects
• 13,539 projected on-site jobs
• $2.11 billion in projected annual wages
• $4.4 billion in projected annual economic output

Enhanced Infrastructure Financing District (EIFD)

How are all these projects funded?

Transforming a 244-acre infill site into a new neighborhood takes more than private development. It also requires major public investments in streets, utilities, parks, sidewalks and other infrastructure that make new housing, businesses and community spaces possible.

The City uses a variety of funding sources and partnerships to support this work. One of the key tools is an Enhanced Infrastructure Financing District.

What is an EIFD?

An Enhanced Infrastructure Financing District (EIFD) is a financing tool that allows local governments to invest in public infrastructure needed to support redevelopment.

An EIFD:

• Does not create a new tax.
• Does not increase property taxes.
• Does not use school funding.
• Uses a portion of future property tax growth generated by new development to help pay for public infrastructure.

How does the EIFD support the Railyards?

The Railyards EIFD helps fund public improvements needed to support redevelopment, including:

• Streets
• Utilities
• Sidewalks
• Parks
• Public spaces
• Transportation improvements

The EIFD will also:

• Help fund infrastructure serving the stadium and Central Shops.
• Dedicate 20 percent of future EIFD revenues to affordable housing after eligible infrastructure costs and the City's land acquisition costs have been reimbursed.
• Generate an estimated $133 million for future affordable housing development over the 50-year life of the district.

Railyards Public Financing Authority (Formerly Stadium Area Public Financing Authority)

• Public meetings

Projects in the Railyards

What projects have been completed?

Several projects have already helped transform the Railyards, including:

• Tani Cantil-Sakauye Sacramento County Courthouse, a new 53-courtroom facility.
• Restoration of the historic Sacramento Valley Station.
• Hundreds of new housing units, including affordable housing. (To date, more than 44% of the completed housing units are affordable.)
• New streets, utilities and public infrastructure.

What projects are under construction?

Major projects currently underway include:

• Kaiser Permanente Sacramento medical campus
• Republic FC Soccer Stadium
• Phase 1 of the Historic Central Shops Rehabilitation, including an entertainment venue
• New residential developments
• Roads, utilities, and other infrastructure improvements

What's coming next?

Future projects planned for the Railyards include:

• Next phase of rehabilitation of the historic Central Shops
• Additional entertainment options
• Restaurants and retail
• Hotels
• Office space
• Additional housing
• Parks and public gathering spaces
• Expand connections between downtown, Sacramento Valley Station and surrounding neighborhoods.

In the news

• July 15, 2026: Explore Railyards, Sacramento Valley Station projects at July 22 open house
• June 13, 2025: Sacramento City Council vote unlocks next phase of Railyards development
• June 6, 2025: Sacramento City Council to vote on soccer stadium, Railyards development plan Tuesday
• Nov. 13, 2024: Sacramento City Council approves framework for $321 million downtown Railyards soccer stadium and entertainment venue
• Nov. 7, 2024: Sacramento City Council to vote on new soccer stadium and entertainment venue development in Railyards
• Oct. 25, 2024: City of Sacramento awarded $4 million grant to complete active transportation link to Railyards District
• Jan. 5, 2022: City receives $30 million in state funds to boost development in Sacramento Railyards