Graphic rendering of Scotts Valley Town Center, used with permission from the City of Scotts Valley. |
Dear District 5 Resident,
I am excited to support a new initiative in the City of Scotts Valley that could bring significant long-term benefits to residents in our district and across the County. Under my leadership, the Board approved a resolution permitting the County’s participation in the City of Scotts Valley Enhanced Infrastructure Financing District (EIFD)—the first of its kind in Santa Cruz County. An EIFD is a financing tool that funds public infrastructure including roads, water lines, affordable housing and other projects that benefit the whole community. EIFDs do not create new taxes or raise existing taxes for property owners; instead, they use a portion of future property tax growth and reinvest it locally to support these projects. As a partner agency, the County would commit a portion of its future tax growth to help advance the goals of the City of Scotts Valley EIFD. The Scotts Valley Fire Protection District will also serve as a partner agency. In total, the EIFD is expected to bring in $40 million over the next 50 years to help fund priority projects, including the Town Center Project—a walkable downtown area with residential units, commercial spaces, and public gathering areas at the site of the former Skypark Airport—as well as wildfire prevention, road infrastructure, and community facilities. The Infrastructure Financing Plan, which outlines projects to be funded, the financing strategy, and timeline for improvements, is anticipated to return to the Board for final approval in September 2026. I am proud to lead the County’s involvement and will serve on the EIFD governing board to help ensure investments reflect community priorities and create lasting benefits for residents. I hope you’ll join me in celebrating this milestone for our community! Please read on to learn more about what an EIFD means for Scotts Valley and surrounding communities, and why it’s so important.
In community,
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Santa Cruz County Supervisor, District 5 |
EIFD Purpose and Projects at a Glance |
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Graphic rendering of Hangar Square, used with permission from the City of Scotts Valley. |
The Scotts Valley EIFD would assist in the financing of infrastructure projects that encourage housing and commercial development in opportunity areas throughout Scotts Valley. The proposed area is a relatively focused area of 236 acres in the City of Scotts Valley and could help fund the Town Center Project—a walkable downtown area with residential units, commercial spaces, and public gathering areas at the site of the former Skypark Airport. In total, the EIFD is expected to bring in $40 million over 50 years. Here are some other projects that may be eligible for future funding: - Roads and Traffic
- New signals at Town Center; Mount Hermon Road and Granite Creek highway interchange improvements
- Water and Sewer
- New sewer lines along Mount Hermon Road and water system upgrades
- Affordable Housing
- Gap financing for 100% affordable projects—every resident development receiving EIFD funds must be fully affordable
- Fire Facilities
- New or upgraded fire stations, buildings, and training facilities for the Scotts Valley Fire Protection District
- Community Facilities
- Senior center, community center, or emergency shelter serving Scotts Valley residents
- Wildfire Prevention
- Firebreaks, prescribed burns, and vegetation control to protect the community
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Benefits to District Five and Santa Cruz County |
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Photos used with permission from the City of Scotts Valley. |
Once underway, the Town Center project is expected to deliver significant community benefits—including hundreds of affordable housing units—helping to meet unmet housing demands. It will also generate substantial economic activity by creating over 15,000 temporary construction jobs and 600 permanent jobs resulting in ~$1.1 billion new wage income and ~$32 million in new annual wage income, respectively. Other critical benefits include economic revitalization, climate resilience, and critical infrastructure improvements. The EIFD-driven economic and community benefits will not only benefit Scotts Valley; they will extend throughout the San Lorenzo Valley and our entire County. These investments support increased housing options, local job creation, and infrastructure improvements that strengthen the entire region—enhancing connectivity, economic opportunity, and quality of life. Nearby communities, such as the San Lorenzo Valley, will also benefit from wildfire prevention efforts that protect and improve our community’s fire resiliency. In addition, upgraded or new fire facilities will improve response times, staffing capacities, and equipment readiness, helping to ensure a stronger and more coordinated emergency response across the region. |
EIFDs do not create new taxes or raise existing taxes to property owners; instead, they use a portion of future property tax growth within a specific boundary and reinvest it locally to fund infrastructure and community projects. Following Board approval, Santa Cruz County will partner with the City of Scotts Valley, contributing no more than 25% of its share of future property growth within the EIFD boundary to the EIFD—none of today’s existing revenues. This approach allows the County to support major infrastructure improvements and help strengthen the local economy without raising taxes. The Scotts Valley Fire Protection District will also serve as a partner agency, further expanding the collaborative investment in our community. |
I will serve on the governing body for the EIFD, known as the Public Financing Authority (PFA). The PFA is typically composed of five members, including at least three elected officials and two members of the public who live or work in the area. In this role, I will be responsible for oversight of the EIFD, including ensuring accountability in the use of local funds and guiding investment decisions to align with community priorities and long-term goals. Santa Cruz County CEO Nicole Coburn will also participate as a resident of Scotts Valley. |
The Infrastructure Financing Plan, which will outline projects to be funded, the financing strategy, and timeline for improvements, is anticipated to return to the Board for final approval in September 2026. The City of Scotts Valley is expected to approve the EIFD in October 2026, pending public hearings and a series of additional actions including the Board’s approval of the Infrastructure Financing Plan. |
Learn More: Additional Resources |
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For more information, see the following resources: |
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