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New Roadway to be Built via Public-Private Partnership
PRESS RELEASE
August 11, 2025
For More Information Contact:
Thomas W. Gaffery IV, Assistant City Manager
(559) 684-4200
tgaffery@tulare.ca.gov
New Roadway to be Built via Public-Private Partnership between the City of Tulare, International Agri-Center, and Faria Family will Save Local Taxpayers Millions of Dollars
On Friday, August 8, 2025, The Sun-Gazette published an article regarding the International Agri- Center Way Extension project. While the article was factually accurate, it could benefit from additional context to highlight the scope of the project and the financial collaboration that makes it possible.
In most U.S. cities, the private sector is typically responsible for funding new infrastructure, including internal streets, utility lines, parks, and sometimes portions of major roads that connect developments to the broader city network. Cities, in turn, use development fees, state and federal revenue, and local tax dollars to build larger arterial roads over time.
Sometimes, cities choose to invest in major roadways in advance of development to improve safety, encourage economic growth, and attract investment. The City of Tulare has taken such an approach with the International Agri-Center Way Extension.
The new interchange at Highway 99 and International Agri-Center Way is under construction, with completion expected in early 2026. The City’s goal is to extend this new road eastward from Laspina Avenue to Turner Drive, ultimately creating an eastern beltway along Mooney Boulevard. However, with limited infrastructure funding that must be distributed fairly across the city, Tulare could not move forward alone. Rather than delay or shift funds from other neighborhoods, a unique public-private partnership was formed between the City, the International Agri-Center, and the Faria Family.
Under typical circumstances, a developer would wait for city funding, share costs with other developers, or fund the road themselves, often donating the necessary land. If the City takes the lead, it must purchase land outright, increasing taxpayer costs.
In this case, the City of Tulare, International Agri-Center, and the Faria Family have a shared interest in seeing the road built and agreed to equally fund the project. Highlights of the agreement include:- Land Donation: Both the International Agri-Center and Faria Family are donating the land required for the roadway, significantly reducing total project cost.
- Federal Funding: The City successfully secured a $4 million federal earmark for the project.
- Shared Costs: Each party is contributing $2.5 million, totaling $7.5 million in local funds. Combined with the federal earmark, the total project budget is approximately $11.5 million or less.
The project is currently being designed. The project will then be bid, and a contractor then selected. Construction will take 12 to 18-months.
The International Agri-Center and Faria Family requested the Tulare County Association of Governments (TCAG) provide a $5 million short-term loan, via the City, which would be secured with posting some of their land as collateral. Both TCAG and the City of Tulare agreed with this approach.
Once construction begins, the City will only borrow what is needed ($5 million or less) and will repay TCAG overtime. If the City fails to pay back the funds, TCAG will keep a portion of the City’s Measure R funds. If either private party fails to reimburse the City, the City may recover costs by selling the pledged land.
The City previously reached the terms of this agreement with the International Agri-Center but was waiting on securing the pledged property from the Faria Family. That was the point of the City Council agenda item on Tuesday, August 5, 2025. During the meeting, it was also discussed whether the City could retain the loan funds to pay the contractor invoices directly, rather than remitting the funds to the parties to the contractor invoices.
Whether to disburse or retain the loan funds are currently being discussed with both the International Agri-Center and the Faria Family.Once completed, the International Agri-Center Way Extension will:
- Improve traffic flow in and out of the Agri-Center.
- Unlock hundreds of acres for new development, thus creating jobs, and generating new property tax and sales tax revenue.
- Establish a key segment of the city’s eastern beltway, improving overall traffic circulation
In short, this project represents millions in taxpayer savings made possible through cooperation between the City, private landowners, and federal partners.