San Francisco: $260 Million Bailout in Works for Troubled Transit Center Project (xp from Pub Trans)

[KamaAina]

CA: $260 Million Bailout in Works for Troubled Transit Center Project

J.K. Dineen On Apr 11, 2016
Source: McClatchy

The city is proposing a $260 million emergency bailout of the struggling Transbay Transit Center construction project in downtown San Francisco, a loan that officials say is needed to prevent work on the $2.25 billion transportation hub from shutting down this summer.

The unusual loan, which would be paid back over the next five to 10 years with taxes collected from developers and property owners in the neighborhood's burgeoning high-rise district, is proposed as projected costs on the transit center have climbed $360 million in the past two years alone. Since 2008, project costs have soared by $1 billion.

On Tuesday, city Controller Ben Rosenfield will introduce the proposed financing package to the Board of Supervisors, which must approve it along with the regional Metropolitan Transportation Commission. The short-term financing will cover a projected shortfall of $149 million for fiscal year 2017 and $98.5 million in 2018. The city will borrow $160 million from Wells Fargo, and the MTC will provide $100 million.

'An investment'

The proposed financing comes just a week after sources say the Transbay Joint Powers Authority Board of Directors decided to oust Maria Ayerdi-Kaplan, the longtime executive director of the agency, which is responsible for the construction and oversight of the transit center. The date of Ayerdi-Kaplan's departure is still unclear, and she didn't return a call seeking comment. .......(more)

http://www.masstransitmag.com/news/12192896/ca-260-million-bailout-in-works-for-troubled-transit-center-project

h/t marmar

[KamaAina]

1. Oh, brother. But they can't come up with a quarter billion for affordable housing.