Work might continue without stopping through the summer on the troubled Transbay Transit Center with the help of a $260M bailout loan from Wells Fargo and the Metropolitan Transportation Commission (MTC). The proposed emergency financing would be in the form of a loan with a term of five to 10 years. Taxes from nearby developers and property owners would be used to pay down the loan, according to the San Francisco Chronicle.
Officials hope to contain further cost escalations by having a three-member committee made up of San Francisco’s Controller, MTC director and Transbay Joint Powers Authority executive director approve any expenditures from the bailout money. The city’s supervisors also could approve or reject any lease with tenants on the property.
Costs have ballooned at the transportation center by around $1B since 2008 ($360M of that happened just in the past two years). The project has seen delays and developer walkouts. These difficulties have reportedly led to the ouster of Transbay Joint Powers Authority executive director Maria Ayerdi-Kaplan. Mayor Ed Lee continues to support the project and the bailout.
Supervisor Aaron Peskin is more pessimistic about the project. He cited competing demands for public dollars such as public safety and road repair as more deserving of the bailout money.
Transbay Joint Powers Authority board chairman Greg Harper says the project needs to be completed. [SFC]
)
)
)
)
)
)
)
)
)
)
)
)