Elk Grove city treasurers revealed to the community Wednesday how they hope to fund the future zoo.
ELK GROVE, Calif. — Elk Grove city finance officials on Wednesday approved a proposed $302 million zoo development funding plan in hopes of getting approval to start from the City Council at its May 8 meeting. presented to the local community for the first time.
The Sacramento Zoo opened in Rand Park in 1927 and has been operated by the Sacramento Zoological Society since 1997, but its facilities do not meet current Association of Zoos and Aquariums (AZA) guidelines.
Elk Grove was identified as a potential site for the new zoo in 2021 after the Zoological Society approached city officials, said Christopher Jordan, Elk Grove's director of strategic planning and innovation.
The currently proposed funding plan does not include expansion of the Africa, Australia, and California exhibits or the construction of permanent administrative offices.
Phase 1A and 1B funding plan
Elk Grove city officials say they hope to cover the estimated $302 million cost of developing the zoo in the following ways:
- $93 million – City cash reserves
- $62.6 million from general fund reserves.
- $16.6 million from casino payouts
- $9.3 million from the Community Facilities District (CFD);
- 4 million dollars from fees etc.
- $80 million – community partnerships
- Includes $50 million from the Sacramento Animal Society.
- $14.8 million – development impact fee collection
- $114.5 million – bond financing
In order to help bond financingCity finance officials say the Sacramento Animal Society will share in the debt repayments.
Both the Zoological Society and Elk Grove city officials are proposing $7.8 million in annual bond payments until the debt is paid off.
- $5.3 million – City revenue source
- $2.5 million from casino annual taxes
- $1.7 million from revenue neutrality payments
- $800,000 in Costco development grants
- $320,000 from Laguna Palms debt repayments
- $2.5 million Zoological Society Source
“(This is) a well-diversified financial plan that is shared among various parties,” said Elk Grove City Finance Director Matt Poulin. “We don't need tax increases. Again, we have the money in hand for a big part of that, the shared debt repayments and the partnership that I talked about, and this opportunity is to raise this first phase of funding. It will be of great help to the zoo. ”
The Elk Grove Zoo is expected to have 850,000 annual visitors when it first opens, compared to Rand Park Zoo's roughly 500,000 visitors.
During construction, the city is expected to generate approximately $4 million in sales tax revenue, $9.4 million in county and state tax revenue, 2,400 jobs and $171 million in labor income. When the zoo opens, it will create approximately 176 jobs in Elk Grove.
Paulin also said he is pushing a bill authored by California Sen. Angelique Ashby to hire construction management companies that can manage projects more effectively and efficiently.
“Because time is definitely money,” he said. “And we're only going to bond when it comes to this effort if it's affordable.”
See more: Community provides input on new Sacramento Zoo design at open house event
