San Francisco: $260 Million Bailout Approved for Transbay Transit Center

[marmar]

from the SF Examiner:



San Francisco approved a $260 million bailout of the major Transbay transportation and development project Tuesday after multiple errors have sent costs soaring to nearly double the initial estimate.

The multibillion-dollar project’s bailout, which was introduced by Mayor Ed Lee, was approved by the Board of Supervisors in a 10-1 vote.

Board members have expressed concerns about the cost escalations, but say the project is too important not to assist with funding to ensure its completion. The board vote authorizes the issuance of certificates of participation debt which would be paid back through the capture of property taxes within the Transbay area.

Since 2008, the project costs have increased by about 90 percent, from $1.189 billion to $2.259 billion. The latest shortfall estimate shows $260 million is needed to complete Phase 1 of the project by December 2017.

Tied to the rebuild of the Transbay Terminal, which is hailed as the “Grand Central Station of the West,” is the redevelopment of 40 acres within the area bounded by Mission, Main, Second and Folsom streets. ...................(more)

http://www.sfexaminer.com/260m-bailout-approved-transbay-transit-center-2/

[Firebrand Gary]

1. Because it's normal for a project to have cost overruns of a quarter billion.