SF: US DOT Approves $171 Million Loan for Transbay

Source: http://www.carealestatejournal.com/index.cfm?eid=907551&evid=1&source=email

JANUARY 28, 2010

DOT Approves $171 Million Loan for Transbay

SAN FRANCISCO - A $171 million loan was approved by the Department of Transportation Jan. 26 for construction of the Transbay Transit Center in San Francisco.

The Transbay Joint Powers Authority wanted the Transportation Infrastructure Finance and Innovation Act loan due to its favorable investment-grade credit rating.

The loan will finance 14 percent of the project's $1.2 billion first phase, which consists of the construction of ramps to the Bay Bridge, a bus storage facility and the design of an underground transit facility.

The authority has applied for $400 million in federal economic stimulus funds to build below-grade train levels as part of the first phase of construction, which could save the project $100 million.

The loan for the $4.2 billion transit hub could enhance the development of high-speed rail in California,

"In addition to creating jobs, high-speed rail will spur commerce while reducing greenhouse gases and reliance on foreign oil," said Democratic Sen. Dianne Feinstein.

House Speaker Nancy Pelosi praised the project for spurring nearby housing and businesses to revitalize the neighborhood.

The project broke ground on a temporary terminal in December 2008 and completion is expected in 2014 with an estimated total cost of $4 billion.

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