Press Releases

The City of Gonzales in collaboration with Monterey County has become the first city in Monterey County – and one of the first in the state – to create an Enhanced Infrastructure Financing District (EIFD) to help fund economic development projects. Gonzales will use the mechanism to help pay for infrastructure improvements at its Agricultural Industrial Business Park and also to provide housing assistance in the city.  The Monterey County Board of Supervisors approved the city's EIFD plan on December 7, 2021.

"There have been significant evolutions in public financing since the Great Recession of the early 2000's. Gonzales and Monterey County continue to pursue innovative opportunities to provide support for economic development, benefitting both the City and the County, and result in good paying, sustainable jobs for our rural communities," said Monterey County Board of Supervisor Chris Lopez.

EIFDs use what's called Tax Increment Financing. It allows the city to dedicate any new property tax revenues above a baseline in a designated project area to improvements within the district. The improvements are designed to encourage new industrial and business development, which will increase property tax revenue in the district.

Local governments lost the ability to use tax increment financing for economic development when the state abolished redevelopment agencies in 2014. That changed in 2018 with the approval of legislation authorizing the creation of new EIFDs for economic development. But only a few local jurisdictions in the state have so far navigated the approval process to create their own EIFDs.

"What is noteworthy about the creation of the EIFD is the partnership between the City of Gonzales and Monterey County is setting forth a model that other cities and counties can use to develop economic opportunities, jobs and local revenues for housing for local communities," states Gonzales Mayor, Jose Rios.

City Manager Rene Mendez adds, "The EIFD will help us capture future revenues to reinvest in our community that over time will lead to increased economic development and more importantly the jobs needed for our residents.  In addition, it establishes a much-needed local revenue source to help develop affordable housing opportunities for our residents."

Gonzales estimates its EIFD will generate more than $30 million over the next 30 years for important infrastructure needs in its industrial park and will help the city lure new projects and enable expansion by existing tenants.  About 20 percent of the incremental tax revenue will be used to help spur residential development in a city with a shortage of available housing.  Gonzales hopes to have infrastructure projects underway in about six months that can draw on EIFD funds.