Press Room - Press Release

CFEC Helps Launch New Group Supporting Open Competition on the Railyards

Discussion Points

GENERAL:

·        This issue is a conflict between those who want to create jobs and transform downtown Sacramento into a vibrant center of culture and commerce through smart growth, and those who would rather play politics to put those jobs at risk and threaten our economic future.

·        The Sacramento Railyards Project will turn California’s capital city into a job creating engine and act as a showpiece for the entire state.  This development is especially important because it keeps downtown Sacramento moving at a time when we have witnessed a severe downturn in the local residential market.

·        The project will employ over 78,000 workers to build the project between now and 2021.  Furthermore, at build-out the project will create an estimated 5,300 permanent jobs.

·        The project will generate approximately $5.4 billion in direct economic benefit, $1.6 billion in indirect benefits, and $2.3 billion in induced impact to the region for a total overall impact of $9.4 billion.

·        While public investment in infrastructure for the project will cost approximately $550 million, private investment in construction alone will be about $4.5 billion, yielding an 8-to-1 ratio of private versus public investment over the life of the project – a very good deal for taxpayers.

·        The Railyards developers are not interested in playing politics, or getting involved in union issues.  The developers want to build a project that the City of Sacramento wants, to build a showpiece for the state of California, and to create thousands of new jobs.  Contractors should be chosen based on who will do the best job – on the merit of their work, not whether they belong to a union.

·        Through the abuse of the environmental regulatory process – in this case CEQA – labor union officials, front groups, and their representatives are trying to block the creation of thousands of new jobs.  They’re trying to block projects and destroy jobs as part of an underhanded strategy to force employers to force their workers to pay dues to local union bosses.  If employers won’t force their workers to pay union dues, unions will file endless environmental complaints as part of an extortion scheme. They would rather leave this site in chronic disrepair at taxpayer expense, and destroy thousands of jobs, if developers don’t force their workers to pay local union officials.

·        Groups like SCCARY and notorious greenmail litigator William Kopper are actively threatening this project through the abuse of CEQA.  Kopper has a long history of filing similar objections against major developments throughout Northern California – though his real motives have nothing to do with protecting the environment, but securing union-only labor agreements for his clients.  In the 1990s, Kopper represented the Mid-Valley Trades Council’s environmental objections against a racetrack in Yuba County, only to drop the matter once a union-only labor agreement was secured. The racetrack was never built. Let us hope the same will never be said of the Railyards.

THE PROJECT:

·        General background. A 240-acre, $6 billion transformation of downtown Sacramento, the Railyards is a master-planned, mixed-use development located on one of the nation’s most historically rich sites – the western terminus of the 1869 Transcontinental Railroad. Hotel, office, residential, entertainment venues, plazas, historic renovations and cultural attractions will complement specialty shops, dining and marketplace retailing in this historic revitalization project.

·        Latest developments. In December 2007, the Sacramento City Council voted unanimously to approve this project. This exciting public-private partnership is the first step in creating a legacy project for the Sacramento region.

·        Location. The Sacramento Union Pacific Railyards, north of downtown Sacramento.  The property is the site of the western terminus of the Transcontinental Railroad and later produced engines, cars, track and other equipment for the railroad. During its peak, the site housed the largest railroad facility of its kind west of the Mississippi and employed one third of all the workers in Sacramento.

·        Highlights. The Railyards will create a mixed-use urban village featuring 10,000 housing units, retail, office space and cultural and entertainment venues in a setting that celebrates the region’s historic ties to the railroad. Major elements of the plan include a sports and entertainment district, a performing arts center, a meandering urban waterway, the preservation of seven notable historic brick structures known as the Central Shops and a revitalized riverfront.  Incorporated throughout the project, housing will include for-sale, rental units and affordable housing. The northeast portion of The Railyards will include a park-like green belt with water features where residents can meet, shop, eat and relax.  Proposed new hotels include a 500-room landmark hotel and 500 boutique hotel rooms which will result in additional economic benefits of $58.7 million annually.

·        Job creation. The Railyards Project will employ over 78,000 workers to build the project between now and 2021.  At build-out the project will create an estimated 5,300 permanent jobs.

·        Helping local taxpayers. The development will contribute substantially to the City of Sacramento’s economic growth.  The economic benefits from the increased area employment will correspond to approximately $5.4 billion in direct economic benefit, $1.6 billion in indirect benefits, and $2.3 billion in induced impact to the region for a total overall impact of $9.4 billion.

·         Fulfilling a vision for California’s capital city. The Railyards Project is uniquely positioned to revitalize the heart of downtown Sacramento by transforming the historic 240-acre Union Pacific Railyards into a dynamic urban environment with a 21st century mass transit hub to serve residents, workers and visitors while celebrating the significance of the area as the birthplace of the western terminus of the 1869 Transcontinental Railroad.  Designed as a regional hub and destination, The Railyards will offer a vibrant, urban atmosphere with entertainment venues, retail establishments, mixed-use high-density housing, office space, theatres, open space, riverfront amenities, parks, hotels and museums. 

Coalition to Revitalize the Railyards