City Council Advances Innovation Park Financing Plan
August 2026
The 183.8-acre redevelopment would create a new town center in North Natomas with a California Northstate University Medical Center Campus, housing, parks, and retail
Mayor Kevin McCarty and the Sacramento City Council unanimously voted to begin the process of establishing an Enhanced Infrastructure Financing District (EIFD) to fund public infrastructure for the Innovation Park project at the former Arco Arena site. This clears the way for California Northstate University to develop a dynamic teaching hospital.
Under the EIFD, funds generated by the project can be used to reimburse developers for public infrastructure they construct, including roads and utilities, without impacting the City’s General Fund.
This fair, public-private partnership is an investment in our future and uses the value this project generates to build the infrastructure it needs
Innovation Park would create a long-awaited town center for North Natomas. The project would include 35 acres of hospital and medical campus, 24.3 acres of park space, mixed-use infill development, a school, and market-rate and affordable housing.
The public financing authority will now develop the infrastructure financing plan, which will return to the City Council for consideration in early 2027, following additional public hearings.