SF to bail out Transbay project after costs nearly double
By Joshua Sabatini : sfexaminer – excerpt
San Francisco’s major Transbay transportation and development project has nearly doubled in cost since 2008, and The City is now poised to borrow hundreds of millions of dollars to offset the most recent negative financial blow.
Supervisors justified bailing out the project at a Board of Supervisors Budget and Finance Committee meeting Wednesday by noting the project is crucial to The City’s future transportation network.
When construction began in 2008 on building a new Transbay terminal and a six-story Transbay Transit Center — long celebrated as the “Grand Central Station of the West” — the project was estimated to cost $1.189 billion.
But “due to numerous errors” that cost has since ballooned by 90 percent, or $1 billion, for a total project cost of $2.259 billion, according to a report by Budget Analyst Harvey Rose.
To address the latest shortfall, The City has proposed issuing $260 million of certificates of participation, which would be paid back through the project area’s special tax district revenues. The Budget and Finance Committee approved the borrowing proposal Wednesday, which will go before the full board for a vote May 3… (more