The Transbay Transit Center project, fraught with rising costs and loss of anticipated revenue, has taken a short-term loan from Goldman Sachs that will cost the city's taxpayers $37M in fees and charges.
The $171M bridge loan will provide $134M toward the project. The cost of the project has more than doubled to $2.4B since it broke ground in 2010, according to the San Francisco Chronicle. The transit authority needs at least $250M to finish the first phase, and its BBB-minus credit rating has limited its loan options.
Losses such as Crescent Heights' decision to walk away from the $165M purchase of Transbay Parcel F (a transaction that would have helped finance the transit center's construction) mean the project cannot rely on a federal government loan for the $171M, which would have carried more favorable terms.
The Transbay Joint Powers Authority still wants to sell the land and repay the bridge loan by August, which could save up to $19.6M. [SFC]
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