Sacramento County has proposed the creation of a redevelopment district for Fulton Avenue. However, many residents are against the idea of redevelopment, which takes property tax funds and uses them for redevelopment of blighted areas.

The Sacramento Housing and Redevelopment Agency, a joint city-county authority that is responsible for redevelopment, wants to make improvements on the Fulton Avenue corridor, which is an older commercial region near the Capital City Freeway. Currently, this area houses a profitable retail strip, which consists of several major automobile dealers. This area brings in about $5 million annually in sales-tax revenue for Sacramento County's general fund.

SHRA believes that this area is a potential source of bigger tax income and has proposed public and private improvements for the area. A redevelopment plan would revitalize the area, according to SHRA officials, turning small parcels into excellent sites for new retailers. SHRA would also have the power to sell bonds and issue grants for property improvements.