Transportation Projects & Funding

 

Why this post?

With recent announcements about the Sports & Entertainment Zone along 40 Mile Road — specifically the 350 acres between the Hard Rock and the Toyota Amphitheater — many residents have asked how traffic concerns will be addressed. These concerns are valid. This post explains how transportation funding works and highlights specific projects in South Yuba County that will help mitigate traffic impacts.

 

Transportation Funding Types

Annual Transportation Funding (Gas Tax)

Cities and counties automatically receive a portion of the gas tax collected by the State of California each year. For Yuba County, this is about $5 million annually, typically used for pavement overlays (resurfacing) on existing roadways. The cost of an overlay exceeds $500,000 per mile. As a result, only about 10 miles of the county’s 600+ miles can be resurfaced annually — less than 2%.

Transportation Grants

There are regional (SACOG), state, and federal transportation grant programs that provide competitive funding for specific types of projects. If a local government has a project that meets program requirements, it can submit a grant application and potentially receive funding. These grants vary significantly in size, scope, and type. They are typically very competitive and often require minimum local matches, with higher local contributions improving competitiveness.

Development Impact Fees

Developers are required to build transportation improvements within their projects (for example, neighborhood streets). Since developments also impact the surrounding transportation network, developers must pay local governments impact fees to cover their proportional share of those improvements.

 

Transportation Project Types

Small Transportation Projects

For this discussion, let’s define “small projects” as those under $5 million. These projects can often be fully funded by impact fees (if the development drives 100% of the need), by regional or state grants, or by a mix of both. Examples include adding sidewalks, repaving roads, widening local streets, or adding traffic controls such as stoplights or roundabouts.

Large Transportation Projects

Large projects can cost tens or even hundreds of millions of dollars. Examples include new roads, bridges, freeway interchanges, or widening major highways. These projects are primarily funded by state and federal grants, with developers contributing smaller proportional shares.

It’s both illegal and fiscally impractical to require a single development to pay more than its fair share. Large projects also require significant environmental studies and design work before they can even compete for grant funding. It often takes years and millions of dollars to get them “shovel-ready.”

 

Local Projects & Examples

Traffic Controls at Forty Mile & Plumas Arboga Road

Many agree that traffic controls are needed at this intersection near the Toyota Amphitheater due to volumes from Plumas Lake, Hard Rock, and commuters avoiding CA-65. Current traffic data doesn’t meet state or federal thresholds, making grant applications non-competitive. The project hasn’t been in an impact fee program, but Yuba County is updating its countywide program to include it. Once added, impact fees will help fund it.

Plumas Lake Blvd Interchange Phase 2

This project extends Plumas Lake Blvd east across WPIC and the railroad to connect with Plumas-Arboga Road, removing an at-grade crossing and enabling traffic from CA-70 to reach CA-65 and the Sports & Entertainment Zone without cutting through Plumas Lake neighborhoods. Impact fees will pay for design work and part of construction, while a $35 million federal grant will cover the rest.

[SYTIA, the South Yuba Transportation Improvement Authority, is a JPA formed by Yuba County and the City of Wheatland in 2017 to focus on major transportation projects in South Yuba County. Learn more about SYTIA projects here.]

South Beale Road Interchange

This project will construct an interchange at South Beale Road and CA-65, removing both an uncontrolled at-grade highway intersection and an at-grade railroad crossing. Although the project doesn’t include a new road westward, future development could construct that connection, improving access to the Sports & Entertainment Zone. Impact fees are funding the studies and environmental work to make this project shovel-ready, with federal construction funding to be pursued afterward.

Beale Expressway

The Beale Expressway would create a new local route from Sheridan across the Bear River to east Wheatland near Spenceville and Jasper Roads. It would provide another Bear River crossing and reduce traffic on CA-65 through Wheatland. Impact fees are funding design and environmental work, with a federal grant needed for construction. Estimated cost: $100M+. This could also serve as the first step toward a Wheatland Bypass.

 

Additional Thoughts

Wheatland Bypass

There’s no doubt the Wheatland Bypass is needed, and growth in South Yuba County will add to traffic through Wheatland. However, requiring a single development to fully fund it or halting all development until it’s built are not legal or feasible solutions.

Given the Beale Expressway alone is estimated at over $100 million, a true freeway bypass would likely exceed $1 billion. Since most CA-65 traffic isn’t tied to a single development, developers’ proportional contributions fall far short of what’s needed. Re-routing a state highway is a Caltrans responsibility, and they currently have no active project to reroute CA-65 around Wheatland.

That said, the County and City will continue advocating for a bypass, while locally advancing projects like the Beale Expressway that are achievable with federal partnerships.

Traffic Mitigation for the Sports & Entertainment Zone

Impact fees from the Sports & Entertainment Zone and other developments will help fund nearby “small” projects and advance “large” projects to shovel-ready status. Improvements such as the Plumas Lake Blvd Interchange and South Beale Road Interchange will directly enhance access and safety for the zone and surrounding communities.

Why Not Build Projects Before Development?

In a perfect world, roads would be built before growth. In reality, funding mechanisms don’t allow it. Small projects are typically funded directly by development, and larger ones rely on development fees to complete the studies and design work needed for federal or state funding. Grants are rarely competitive before growth creates measurable demand.

 

Conclusion

Transportation improvements in South Yuba County are a shared effort between development impact fees, competitive grants, and long-term state and federal investments. While projects don’t always move as quickly as we’d like, development in areas like the Sports & Entertainment Zone directly funds critical studies, designs, and smaller improvements—and helps make larger projects competitive for outside funding. Together, these efforts ensure we’re steadily building the infrastructure needed to keep our growing communities safe and connected.