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Council approves $2.5 million water line loan

New line will add 258 acres of land to city inventory

Post Date:09/13/2017 2:50 PM

map showing where the water line will close the loopOne thing Vacaville has a lot of: water. One thing the Interchange Business Park does not have: completed infrastructure.

Those two facts cause problems when it comes to attracting new businesses to the site. To address this issue, the City Council on Tuesday night approved a $2.5 million loan from the Utilities Department’s Water Development Impact Fees to pay to “close the loop” on the water system in the Interchange Business Park, an area of the City bordered by Highway 505, Vaca Valley Parkway and Midway Road.

Completing the project will allow 258 acres in the park to be developed. It’s part of the City’s commitment to having as much property shovel-ready as possible.

“We’re seeing many trends in the last couple of years, and one of them is the demand for undeveloped, shovel-ready land,” said Vacaville Economic Development Manager Don Burrus. “When work is completed on this water line, we will immediately have 258 acres of land ready for immediate development.”

The Interchange Business Park has been identified in regional business studies as an ideal area of Northern California for job-creating industrial development. After evaluating several options, city staff determined that loaning $2.5 million of Water Fund Development Impact Fees (DIF) to construct the water loop would allow development in this area to proceed very quickly. A benefit district can be established for the 258 acres of currently vacant land, with each property paying back its proportionate share of the $2.5 million loan at the time of development. The current Water Fund DIF balance is $13.9 million, making the loan possible.

“Vacaville is showing up on the radars of many developers, companies and other businesses looking to locate in Northern California or expand their operations from other areas,” Burrus continued. “We’re trying to get ahead of the curve on the growing demand we’re seeing here.”

Contact Economic Development Manager Don Burrus at (707) 449-5615 or e-mail Burrus at