Sacramento Business Journal
From the article:
With only about 600 ready-to-build lots available, the city of Roseville is taking steps to make sure its arguably greatest commodity – developable land – doesn’t run out any time soon.
Assistant city manager Rob Jensen said a loan program approved this month by the Roseville City Council will help create infrastructure to boost attractiveness of developing an additional 3,700 lots for homes in the city’s West Roseville Specific Plan and Sierra Vista Specific Plan.
“You build the backbone infrastructure up front, and it makes the difference in moving forward,” Jensen said.
Under the program, the city would lend about $5 million out of other funds for far-off projects to a community facilities district to build development “guts” such as water and sewer systems. Property owners within the district will pay the amount back through property taxes.
Because the property values improve if they’re developed, the loans could be paid back as soon as nine years from now, Jensen said, when the city could use them for other planned infrastructure.
The city is paid back by the property owners regardless if the houses are built, he said, though repayment wouldn’t happen as quickly if the land stays vacant.
“We just saw a real opportunity to move forward in the direction the market is going,” Jensen said.
Those who follow area development trends said a lack of available lots, particularly ones without entitlements or infrastructures, looms as a potential hindrance to future development in the region.