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airport south industrial annexation (p21-017)

A request to annex approximately 475 acres of vacant land into the City of Sacramento. The area is located south of Interstate 5 along Bayou Way, west of Powerline Road, east of the City limits and the Westlake neighborhood, and north of Paso Verde School and the drainage canal. The project includes master-level entitlements for the future development of up to 6,600,000square feet of light industrial uses, and approximately ±11 acres devoted to highway commercial uses such as hotel/hospitality, service station, and associated parking lots.


Annexation brings unincorporated areas into the city limits, allowing City standards for development and the provision of municipal services. When an area is annexed into the City of Sacramento, the City assumes responsibility from Sacramento County and various districts for services including police and fire protection, storm drainage and water service, and zoning and code enforcement.

The annexation process consists of multiple steps that begin with the City and end with Local Agency Formation Commission (LAFCo) action. Only LAFCo has the authority to change the City’s boundary.  LAFCos are state-mandated quasi-judicial countywide Commissions whose purview is to oversee boundary changes of cities and special districts, the formation of new agencies, including the incorporation of new cities and districts, and the consolidation or reorganization of special districts and or cities.  There is a LAFCo in each of the 58 counties within the State of California. 

Sphere of Influence (SOI) Amendment

A Sphere of Influence (SOI) is a plan for the probably ultimate physical boundaries and service area of a local government agency, as determined by the Local Agency Formation Commission (LAFCo).  To annex any territory to the City, it must be within the SOI.

Municipal Services Review

The Municipal Services Review (MSR) is a requirement of a SOI Amendment.  The MSR is intended to provide an analysis of the available services within the City limits and determine if city services can be extended into the territory to be annexed without negatively impacting current levels of City services.  Additionally, the MSR explores the potential level of service impacts to the County or Special Districts that may be caused by the loss of territory (i.e. loss of property tax revenue or disruption in service delivery patterns).  The MSR is reviewed and approved by LAFCo.

Plan for Services

The Plan for Services is a detailed plan of how services will be provided in the annexed territory.  In the City of Sacramento, a full-service City, these services include for example water, police, fire, library, parks and recreation, solid waste, and roads.

Property Tax Exchange Agreement between the City and County

Property tax-exchange agreements between an annexing city and the county are a required part of the annexation approval process.  A tax-exchange agreement between the City and County of Sacramento (County) must be in place before the Local Agency Formation Commission (LAFCo) will consider the annexation proposal.  A tax-exchange agreement specifies the redistribution of property taxes among the city, the county, and other agencies such as special districts.  Typically, tax revenues accruing to the county, some special county funds, and special districts are redistributed to the annexing city and the county.  The tax-exchange agreement is subject to review and approval by the City Council and Sacramento Board of Supervisors.

requested land use entitlements

  • Establishment of a Planned Unit Development (PUD) Guidelines and Schematic Plan
  • Prezone
  • General Plan Amendment
  • Bikeway Master Plan Amendment
  • Development Agreement
  • Finance Plan
  • Tentative Master Parcel Map
  • Water Supply Assessment
  • Site Plan and Design Review

california environmental quality act (ceQA) 

The project requires the preparation of an Environmental Impact Report (EIR).  The City of Sacramento and the Sacramento Local Agency Formation Commission (LAFCo) are CEQA co-Lead Agencies for the preparation of the EIR.  The EIR contains an overview of the project, and includes technical studies for traffic, biology, air quality, noise, cultural resource and other subject areas to understand potential impacts and measures to reduce or avoid those impacts. The purpose of the report is to inform the public and decision-makers of any significant environmental effects from the proposed project. The EIR will identify and evaluate alternatives to the proposed project. CEQA requires that an EIR evaluate a “No Project” alternative, as well as a reasonable range of other project alternatives.

CEQA documents prepared for this project can be found on the City’s Environmental Review Reports webpage by clicking here.

tentative project schedule & supporting documents

  • May 2021 - Application submitted to the City.
    • Project application materials for file P21-017 can be reviewed on AgencyCounter by clicking here.
  • July 30, 2021 – City/LAFCo Memorandum of Understanding (MOU) relating to a coordinated environmental review process for the Airport Industrial Project EIR
  • March 4 to April 4, 2022 – Notice of Preparation (NOP) Public Review
  • March 16, 2022 – Public Scoping Meeting (Virtual)
    • A YouTube video of the scoping meeting can be found by clicking here.
  • November 9, 2022 – Project Applicant Hosted Community Open House
    • Presentation Material (to be provided)
  • Summer 2023 - Planning and Design Commission - Review and Comment 
    • Staff Report (to be provided)
  • Fall 2023 - Draft EIR Released 45-day Public Review 
    • Draft EIR (to be provided)
  • Early 2024 – Preparation of Final EIR
  • Early 2024 – Consideration of Final EIR by LAFCo for proposed Sphere of Influence Amendment
  • Early 2024 – City Planning & Design Commission Consideration of Final EIR, Project Entitlements and Annexation
  • Early 2024 - City Council Consideration of Final EIR for proposed Annexation and project entitlements
  • Spring 2024 – Sacramento County Board of Supervisors - Consideration & Decision on the County/City Property Tax Exchange Agreement
  • Spring 2024 – LAFCo Consideration/Decision for proposed Annexation

Public Comments

If you would like to provide public comment or have questions about the project, please contact Garrett Norman at the contact information provided below.

City Staff Contacts:

Sacramento LAFCo Staff Contacts:

Website Link: