ELK GROVE, Calif. — Elk Grove city finance officials laid out the proposed $302 million zoo development financing plan to the community for the first time Wednesday in hopes to gain approval from the City Council at the May 8 meeting to get started.
The Sacramento Zoo initially opened in Land Park in 1927 and has been operated by the Sacramento Zoological Society since 1997, but its facilities don't 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, Elk Grove Strategic Planning and Innovation Director Christopher Jordan said.
Not included in the current proposed financing plan are expansions of the Africa, Australasia and California exhibits and construction of permanent administrative offices.
Phases 1A and 1B financing plan
Of the estimated $302 million zoo development costs, Elk Grove city officials say they hope to fund its costs in the following ways:
- $93 million - City cash on-hand
- $62.6 million from General Fund Reserve
- $16.6 million from casino payments
- $9.3 million from community facility districts (CFD)
- $4 million from fees and other sources
- $80 million - Community partnerships
- Including $50 million from Sacramento Zoological Society
- $14.8 million - Collection of Development Impact Fees
- $114.5 million - Bond financing
To help with the bond financing, city finance officials say the Sacramento Zoological Society would share in the debt service payment.
Both the Zoological Society and Elk Grove city officials propose an annual bond repayment of $7.8 million until the debt is repaid:
- $5.3 million - City sources of revenue
- $2.5 million from casino annual tax
- $1.7 million from revenue neutrality payments
- $800K from Costco development incentive payoff
- $320K from Laguna Palms debt services
- $2.5 million Zoological Society sources
"(It's) a well diversified funding plan that's shared amongst various parties," Elk Grove City Finance Director Matt Paulin said. "No tax increases are needed. Again, we've got the funds on hand for a big piece of it — that shared debt service and those partnerships that I talked about — and the opportunities will go a long way toward funding this first phase of the zoo."
Projected initial yearly attendance for the Elk Grove Zoo upon opening would be 850,000, up from the about 500,000 guests who visit the Land Park zoo.
About $4 million in sales tax revenue for the city and $9.4 million in county and state tax revenue is expected, 2,400 jobs and $171 million in labor income over the construction lifetime. About 176 jobs would be created in Elk Grove when the zoo opens.
Paulin also said they're pursuing legislation drafted by California State Senator Angelique Ashby to hire a construction management firm that they can more effectively and efficiently manage the project.
"Because time is certainly going to be money," he said. "And when it comes to this effort, we're only going to bond if it's affordable."
